United States of America v. Real property located at 149 G Street, Lincoln, California, Placer County, APN: 008-266-015-000 et al

Filing 28

STIPULATION and ORDER signed by Judge Morrison C. England, Jr on 5/23/12 ORDERING that the deadline to file a joint status report in this case is EXTENDED from 5/21/12 to 7/10/2012. (Mena-Sanchez, L)

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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 FOR THE

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EASTERN DISTRICT OF CALIFORNIA

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UNITED STATES OF AMERICA,

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2:12-CV-00705-MCE-DAD

Plaintiff,
v.
REAL PROPERTY LOCATED AT 149 G
STREET, LINCOLN, CALIFORNIA,
PLACER COUNTY, APN: 008-266-015-000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO, et al.,

STIPULATION TO EXTEND THE
DEADLINE TO SUBMIT A JOINT
STATUS REPORT FROM MAY 21,
2012 TO JULY 10, 2012; ORDER
THEREON

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Defendants.

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A. Introduction

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On March 20, 2012, the United States filed a civil forfeiture complaint against

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the following real properties: 149 G Street, Lincoln, California; 167 G Street, Lincoln,

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California; 1199 Pacific Highway, Unit 406, San Diego, California; 10940 Fair Oaks

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Blvd., Fair Oaks, California; 2143 Outrigger Drive, El Dorado Hills, California; 8928

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Volunteer Lane, Sacramento, California; 833 West Sycamore Street, Willows,

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California; 7447 Antelope Road, Citrus Heights, California; 10293 Rockingham Drive,

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Rancho Cordova, California; 675 Kulike Road, Haiku, Maui, Hawaii; and 575 Menlo

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Drive, Rocklin, California.
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Stipulation to Extend the Deadline
to Submit a Joint Status Report

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On March 21, 2012, the Court issued an “Order Requiring Joint Status Report”

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due within “sixty days of service of the complaint on any party.” That deadline is

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currently May 21, 2012.

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On April 17, 2012, the United States file a Notice of Related Cases pursuant to

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E.D. Local Rule 123, stating that this case was related to Case No. 2:12-CV-00706-

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MCE-DAD because both civil forfeiture actions arise from the same law enforcement

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investigation and thus involve substantially the same events, transactions, and

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parties. Particularly, as described in the United States’ Notice of Related Cases, both

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cases allege that several individuals conspired to defraud the United Auburn Indian

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Community out of millions of dollars by submitting inflated and false change order

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invoices as part of a large commercial construction project. Both cases seek the

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forfeiture of real properties purchased with fraud proceeds and/or funds involved in the

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money laundering scheme.

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On April 23, 2012, the Court issued a Related Case Order.

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To date, several parties have filed claims and/or answers in the case, including

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Mechanics Bank, U.S. Bank National Association,1 and Standard Insurance

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Company2 (hereafter the “Claimants”). The claims and/or answers filed by the above

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parties were filed within the applicable statutory deadlines governing in rem cases.

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However, several parties, including record owners and lien holders, have requested

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extensions to the applicable statutory deadline; the United States has granted each

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request for additional time to file a claim and/or answer.

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The claim was filed by U.S. Bank National Association as Trustee for the
Registered Holders of WAMU Commerical Mortgage Securities Trust 207-SL3,
Commerical Mortgage Pass-Through Certificates, Series 2007-SL3. ECF No. 13.
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The claim was filed on behalf of five entities related to Standard Insurance
Company. ECF No. 11.
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Stipulation to Extend the Deadline
to Submit a Joint Status Report

B. Good Cause

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There is good cause to extend the deadline to file a joint status report in this
case from May 21, 2012 to July 10, 2012.

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To date, all known potential claimants to the defendant property have been

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served in a manner consistent with Dusenbery v. United States, 534 U.S. 161, 168

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(2002) and the applicable statutory authority. As detailed above, three parties have

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filed claims to the various real properties identified in the in rem complaint. However,

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several other potential claimants, including record owners and lien holders, have

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requested additional time to file claims and answers given the allegations contained in

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the nearly two-hundred page affidavit. The United States has granted each of parties’

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requests for extensions of time to review the affidavit and draft their claims and

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answers.

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To date, the United States has diligently pursued its forfeiture case against the

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defendant properties and attempted to notice all known potential claimants as

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required by the Supplemental Rules governing forfeiture cases. However, given the

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length and complexity of the affidavit, as well as the number of parties involved and/or

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potentially asserting an ownership or lien interest in the defendant properties, an

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extension of time to file claims is warranted. Moreover, there is an ongoing criminal

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investigation into the fraud and money laundering schemes forming the basis of the in

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rem complaint.

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The extension of time will allow the publication period to run, thus providing

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additional notice to potential claimants asserting an allegation of ownership. It will

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further allow the United States and Claimants to contemplate expedited settlement

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agreements with those meeting the statutory criteria. Additionally, the extension of

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time will allow all potential claimants to enter the case and jointly participate in

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drafting the Joint Status Report.

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Whereas the United States provided notice of the forfeiture complaint to

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potential claimants but several parties have requested extensions of time to comply
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Stipulation to Extend the Deadline
to Submit a Joint Status Report

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with the statutory deadlines. And whereas the extension of time will allow the

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publication period to run and allow the United States and Claimants to contemplate

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expedited settlement agreements with those meeting the statutory criteria. And

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whereas the extension of time will allow all potential claimants to enter the case and

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jointly participate in drafting the Joint Status Report. There is good cause to extend

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the deadline to file a joint status report in this case from May 21, 2012 to July 10,

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2012, or to extend the deadline to file a joint status report to a date the Court deems

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acceptable.

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Stipulation to Extend the Deadline
to Submit a Joint Status Report

C. Stipulation By Claimants

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Given their lack of involvement in granting extensions to potential claimants,

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providing notice to potential claimants, and the criminal investigation, the Claimants

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join this request only to the extent that they consent to the extension of the deadline to

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file the joint status report.

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Dated: 5/11/12

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: 5/10/12

/s/ John A. Graham
JOHN A. GRAHAM
Attorney for Claimant Mechanics Bank
(Authorized by email)

Dated: May 9, 2012

/s/ Trung D. Tu
TRUNG D. TU
Attorney for Claimant Standard
Insurance Company, Liberty Life
Assurance Company of Boston, Liberty
Mutual Fire Insurance Company, Liberty
Mutual Insurance Company and Peerless
Insurance Company

Dated: May 11, 2012

/s/ Wesley Hurst
WESLEY HURST
Attorney for Claimant U.S. Bank
National Association, as Trustee for the
Registered Holders of WAMU
Commercial Mortgage Securities Trust
2007-SL3

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(Signatures retained by attorney)

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Stipulation to Extend the Deadline
to Submit a Joint Status Report

ORDER

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Pursuant to the United States’ request and good cause appearing, the Court
makes the following order:
The deadline to file a joint status report in this case is extended from May 21,
2012 to July 10, 2012.

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IT IS SO ORDERED.
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Dated: May 23, 2012
________________________________
MORRISON C. ENGLAND, JR.
UNITED STATES DISTRICT JUDGE

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Stipulation to Extend the Deadline
to Submit a Joint Status Report