United States of America v. Index Investments, Inc. et al

Filing 16

FINAL JUDGMENT OF PERMANENT INJUNCTION AGAINST DEFENDANTS INDEX INVESTMENTS, INC., D/B/A FULLERTON RESIDENTIAL MANOR, SANFORD DEUTSCH, AND MARK DEUTSCH (SEE DOCUMENT FOR SPECIFICS AS TO FICA TAXES, DEPOSIT OF FUTURE FUTA TAXES AND OTHER INSTRUCTIONS AND R COMPLIANCE REQUIREMENTS THEREIN) by Judge Dean D. Pregerson. (MD JS-6. Case Terminated) (lc)

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STEPHANIE YONEKURA
Acting United States Attorney
SANDRA R. BROWN
Assistant United States Attorney
Chief, Tax Division
BENJAMIN L. TOMPKINS (CA SBN Pending / D.C. Bar No. 474906)
Assistant United States Attorney
Federal Building, Suite 7516
300 North Los Angeles Street
Los Angeles, California 90012
Telephone: [phone]
Facsimile: [phone]
E-mail: [e-mail]

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Attorneys for Plaintiff
United States of America

JS-6

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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,
Plaintiff,
v.

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INDEX INVESTMENTS, INC., et al.,
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Defendants.

Case No. 2:14-cv-05880-DDP-JEM
FINAL JUDGMENT OF PERMANENT
INJUNCTION AGAINST
DEFENDANTS INDEX
INVESTMENTS, INC., D/B/A
FULLERTON RESIDENTIAL MANOR,
SANFORD DEUTSCH, AND MARK
DEUTSCH

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Plaintiff, the United States of America, has filed a complaint seeking a permanent

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injunction against Defendants Index Investments, Inc., d/b/a Fullerton Residential Manor
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(“Index Investments”), Sanford Deutsch, and Mark Deutsch (the “Deutsch Defendants”).
The parties have now filed a joint stipulation for the entry of a final judgment of

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permanent injunction executed by the United States and each of the Defendants. For
good cause shown, upon the joint stipulation and agreement of the parties, after

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reviewing the entirety of the record and in accordance with 26 U.S.C. § 7402(a), it is:

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ORDERED and ADJUDGED that the Joint Stipulation for Entry of Permanent

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Injunction is ADOPTED and the Court enters a Final Judgment of Permanent Injunction
in favor of the United States and against Index Investments and the Deutsch Defendants.

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IT IS FURTHER ORDERED and ADJUDGED that the terms of the Permanent
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Injunction are as follows:
(1) Index Investments and the Deutsch Defendants (individually and doing

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business under any other name or using any other entity that either Deutsch
Defendant may come to own or control, either directly or indirectly, including

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resuming any previous company that is now dormant), are prohibited from
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failing to withhold and pay over to the IRS all employment taxes, including
federal income and FICA (Federal Insurance Contributions Act) taxes, required

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by law that are required to be deposited and/or owed after the date of this
permanent injunction (hereinafter the “Future Withheld Taxes”), as well as pay

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over any employer’s share of future FICA taxes and FUTA (Federal
Unemployment Tax Act) taxes that are owed and become due after the date of

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this permanent injunction.
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(2) Index Investments and the Deutsch Defendants shall segregate and hold
separate and apart from all other funds all Future Withheld Taxes and to

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deposit the monies so withheld and collected, as well as the employer’s share

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of future FICA taxes, in an appropriate federal depository bank in accordance

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with the federal deposit regulations.
(3) Index Investments and the Deutsch Defendants shall deposit future FUTA

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taxes in an appropriate federal depository bank each quarter in accordance with
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the federal deposit regulations.
(4) Index Investments and the Deutsch Defendants, and any other individuals who

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are responsible for carrying out the duties established by this Permanent
Injunction with regards to Index Investments, shall, for a period of five years,

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sign and deliver affidavits to Internal Revenue Service Revenue Officer B.
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Huerta at 222 N. Sepulveda Blvd STE 800, El Segundo, CA 90245, or to such
other specific location as directed by the IRS, no later than the twentieth day of

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each month, stating that the requisite deposits or payments of Future Withheld
Taxes, employer’s share of FICA taxes, and FUTA taxes that accrue after the

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date of this permanent injunction were timely made.
(5) Index Investments and the Deutsch Defendants shall timely file all Form 941

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and Form 940 tax returns due after the date of this permanent injunction with
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the IRS in care of Revenue Officer Huerta, or to such other specific location as
directed by the IRS.

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(6) Index Investments and the Deutsch Defendants shall timely pay all Future
Withheld Taxes, all future employer’s share of FICA taxes, and all future
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FUTA taxes due from Index Investments (or any new company that either

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Deutsch Defendant may come to own or control, either directly or indirectly,
including resuming any company that is now dormant), including all liabilities

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reported as owed on any Form 940 or Form 941 filed by Index Investments (or
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any new company that either Deutsch Defendant may come to own or control,
either directly or indirectly, including resuming any company that is now

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dormant).
(7) In the event all required Future Withheld Taxes, future employer’s share of the

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FICA taxes and future FUTA taxes due from Index Investments’ (or any new
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company or resuming any previous company that is now dormant that either
Deutsch Defendant may come to own or control, either directly or indirectly in

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the next five years), regardless of whether the liabilities are reported on a Form
940 or 941 return, are not timely paid, Index Investments and the Deutsch

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Defendants shall not assign any property or rights to property or make any
disbursements before paying such taxes.

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(8) Each Deutsch Defendants shall notify the IRS of his future employment tax
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conduct with respect to any new or presently unknown company, including the
imposition of an affirmative duty upon either Deutsch Defendant, as principal

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officer, to notify Internal Revenue Service Revenue Officer Huerta (or to such
other person as directed by the IRS) in the future of any new company that
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either Deutsch Defendant may come to own, manage, or work for in the next

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five years.
IT IS FURTHER ORDERED and ADJUDGED that this Court retains jurisdiction

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over this case to ensure compliance with this permanent injunction and that the United
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States is authorized to take post judgment discovery to ensure compliance with this
Permanent Injunction.

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IT IS SO ORDERED.

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Dated: February 19, 2015
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DEAN D. PREGERSON
United States District Judge

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Respectfully Submitted,

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STEPHANIE YONEKURA
Acting United States Attorney
SANDRA R. BROWN
Assistant United States Attorney
Chief, Tax Division

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______/s/__________________________
BENJAMIN L. TOMPKINS
Assistant United States Attorney
Attorneys for the United States of America, Plaintiff

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