United States of America v. Real property located at 3110 Morgan Hill Road, Hayfork, California, Trinity County, APN: 017-430-25

Filing 31

STIPULATION and ORDER signed by Judge William B. Shubb on 7/11/2011 ORDERING that this matter is STAYED until the conclusion of the related criminal case now pending in Trinity County Superior Court. Within 30 days after the criminal case has conclud ed, claimant Serrano will file his Answer to the Verified Complaint for Forfeiture In Rem, and the parties will submit a joint status report. The Scheduling Conference is continued to 11/28/2011 at 2:00 p.m. A joint status report shall be filed no later 11/14/2011. (Zignago, K.)

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BENJAMIN B. WAGNER
United States Attorney
KEVIN KHASIGIAN
Assistant United States 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,
v.
REAL PROPERTY LOCATED AT 3110
MORGAN HILL ROAD, HAYFORK,
CALIFORNIA, TRINITY COUNTY,
APN: 017-430-25,INCLUDING ALL
APPURTENANCES AND IMPROVEMENTS
THERETO,

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Defendant.
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2:10-CV-01894 WBS-JFM
STIPULATION FOR STAY OF
FURTHER PROCEEDINGS AND
ORDER [PROPOSED]

DATE: N/A
TIME: N/A
COURTROOM: #5, 14th Floor

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The United States and claimant Jaime R. Serrano submit the

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following stipulation and request that the Court enter an order

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staying all further proceedings in this civil forfeiture action

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until the proceedings in the related criminal case, People v.

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Jaime R. Serrano, et al., now pending in Trinity County Superior

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Court, have concluded.

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following reasons:

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1.

The parties request this stay for the

The parties request this stay pursuant to 18 U.S.C.

§§ 981(g)(1) and 981(g)(2).

The United States contends that the
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Stipulation for Stay of Further
Proceedings and Order

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defendant real property was used to facilitate the cultivation of

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marijuana.

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April 14, 2010, law enforcement officers found approximately

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2,203 marijuana plants being grown in a sophisticated indoor

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operation.

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are set forth in the Verified Complaint for Forfeiture In Rem

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(Complaint) filed on July 19, 2010.

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the owner of the defendant property, denies these allegations.

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2.

During the execution of a state search warrant on

The details of the underlying criminal investigation

Claimant Jaime R. Serrano,

Trueman E. Vroman also has an interest in the defendant

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property, and has filed a Claim and Answer to the Complaint.

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Vroman loaned Serrano funds to construct the residence and is

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owed approximately $190,000, which is secured by a deed of trust

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recorded against the defendant property on October 26, 2007.1

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June 28, 2011, this Court approved a Stipulation for Expedited

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Settlement entered into by the United States and Vroman.

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Stipulation provided that, upon entry of a Final Judgment of

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Forfeiture in favor of the United States, the United States would

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sell the defendant real property in a commercially reasonable

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manner and for fair market value.

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profiled the priority of payment to the involved

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parties/entities, i.e., U.S. Marshals Service fees, property

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taxes, broker costs, and Vroman’s promissory note.

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Stipulation also excused and relieved Vroman from further

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participation in this action.

On

The

The Stipulation further

The

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Vroman denies the allegation in the complaint based on his
lack of knowledge of Serranos’s activities, and claims he is an
innocent owner within the meaning of 18 U.S.C. § 983(d)(2)(A).
Based on the information currently available, the United States
agrees that Vroman is an innocent owner.
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Stipulation for Stay of Further
Proceedings and Order

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3.

The United States intends to depose claimant Serrano

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about the marijuana being grown on the defendant property; about

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who constructed the grow rooms found within the home; and about

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his involvement in drug trafficking.

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claimant Serrano would be placed in the difficult position of

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either invoking his Fifth Amendment right against self-

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incrimination and losing the ability to protect his alleged

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interest in the defendant property, or waiving his Fifth

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Amendment right and submitting to a deposition and potentially

If discovery proceeds,

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incriminating himself in the pending criminal matter.

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claimant invokes his Fifth Amendment right, the United States

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

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the claim he filed in this action.

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4.

If

In addition, claimant Serrano intends to depose law

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enforcement officers who were involved in underlying drug-

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trafficking investigation, and the execution of the state search

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warrant at the claimant’s residence.

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these officers would adversely affect the ability of the federal

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government to properly prosecute the case.

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5.

Allowing depositions of

Accordingly, the parties recognize that proceeding with

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this action at this time has potential adverse affects on the

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prosecution of the related-criminal case and/or upon claimant’s

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ability to prove his claims to the property and to contest the

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government's allegations that the property is forfeitable.

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6.

For these reasons, the parties jointly request that

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this matter be stayed until the related criminal case now pending

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in state court has concluded.

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that the related criminal case against Serrano is set for trial

The parties presently understand

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Stipulation for Stay of Further
Proceedings and Order

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in late August 2011.

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related criminal case Serrano will file his Answer to the

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Complaint, and the parties will submit a joint status report

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addressing the matters set forth in the July 19, 2010, Order

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Requiring Joint Status Report.

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Within 30 days after the conclusion of the

While this case is stayed, claimant Serrano agrees to

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keep current all payments due to Trueman E. Vroman under the

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promissory note dated October 26, 2007, in the original principal

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amount of $225,000.00, and secured by the deed of trust recorded

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in Trinity County, California, on October 26, 2007, encumbering

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the defendant property.

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In the event claimant Serrano defaults on his

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obligations to Trueman E. Vroman, claimant Serrano agrees to join

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any motion filed by Vroman and/or the United States for the

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interlocutory sale of the defendant property.

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shall mean any default under the note and deed of trust

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encumbering the defendant property and any other documents

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executed by claimant Serrano in connection therewith.

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alternative, if at the time of default the fair market value of

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the defendant property is less than the amount owed to Vroman,

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the United States may move to dismiss the pending forfeiture

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action to permit Vroman to exercise his rights under the note and

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deed of trust, including but not limited to foreclosure.

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decision whether to seek an interlocutory sale order, or to

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The term “default”

In the

The

Stipulation for Stay of Further
Proceedings and Order

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permit Vroman to foreclose, lies in the sole discretion of the

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United States.

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Dated: July 8, 2011

BENJAMIN B. WAGNER
United States Attorney

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

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Dated: July 8, 2011

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/s/ Stephen Sweigart
STEPHEN SWEIGART
Attorney for claimant
Jaime R. Serrano
(As authorized by email)

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ORDER

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For the reasons set forth above, this matter is stayed pursuant

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to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) until the conclusion of

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the related criminal case now pending in Trinity County Superior

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Court.

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claimant Serrano will file his Answer to the Verified Complaint

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for Forfeiture In Rem, and the parties will submit a joint status

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report addressing the matters set forth in the July 19, 2010,

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Order Requiring Joint Status Report.

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is continued to November 28, 2011 at 2:00 p.m.

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report shall be filed no later November 14, 2011.

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Within 30 days after the criminal case has concluded,

The Scheduling Conference
A joint status

IT IS SO ORDERED.
Dated:

July 11, 2011

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Stipulation for Stay of Further
Proceedings and Order