Local
Glendale market owner asks court to return property taken in 2025 raid
Mario Ayala says federal agents seized hundreds of thousands of dollars, business records and devices from his Glendale store in February 2025, then provided no explanation or path to recover them. His new lawsuit challenges the seizure and seeks the return of the property.
GLENDALE, Ariz. — A Glendale shop owner is asking a federal court to order the return of cash, computers, documents and phones seized from his business during a February 2025 raid by federal agents.
Mario Ayala, who owns Ayala’s Mini Market, filed suit Tuesday against the Internal Revenue Service and Homeland Security Investigations. His attorneys say the agencies have not told him what wrongdoing they suspected or how he can reclaim the property. Ayala has not been charged with a crime.
The market also provides financial services, including check cashing and money transfers. According to the lawsuit, agents spent hours questioning employees before taking hundreds of thousands of dollars in cash and checks, as well as computers, business records and five cellphones. The inventory agents left behind did not specify the amount of money seized, the filing says.
Ayala was outside the country caring for his ailing father when the raid occurred. His attorneys say his business was among 19 Phoenix-area money-services businesses targeted that month. The warrants identified suspected “structuring” — dividing transactions into smaller amounts to avoid federal reporting requirements — as the suspected offense, according to the lawsuit. Ayala’s lawyers say the government has not presented evidence of that or other wrongdoing.
The lawsuit argues that holding the property violates the Fourth Amendment and federal laws governing civil forfeiture. It says the Civil Asset Forfeiture Reform Act requires forfeiture notices within 90 days of a seizure, and invokes the Clyde-Hirsch-Sowers Act, which restricts IRS seizures when structuring is the only suspected offense.
The government told the store it could continue operating and would hear back within 30 days, according to Ayala’s attorneys. Ayala said he bought three replacement computers to keep the business running.
“The government went completely silent,” said Institute for Justice attorney Betsy Sanz at a news conference outside the Sandra Day O’Connor Courthouse in Phoenix. Ayala said he feels the seizure was unjust and hopes the court will help him recover his property.
The IRS and Homeland Security Investigations did not immediately respond to a request for comment.