United States of America v. Real Property Located in Beverly Hills, California

Filing 85

CONSENT JUDGMENT OF FORFEITURE by Judge Dale S. Fischer. (SEE JUDGMENT FOR SPECIFICS) (bp)

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UNITED STATES DISTRICT COURT

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FOR THE CENTRAL DISTRICT OF CALIFORNIA

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WESTERN DIVISION
UNITED STATES OF AMERICA,

No. CV-16-5363-DSF (PLAx)

Plaintiff,
[CONSENT JUDGMENT OF FORFEITURE

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v.

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REAL PROPERTY LOCATED IN BEVERLY
HILLS, CALIFORNIA,

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Defendant.
NEIL MOFFITT
and
1169 NORTH HILLCREST, LLC.
Claimants.

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On July 20, 2016, Plaintiff United States of America

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(“Plaintiff” or the “United States”) commenced this action, and

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notice was given and published in accordance with law.

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Neil Moffitt (“Moffitt”) and 1169 North Hillcrest, LLC (collectively,

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“Claimants”) filed the only claims to the defendant real property

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located in Beverly Hills, California (the “Defendant Real Property”).

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No other claims or answers have been filed, and the time for filing

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such claims and answers has expired.

Claimants

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Now, the parties have reached an agreement that is dispositive

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of the claims to the Defendant Real Property.

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Stipulation and Request for a Consent Judgement, and for good cause

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shown, IT IS ORDERED, ADJUDGED AND DECREED:

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A.

This Court has jurisdiction over this action pursuant to 28

U.S.C. §§ 1345 and 1355, and over the parties hereto.

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Based on the parties’

B.

The Verified Complaint for Forfeiture states a claim for

relief pursuant to 18 U.S.C. § 981(a)(1)(A) and (C).

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C.

Notice of this action has been given in accordance with

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law.

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than Claimants are deemed to have admitted the allegations of the

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Complaint.

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to establish a basis for forfeiture.

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All potential claimants to the Defendant Real Property other

D.

The allegations set out in the Complaint are sufficient

The net proceeds of the sale of the Defendant Real Property

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shall be held in the client trust account of Claimants’ attorney,

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Ronald Richards, Ronald Richards and Associates, A.P.C., Beverly

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Hills, California (the “IOLTA Account”), pending distribution as

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follows:

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a.

Forthwith, Moffitt shall file Internal Revenue Service

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(“IRS”) Form 1040 for tax year 2016, correctly reporting all taxable

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income received and allowable deductions.

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with the IRS in its efforts to examine his Forms 1040 for tax year

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2016 and Moffitt’s previously filed Form 1040 for tax year 2015.

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Specifically, Moffitt shall continue to provide the IRS with any

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information or documents requested to substantiate the items reported

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on said Forms 1040.

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b.

Moffitt shall cooperate

Moffitt shall fully cooperate with the IRS in its

assessment and collection of the tax liabilities reported on the
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Forms 1040 described in sub-paragraph a, as well as the statutory

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interest and penalties related to such tax liabilities, as

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applicable.

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c.

Moffitt waives all defenses to the assessment and/or

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collection of the tax liabilities reported on the Forms 1040

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described in sub-paragraph b, as well as statutory interest and

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penalties related to said tax liabilities, including any defense

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based on the expiration of the period of limitations on assessment or

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collection.

With respect to tax liabilities reported on the Forms

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1040 described in sub-paragraph b, and statutory interest and

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penalties related to said tax liabilities.

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to Collection Due Process (“CDP”) hearings before the Office of

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Appeals under I.R.C. §§ 6320 and 6330.

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rights to hearings before the Office of Appeals, including hearings

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under the Collection Appeals Program (“CAP”), and Appeals

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consideration of the rejection or termination of any alternative

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payment proposal.

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Appeals consideration of the merits of the underlying liability and

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any matters concerning collection of the tax liability, including any

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challenges to Notices of Federal Tax liens or levies, and challenges

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to termination of an installment agreement, payment extension,

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rejected or defaulted Offer in Comprise or other promises regarding

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payment.

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appeal rights that are waived by this agreement, including the right

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to receive CDP notices under I.R.C. §§ 6330 and 6330.

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all restrictions on levy under I.R.C. §§ 6330 and 6331.

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Notwithstanding any other language herein, Moffitt retains his rights

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in accordance with Section 6404 of the Internal Revenue Code of 1986,

Moffitt waives all rights

Moffitt waives all other

This waiver includes the waiver of all rights to

Moffitt further waives the right to receive notices of

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Moffitt waives

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as amended, to seek abatements of any interest and penalties on tax

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assessments for tax years 2015 and 2016.

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d.

Following Moffitt’s filing of Form 1040, as described

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above in sub-paragraph a, sufficient funds from the IOLTA Account

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shall be directed to the IRS to fully pay Moffitt’s tax liabilities

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as identified in Forms 1040 for tax years 2015 and 2016 as well as

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$562,107, which amount is the estimated interest due the IRS

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resulting from Moffitt’s tax liability for tax year 2015.

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e.

From the date the IRS receives the funds described in

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sub-paragraph d, the IRS shall have six months to determine whether

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any additional tax liabilities or interest are owed for 2015 and/or

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2016, and $500,000 from the proceeds of the sale of the Defendant

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Real Property shall be held and remain in the IOLTA Account during

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such time (the “Remainder Funds”).

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should the IRS determine that any additional tax liability or

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interest is owed, the amount of such liability promptly shall be

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directed from the IOLTA Account to the IRS to fully satisfy such

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liabilities and/or interest.

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discrepancy should the Remainder Funds be insufficient to satisfy any

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interest, debt, or liability to the IRS.

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month period, the IRS has not completed its determination of

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additional liabilities or interest due, or if the IRS determines no

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additional liability or interest is due, the Remainder Funds shall be

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released to Claimants.

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Judgment does or shall prohibit or restrain the IRS from seeking

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additional liabilities or interest due, notwithstanding whether the

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IRS makes any determination within the six-month period described

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herein.

During this six-month period,

Moffitt shall be responsible for any

If, following this six-

Neither this Stipulation nor the Proposed

Further, for all years, including tax years 2015 and 2016,
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nothing in this Stipulation or the proposed Judgment shall prohibit

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or in any way impede the IRS from assessing and collecting any and

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all tax liabilities, additions to tax, penalties, and interest, all

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of which rights and obligations to assess and collect are hereby

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reserved.

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f.

Following the payment of funds to the IRS described in

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sub-paragraph d, and subject to the reservation of the Remainder

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Funds described in sub-paragraph e, any surplus funds from the sale

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proceeds of the Defendant Real Property shall be released to

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Claimants.

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E.
costs.

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Each of the parties shall bear its own attorney’s fees and

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The Court shall retain jurisdiction to enforce this

Judgment.

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G.

The Court finds that there was reasonable cause for the

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institution of these proceedings.

This judgment shall be construed

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as a certificate of reasonable cause pursuant to 28 U.S.C. § 2465.

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5/30/17

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DATE

HONORABLE DALE S. FISCHER
UNITED STATES DISTRICT JUDGE

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SIGNATURE OF PARTIES ARE ON NEXT PAGE

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Approved as to form and content:

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DATED: May __, 2017

DEBORAH CONNOR
Acting Chief, MLARS

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SANDRA R. BROWN
Acting United States Attorney

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JOHN J. KUCERA
CHRISTEN A. SPROULE
Assistant United States Attorneys

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WOO S. LEE
Deputy Chief, MLARS
KYLE R. FREENY
Trial Attorney, MLARS

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Attorneys for Plaintiff
UNITED STATES OF AMERICA

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DATED: May __, 2017
NEIL MOFFITT,
Both in his individual capacity and on
behalf of 1169 Hillcrest, LLC

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DATED: May __, 2017
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JOHN PAPPALARDO,
Attorney for Claimants
Neil Moffitt and
1169 Hillcrest, LLC

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