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

Filing 40

ORDER signed by Judge John A. Mendez on 3/1/12. These matters are STAYED until 6/2/12; parties will advise the court whether a further stay is necessary. (Manzer, C)

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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
REQUEST FOR EXTENSION OF STAY
OF FURTHER PROCEEDINGS AND
ORDER

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

Request for Extension of Stay of Further
Proceedings and Proposed Order

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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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The United States and Claimants G&R Empire LLC; Phoenix Cash &

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Carry LLC; Raed “Roy” Mouri and Loudy Egho; George Bittar, as

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trustee of the Bittar Family Trust, dated December 23, 2003; George
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Request for Extension of Stay of Further
Proceedings and Proposed Order

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Bittar; and Ideal Tobacco Wholesale, Inc. (hereafter referred to

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collectively as “claimants”), by and through their respective

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counsel, hereby submit the following Request for Extension of Stay

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of Further Proceedings and Proposed Order.

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This matter was previously stayed on May 25, 2011 and November

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30, 2011, based on the on-going criminal investigation against

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

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Inc., Raed Mouri, and George Bittar.

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to support a further stay in the case:

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1.

The parties state as follows

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.

A further stay is requested pursuant to 18 U.S.C. §§

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981(g)(1) and 981(g)(2).

The United States contends that Raed

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Mouri and George Bittar and others were involved in a scheme to

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defraud the California Board of Equalization out of excise taxes

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due on the sale of tobacco products.

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contends that Mouri, Bittar, and others used the U.S. mail to

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execute the fraud scheme, and that the proceeds of the scheme are

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traceable to the seized tobacco products and to the bank accounts

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from which the defendant funds were seized.

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further contends that the defendant funds were involved in money

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laundering transactions.

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allegations.

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3.

The United States further

The United States

Raed Mouri and George Bittar deny these

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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Request for Extension of Stay of Further
Proceedings and Proposed Order

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potential criminal charges relating to the fraud scheme.

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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

If discovery proceeds at this time,

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property, or waiving their Fifth Amendment rights and submitting to

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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 June 2, 2012, in accordance with the

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terms of this stipulation.

For these reasons, the parties jointly request that

At that time the parties will
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Request for Extension of Stay

of Further
Proceedings and Proposed Order

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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: 2/29/12

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: Feb. 29, 2012
/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.
(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 June 2,

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2012, in accordance with the terms of this stipulation.

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before June 2, 2012, the parties will advise the court whether a

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further stay is necessary.

On or

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IT IS SO ORDERED.
Dated: 3/1/2012

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

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Request for Extension of Stay of Further
Proceedings and Proposed Order