United States v. Patel

Filing 11

ORDER signed by Magistrate Judge Kendall J. Newman on 02/29/16 STAYING Garnishment Proceedings. Case STAYED. (Jackson, T)

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Malcolm Segal (SBN 075481)
Emily E. Doringer (SBN 208727)
SEGAL & ASSOCIATES, PC
400 Capitol Mall, Suite 2550
Sacramento, CA 95814
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for Defendant
KIRIT PATEL

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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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STIPULATION AND ORDER STAYING
GARNISHMENT PROCEEDINGS

v.

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Case No: 2:16-MC-00012 JAM KJN

Criminal Case No: 2:12-CR-00306-JAM

KIRIT PATEL,
Defendant and
Judgment Debtor.

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_______________________________

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NEW YORK LIFE INSURANCE
COMPANY,

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Garnishee.

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I.

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BACKGROUND

This civil action for Writ of Garnishment arises from an order of restitution

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issued in Case No. 2:12-cr-00306-JAM. An Indictment returned on August 23,

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2012, charged defendant Kirit Patel with mail and wire fraud pursuant to 18

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U.S.C. §§1341 and 1343.

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STIPULATION AND ORDER STAYING GARNISHMENT PROCEEDINGS

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Prior to the Indictment, on April 3, 2012, the Federal Trade Commission

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filed a civil complaint against Mr. Patel in Case No. 2:12-cv-00855-JAM-DAD. A

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stipulated judgment, reflecting the settlement agreement reached between Mr.

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Patel and the FTC, was issued on September 10, 2015. As part of the judgment,

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Mr. Patel was ordered to pay the FTC $72,002.00 from his personal bank

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accounts, and to release an additional $503,089.00 from accounts held in BGM’s

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name. Mr. Patel promptly made the payments.

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A plea agreement in Case No. 2:12-cr-00306-JAM was filed on October 14,

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2014, and Mr. Patel pled guilty to two counts each of mail and wire fraud. The

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Agreement directs that “[a]ny restitution paid by this defendant pursuant to the

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civil lawsuit Federal Trade Commission v. Broadway Global Master, et al, 2:12-cv-

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00855-JAM-DAD will be credited against restitution owed by this defendant under

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this agreement.” A restitution hearing was held on October 27, 2015. The Court

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issued a restitution Order on November 9, 2015, in the amount of $106,443.45.

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The Order states that the restitution amount is to be “credited, as permitted under

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18 U.S.C. §3664(j)(2)(A), to reflect any restitution that the same victim receives in

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the future on account of the settlement of civil case 2:12-cv-855-JAM.”

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On January 26, 2016, the U.S. Attorney filed Case No. 2:16-mc-00012JAM-KJN, seeking a writ of garnishment to satisfy the restitution obligation.
It is the parties’ understanding that the FTC has nearly completed the task

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of processing the settlement payments and final tally regarding those payments is

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expected to be available once that process concludes.

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II.

STIPULATION

In light of the circumstances set forth herein above, the defendant, KIRIT

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PATEL, through his counsel of record, Emily E. Doringer and plaintiff United

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States of America, through its counsel, Assistant United States Attorney Kurt A.

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Didier, agree and stipulate that the action for Writ of Garnishment, Case No. 2:16-

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mc-00012-JAM-KJN, shall be stayed for a period of 30 days. The purpose of the
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STIPULATION AND ORDER STAYING GARNISHMENT PROCEEDINGS

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stay is to allow the parties additional time necessary to communicate with the

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Federal Trade Commission concerning the final allocation of settlement payments

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in Case No. 2:12-cv-00855-JAM-DAD and to determine how those payments

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affect the remaining restitution balance owed in Case No. 2:12-cr-00306-JAM,

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and subject to garnishment in Case No. 2:16-mc-00012-JAM-KJN.

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IT IS SO STIPULATED.

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Dated: February 26, 2016

SEGAL & ASSOCIATES, PC

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By:

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/s/ Emily E. Doringer____________
EMILY E. DORINGER
Attorneys for Defendant
KIRIT PATEL

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Dated: February 26. 2016

BENJAMIN B. WAGNER
United States Attorney

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By:

/s/ Kurt A. Didier (by permission)
KURT A. DIDIER
Assistant United States Attorney

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STIPULATION AND ORDER STAYING GARNISHMENT PROCEEDINGS

ORDER

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GOOD CAUSE APPEARING and pursuant to the stipulation of the parties,

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Case No. 2:16-mc-00012-JAM-KJN shall be stayed for a period of 30 days

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following the date of this Order.

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IT IS SO ORDERED.

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Dated: February 29, 2016

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STIPULATION AND ORDER STAYING GARNISHMENT PROCEEDINGS