United States of America v. Approximately $7,136.49 in U.S. Currency seized from JP Morgan Chase Bank et al

Filing 10

CONSENT JUDGMENT OF FOREFEITURE signed by Judge Morrison C. England, Jr on 9/2/10 ORDERING that pursuant to the Stipulation for Consent Judgment of Forfeiture filed herein, the Court enters this CERTIFICATE OF REASONABLE CAUSE Pursuant to the Stipula tion for Consent Judgment of Forfeiture filed herein, the Court enters this Certificate of Reasonable Cause pursuant to 28 U.S.C. § 2465, that there was reasonable cause for the seizure of the above-described defendant funds. CASE CLOSED. (Becknal, R)

United States of America v. Approximately $7,136.49 in U.S. Currenc...P Morgan Chase Bank et al

Doc. 10

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BENJAMIN B. WAGNER United States Attorney JEAN M. HOBLER Special Assistant U.S. Attorney 501 I Street, Suite 10-100 Sacramento, CA 95814 Telephone: [phone]

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

) ) Plaintiff, ) ) v. ) ) APPROXIMATELY $7,136.49 IN U.S. ) CURRENCY SEIZED FROM JP MORGAN ) CHASE BANK ACCOUNT NUMBER ) 3790678038, HELD IN THE NAME ) MYCHAL S. LAHEY, ) ) APPROXIMATELY $27,460.00 IN U.S. ) CURRENCY SEIZED FROM BANK OF ) AMERICA ACCOUNT NUMBER ) 753567539, HELD IN THE NAME ) MYCHAL S. LAHEY, AND ) ) APPROXIMATELY $13,270.16 IN U.S. ) CURRENCY SEIZED FROM TRI ) COUNTIES BANK ACCOUNT NUMBER ) 66497707, HELD IN THE NAME ) MYCHAL S. LAHEY, ) ) Defendants. ) ) _________________________________)

2:10-MC-00054-MCE-DAD

CONSENT JUDGMENT OF FORFEITURE

Pursuant to the Stipulation for Consent Judgment of Forfeiture, the Court finds: 1. On January 7, 2010, Magistrate Judge Dale A. Drozd

authorized the seizure of funds in the above-captioned bank

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accounts (hereafter "the defendant funds") based upon a finding of probable cause that the defendant funds were subject to forfeiture to the United States based upon violations of 31 U.S.C. §§ 5324(a)(1) (causing and attempting to cause a domestic financial institution to fail to file a currency transaction report (CTR)) and (a)(3) (structuring). See All funds maintained at JP Morgan

Chase Bank N.A. checking account #3790678038, held in the name of Mychal S. Lahey, 2:10-SW-0014-DAD, see also 2:10-SW-0015-DAD, and 2:10-SW-0016-DAD. On or about January 8, 2010, the Internal

Revenue Service, Criminal Investigation ("IRS") executed the seizure warrants against the defendant funds. IRS then commenced

administrative forfeiture proceedings, sending direct written notice to all known potential claimants and publishing notice to all others. On or about February 19, 2010, the IRS received a

claim from Mychal Lahey asserting an ownership interest in the defendant funds. 2. If this matter proceeded to trial in a civil forfeiture

proceeding the government would show that between April 20, 2009 and April 28, 2009, in the Eastern District of California, Mychal Lahey structured transactions by breaking up currency deposits at or below $10,000.00 to evade the currency transaction requirement in violation of 31 U.S.C. § 5324(a)(3). The evidence would further

show that Mychal Lahey conducted currency deposit transactions with the intent to cause or attempt to cause a domestic financial institution to fail to file a CTR in violation of 31 U.S.C. § 5324(a)(1). In particular, and as specified in greater detail in

the affidavit in support of seizure warrants 2:10-SW-0014-DAD, 2:10-SW-0015-DAD, and 2:10-SW-0016-DAD, between April 20, 2009 and 2
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April 28, 2009 at least $99,600.00 in funds were structured into Tri Counties Bank account 66497707, JP Morgan Chase Bank account 3790678038, and Bank of America account 753567539. 3. Without admitting the truth of the factual assertions

contained above or in the affidavit in support of the seizure warrants, claimant specifically denying the same, and for the purpose of reaching an amicable resolution and compromise of this matter and all civil claims arising out of the factual averments made in said documents described above, claimant agrees that an adequate factual basis exists to support forfeiture of all of the defendant funds. Claimant hereby acknowledges that he is the sole

owner of the defendant funds and that no other person or entity has any legitimate claim of interest therein. Should any person or

entity institute any kind of claim or action against the government with regard to its forfeiture of the defendant funds, the claimant agrees to hold harmless and indemnify the United States. 4. This Court has jurisdiction in this matter pursuant to 28

U.S.C. §§ 1345 and 1355, as this is the judicial district in which acts or omissions giving rise to the forfeiture occurred. 5. This Court has venue pursuant to 28 U.S.C. § 1395, as this

is the judicial district in which the defendant funds were seized. 6. The parties herein desire to settle this matter pursuant

to the terms of a duly executed Stipulation for Consent Judgment of Forfeiture. Based upon the above findings, and the files and records of the Court, it is hereby ORDERED AND ADJUDGED: 7. The Court adopts the Stipulation for Consent Judgment of

Forfeiture entered into by and between the parties. 3
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8.

Upon entry of this Consent Judgment of Forfeiture, all

right, title, and interest in $18,000.00 of the Approximately $27,460.00 in U.S. Currency seized from Bank of America Account Number 753567539, held in the name Mychal S. Lahey, together with any interest that may have accrued on that amount, shall be forfeited to the United States pursuant to 31 U.S.C. § 5317(c)(2), to be disposed of according to law. 9. Upon entry of this Consent Judgment of Forfeiture, but no

later than 60 days thereafter, Approximately $7,136.49 in U.S. Currency seized from JP Morgan Chase Bank Account Number 3790678038, held in the name Mychal S. Lahey; $9,460.00 of the Approximately $27,460.00 in U.S. Currency seized from Bank of America Account Number 753567539, held in the name Mychal S. Lahey; and Approximately $13,270.16 in U.S. Currency seized from Tri Counties Bank Account Number 66497707, held in the name Mychal S. Lahey, together with any interest that may have accrued on those amounts, shall be returned to claimant Mychal Lahey. 10. Plaintiff United States of America and its servants,

agents, and employees and all other public entities, their servants, agents and employees, are released from any and all liability arising out of or in any way connected with the seizure and forfeiture of the defendant funds. This is a full and final

release applying to all unknown and unanticipated injuries, and/or damages arising out of said seizure and forfeiture, as well as to those now known or disclosed. The parties have agreed to waive the

provisions of California Civil Code § 1542, which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing 4
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the release, which if known by him must have materially affected his settlement with the debtor." 11. Pursuant to the Stipulation for Consent Judgment of

Forfeiture filed herein, the Court finds that there was reasonable cause for the seizure of the defendant funds and a Certificate of Reasonable Cause pursuant to 28 U.S.C. § 2465 shall be entered accordingly. 12. No portion of the stipulated settlement, including

statements or admissions made therein, shall be admissible in any criminal action pursuant to Rules 408 and 410(4) of the Federal Rules of Evidence. 13. fees. IT IS SO ORDERED. Dated: September 2, 2010 All parties will bear their own costs and attorneys'

_____________________________ MORRISON C. ENGLAND, JR. UNITED STATES DISTRICT JUDGE CERTIFICATE OR REASONABLE CAUSE Pursuant to the Stipulation for Consent Judgment of Forfeiture filed herein, the Court enters this Certificate of Reasonable Cause pursuant to 28 U.S.C. § 2465, that there was reasonable cause for the seizure of the above-described defendant funds.

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Dated: September 2, 2010

_____________________________ MORRISON C. ENGLAND, JR. UNITED STATES DISTRICT JUDGE

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