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

Filing 36

STIPULATION and ORDER signed by Judge John A. Mendez on 5/25/2011 ORDERING that this case is STAYED until 12/2/2011. On or before 12/2/2011, the parties will advise the court whether a further stay is necessary. (Meuleman, A)

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BENJAMIN B. WAGNER
United States Attorney
KEVIN C. KHASIGIAN
Assistant U.S. Attorney
501 I Street, Suite 10-100
Sacramento, CA 95814
Telephone: [phone]

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Attorneys for the United States

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IN THE UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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UNITED STATES OF AMERICA,

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Plaintiff,
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v.
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APPROXIMATELY $23,770.87 IN U.S.
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CURRENCY SEIZED FROM BANK OF
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AMERICA ACCOUNT NO. 0050 1112 8989,)
HELD IN THE NAME OF G&R EMPIRE,
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LLC,
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APPROXIMATELY $6,741.29 IN U.S.
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CURRENCY SEIZED FROM BANK OF
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AMERICA ACCOUNT NO. 0050 1113 0692,)
HELD IN THE NAME OF PHOENIX CASH & )
CARRY, LLC,
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APPROXIMATELY $9,774.73 IN U.S.
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CURRENCY SEIZED FROM BANK OF
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AMERICA ACCOUNT NO. 0049 6875 8911,)
HELD IN THE NAME OF IDEAL TOBACCO, )
WHOLESALE, INC.,
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APPROXIMATELY $7,054.55 IN U.S.
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CURRENCY SEIZED FROM WELLS FARGO
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BANK ACCOUNT NO. 671-0134131, HELD )
IN THE NAME OF BITTAR FAMILY TRUST,)
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APPROXIMATELY $31,402.20 IN U.S.
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CURRENCY SEIZED FROM WELLS FARGO
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BANK ACCOUNT NO. 091-1704013, HELD )
IN THE NAME OF RAED MOURI AND
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LOUDY EGHO,
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2:08-CV-02752-JAM-GGH
STIPULATION TO STAY
FURTHER PROCEEDINGS AND
ORDER

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

Stipulation to Stay Further
Proceedings and Order [Proposed]

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APPROXIMATELY $29,095.02 IN U.S.
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CURRENCY SEIZED FROM WELLS FARGO
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BANK ACCOUNT NO. 071-0335696, HELD )
IN THE NAME OF BITTAR FAMILY TRUST,)
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APPROXIMATELY 6,954 TOTAL BOXES OF )
ASSORTED SMOKEABLE OTP EVIDENCE
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(CONTAINING APPROXIMATELY 431,447 )
UNITS OF SMOKEABLE OTP) RECOVERED )
FROM IDEAL TOBACCO WHOLESALE,
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APPROXIMATELY 22 TOTAL BOXES OF
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SMOKEABLE OTP EVIDENCE (CONTAINING )
APPROXIMATELY 1,350 UNITS OF
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SMOKEABLE OTP) RECOVERED FROM THE )
ABF DELIVERY TRUCK AT IDEAL
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TOBACCO WHOLESALE, AND
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APPROXIMATELY 87,595 UNITS OF
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ASSORTED SMOKEABLE OTP EVIDENCE
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RECOVERED FROM PHOENIX CASH &
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CARRY,
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Defendants.
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UNITED STATES OF AMERICA,
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Plaintiff,
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v.
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APPROXIMATELY $4,023.00 IN U.S.
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CURRENCY,
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APPROXIMATELY $1,280.00 IN U.S.
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CURRENCY,
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APPROXIMATELY $6,268.00 IN U.S.
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CURRENCY,
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APPROXIMATELY $5,510.00 IN U.S.
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CURRENCY, and
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APPROXIMATELY 169 Boxes of
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SMOKELESS TOBACCO,
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Defendants.
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2:09-CV-00111-JAM-GGH

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Plaintiff United States of America, and Claimants G&R Empire

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LLC; Phoenix Cash & Carry LLC; Raed “Roy” Mouri and Loudy Egho;

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George Bittar, as trustee of the Bittar Family Trust, dated
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Stipulation to Stay Further
Proceedings and Order [Proposed]

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December 23, 2003; George Bittar; and Ideal Tobacco Wholesale, Inc.

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(hereafter referred to collectively as “claimants”), by and through

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their respective counsel, hereby stipulate that a stay is necessary

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in the above-entitled actions, and request that the Court enter an

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order staying all further proceedings until December 2, 2011,

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except as otherwise set forth in this stipulation, due to an on-

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going criminal investigation against Phoenix Cash & Carry LLC, G&R

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Empire LLC, Ideal Tobacco Wholesale, Inc., Raed Mouri, and George

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Bittar.

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1.

Each of the claimants has filed a claim to the defendant

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property, but have not yet filed their Answers and will not be

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required to do so until the stay contemplated by this stipulation

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expires.

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2.

The stay is requested pursuant to 18 U.S.C. §§ 981(g)(1)

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and 981(g)(2).

The United States contends that Raed Mouri and

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George Bittar and others were involved in a scheme to defraud the

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California Board of Equalization out of excise taxes due on the

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sale of tobacco products.

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Mouri, Bittar, and others used the U.S. mail to execute the fraud

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scheme, and that the proceeds of the scheme are traceable to the

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seized tobacco products and to the bank accounts from which the

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defendant funds were seized.

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that the defendant funds were involved in money laundering

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transactions.

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3.

The United States further contends that

The United States further contends

Raed Mouri and George Bittar deny these allegations.

To date no one has been charged with any criminal offense

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by state, local, or federal authorities, and it is the United

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State’s position that the statute of limitations has not expired on

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potential criminal charges relating to the fraud scheme.
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Stipulation to Stay

Further
Proceedings and Order [Proposed]

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Nevertheless, the United States intends to depose claimants Raed

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and Mouri regarding their claims, their ownership and/or management

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of Phoenix Cash & Carry LLC, G&R Empire LLC, Ideal Tobacco

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Wholesale, Inc., and their involvement in the sale of tobacco

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products into California.

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claimants will be placed in the difficult position of either

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invoking their Fifth Amendment rights against self-incrimination

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and losing the ability to pursue their claims to the defendant

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property, or waiving their Fifth Amendment rights and submitting to

If discovery proceeds at this time,

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a deposition and potentially incriminating themselves.

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invoke their Fifth Amendment rights, the United States will be

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deprived of the ability to explore the factual basis for the claims

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they filed with this court.

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4.

If they

In addition, claimants intend to depose, among others,

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the agents involved with this investigation, including but not

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limited to the agents with the Bureau of Alcohol, Tobacco, Firearms

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& Explosives and the California Board of Equalization.

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depositions of the law enforcement officers at this time would

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adversely affect the ability of the federal authorities to

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investigate the alleged underlying criminal conduct.

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5.

Allowing

The parties recognize that proceeding with these actions

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at this time has potential adverse effects on the investigation of

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the underlying criminal conduct and/or upon the claimants’ ability

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to prove their claim to the property and to assert any defenses to

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forfeiture.

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these matters be stayed until December 2, 2011, in accordance with

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the terms of this stipulation.

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///

For these reasons, the parties jointly request that

At that time the parties will

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Stipulation to Stay Further
Proceedings and Order [Proposed]

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advise the court of the status of the criminal investigation, if

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any, and will advise the court whether a further stay is necessary.

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Dated: 5/24/11

BENJAMIN B. WAGNER
United States Attorney

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By
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/s/ Kevin C. Khasigian
KEVIN C. KHASIGIAN
Assistant U.S. Attorney

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Dated: May 24, 2011
/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; George Bittar, as
trustees of the Bittar Family Trust,
dated December 23, 2003; George
Bittar; and Ideal Tobacco Wholesale,
Inc.

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(Original signature retained by
attorney)

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ORDER

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For the reasons set forth above, these matters are stayed

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pursuant to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) until December 2,

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2011, in accordance with the terms of this stipulation.

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before December 2, 2011, the parties will advise the court whether

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a further stay is necessary.

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IT IS SO ORDERED.

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Dated: 5/27/2011

On or

/s/ John A. Mendez
JOHN A. MENDEZ
United States District Judge

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Stipulation to Stay Further
Proceedings and Order [Proposed]