United States of America v. Approximately $129,707.00 in U.S. Currency et al

Filing 24

ORDER signed by Judge Frank C. Damrell, Jr. on 05/24/10 GRANTING USA's 23 Ex Parte Application; this matter is STAYED for 6 months; by 11/24/10, the parties will advise the court whether a further stay is necessary. (Benson, A.)

1 BENJAMIN B. WAGNER
United States Attorney

2 KRISTIN S. DOOR, SBN 84307
Assistant U.S. Attorney

3 501 I Street, Suite 10-100 4 Telephone:
Sacramento, CA 95814 [phone]

5 Attorney for Plaintiff 6 7 8 9 10 11 UNITED STATES OF AMERICA, 12 13 14 15 16 17 18 19 20 21 22
Plaintiff United States of America applies ex parte to extend ) ) Plaintiff, ) ) v. ) ) APPROXIMATELY $129,707.00 IN U.S. ) CURRENCY, ) ) APPROXIMATELY $100,700.54 IN MONEY ) ORDERS, ) ) APPROXIMATELY $108,460.00 IN U.S. ) CURRENCY, AND ) ) APPROXIMATELY $251,911.00 IN U.S. ) CURRENCY, ) ) Defendants. ) ) 2:07-CV-00692-FCD/KJM EX PARTE APPLICATION TO STAY FURTHER PROCEEDINGS AND ORDER IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA

23 the current stay in the above-entitled action, and requests that 24 the Court enter an order staying all further proceedings for a 25 period of six months pending the outcome of a related criminal 26 investigation against claimant Abdurrahman Yousuf. 27 28
EX PARTE APPLICATION TO STAY FURTHER PROCEEDINGS AND ORDER 1

1.

Claimants Abdurrahman Yousuf and Khatiza Madha Yousuf,

1 (hereafter referred to collectively as "claimants") are not parties 2 to this stipulation for the following reasons: 3
a. In late 2009 Bryan C. Altman, attorney of record for On November

4 claimants, moved to withdraw as claimants' counsel. 5 25, 2009, this Court denied the motion. 6
b.

On May 24, 2010, undersigned counsel spoke with Mr.

7 Altman who advised her that he has not had any contact with 8 claimants and does not know their current whereabouts. 9
c. Mr. Altman further stated that under these circumstances

10 he does not believe he has authority to consent to a stay. 11 12
d. 2. Plaintiff therefore submits this request ex parte. Each of the claimants has filed a claim to the defendant

13 property and an Answer to the Verified Complaint for Forfeiture In 14 Rem. 15
3. The stay is requested pursuant to 18 U.S.C. § 981(g)(1).

16 The plaintiff contends that Abdurrahman Yousuf and others were 17 involved in a scheme to defraud the California Board of 18 Equalization out of excise taxes due on the sale of tobacco 19 products.
The plaintiff further contends that proceeds of the

20 fraud scheme are traceable to the property that is the subject of 21 this forfeiture action. 22
4. Claimants deny these allegations.

To date no one has been charged with any criminal offense

23 by state, local, or federal authorities, and the statute of 24 limitations has not expired on potential criminal charges relating 25 to the fraud scheme.
Nevertheless, the plaintiff intends to depose

26 claimants regarding their claims, their ownership of a business 27 called "A to Z Cash & Carry," and their involvement in the sale of 28
EX PARTE APPLICATION TO STAY FURTHER PROCEEDINGS AND ORDER 2

1 tobacco products into California.

If discovery proceeds at this

2 time, claimants will be placed in the difficult position of either 3 invoking their Fifth Amendment rights against self-incrimination 4 and losing the ability to pursue their claims to the defendant real 5 property, or waiving their Fifth Amendment right and submitting to 6 a deposition and potentially incriminating themselves.
If they

7 invoke their Fifth Amendment rights, the plaintiff will be deprived 8 of the ability to explore the factual basis for the claims they 9 filed with this court. 10
5. In addition, claimants intend to depose, among others,

11 the agents involved in this investigation, including but not 12 limited to the agents with the Bureau of Alcohol, Tobacco, Firearms 13 & Explosives and the California Board of Equalization.
Allowing

14 depositions of the law enforcement officers at this time would 15 adversely affect the ability of federal authorities to investigate 16 the underlying criminal conduct. 17
6. Plaintiff contends that proceeding with this action at

18 this time has potential adverse affects on the investigation of the 19 underlying criminal conduct and/or upon claimants' ability to prove 20 their claim to the property and assert any defenses to forfeiture. 21 For these reasons, the parties jointly request that this matter be 22 stayed for six months. 23 // 24 // 25 26 27 28
EX PARTE APPLICATION TO STAY FURTHER PROCEEDINGS AND ORDER 3

At that time the parties will advise the

1 court of the status of the criminal investigation and will advise 2 the court whether a further stay is necessary. 3 4 Dated: May 24, 2010 5 6 7 8 9 10 11
ORDER For the reasons set forth above, this matter is stayed On By /s/ Kristin S. Door KRISTIN S. DOOR Assistant U.S. Attorney Attorneys for Plaintiff United States of America BENJAMIN B. WAGNER United States Attorney

12 pursuant to 18 U.S.C. § 981(g)(1) for a period of six months. 13 or before November 24, 2010, the parties will advise the court 14 whether a further stay is necessary. 15 IT IS SO ORDERED. 16 Dated: May 24, 2010 17 18 19 20 21 22 23 24 25 26 27 28
EX PARTE APPLICATION TO STAY FURTHER PROCEEDINGS AND ORDER 4

_____________________________ FRANK C. DAMRELL, JR. UNITED STATES DISTRICT JUDGE