Glendale Business Owner Sues Federal Government For Seizing Cash, Property Without Explanation

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October 25, 2026

By Staff Reporter |

The owner of a small business in Glendale is suing the federal government for a raid in which it took money and property.

Ayala’s Mini Market, a money services business, was raided by the Homeland Security Investigations (HSI) and Internal Revenue Services (IRS) last February as part of a coordinated sting on 19 small businesses throughout the Valley.

Federal agents took an untold amount of cash, along with five phones, three computers, and business documents including cwhecks and receipts. HSI and the IRS obtained warrants marked under seal based on suspicion of structuring, a crime of evading reporting or recordkeeping requirements by breaking up large transactions into multiple small ones.

The Institute for Justice (IJ) is suing the federal government on behalf of Mario Ayala, the owner of Ayala’s Mini Market. IJ filed the lawsuit in the U.S. District Court for the District of Arizona on Tuesday.

IJ stated that Ayala was never advised of the crimes he allegedly committed or given a way to contest the seizure of his property. IJ attorney Betsy Sanz stated in a press release announcing the lawsuit that the seizure is unconstitutional and illegal.

“The government can’t take your stuff, disappear, and then never explain itself,” said Sanz. “For over a year and a half, the government has been holding Mario’s money and property. This prolonged seizure violates the Fourth Amendment and federal law. The government cannot hold onto your property indefinitely without explanation so it can eventually take it permanently using civil forfeiture.”

IJ is arguing that the seizure violates the Fourth Amendment by holding property indefinitely without justification; the Civil Asset Forfeiture Reform Act, which requires governmental forfeiture notices within 90 days of property seizure; and the Clyde-Hirsch-Sowers Act, which prohibits property seizures where structuring is the only offense for which evidence exists.

The organization requested the return of Ayala’s property and the production of the complete warrant and application for the warrant with the affidavit supporting it.

Ayala said Ayala’s Mini Market is his American dream and how he provides for his family. According to Ayala, the seizure continues to cause harm to his family.

“This business is my American Dream and the government took years of my hard work without telling me what I did,” said Ayala. “This raid hurt me and my family. I hope this lawsuit gets my money back and helps make sure this doesn’t happen to anyone else.”

IJ considers civil forfeiture one of their pillars, or issues on which they take action; the organization aims to abolish civil forfeiture entirely. Civil forfeiture is when government entities seize personal property without charges or a criminal conviction.

Estimates in recent years reflect that law enforcement seizes tens of millions of dollars in cash and property every single year in Arizona. IJ estimated that Arizona brought in at least $729 million in state and federal forfeiture revenue from 2000 to 2023.

IJ also found that, from 2019 to 2023, half of the currency forfeitures in Arizona were less than $1,271. Nearly two-thirds of forfeitures were currency in that same time period.

IJ awarded Arizona a “D-” rating for its civil forfeiture laws.