United States of America v. Approximately $16,923.70 in U.S. Currency

Filing 14

STIPULATION and ORDER 13 signed by Judge William B. Shubb on 12/21/09, ORDERING case STAYED until the conclusion of the criminal case, at which time the parties will advise the Court whether a further stay is necessary. The Scheduling Conference is CONT'D to 7/26/2010 at 02:00 PM in Courtroom 5 (WBS) before Judge William B. Shubb. (Kastilahn, A)

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BENJAMIN B. WAGNER United States Attorney SARALYN M. ANG-OLSON, SBN 197404 Special Assistant U.S. 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

) ) Plaintiff, ) ) v. ) ) APPROXIMATELY $16,923.70 IN ) U.S. CURRENCY, ) ) Defendant. ) ________________________________)

UNITED STATES OF AMERICA,

2:09-cv-02087-WBS-EFB JOINT STATUS REPORT; STIPULATION FOR STAY OF FURTHER PROCEEDINGS; AND ORDER [PROPOSED]

Plaintiff United States of America ("Plaintiff") and claimants Eric Engstrom ("Engstrom") and Mona Colomb ("Claimants"), by and through their respective counsel, hereby submit the following Joint Status Report in accordance with the Court's Order Requiring Joint Status Report in this matter as filed in this action on November 25, 2009. (a) Summary of the Claims On July 28, 2009, Plaintiff filed a verified complaint in this action ("Complaint"). The defendant in this action is

described as Approximately $16,923.70 in U.S. Currency ("defendant currency"). The defendant currency was seized on or

about February 20, 2009, at 14964 Lake Lane, Nevada City, 1
Joint Status Report; Stipulation for Stay; Order [Proposed]

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California, and is in the custody of the United States Marshals Service, Eastern District of California. As set forth in the

Complaint, the defendant currency constitutes money or other things of value furnished or intended to be furnished by any person in exchange for a controlled substance or listed chemical in violation of 21 U.S.C. § 841 et seq., proceeds traceable to such an exchange, and/or moneys used or intended to be used to facilitate any violation of 21 U.S.C. § 841 et seq. On November 12, 2009, Claimants filed a Claim to the defendant property. to the Complaint. (b) Status of Service on All Defendants and Cross Defendants All known potential claimants have been served with the Complaint, Notice of Complaint, Application and Order for Publication, and Court Notices. complete. (c) Possible Joinder of Additional Parties None. (d) Contemplated Amendments to the Pleadings None. (e) Statutory Basis of Jurisdiction and Venue This Court has jurisdiction in this matter pursuant to 28 U.S.C. § 1345 and 28 U.S.C. § 1355(a). Venue is proper in this Accordingly, service is On November 23, 2009, they filed an Answer

district pursuant to 28 U.S.C. § 1355(b) and 28 U.S.C. § 1395. (f) Written Report Outlining Proposed Discovery Plan under Federal Rule of Civil Procedure 26(f) As of the December 1, 2006, amendments to Rule 26 of the Federal Rules of Civil Procedure, civil forfeiture actions are 2
Joint Status Report; Stipulation for Stay; Order [Proposed]

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exempt from the initial disclosure requirements applicable to most other civil actions. See Fed. R. Civ. P. 26(a)(1)(E)(ii).

Rather than fully schedule this case at this time, the Parties jointly request a stay of further proceedings in this matter pending the state prosecution of Claimant Eric Engstrom in Superior Court of California for the County of Nevada, Case No. SF09-079. The stay is requested pursuant to 18 U.S.C.

§§ 981(g)(1) and 981(g)(2) and 21 U.S.C. § 881(i), based on the following reasons: The United States contends that the defendant currency constitutes money or other things of value furnished or intended to be furnished by any person in exchange for a controlled substance or listed chemical in violation of 21 U.S.C. § 841 et seq., proceeds traceable to such an exchange, and/or moneys used or intended to be used to facilitate any violation of 21 U.S.C. § 841 et seq. The United States intends to depose Engstrom about

the claim he filed in this case; his involvement in and/or knowledge of drug-trafficking; the source of the funds seized; and other facts as alleged in the Complaint. If Engstrom as a

claimant in this action invokes his Fifth Amendment rights, the United States will be deprived of its ability to explore the factual bases underlying Engstrom's claim in this action and to examine the assertions he has raised in the Answer he has filed herein. Engstrom as a claimant in this action will, in turn, seek to depose law enforcement officers who participated in the seizure of the defendant currency on February 20, 2009, facts of which also form the basis of the pending criminal case against 3
Joint Status Report; Stipulation for Stay; Order [Proposed]

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Engstrom.

Allowing the depositions of the officers would

potentially and adversely affect the ability of the State of California to conduct its criminal prosecution against Eric Engstrom. Accordingly, the Parties agree that proceeding with this action at this time has potential adverse effects on the prosecution of the related criminal cases and/or upon Engstrom's ability to prove his claim to the property and/or assert any defenses to forfeiture. For these reasons, the Parties jointly

request that this matter be stayed pending the outcome of the state criminal prosecution, at which time the Parties will advise the Court whether a further stay is necessary. (g) Proposed Discovery Cut-Off Date In light of the requested stay, the parties ask that the case not be scheduled at this time. (h) Proposed Date for All Motions to be Filed and Heard In light of the requested stay, the parties ask that the case not be scheduled at this time. (i) Proposed Modification of Standard Pretrial Proceedings In light of the requested stay, the parties ask that the case not be scheduled at this time. (j) Estimated Length of Trial Not likely to exceed three (3) days. (k) Related to Any Other Case State of California v. Eric Engstrom, Case No. SF09-079, Superior Court of California for the County of Nevada. // // 4
Joint Status Report; Stipulation for Stay; Order [Proposed]

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(l)

Matters Under Local Rule 16-240 Adding to Just and Expeditious Disposition of Matter None.

(m)

Identification by Nongovernmental Corporate Party of Parent and Subsidiary Corporations None.

Dated: December 21, 2009

BENJAMIN B. WAGNER United States Attorney /s/ Saralyn M. Ang-Olson Saralyn M. Ang-Olson Special Assistant U.S. Attorney Attorney for Plaintiff

Dated: December 21, 2009

/s/ Stephen A. Munkelt Stephen A. Munkelt Attorney for Claimants Eric Engstrom and Mona Colomb (Original signature on file) ORDER

For the reasons set forth above, this action is stayed pursuant to 18 U.S.C. § 981(g)(1), 18 U.S.C. § 981(g)(2), and 21 U.S.C. § 881(i) until the conclusion of the criminal case, at which time the Parties will advise the Court whether a further stay is necessary. The Scheduling Conference is continued to

July 26, 2010 at 2:00 p.m. IT IS SO ORDERED. DATED: December 21, 2009

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Joint Status Report; Stipulation for Stay; Order [Proposed]