United States of America v. 192,765.09 In Bank Funds

Filing 31

CONSENT JUDGMENT OFFORFEITURE by Judge Philip S. Gutierrez in favor of United States of America against 192,765.09 In Bank Funds; in favor of David A. Gill, as Chapter 7 Trustee against United States of America. WHEREFORE, IT IS ORDERED, ADJUDGED AN D DECREED: The United States of America shall have Judgment as to $69,380.40 of the defendant bank funds, together with all interest earned by the government on that portion of the defendant bank funds since the date of seizure, and no other per son or entity shall have any right, title or interest therein. The remaining $123,384.69 of the defendant bank funds, together with any interest earned on that amount since the date of seizure, shall be paid to Claimant by the United States Marshals Service ("USMS") no later than 60 days from the date of entry of this Judgment. (see document for further details) (MD JS-6. Case Terminated) (bm)

E-FILED-7/10/17
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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,

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Plaintiff,

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No. CV 16-08732-PSG-SK
[proposed] CONSENT JUDGMENT OF
FORFEITURE

v.

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$192,765.09 IN BANK FUNDS,

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Defendant.

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DAVID A. GILL, CHAPTER 7 TRUSTEE
FOR THE ESTATE OF PROCARE MOBILE
RESPONSE, LLC,

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Claimant.
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This action was filed on November 22, 2016.

Notice was given

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and published in accordance with law and claimant David A. Gill,

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Chapter 7 Trustee (“Trustee”) for the estate of Procare Mobile

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Response, LLC (“Claimant”) 1 filed a timely claim to contest the

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On January 13, 2015 (the “Petition Date”), Procare Mobile
Response, LLC (the “Debtor”) filed a voluntary petition for relief

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forfeiture of the defendant bank funds on January 11, 2017.

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are no other statements of interest or answers, 2 and the time for

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filing such statements of interest and answers has expired.

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Plaintiff United States of America (the “government”) and Claimant

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have reached an agreement that is dispositive of the claim to the

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defendant bank funds in this action.

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the Court enter this Consent Judgment of Forfeiture.

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WHEREFORE, IT IS ORDERED, ADJUDGED AND DECREED:

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A.

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The parties have requested that

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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There

B.

The Complaint for Forfeiture states a claim for relief

pursuant to 18 U.S.C. §§ 981(a)(1)(A) and 984.

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C.

Notice of this action has been given in accordance with

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law.

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defendant bank funds other than Claimant are deemed to have admitted

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the allegations of the Complaint.

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Complaint are sufficient to establish a basis for forfeiture.

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For purpose of this action, all potential claimants to the

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The allegations set out in the

The United States of America shall have Judgment as to

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$69,380.40 of the defendant bank funds, together with all interest

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earned by the government on that portion of the defendant bank funds

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since the date of seizure, and no other person or entity shall have

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under chapter 11 of title 11 of the United States Code (the
“Bankruptcy Code”). The petition was filed with the United States
Bankruptcy Court for the Central District of California, Los Angeles
Division (the “Bankruptcy Court”), and assigned case number 2:15-bk10469-WB (the “Bankruptcy Case”). On or about April 21, 2015, the
Bankruptcy Case was converted to one under chapter 7 of the
Bankruptcy Code. David A. Gill is the chapter 7 trustee.

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On January 5, 2017, Zinovy Ganopolsky filed a claim, but
withdrew that claim on March 28, 2017.
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any right, title or interest therein.
E.

The remaining $123,384.69 of the defendant bank funds,

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together with any interest earned on that amount since the date of

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seizure, shall be paid to Claimant by the United States Marshals

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Service (“USMS”) no later than 60 days from the date of entry of this

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Judgment, through its counsel, John N. Tedford, IV, Danning, Gill,

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Diamond & Kollitz, LLP, 1900 Avenue of the Stars, 11th Floor, Los

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Angeles, California 90067.

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$54,004.29 (the “Segregated Funds”) in a segregated account (the

Claimant shall deposit the sum of

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“Segregated Account”), to be disbursed in accordance with paragraphs

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F and G below.

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estate.

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F.

The balance shall be free and clear funds of the

The Segregated Funds shall be earmarked for payment as

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follows: (i) Within ten business days after receipt of the Segregated

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Funds, the Trustee shall pay, from the Segregated Funds, all of the

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undisputed Priority Wage Claims in the Bankruptcy Case; 3 (ii) The

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Trustee shall reserve $12,475.00 for Charles Bowen’s claim until (a)

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the Trustee and the claimant agree on the amount of the claim

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entitled to allowance and priority under § 507(a)(4) of the

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Bankruptcy Code (if any), or (b) the Bankruptcy Court enters an order

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determining the amount of the claim entitled to allowance and

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In the Bankruptcy Case, the deadline for creditors (except
governmental units) to file proofs of claims was September 8, 2015
(the “Claims Bar Date”). Prior to the Claims Bar Date, 20 of the
Debtor’s former employees filed proofs of claims asserting claims for
unpaid wages, salaries, commissions, vacation pay, severance pay and
sick leave pay entitled to priority under § 507(a)(4) of the
Bankruptcy Code (collectively the “Priority Wage Claims”). The
aggregate amount of the Priority Wage Claims is $54,004.29. A
schedule identifying the Priority Wage Claims is attached as Exhibit
A.
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priority under § 507(a)(4) of the Bankruptcy Code.

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then pay, from the Segregated Funds, the agreed-upon or Court-

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determined amount entitled to priority; and (iii) The Trustee shall

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comply with applicable non-bankruptcy law with respect to the

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reporting, withholding and payment of federal and state income taxes,

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social security taxes, unemployment taxes, Medicare taxes and any

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other like taxes required to be withheld from an employee’s paycheck.

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Such amounts shall be withheld and paid from the funds that would

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otherwise be paid to each respective holder of a Priority Wage Claim.

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G.

The Trustee shall

If the amount paid by the Trustee for any claim listed in

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paragraph F is less than the amount reserved to pay that claimant’s

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Priority Wage Claim as scheduled in Exhibit A, the difference shall

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be disbursed from the Segregated Funds within 30 days from the date

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of payment or the date on which it is determined by agreement or by

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the Bankruptcy Court that no payment is due, as follows: (i) one-half

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to the United States of America; and (ii) one-half to Claimant, as

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free and clear funds of the estate.

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States of America pursuant to Paragraph G shall be made payable to

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the USMS and sent to counsel for the government.

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be deemed forfeited pursuant to the Consent Judgment of Forfeiture

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and no other person or entity shall have any right, title or interest

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therein.

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H.

Any funds paid to the United

Those funds shall

Claimant has released the United States of America, its

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agencies, agents, and officers, including employees and agents of the

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Federal Bureau of Investigation and Health and Human Services, from

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any and all claims, actions or liabilities arising out of or related

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to this action, including, without limitation, any claim for

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attorney’s fees, costs or interest which may be asserted on behalf of
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Claimant, whether pursuant to 28 U.S.C. § 2465 or otherwise.

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in this stipulation or the proposed consent judgment is intended as,

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nor should anything in this stipulation or the proposed consent

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judgment be interpreted as an admission by Claimant of any fact

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alleged by Plaintiff in its complaint filed in this action, or any

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liability or wrongdoing. Further, nothing in this Stipulation or the

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proposed consent judgment is intended to be, or shall be interpreted

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as, a waiver or release of Medicare claims submitted by Procare

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Mobile Response, LLC, and the Trustee, and appeals relating to the

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Nothing

rejection of such claims..
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The Court finds that there was reasonable cause for the

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institution of these proceedings.

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Forfeiture shall be construed as a certificate of reasonable cause

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pursuant to 28 U.S.C. § 2465.

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Dated: ______________
7/10/17

This Consent Judgment of

PHILIP S. GUTIERREZ

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THE HONORABLE PHILIP S. GUTIERREZ
UNITED STATES DISTRICT JUDGE

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Approved as to form and content:

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DATED: July 6, 2017

Respectfully submitted,

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SANDRA R. BROWN
Acting United States Attorney
LAWRENCE S. MIDDLETON
Assistant United States Attorney
Chief, Criminal Division

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/s/
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STEVEN R. WELK
Assistant United States Attorney
Chief, Asset Forfeiture Section
JENNIFER Resnick
Assistant United States Attorney

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Attorneys for Plaintiff
UNITED STATES OF AMERICA

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DATED: July 6, 2017

DANNING, GILL, DIAMOND & KOLLITZ, LLP
____/s/
JOHN N. TEDFORD, IV

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Attorneys for Claimant
DAVID A. GILL, CHAPTER 7 TRUSTEE FOR
THE ESTATE OF PROCARE MOBILE RESPONSE,
LLC

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