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

Filing 14

CONSENT JUDGMENT OF FORFEITURE by Judge Michael W. Fitzgerald. The Court, having considered the stipulation 13 of the parties, and good cause appearing therefor, HEREBY ORDERS ADJUDGES AND DECREES: The government has given and published notice of this action as required by law, including Rule G of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions, Federal Rules of Civil Procedure, and the Local Rules of this Court. Potential claimants Fang Zeng, HSBC Bank USA, N.A., and Hestter Investments, LLC claim an interest in the defendant property, but have not filed claims in this case or answered the complaint. (SEE ATTACHMENT FOR FURTHER DETAILS). (MD JS-6. Case Terminated.) (jp)

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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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vs.
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REAL PROPERTY LOCATED IN
ARCADIA, CALIFORNIA,

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Defendant.
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FANG ZENG
Titleholder.

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) NO. CV 17-3887 MWF (RAOx)
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) CONSENT JUDGMENT OF FORFEITURE
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Plaintiff and potential claimants Fang Zeng, HSBC Bank USA,

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N.A., and Hestter Investments, LLC (“potential claimants”) have

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made a stipulated request for the entry of this Consent

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Judgment, resolving this action in its entirety.

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The Court, having considered the stipulation of the

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parties, and good cause appearing therefor, HEREBY ORDERS

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ADJUDGES AND DECREES:

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1.

The government has given and published notice of this

action as required by law, including Rule G of the Supplemental

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Rules for Admiralty or Maritime Claims and Asset Forfeiture

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Actions, Federal Rules of Civil Procedure, and the Local Rules

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of this Court.

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N.A., and Hestter Investments, LLC claim an interest in the

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defendant property, but have not filed claims in this case or

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answered the complaint.

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N.A., and Hestter Investments, LLC would have filed claims and

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answers in this case absent this agreement.

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of interest or answers have been filed, and the time for filing

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such statements of interest and answers has expired.

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has jurisdiction over the parties to this judgment and the

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defendant property.

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property other than Fang Zeng, HSBC Bank USA, N.A., and Hestter

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Investments, LLC are deemed to have admitted the allegations of

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the complaint with respect to the defendant property.

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2.

Potential claimants Fang Zeng, HSBC Bank USA,

However, Fang Zeng, HSBC Bank USA,

No other statements

This Court

Any potential claimants to the defendant

The United States of America shall have judgment as to

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the defendant property, and, other than those interests

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recognized herein, no other person or entity shall have any

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right, title or interest therein. The legal description of the

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defendant property, which property has Assessor Parcel Number

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5769-009-030, is more fully described as follows:

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Lot 20, of Tract No. 52745, in the City of Arcadia,
County of Los Angeles, State of California, as per map
recorded in Book 1252 pages 43 to 46, inclusive of
Maps, in the Office of the County Recorder in said
county.
Excepting and reserving therefrom, for the benefit of
grantor, its successors and assigns, together with the
right to grant and transfer all or a portion of the
same, as follows:

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Non-exclusive easements for ingress, egress,
utilities, drainage, landscape and for other purposes,
and easements and rights as reserved to grantor as
declarant as defined and described in the declaration
of covenants, conditions and restrictions and
reservation of easements for Anoakia Estates
Homeowners Association and all supplementary
declarations thereto, and any amendments thereto (the
“Declaration”), as supplemented and amended.
3.

The United States is hereby authorized to remove any

occupants and/or personal property remaining on the defendant

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property thirty days after the giving of written notice to any
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occupants of the defendant property without further order of
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this Court.

The United States shall thereafter sell the

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property.

The proceeds of the sale shall be distributed in the

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following priority, to the extent proceeds are available:
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a.

To the United States for its reasonable and
customary costs and expenses of the sale (e.g.
title company costs, broker fees, and related
closing costs);

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b.

To the Los Angeles County Assessor and Tax

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Collector of all unpaid real property taxes

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assessed against the defendant property to the

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date of entry of the Judgment of Forfeiture;

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c.

To HSBC Bank as follows:
i.

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All unpaid principal and interest due under

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the Note which is secured by the Deed of

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Trust recorded as Instrument No. 2011-

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1333897 against the defendant property

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identifying HSBC Bank as beneficiary, as of

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the date of the closing with respect to

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Plaintiff’s sale of the defendant property;

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and
ii.

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All other fees, costs and advances as

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provided under the terms of the Note and

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Deed of Trust, as of the date of the closing

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with respect to Plaintiff’s sale of the

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defendant property.

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advances include, but are not limited to,

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fees, advances or costs for property taxes,

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insurance (including for hazard insurance),

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reasonable attorney fees and costs and fees

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and costs incurred in protecting

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HSBC’s security interest;

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d.

These fees, costs and

To Hestter Investment, LLC as follows:
i.

All unpaid principal and interest due under

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the Note which is secured by the Deed of

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Trust recorded as Instrument No. 20164

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1226094 against the defendant property

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identifying Val-Chris Investments, Inc. as

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beneficiary (such interest being thereafter

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assigned to Hestter Investment, LLC), as of

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the date of the closing with respect to

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Plaintiff’s sale of the defendant property;

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and
ii.

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All other fees, costs and advances as
provided under the terms of the Note and

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Deed of Trust, as of the date of the closing

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with respect to Plaintiff’s sale of the

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defendant property.

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advances include, but are not limited to,

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fees, advances or costs for property taxes,

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insurance (including for hazard insurance),

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reasonable attorney fees and costs and fees

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and costs incurred in protecting

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Hestter’s security interest; and
e.

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These fees, costs and

The balance shall be paid and forfeited to the

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United States of America, and such funds shall be

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disposed of according to law.

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4.

Potential claimants have agreed to release the United

States of America, its agencies, agents, and officers, including
employees and agents of the Federal Bureau of Investigation,
from any and all claims, actions or liabilities arising out of

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or related to this action, including, without limitation, any
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claim for attorneys’ fees, costs or interest which may be
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asserted on behalf of potential claimants against the United

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States, whether pursuant to 28 U.S.C. § 2465 or otherwise.

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Potential claimants have also waived any rights they may have to

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seek remission or mitigation of the forfeiture.

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Consent Judgment is intended as, nor should anything in this

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Nothing in this

Consent Judgment be interpreted as an admission by potential
claimants of any liability or wrongdoing.
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The court finds that there was reasonable cause for the

institution of these proceedings pursuant to 28 U.S.C.
§ 2465.

This judgment constitutes a certificate of reasonable

cause pursuant to 28 U.S.C. § 2465.

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DATED: September 6, 2017

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THE HONORABLE MICHAEL W. FITZGERALD
UNITED STATES DISTRICT JUDGE

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Prepared by:
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SANDRA R. BROWN
Acting United States Attorney
LAWRENCE S. MIDDLETON
Assistant United States Attorney
Chief, Criminal Division
STEVEN R. WELK
Assistant United States Attorney
Chief, Asset Forfeiture Section
/s/ Jonathan Galatzan
JONATHAN GALATZAN

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Assistant United States Attorney
Asset Forfeiture Section

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