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

Filing 46

STIPULATION and ORDER 45 for stay of Further Proceedings signed by Judge John A. Mendez on 12/5/2012. These matters are STAYED until 3/6/2013 in accordance with terms of Stipulation. On or before 3/6/2013, parties will advise Court whether Further Stay is necessary. (Marciel, M)

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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, )
LLC, et al.,
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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, et al.,
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Defendants.
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2:08-CV-02752-JAM-GGH
STIPULATION FOR EXTENSION
OF STAY OF FURTHER
PROCEEDINGS AND
ORDER
DATE: N/A
TIME: N/A
COURTROOM: N/A

2:09-CV-00111-JAM-GGH

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The United States and Claimants G&R Empire LLC; Phoenix Cash & Carry
LLC; Raed “Roy” Mouri and Loudy Egho; George Bittar, as trustee of the Bittar Family

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1

Stipulation for Extension of Stay of Further
Proceedings and Proposed Order

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

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

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counsel, hereby submit the following Stipulation for Extension of Stay of Further

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Proceedings and Proposed Order.

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This matter was previously stayed on January 8, 2009, May 20, 2009,

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September 10, 2009, March 5, 2010, July 2, 2010, January 7, 2011, May 25, 2011,

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November 30, 2011, March 1, 2012, May 25, 2012 and September 6, 2012, based on the

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

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LLC, Ideal Tobacco Wholesale, Inc., Raed Mouri, and George Bittar. The parties state

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as follows to support a further stay in the case:
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Each of the claimants has filed a claim to the defendant property, but

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have not yet filed their Answers and will not be required to do so until the stay

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contemplated by this stipulation expires.

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2.

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

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981(g)(2). The United States contends that Raed Mouri and George Bittar and others

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were involved in a scheme to defraud the California Board of Equalization out of excise

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taxes due on the sale of tobacco products. The United States further contends that

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

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proceeds of the scheme are traceable to the seized tobacco products and to the bank

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accounts from which the defendant funds were seized. The United States further

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contends that the defendant funds were involved in money laundering transactions.

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Raed Mouri and George Bittar deny these allegations.

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3.

To date no one has been charged with any criminal offense by state, local,

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or federal authorities, and it is the United State’s position that the statute of

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limitations has not expired on potential criminal charges relating to the fraud scheme.

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Nevertheless, the United States intends to depose claimants Mouri and Bittar

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regarding their claims, their ownership and/or management of Phoenix Cash & Carry

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2

Stipulation for Extension of Stay of Further
Proceedings and Proposed Order

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LLC, G&R Empire LLC, Ideal Tobacco Wholesale, Inc., and their involvement in the

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sale of tobacco products into California. If discovery proceeds at this time, claimants

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will be placed in the difficult position of either invoking their Fifth Amendment rights

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against self-incrimination 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 a deposition and

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potentially incriminating themselves. If they invoke their Fifth Amendment rights,

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the United States will be deprived of the ability to explore the factual basis for the

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claims they filed with this court.

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4.

In addition, claimants intend to depose, among others, the agents

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involved with this investigation, including but not limited to the agents with the

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Bureau of Alcohol, Tobacco, Firearms & Explosives and the California Board of

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Equalization. Allowing depositions of the law enforcement officers at this time would

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adversely affect the ability of the federal authorities to investigate the alleged

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underlying criminal conduct.

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5.

The parties recognize that proceeding with these actions at this time has

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potential adverse effects on the investigation of the underlying criminal conduct and/or

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upon the claimants’ ability to prove their claim to the property and to assert any

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defenses to forfeiture. For these reasons, the parties jointly request that these matters

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be stayed until March 6, 2013, in accordance with the terms of this stipulation. At

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Stipulation for Extension of Stay of Further
Proceedings and Proposed Order

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that time the parties will 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: 12/5/12

BENJAMIN B. WAGNER
United States Attorney

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

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Dated: 12/5/12
/s/ Jeffrey B. Setness
JEFFREY B. SETNESS
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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(Authorized by phone)
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ORDER
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For the reasons set forth above, these matters are stayed pursuant to 18 U.S.C.
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§§ 981(g)(1) and 981(g)(2) until March 6, 2013, in accordance with the terms of this
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stipulation. On or before March 6, 2013, the parties will advise the court whether a
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further stay is necessary.
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IT IS SO ORDERED.
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Dated: 12/5/2012

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

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Stipulation for Extension of Stay of Further
Proceedings and Proposed Order