By admin 
GLENDALE, AZ — A Glendale small business owner filed a federal lawsuit Tuesday against the agencies that raided his store 20 months ago, saying they took his property and then went silent.
Read more Safety warning issued for hundreds of thousands of pressure cookers nationwide
Mario Ayala, owner of Ayala’s Mini Market, is asking a federal court to order the IRS and Homeland Security Investigations to return what agents seized in February 2025. His attorneys with the Institute for Justice say the government never told him what he allegedly did wrong or how to get his property back.
The store is a neighborhood convenience store that also operates as a money services business, offering check cashing and money transfers. Ayala was out of the country caring for his ailing father when agents raided it. His attorneys say it was one of 19 Phoenix-area money services businesses targeted that month.
, the search warrants listed one suspected offense: structuring, the crime of breaking up large transactions into smaller ones to avoid federal reporting requirements. Ayala’s attorneys say agents never provided evidence of structuring or any other wrongdoing. Ayala has not been charged.
Attorneys say agents spent hours questioning employees, then took hundreds of thousands of dollars in cash and checks, along with computers, business documents and five cell phones. They left an inventory that did not state how much cash was taken. Ayala’s attorneys say agents told the store it could keep operating and that the government would be in touch within 30 days.
“The government went completely silent, and the agencies have never told Mario why they took his property or how to get it back,” Institute for Justice attorney Betsy Sanz said at a news conference outside the Sandra Day O’Connor Courthouse in Phoenix. “And here it is a year and a half later.”
Read more FTC warns retailers about AI-powered personalized pricing
Ayala said he had to buy three new computers to keep the business running.
The lawsuit makes three arguments:
- The seizure violated the Fourth Amendment, because the government cannot take property and hold it indefinitely.
- The government violated the Civil Asset Forfeiture Reform Act, which requires forfeiture notices within 90 days of a seizure.
- The seizure violated the Clyde-Hirsch-Sowers Act, which bars the IRS from seizing property when structuring is the only offense for which there is evidence.
“Under our Constitution, the government can’t just take your stuff and then ghost you,” Sanz said.
IJ attorney Katrin Marquez, Ayala said he feels “awful” because he believes the business did nothing wrong. “It is really unjust,” he said. He added that he is a little nervous but has faith that justice will be done and his property will be returned.
Ayala urged other business owners affected by the raids to fight back and try to recover their property.
The IRS and Homeland Security Investigations did not immediately respond to a request for comment.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Read more Trump pushes ‘New America’ name for New Mexico as state leaders object