USA v. Approximately $4,023.00 in U.S. Currency et al

Filing 23

STIPULATION and ORDER 22 signed by Judge John A. Mendez on 9/8/09 ORDERING the matters specified in this order STAYED until 3/4/2010. On or before 3/4/2010, the parties shall advise the court whether a further stay is necessary.(Kastilahn, A)

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LAWRENCE G. BROWN United States Attorney KRISTIN S. DOOR, SBN 84307 Assistant United States Attorney 501 I Street, Suite 10-100 Sacramento, CA 95814 Telephone: [phone] Attorneys for Plaintiff United States of America

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

) ) Plaintiff, ) ) v. ) ) REAL PROPERTY LOCATED AT 6525 ) SOUTH BRUCE STREET, LAS VEGAS, ) NEVADA, CLARK COUNTY, ) APN: 177-02-510-005, INCLUDING ALL ) APPURTENANCES AND IMPROVEMENTS ) THERETO, ) ) Defendant. ) ) UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) ) APPROXIMATELY $23,770.87 IN U.S. ) CURRENCY SEIZED FROM BANK OF ) AMERICA ACCOUNT NO. 0050 1112 8989,) HELD IN THE NAME OF G&R EMPIRE, ) LLC, ) ) APPROXIMATELY $6,741.29 IN U.S. ) CURRENCY SEIZED FROM BANK OF ) AMERICA ACCOUNT NO. 0050 1113 0692,) HELD IN THE NAME OF PHOENIX CASH & ) CARRY, LLC, ) )

2:08-CV-02075-JAM-GGH STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER

DATE: N/A TIME: N/A COURTROOM: N/A

2:08-cv-2752 JAM-GGH

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STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER [PROPOSED]

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APPROXIMATELY $9,774.73 IN U.S. ) CURRENCY SEIZED FROM BANK OF ) AMERICA ACCOUNT NO. 0049 6875 8911,) HELD IN THE NAME OF IDEAL TOBACCO, ) WHOLESALE, INC., ) ) APPROXIMATELY $7,054.55 IN U.S. ) CURRENCY SEIZED FROM WELLS FARGO ) BANK ACCOUNT NO. 671-0134131, HELD ) IN THE NAME OF BITTAR FAMILY TRUST,) ) APPROXIMATELY $31,402.20 IN U.S. ) CURRENCY SEIZED FROM WELLS FARGO ) BANK ACCOUNT NO. 091-1704013, HELD ) IN THE NAME OF RAED MOURI AND ) LOUDY EGHO, ) ) APPROXIMATELY $29,095.02 IN U.S. ) CURRENCY SEIZED FROM WELLS FARGO ) BANK ACCOUNT NO. 071-0335696, HELD ) IN THE NAME OF BITTAR FAMILY TRUST,) ) APPROXIMATELY 6,954 TOTAL BOXES OF ) ASSORTED SMOKEABLE OTP EVIDENCE ) (CONTAINING APPROXIMATELY 431,447 ) UNITS OF SMOKEABLE OTP) RECOVERED ) FROM IDEAL TOBACCO WHOLESALE, ) ) APPROXIMATELY 22 TOTAL BOXES OF ) SMOKEABLE OTP EVIDENCE (CONTAINING ) APPROXIMATELY 1,350 UNITS OF ) SMOKEABLE OTP) RECOVERED FROM THE ) ABF DELIVERY TRUCK AT IDEAL ) TOBACCO WHOLESALE, AND ) ) APPROXIMATELY 87,595 UNITS OF ) ASSORTED SMOKEABLE OTP EVIDENCE ) RECOVERED FROM PHOENIX CASH & ) CARRY, ) ) Defendants. ) ) UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) ) APPROXIMATELY $4,023.00 IN U.S. ) CURRENCY, ) ) APPROXIMATELY $1,280.00 IN U.S. ) CURRENCY, )

2:09-cv-0111 JAM-GGH

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STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER [PROPOSED]

1 2 3 4 5 6 7 8 APPROXIMATELY 169 Boxes of SMOKELESS TOBACCO, Defendants. APPROXIMATELY $6,268.00 IN U.S. CURRENCY, APPROXIMATELY $5,510.00 IN U.S. CURRENCY, and

) ) ) ) ) ) ) ) ) ) ) )

Plaintiff United States of America, and Claimants G&R Empire 9 LLC; Phoenix Cash & Carry LLC; Raed "Roy" Mouri and Loudy Egho, as 10 Trustees of the MGM Trust dated May 16, 2005; George Bittar and 11 Wanda Bittar, as trustees of the Bittar Family Trust, dated 12 December 23, 2003; George Bittar; Ideal Tobacco Wholesale, Inc.; 13 and Centennial Bank, (hereafter referred to collectively as 14 "claimants"), by and through their respective counsel, hereby 15 stipulate that a stay is necessary in the above-entitled actions, 16 and request that the Court enter an order staying all further 17 proceedings until March 4, 2010, due to an on-going criminal 18 investigation against Phoenix Cash & Carry LLC, G&R Empire LLC, 19 Ideal Tobacco Wholesale, Inc., Raed Mouri, and George Bittar. 20 1. 21 property, but have not yet filed their Answers and will not be 22 required to do so until the stay contemplated by this stipulation 23 expires. 24 2. 25 §§ 981(g)(1) and 981(g)(2). 26 and George Bittar and others were involved in a scheme to defraud 27 28 3 STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER [PROPOSED] The plaintiff contends that Raed Mouri The stay is requested pursuant to 18 U.S.C. Each of the claimants has filed a claim to the defendant

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the California Board of Equalization out of excise taxes due on the sale of tobacco products. The plaintiff further contends that

Mouri, Bittar, and others used the U.S. mail to execute the fraud scheme, and that the proceeds of the scheme are traceable to the seized tobacco products and to the bank accounts from which the defendant funds were seized. Plaintiff further contends that the

defendant funds were involved in money laundering transactions. Raed Mouri and George Bittar deny these allegations. 3. To date no one has been charged with any criminal offense

by state, local, or federal authorities, and it is the plaintiff's position that the statute of limitations has not expired on potential criminal charges relating to the fraud scheme. Nevertheless, the plaintiff intends to depose claimants Raed and Mouri regarding their claims, their ownership and/or management of Phoenix Cash & Carry LLC, G&R Empire LLC, Ideal Tobacco Wholesale, Inc., and their involvement in the sale of tobacco products into California. If discovery proceeds at this time, claimants will be

placed in the difficult position of either invoking their Fifth Amendment rights against self-incrimination and losing the ability to pursue their claims to the defendant property, or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating themselves. If they invoke their Fifth

Amendment rights, the plaintiff will be deprived of the ability to explore the factual basis for the claims they filed with this court. 4. In addition, claimants intend to depose, among others,

the agents involved with this investigation, including but not

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limited to the agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives and the California Board of Equalization. Allowing

depositions of the law enforcement officers at this time would adversely affect the ability of the federal authorities to investigate the alleged underlying criminal conduct. 5. The parties recognize that proceeding with these actions

at this time has potential adverse effects on the investigation of the underlying criminal conduct and/or upon the claimants' ability to prove their claim to the property and to assert any defenses to forfeiture. For these reasons, the parties jointly request that At that time the

these matters be stayed until March 4, 2010.

parties will advise the court of the status of the criminal investigation, if any, and will advise the court whether a further stay is necessary. 6. While this case is stayed, claimants agree to keep

current all payments due to Centennial Bank under the promissory note dated September 24, 2007, in the original principal amount of $2,225,000.00, and secured by the deed of trust recorded in Clark County, Nevada, on September 27, 2007, encumbering the defendant property. 7. In the event claimants default in their obligations to

Centennial Bank, Centennial Bank and claimants agree to join any government motion for interlocutory sale of the defendant property. The term "default" shall mean any default under the note and deed of trust encumbering the defendant property and any other documents executed by claimants in connection therewith. 8. This stay shall not affect the obligation of Centennial

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STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER [PROPOSED]

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Bank to respond to discovery requests served on it by plaintiff prior to the execution of this stipulation.

Dated: September 4, 2009

LAWRENCE G. BROWN United States Attorney By /s/ Kristin S. Door KRISTIN S. DOOR Assistant U.S. Attorney Attorneys for Plaintiff United States of America

Dated: September 4, 2009 /s/ Jeffrey B. Setness JEFFREY B. SETNESS Mayall, Hurley, Knutsen, Smith & Green Attorneys for G&R Empire LLC; Phoenix Cash & Carry LLC; Raed "Roy" Mouri and Loudy Egho, as Trustees of the MGM Trust dated May 16, 2005; George Bittar and Wanda Bittar, as trustees of the Bittar Family Trust, dated December 23, 2003; George Bittar; and Ideal Tobacco Wholesale, Inc.

Dated: September 4, 2009

/s/Kenneth Miller KENNETH MILLER Ervin Cohen & Jessup, LLP Attorneys for claimant Centennial Bank (Original signatures retained by AUSA Door)

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STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER [PROPOSED]

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ORDER For the reasons set forth above, these matters is stayed pursuant to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) until March 4, 2010. On or before March 4, 2010, the parties will advise the

court whether a further stay is necessary. IT IS SO ORDERED. Dated: September 8, 2009 /s/ John A. Mendez JOHN A. MENDEZ UNITED STATES DISTRICT JUDGE

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STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER [PROPOSED]