United States of America v. Malinowski et al

Filing 65

STIPULATION and ORDER re LIEN PRIORITY signed by Judge John A. Mendez on 8/6/12: (Kaminski, H)

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KATHRYN KENEALLY
Assistant Attorney General
ADAM R. SMART
Trial Attorney, Tax Division
U.S. Department of Justice
Ben Franklin Station, P.O. Box 683
Washington, D.C. 20044
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
[e-mail]
Attorney for the United States of America

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BENJAMIN B. WAGNER
United States Attorney
Eastern District of California
Of Counsel

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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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UNITED STATES OF AMERICA,
Plaintiff,

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vs.

17 KENNETH J. MALINOWSKI; PATRICIA I.
MALINOWSKI; KENNETH J.
18 MALINOWSKI and PATRICIA I.
MALINOWSKI as trustees of the BOAZ
19 FOUNDATION; THE POPULAR SOCIETY
OF SOVERIGN ECCLESIA aka THE
20 POPULAR SOCIETY OF THE SOVEREIGN
ECCLESIA, KENNETH J. MALINOWSKI as
21 Patriarch; STAN HOKENSON as trustee of
TIERRA LAND TRUST, aka TIERRA
22 TRUST; GMAC MORTGAGE
23 CORPORATION; STATE OF CALIFORNIA
FRANCHISE TAX BOARD; CITIBANK
24 SOUTH DAKOTA, N.A.; SACRAMENTO
COUNTY,
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Defendants.
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Case No.: 2:11-cv-01187 JAM (JFM)
Hon. John A. Mendez
Ctrm. 6

STIPULATION FOR LIEN PRIORITY
AND ORDER

Plaintiff, United States of America and Defendant State of California Franchise Tax Board
stipulate as follows:
Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM (JFMx)
8602947.1

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1.

foreclose tax liens that are recorded against real property. See 26 U.S.C. §§ 6502 and 7403.

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2.

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the corresponding dates set forth in paragraph 6 below, encumber certain real property located at
6037 White Cloud Court, Citrus Heights, CA 95261 (“the Property”). Notices of Federal Tax
Lien were filed with the Sacramento County Recorder on the corresponding dates set forth in
paragraph 6 below.
3.

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recorded with the Sacramento County Recorder against the Property on the corresponding dates
set forth in paragraph 6 below.
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number 199511091009, which encumbers the Property.
5.

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It is agreed that Defendant Sacramento County claims an interest in the Property

by virtue of statutory liens for delinquent real property taxes assessed against the Property.

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It is agreed that Defendant GMAC Mortgage, LLC is servicing a deed of trust

recorded on December 6, 1995 in the Sacramento County Recorder’s Office as instrument

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It is agreed that Defendant State of California Franchise Tax Board is the holder

of tax liens that arose on the corresponding dates identified in paragraph 6 below, and were

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It is agreed that the United States claims that federal tax liens, which are

referenced in paragraphs 54 and 55 of the Complaint in the above-captioned matter and arose on

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Plaintiff’s lawsuit is an action to reduce tax assessments to judgment and to

6.

The United States and State of California Franchise Tax Board agree to the

following schedule of priority of the liens at issue on the subject Property:1
Rank
Lien Holder
Type
Lien Date/Date of Recording
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Sacramento County

Property Tax Lien

N/A

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GMAC Mortgage

Deed of Trust

12/6/1995

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FTB (1998 TY)

NSTL

9/12/2001 (3/27/2002)

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1

Defendant GMAC Mortgage, LLC and Sacramento County have already stipulated to
the relative priority of their liens vis-à-vis the United States and each other. (Dkt. 50). Moreover
as the State of California Franchise Tax Board’s liens are junior to those liens as well, the
agreement of GMAC Mortgage and Sacramento County is not necessary for this stipulation as
they will be paid prior to either the United States or the State of California Franchise Tax Board.
-1Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM (JFMx))
8602947.1

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FTB (1999 TY)

NSTL

1/04/2002 (3/27/2002)

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FTB (2000 TY)

NSTL

10/27/2002 (3/7/2012)

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FTB (2001 TY)

NSTL

7/24/2004 (5/27/2010)

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FTB (1998 TY)

NSTL

2/19/2006 (5/27/2010)

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FTB (1999 TY)

NSTL

2/19/2006 (5/27/2010)

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FTB (2000 TY)

NSTL

2/19/2006 (5/27/2010)

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FTB (2001 TY)

NSTL

2/19/2006 (5/27/2010)

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IRS (1998 TY)

NFTL

4/10/2006 (6/20/2007)

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FTB (2004 TY)

NSTL

3/24/2007 (3/7/2012)

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FTB (2003 TY)

NSTL

3/24/2007 (3/7/2012)

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IRS (1998 TY)

NFTL

4/02/2007 (2/5/2009)

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IRS (1999 TY)

NFTL

4/02/2007 (10/20/2008)

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IRS (2000 TY)

NFTL

4/02/2007 (10/20/2008)

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IRS (2001 TY)

NFTL

4/02/2007 (2/5/2009)

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IRS (2002 TY)

NFTL

4/02/2007 (2/5/2009)

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IRS (2003 TY)

NFTL

4/02/2007 (2/5/2009)

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IRS (1999 TY)

NFTL

6/4/2007 (6/20/2007)

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IRS (2000 TY)

NFTL

6/4/2007 (6/20/2007)

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IRS (2001 TY)

NFTL

6/4/2007 (6/20/2007)

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IRS (2002 TY)

NFTL

6/4/2007 (6/20/2007)

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IRS (2004 TY)

NFTL

8/11/2008 (2/5/2009)

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IRS (2003 TY)

NFTL

2/23/2009 (4/13/2009)

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FTB (2003 TY)

NSTL

6/8/2009 (5/27/2010)

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-2Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM8602947.1
(JFMx)

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FTB (1998 TY)

NSTL

6/8/2009 (5/27/2010)

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FTB (1999 TY)

NSTL

6/8/2009 (5/27/2010)

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FTB (2000 TY)

NSTL

6/8/2009 (5/27/2010)

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FTB (2001 TY)

NSTL

6/8/2009 (5/27/2010)

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FTB (2002 TY)

NSTL

6/8/2009 (3/7/2012)

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FTB (2007 TY)

NSTL

7/3/2009 (3/7/2012)

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FTB (2000 TY)

NSTL

7/6/2009 (5/27/2010)

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FTB (1998 TY)

NSTL

7/6/2009 (5/27/2010)

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FTB (1999 TY)

NSTL

7/6/2009 (5/27/2010)

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FTB (2001 TY)

NSTL

7/6/2009 (5/27/2010)

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FTB (2002 TY)

NSTL

7/6/2009 (3/7/2012)

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FTB (2008 TY)

NSTL

8/20/2010 (3/7/2012)

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FTB (2009 TY)

NSTL

12/9/2011 (3/7/2012)

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7.

The California Franchise Tax Board does not oppose judicial foreclosure of the

Property by Plaintiff should it prevail in this action. However, because the Plaintiff’s interest in
the Property is subordinate to the interests of Sacramento County and GMAC Mortgage, LLC,
and certain of the interests of the California Franchise Tax Board as identified above, any
proceeds from the sale of the Property, as among these four parties, will be used to pay off the
interests of the four parties as outlined in the chart above in paragraph 6. Prior to filing an
application for final order of the Court, Plaintiff agrees to provide an accounting to GMAC
Mortgage, LLC, Sacramento County, and the California Franchise Tax Board setting forth the full
disposition of the proceeds from the sale of the Property.
8.

The California Franchise Tax Board agrees to provide Plaintiff with an updated

balance for the tax liabilities identified in the chart in paragraph 6 above upon Plaintiff’s request
prior to the sale of the Property
-3Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM8602947.1
(JFMx)

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9.

The parties to this stipulation agree to bear their own costs and attorney fees,

excepting the costs incurred in selling the Subject Property, which are to be reimbursed from the
proceeds of the sale of the Subject Property prior to satisfying the outstanding liens on the Subject
Property.
10.

The parties to this stipulation agree that its contents will bind all their assigns and

successors in interest.
11.

Upon the execution of this stipulation by both parties and entry of the proposed

order by the Court, the California Franchise Tax Board shall not be required to appear at any
future hearings in this litigation and shall be treated as non-parties for all purposes including
discovery purposes, unless ordered by the Court.

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IT IS SO STIPULATED.
DATED: August 3, 2012

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By:/s/ Adam R Smart
ADAM R. SMART
Trial Attorney, Tax Division
U.S. Department of Justice

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Of Counsel:
BENJAMIN B. WAGNER
United States Attorney

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Attorneys for Plaintiff
UNITED STATES OF AMERICA

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KATHRYN KENEALLY
Assistant Attorney General

DATED: August 3, 2012

KAMALA D. HARRIS
Attorney General of California
WILLIAM L. CARTER
Supervising Deputy Attorney General
By: /s/ Jill Bowers
__________________
JILL BOWERS
Deputy Attorney General
Attorneys for Defendant State of
California Franchise Tax Board
-4Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM8602947.1
(JFMx)

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IT IS SO ORDERED.

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DATED: August 6, 2012

/s/ John A. Mendez___________________
Hon. John A. Mendez
JUDGE OF THE U.S. DISTRICT COURT

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-5Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM8602947.1
(JFMx)

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CERTIFICATE OF SERVICE

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I HEREBY CERTIFY that on August 3, 2012, I electronically filed the foregoing with the
Clerk of Court using the CM/ECF system, which will send notification of such filing to the
following:

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Diane McElhern
Scott Fera
County of Sacramento
700 H Street, Suite 2650
Sacramento, CA 95814
Attorney for Sacramento County
Jill Bowers
Attorney General Of California
1300 I Street, Suite 125
PO Box 944255
Sacramento, CA 94244
Attorney for State of California Franchise Tax Board
Kerry William Franich
Severson & Werson
19100 Von Karman Avenue
Suite 700
Irvine, CA 92612
Attorney for GMAC Mortgage LLC

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and that service was made on this date by causing a copy of the foregoing to be sent via postage
paid United States first class mail to the following:
Kenneth John Malinowski
General Post Office 6630 Fountain Square Lane
Citrus Heights, CA 95621
Pro Se
Kenneth John Malinowski
Post Office Box 483
Citrus Heights, CA 95611
Pro Se

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Patricia I. Malinowski
General Post Office 6630 Fountain Square Lane
Citrus Heights, Ca 95621
Pro Se
Patricia I. Malinowski
Post Office Box 483
Citrus Heights, CA 95611
Pro Se
-6Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM8602947.1
(JFMx)

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Tierra Land Trust, aka Tierra Trust
c/o Stan Hokenson
5431 Auburn Blvd #135
Sacramento CA 95842
Boaz Foundation
c/o Kenneth John Malinowski
6034 White Cloud Ct.
Citrus Heights, CA 95621
Popular Society of Sovereign Ecclesia,
aka the Popular Society of the Sovereign Ecclesia
c/o Kenneth John Malinowski
6034 White Cloud Ct.
Citrus Heights, CA 95621

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Citibank South Dakota, N.A.
701 E. 60th Street N., MC 1251
Sioux Falls, SD 57117

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_/s/ Adam R Smart___________________
ADAM R. SMART
Trial Attorney, Tax Division

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-7Stipulation for Lien Priority
Case No. 2:11-cv-01187 JAM8602947.1
(JFMx)

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