United States of America v. 2,392,708.12

Filing 123

FINAL CONSENT JUDGMENT OF FORFEITURE OF DEFENDANT ASSETS by Judge S. James Otero: All of the Defendant Assets in the In Rem Actions shall be forfeited, less a sum not exceeding 125,000.99 which will be withheld from the defendant assets in the ins tant case to pay the fees and expenses of the Receiver and its counsel as may be allowed by the Court in the SEC Action and to the extent thatthe receivership estate has insufficient assets to pay such fees and expenses otherwise. The Forfeited Asset s, less a minor amount of costs attributable to the Claims Process, and the costs to be incurred and liens to be paid in connection with the sale of the Diamond Bar Property. 2. FINBAR VICTIMS ALLOWED CLAIMS. The claims of Finbar Victims shall be all owed in theaggregate amount of $8,787,656.25 as follows: Name Allowed Claim Amount(a) Juergen Votteler $2,273,810.47;(b) Werner Weber $1,287,880.00;(c) Mattias Baumeler $1,000,100.00;(d) Peter Wuergatsch $1,100,070.00;(e) Jer i Tulipan $762,788.05;(f) Manfred Trocha $1,963,355.25;(g) Meera Anstalt $399,652.48. NON-FINBAR VICTIMS ALLOWED CLAIMS. The claims of Non-Finbar Victims shall be allowed in the aggregate amount of $6,351,137. To protect the priva cy rights of the Non-Finbar Victims, the names of the Non-FinbarVictims and itemized amount of each Non-Finbar Victims claimare not included in this Consent Judgment. (see document for other specifics and requirements).( MD JS-6. Case Terminated ) (lc)

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ANDRÉ BIROTTE JR.
United States Attorney
ROBERT E. DUGDALE
Assistant United States Attorney
Chief, Criminal Division
STEVEN R. WELK
Assistant United States Attorney
Chief, Asset Forfeiture Section
California Bar Number 149883
P. GREG PARHAM
Assistant United States Attorney
California Bar Number 140310
U.S. Courthouse, 14th Floor
312 North Spring Street
Los Angeles, California 90012
Telephone: [phone]
Facsimile: [phone]
E-mail: [e-mail]

JS-6

Attorneys for Plaintiff
United States of America

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UNITED STATES DISTRICT COURT

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FOR THE CENTRAL DISTRICT OF CALIFORNIA

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WESTERN DIVISION

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UNITED STATES OF AMERICA,

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Plaintiff,
vs.
$1,573,099.93 IN BANK ACCOUNT
FUNDS, ET AL.,
Defendants.

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CV 06-1971 SJO(AJWx)
FINAL CONSENT JUDGMENT OF
FORFEITURE
[This consent judgment is casedispositive.]

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Plaintiff commenced three civil in rem forfeiture actions

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now pending in the United States District Court for the Central

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District of California: (1) United States of America v.

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$1,573,099.93, Case No. CV 06-1971 SJO (AJWx); (2) United States

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of America v. $35,000 in U.S. Funds, et al., Case No. CV 07-0107

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SJO (AJWx) (these two actions are collectively referred to as

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the “Monetary Actions”); and (3) United States of America v.

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Real Property Located in Diamond Bar, California (Tringham),

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Case No. CV 06-0609 SJO (AJWx) (“Diamond Bar Action”).

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Monetary Actions and the Diamond Bar Action are collectively

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referred to as the “In Rem Actions.”)

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(The

This instant action was filed on March 31, 2006.

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Plaintiff seeks forfeiture of $1,573,099.93 in bank account

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funds and $52,269.09 as a substitute res for a 2006 Land Rover

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Ranger (the “defendant assets").

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in accordance with law.

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Complaint was filed. Docket Number (“DN”) 8.

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Hui Cindy Wang (“Wang”)[pro se] filed a claim to the defendant

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$52,269.09 as a substitute res for a 2006 Land Rover Range

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Rover.1

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president and owner of First National Ban Corp. (“FNBC”) and

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First Asset Management Corp. (“FAMC”), also filed a claim to all

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the defendant assets on July 5, 2006.

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Second Amended Complaint on November 8, 2007.

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18, 2008, Tringham, FNBC and FAMC, through counsel, filed claims

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and an answer to the Second Amended Complaint.

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about January 13, 2012, Robb Evans & Associates LLC (“Robb

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Evans”), the receiver of Finbar Securities Corp. (“Finbar”)

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Notice was given and published

On May 23, 2006, a First Amended
On July 5, 2006,

Robert Tringham (“Tringham”), who was formerly the

DN 11.

Plaintiff filed a
DN 41.

On April

DN 47-50.

On or

On July 2, 2012, on motion of the government, the court struck
the claim of Wang and entered her default because she failed to
file an answer or otherwise defend her interests in this action.
DN 107.
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filed a claim and answer to the Second Amended Complaint because

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FNBC and FAMC were believed to be subsidiaries or affiliates of

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Finbar.2

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Forfeiture as to Tringham was entered, resolving the claims of

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Tringham.

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and the time for filing claims and answers has expired.

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Plaintiff and Receiver have reached an agreement that is

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dispositive of the remaining claims in this action, and have

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requested that the Court enter this Consent Judgment of

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DN 86-87.

DN 113.

On September 19, 2012, a Consent Judgment of

No other claims or answers have been filed,

Forfeiture.
The government has alleged that Tringham conducted

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fraudulent schemes in the names of FNBC.

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entities named First Asset Management Corporation (“FAMC”),

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Colony Mortgage Banc (“CMB”) and Capital Ban Corp (“CBC”).

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Victims of Tringham’s fraudulent schemes perpetrated in the

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names of or through FNBC, FAMC, CMB and CBC are collectively

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referred to as the “Non-Finbar Victims.”

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fraudulent schemes perpetrated in the name of Finbar are

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referred to as the “Finbar Victims.”

Victims of Tringham’s

Tringham was arrested, convicted and sentenced to prison in

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Tringham also used

connection with one or more of the fraudulent schemes

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The Receiver was appointed pursuant to a Preliminary Injunction
and Judgment of Permanent Injunction issued on April 13, 2009 in
Securities and Exchange Commission v. Finbar Securities Corp.
and Robert Tringham, et al., CV 09-2325 ODW(VBKx). Pursuant to
that litigation, the Receiver was appointed as receiver over
Finbar and its affiliates and subsidiaries. FNBC and FAMC are
believed to be two such affiliates and/or subsidiaries of
Finbar.
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perpetuated in the names of or through Finbar, FNBC, FAMC, CMB

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and CBC.

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Plaintiff and the Receiver have engaged in extensive and

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lengthy negotiations in an effort to resolve their disputes and

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differences.

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included the Asset Forfeiture and Money Laundering Section of

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the Department of Justice in Washington, D.C (“AFMLS”) and the

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Securities and Exchange Commission (“SEC”).

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undertake a non-binding victim remission and restoration process

These negotiations have, from time to time,

AFMLS agreed to

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(“Claims Process”) whereby, among other things, AFMLS reviewed

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and approved the proposed allowed claims for all Finbar Victims

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and Non-Finbar Victims to be paid from the Defendant Assets, as

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more particularly set forth herein.

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for Finbar Victims were submitted to AFMLS by the Receiver.

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proposed allowed claims for Non-Finbar Victims were submitted to

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AFMLS by such victims.

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determinations in connection with the distribution of the

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Defendant Assets, based on the claims that were submitted and

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other relevant information.

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with the proposed allowed claims as determined by AFMLS in its

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Claims Process and seek to have the AFMLS claims determinations

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made final and binding.

The proposed allowed claims
The

AFMLS has made proposed allowed claims

Plaintiff and the Receiver agree

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WHEREFORE, IT IS ORDERED, ADJUDGED AND DECREED:

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1.

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Forfeiture of Defendant Assets
All of the Defendant Assets in the In Rem Actions

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shall be forfeited, less a sum not exceeding $125,000 which will

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be withheld from the defendant assets in the instant case to pay

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the fees and expenses of the Receiver and its counsel as may be
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allowed by the Court in the SEC Action and to the extent that

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the receivership estate has insufficient assets to pay such fees

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and expenses otherwise (“Withheld Assets”).

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Assets less the Withheld Assets are referred to as the

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“Forfeited Assets.”

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of costs attributable to the Claims Process, and the costs to be

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incurred and liens to be paid in connection with the sale of the

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Diamond Bar Property, are referred to as the “Net Forfeited

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Assets.”)

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2.

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(The Defendant

The Forfeited Assets, less a minor amount

Finbar Victims Allowed Claims
The claims of Finbar Victims shall be allowed in the

aggregate amount of $8,787,656.25 as follows:

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Name

Allowed Claim Amount

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(a)

Juergen Votteler

$2,273,810.47

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(b)

Werner Weber

$1,287,880.00

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(c)

Mattias Baumeler

$1,000,100.00

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(d)

Peter Wuergatsch

$1,100,070.00

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(e)

Jeri Tulipan

$762,788.05

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(f)

Manfred Trocha

$1,963,355.25

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(g)

Meera Anstalt

$399,652.48

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The claims of Finbar Victims as set forth above shall be

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referred to as “Finbar Victims Allowed Claims.”
3.

Non-Finbar Victims Allowed Claims
The claims of Non-Finbar Victims shall be allowed in

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the aggregate amount of $6,351,137.

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rights of the Non-Finbar Victims, the names of the Non-Finbar

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Victims and itemized amount of each Non-Finbar Victim’s claim

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are not included in this Consent Judgment.
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To protect the privacy

However, the

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government has presented to the Receiver the name of each Non-

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Finbar Victim and the amount of each Non-Finbar Victim’s claim

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by written transmittal made to the Receiver on or about April 1,

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2013.

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amount of the claims is as set forth in this paragraph.

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claims of Non-Finbar Victims as set forth in this paragraph

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shall be referred to as “Non-Finbar Victims Allowed Claims.”

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The Receiver has agreed to those claims and the aggregate

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The

Calculation of Distribution Percentages
The Finbar Victims Allowed Claims and the Non-Finbar

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Victims Allowed Claims are collectively referred to herein as

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the “Allowed Claims.”

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purpose of calculating distributions to Finbar Victims and Non-

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Finbar Victims from the Net Forfeited Assets, as described in

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this paragraph.

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the government to the Finbar Victims and the Non-Finbar Victims

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on a pro rata basis, with each victim’s share of the Net

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Forfeited Assets to be determined by taking such victim’s

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Allowed Claim and dividing it by $15,138,793.36, the aggregate

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total of all Allowed Claims.

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Forfeited Assets for each Finbar Victim (the “Finbar Victims

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Distribution Percentages”) is as follows:

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The Allowed Claims shall be used for the

Net Forfeited Assets shall be distributed by

Name

The pro rata share of the Net

Distribution Percentage

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(a)

Juergen Votteler

.15020

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(b)

Werner Weber -

.08507

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(c)

Matthias Baumeler -

.06606

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(d)

Peter Wuergatsch -

.07267

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(e)

Jeri Tulipan -

.05039

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(f)

Manfred Trocha -

.12969
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(g)

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Plaintiff and the Receiver understand and agree that the

Meera Anstalt -

.02640

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percentages herein, rounded five places, may not reflect the

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exact percentage on their distribution ultimately made by the

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government from the Net Forfeited Assets to the Finbar Victims

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on their Allowed Claims, but that a change from the eventual

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distribution to the Finbar Victims, if any, shall be de minimis

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and only as the result of minor rounding variances.

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5.

No other person or entity shall participate in the

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distribution of Net Forfeited Assets other than the holders of

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Finbar Victims Allowed Claims and Non-Finbar Victims Allowed

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Claims, or their legal successors or assigns.

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Claims may not be amended or revised in any manner.

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6.

The Allowed

As soon as practicable after entry of all of the In

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Rem Judgments, the government shall cause to be marketed and

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sold the Diamond Bar Property consistent with the government’s

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procedures for the marketing and sale of forfeited real

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property.

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7.

As soon as practicable, the Receiver shall bring a

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motion before the Court in the SEC Action seeking approval of

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all unpaid fees and expenses incurred by the Receiver and its

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counsel (“Fee Motion”).

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Fee Motion, the Receiver shall provide a written accounting to

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the government demonstrating the extent to which Withheld Assets

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must be disbursed to the Receiver to pay any allowed and unpaid

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fees and expenses.

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the Withheld Assets must be disbursed to the Receiver shall be

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resolved on motion before the Court in the SEC Action.

After the Court enters an order on the

Any dispute concerning the extent to which

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The

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government shall promptly disburse to the Receiver the amount of

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Withheld Assets needed to pay all allowed and unpaid fees and

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expenses after receipt of the written accounting from the

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Receiver or, if necessary, after the Court in the SEC Action

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resolves any dispute concerning the extent to which the Withheld

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Assets shall be disbursed to the Receiver.

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8.

As soon as practicable after the later of the sale of

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the Diamond Bar Property pursuant to paragraph 6, above, and

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disbursement of Withheld Assets to the Receiver pursuant to

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paragraph 7, above, the government shall cause the distribution

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of the Net Forfeited Assets, including unused Withheld Assets,

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if any, to the holders of Allowed Claims, including without

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limitation, to all of the holders of Finbar Victims Allowed

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Claims in the amount of the Finbar Victims Distribution

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Percentages.

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9.

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The Court shall retain jurisdiction over this matter to

enforce the provisions of this Consent Judgment.

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Dated: September 24, 2013

_
HONORABLE S. JAMES OTERO
UNITED STATES DISTRICT JUDGE

JS-6 THE

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[Signatures of counsel appear on following page]

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Approved as to form and content:

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DATED: September 20, 2013

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ANDRÉ BIROTTE JR.
United States Attorney
ROBERT E. DUGDALE
Assistant United States Attorney
Chief, Criminal Division

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/s/ Steven R. Welk
STEVEN R. WELK
Assistant United States Attorney
Chief, Asset Forfeiture Section

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Attorneys for Plaintiff
United States of America

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DATED: September 20, 2013

MCKENNA LONG & ALDRIDGE LLP

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/s/ Gary Owen Caris
GARY OWEN CARIS
LESLEY ANNE HAWES
ATTORNEY FOR RECEIVER
ROBB EVANS & ASSOCIATES LLC

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