United States of America v. $721,701.00 Seized from Merrill Lynch Brokerage Account No. '2504 et al

Filing 13

CONSENT JUDGMENT by Judge David O. Carter Related to: Stipulation for Judgment 12 . (see document for details). (dro)

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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
FRANK D. KORTUM
Assistant United States Attorney
Asset Forfeiture Section
California Bar No. 110984
United States Courthouse
312 North Spring Street, 14th Floor
Los Angeles, California 90012
Telephone: [phone]
Facsimile: [phone]
E-Mail: [e-mail]
Attorneys for Plaintiff
UNITED STATES OF AMERICA
UNITED STATES DISTRICT COURT

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FOR THE CENTRAL DISTRICT OF CALIFORNIA

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SOUTHERN DIVISION

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UNITED STATES OF AMERICA,

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Plaintiff,
vs.
$721,701.00 SEIZED FROM MERRILL
LYNCH BROKERAGE ACCOUNT
NO.‘2504; $398,093.00 SEIZED
FROM CREDIT SUISSE BROKERAGE
ACCOUNT NO. ‘5863; $234,915.00
SEIZED FROM FIDELITY BROKERAGE
SERVICES, LLC BROKERAGE ACCOUNT
NO. ‘5228; $201,000.00 SEIZED
FROM FIDELITY BROKERAGE
SERVICES, LLC BROKERAGE ACCOUNT
NO. ’8194; $150,918.00 SEIZED
FROM CITIGROUP GLOBAL MARKETS,
INC. BROKERAGE ACCOUNT NO.
‘2856; $110,344.41 SEIZED FROM
WELLS FARGO BANK ACCOUNT NO.
‘3577; $59,599.00 SEIZED FROM
CREDIT SUISSE BROKERAGE ACCOUNT
NO. ‘7108; $59,561.00 SEIZED
FROM CREDIT SUISSE BROKERAGE

) No.: SACV 14-00206-DOC (ANx)
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) CONSENT JUDGMENT
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ACCOUNT NO. ‘7090; $59,558.00
SEIZED FROM CREDIT SUISSE
BROKERAGE ACCOUNT NO. ‘7082;
AND $59,526.00 SEIZED FROM
CREDIT SUISSE BROKERAGE ACCOUNT
NO. ‘7074,
Defendants.
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DOUGLAS V. DECINCES; KRISTI
DECINCES; DECINCES REVOCABLE
LIVING TRUST, UAD MAY 28, 1986;
DECINCES REVOCABLE LIVING
TRUST, UAD FEBRUARY 2, 1994;
DECINCES REVOCABLE LIVING
TRUST, UAD JUNE 28, 2001;
DOUGLAS V. DECINCES AS
CUSTODIAN FOR B.W.; DOUGLAS V.
DECINCES AS CUSTODIAN FOR P.D.;
DOUGLAS V. DECINCES AS
CUSTODIAN FOR D.D.; AND DOUGLAS
V. DECINCES AS CUSTODIAN FOR
R.D.,

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Claimants.

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This civil forfeiture action was commenced on February 12,
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2014.

Claimants Douglas V. DeCinces (“DeCinces”); Kristi

DeCinces; DeCinces Revocable Living Trust, UAD May 28, 1986;
DeCinces Revocable Living Trust, UAD February 2, 1994; DeCinces

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Revocable Living Trust, UAD June 28, 2001; Douglas V. DeCinces

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as Custodian for B.W.; Douglas V. DeCinces as Custodian for

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P.D.; Douglas V. DeCinces as Custodian for D.D.; Douglas V.

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DeCinces as Custodian for R.D. (the “DeCinces Claimants”) are

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deemed to have filed a claims and answers in this action.

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other person is believed to have any claims to the defendant

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assets except for Timothy DeCinces, Melissa DeCinces, Eddie C.

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Murray, Janice Murray, Roger A. Wittenbach, Janet K. Wittenbach,

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Thomas Williams, and Amy Williams.

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No

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Plaintiff and the DeCinces Claimants have made a stipulated

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request for the entry of this consent judgment of forfeiture

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resolving the claims of the DeCinces Claimants concerning the

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following defendant assets:

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a. $721,701.00 seized from Merrill Lynch Brokerage

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Account No.‘2504 (Asset ID No. 09-IRS-000989);

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b. $398,093.00 seized from Credit Suisse Brokerage

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Account No. ‘5863 (Asset ID No. 09-IRS-000990);

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c. $234,915.00 seized from Fidelity Brokerage Services,
LLC Brokerage Account No. ‘5228 (Asset ID No. 09-IRS000995);
d. $201,000.00 seized from Fidelity Brokerage Services,

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LLC Brokerage Account No. ’8194 (Asset ID No. 09-IRS14
001114);
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e. $150,918.00 seized from Citigroup Global Markets, Inc.
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Brokerage Account No. ‘2856 (Asset ID No. 09-IRS000996);
f. $110,344.41 seized from Wells Fargo Bank Account No.
‘3577 (Asset ID No. 09-IRS-000994);
g. $59,599.00 seized from Credit Suisse Brokerage Account
No. ‘7108 (Asset ID No. 09-IRS-000993);
h. $59,561.00 seized from Credit Suisse Brokerage Account
No. ‘7090 (Asset ID No. 09-IRS-000992);
i. $59,558.00 seized from Credit Suisse Brokerage Account
No. ‘7082 (Asset ID No. 09-IRS-000991); and
j. $59,526.00 seized from Credit Suisse Brokerage Account
No. ‘7074 (Asset ID No. 09-IRS-000988)

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Plaintiff and Claimants have made a stipulated request for

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the entry of this consent judgment of forfeiture in part to

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establish the rights of the United States to the funds seized

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from the DeCinces accounts as set forth in the provisions of a

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consent judgment entered on August 9, 2011, in a civil complaint

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filed by the Securities and Exchange Commission (“SEC”) against

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DeCinces and others based on the same allegations of insider

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trading as set forth in the complaint herein.

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and Exchange Commission v. DeCinces, No. SA CV 11-01168 DOC

See Securities

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(ANx).

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liability of DeCinces to the SEC in the amount of $1,197,998.00

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under Section 21A of the Exchange Act [15 U.S.C. § 78u-1]; (2)

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disgorgement of $1,282,691.00, representing profits gained as a

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result of the conduct alleged in the SEC’s complaint; and (3)

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prejudgment interest in the amount of $19,311.00.

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judgment in the SEC action also provides that the liability of

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DeCinces for the civil penalty and disgorgement amounts shall be

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offset by the $1,358,038.00 seized on or about July 20, 2009

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from the DeCinces Accounts, provided that the $1,358,038.00 is

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retained by the United States as a result of the United States’

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filing of any civil or criminal proceeding for the purpose of

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establishing the rights of the United States to the

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$1,358,038.00.

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proceeding for the purpose of establishing the rights of the

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United States to the $1,358,038.00.

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Specifically, the SEC consent judgment established the

The final

The complaint in this action constitutes a

The Court has been duly advised of and has considered the

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matter.

Based upon the mutual consent of the parties hereto and

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good cause appearing therefor, the Court hereby ORDERS, ADJUDGES

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AND DECREES that the United States of America shall have

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judgment against the interests of the DeCinces Claimants (and

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any other potential claimants other than Timothy DeCinces,

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Melissa DeCinces, Eddie C. Murray, Janice Murray, Roger A.

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Wittenbach, Janet K. Wittenbach, Thomas Williams, and Amy

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Williams, whose interests remain to be adjudicated) as to the

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defendant assets and no other person or entity shall have any

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right, title, or interest therein.

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The Court finds that there was reasonable cause for the

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seizure of the defendant assets and the institution of this

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action.

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

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Each of the parties shall bear its own fees and costs in

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connection with the seizure, retention and forfeiture of the

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defendant assets.

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DATED: March 30, 2014

This consent judgment shall be construed as a

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THE HONORABLE ANDREW J. GUILFORD
UNITED STATES DISTRICT JUDGE

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