Of course, this is unlawful, but that doesn't really seem to stop the government these days.
As such, it is also subject to being eliminated by legislatures. As the article mentions, New Mexico did this. That this has not happened at the federal level is in fact not an indication of a misbehaving executive branch. It is an indication that Congressman do not find the issue relevant to their reelection.
http://en.wikipedia.org/wiki/Civil_forfeiture_in_the_United_...