USA v. Real Property located at 8911 Highway 49, Mokelumne Hill, California, Calaveras County, APN: 018-019-057-0000 et al

Filing 73

AMENDED STIPULATION and ORDER to STAY FURTHER PROCEEDINGS until the resolution of companion criminal cases signed by District Judge Kimberly J. Mueller on 8/6/2018. The parties shall file a joint status report within 30 days of the conclusion of the parallel criminal cases, or as the court deems appropriate. Case stayed. (York, M)

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McGREGOR W. SCOTT
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

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EASTERN DISTRICT OF CALIFORNIA

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UNITED STATES OF AMERICA,

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2:18−CV−00747−KJM−CKD

Plaintiff,
v.
REAL PROPERTY LOCATED AT 8911
HIGHWAY 49, MOKELUMNE HILL,
CALIFORNIA, CALAVERAS COUNTY,
APN: 018-019-057-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,

AMENDED STIPULATION TO STAY
FURTHER PROCEEDINGS AND
ORDER

REAL PROPERTY LOCATED AT 3788
DUNN ROAD, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 072-033-018-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 3650
DELIN WAY, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 072-027-005-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 11635
MILTON ROAD, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 070-035-037-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,

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Amended Stipulation to Stay Further Proceedings
and Order

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REAL PROPERTY LOCATED AT 6365
HIRONYMOUS WAY, VALLEY
SPRINGS, CALIFORNIA, CALAVERAS
COUNTY, APN: 073-015-002-000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 8914
GREER WAY, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 070-039-018-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 8786
GREER WAY, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 070-039-014-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 8456
BALDWIN STREET, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 070-035-014-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 6199
HIGHWAY 26, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 073-013-005-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 6048
AMOS LANE, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 048-025-287-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 2852
HOFFMAN DRIVE, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 072-018-014-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO, and
REAL PROPERTY LOCATED AT 2838
HOFFMAN DRIVE, VALLEY SPRINGS,
CALIFORNIA, CALAVERAS COUNTY,
APN: 072-018-015-000, INCLUDING ALL

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Amended Stipulation to Stay Further Proceedings
and Order

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APPURTENANCES AND
IMPROVEMENTS THERETO,

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Defendants.

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The United States and Claimants Hai Xia Zhang, Yu Ying Cai, Dong Jin Zhang, Fang Li, Feng

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Shan Lin, Dong Ju Zheng, Dong Liang Yang, Zhao Hong Li, Meiling Li, Cavalier Asset Group, LLC,
and Signet Management LLC hereby stipulate that a stay is necessary in the above-entitled action and
request that the Court enter an order staying all further proceedings until the resolution of the related
criminal cases, United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and United States v. Xiu
Ping Li, et al., Case No. 2:17-CR-00136-KJM.
1.

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881(a)(7) because they were allegedly used to commit or facilitate violations of federal drug laws:
a.
Real Property located at 8911 Highway 49, Mokelumne Hill, California, the
“Defendant Highway 49.” Hai Xia Zhang has filed a claim asserting an ownership interest
in defendant Highway 49. Jadhav Family Trust filed a claim asserting a lienholder interest
in defendant Highway 49. This property was sold resulting in net proceeds of $519.96 and
satisfaction of Jadhav Family Trust’s loan.1 The $1,557.87 in net proceeds shall be
substituted for the defendant Highway 49.

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b.
Real Property located at 3788 Dunn Road, Valley Springs, California, the
“Defendant Dunn Road.” Yu Ying Cai has filed a claim asserting an ownership interest in
defendant Dunn Road. Cavalier Asset Group, LLC filed a claim asserting a lienholder
interest in defendant Dunn Road.

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c.
Real Property located at 3650 Delin Way, Valley Springs, California, the
“Defendant Delin Way.” Dong Jin Zhang has filed a claim asserting an ownership interest
in defendant Delin Way. Val-Chris Investments, Inc. filed a claim asserting a lienholder
interest in defendant Delin Way. This property was sold resulting in net proceeds of
$519.96 and satisfaction of Val-Chris Investments, Inc.’s loan.2 The $519.96 in net
proceeds shall be substituted for the defendant Delin Way.

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d.
Real Property located at 11635 Milton Road, Valley Springs, California, the
“Defendant Milton Road.” Fang Li has filed a claim asserting an ownership interest in
defendant Milton Road. This property was sold resulting in net proceeds of $76,873.69
and the net proceeds shall be substituted for the defendant Milton Road.

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This is a forfeiture in rem action against twelve properties pursuant to 21 U.S.C. §

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Accordingly, Jadhav Family Trust no longer has an interest in Defendant Highway 49 property.
Accordingly, Val-Chris Investment Inc. no longer has an interest in Defendant Delin Way property.
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Amended Stipulation to Stay Further Proceedings
and Order

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e.
Real Property located at 6365 Hironymous Way, Valley Springs, California, the
“Defendant Hironymous Way.” Feng Shan Lin has filed a claim asserting an ownership
interest in defendant Hironymous Way. This property was sold resulting in net proceeds
of $20,873.69 and the net proceeds shall be substituted for the defendant Hironymous
Way.

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f.
Real Property located at 8914 Greer Way, Valley Springs, California, the
“Defendant 8914 Greer Way.” Xiuzhu Yang has filed a claim asserting an ownership
interest in defendant 8914 Greer Way.

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g.
Real Property located at 8786 Greer Way, Valley Springs, California, the
“Defendant 8786 Greer Way.” Dong Ju Zheng has filed a claim asserting an ownership
interest in defendant 8786 Greer Way. This property was sold resulting in net proceeds of
$44,847.66 and the net proceeds shall be substituted for the defendant 8786 Greer Way.

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h.
Real Property located at 8456 Baldwin Street, Valley Springs, California, the
“Defendant Baldwin Street.” Dong Liang Yang has filed a claim asserting an ownership
interest in defendant Baldwin Street.

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i.
Real Property located at 6199 Highway 26, Valley Springs, California, the
“Defendant Highway 26.” Xiulan Yang, the owner of the property, did not file a claim
asserting an ownership interest in defendant Highway 26 property and was defaulted on
July 24, 2018. Signet Management, LLC filed a claim asserting a lienholder interest in
defendant Highway 26.

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j.
Real Property located at 6048 Amos Lane, Valley Springs, California, the
“Defendant Amos Lane.” Zhao Hong Li has filed a claim asserting an ownership interest
in defendant Amos Lane. Signet Management, LLC filed a claim asserting a lienholder
interest in defendant Amos Lane. This property was sold resulting in net proceeds of
$11,408.12 and satisfaction of Signet Management, LLC’s loan.3 The $11,408.12 in net
proceeds shall be substituted for the defendant Amos Lane.

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k.
Real Property located at 2838 & 2852 Hoffman Drive, Valley Springs, California,
the “Defendant Hoffman Drive.” Meiling Li has filed a claim asserting an ownership
interest in defendant Hoffman Drive. This property was sold resulting in net proceeds of
$20,576.00 and the net proceeds shall be substituted for the defendant Hoffman Drive.

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2.

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The stay is requested pursuant to 18 U.S.C. §§ 981(g)(1), 981(g)(2), and 21 U.S.C. §

24 881(i). The United States contends that the defendant properties were used and intended to be used to
25 commit or facilitate violations of federal drug laws in violation of 21 U.S.C. §§ 841 et seq. Claimants
26 deny these allegations.
3.

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To date, several individuals have been charged with federal crimes related to marijuana

Accordingly, Signet Management, LLC no longer has an interest in Defendant Amos Lane property.
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Amended Stipulation to Stay Further Proceedings
and Order

1 manufacturing and distribution in United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and
2 United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM. It is the United States’ position that
3 the statute of limitations has not expired on potential criminal charges relating to the drug trafficking
4 involving the defendant properties. Nevertheless, the United States intends to depose claimants (and
5 others) regarding their ownership of the defendant properties, as well as their knowledge and
6 participation in large scale marijuana cultivation, including the marijuana grow at the defendant
7 properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at
8 this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment
9 rights against self-incrimination and losing the ability to pursue their claims to the defendant properties,
10 or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating
11 themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability
12 to explore the factual basis for the claims they filed with this court.
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In addition, claimants intend to depose, among others, the agents involved with this

14 investigation, including but not limited to, the agents with the Federal Bureau of Investigation (“FBI”).
15 Allowing depositions of the law enforcement officers at this time would adversely impact the federal
16 prosecution and ongoing investigation.
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The parties recognize that proceeding with these actions at this time has potential adverse

18 effects on the investigation of the underlying criminal conduct and/or upon the claimant’s ability to assert
19 any defenses to forfeiture. For these reasons, the parties jointly request that these matters be stayed until
20 the conclusion of the related criminal cases. At that time the parties will advise the court of the status of
21 the criminal investigation, if any, and will advise the court whether a further stay is necessary.
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If any of the defendant properties go into default, the parties reserve the right to seek all

23 avenues of redress to preserve the real properties, including filing a motion for interlocutory sale or
24 seeking a receiver appointment to collect rents and maintain the properties.
25 Dated:

8/1/2018

McGREGOR W. SCOTT
United States Attorney

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By:

/s/ Kevin C. Khasigian
KEVIN C. KHASIGIAN
Assistant U.S. Attorney
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Amended Stipulation to Stay Further Proceedings
and Order

1 Dated:

7/31/2018

/s/ N. Allen Sawyer
N. ALLEN SAWYER
Attorney for Claimants Hai Xia Zhang, Dong Jin
Zhang, Feng Shan Lin, Zhao Hong Li and Meiling Li

8/2/2018

/s/ Larissa L. Branes
LARISSA L. BRANES
Attorney for Claimant Cavalier Asset Group, LLC

7/30/2018

/s/ Robert J. Saria
ROBERT J. SARIA
Attorney for Claimant Yu Ying Cai

7/31/2018

/s/ Linda Parisi
LINDA PARISI
Attorney for Claimants Fang Li, Xiuzhu Yang,
and Dong Ju Zheng

7/31/2018

/s/ Terry R. Hunt
TERRY R. HUNT
Attorney for Claimant Dong Liang Yang

7/30/2018

/s/ Michael J. Gilligan
MICHAEL J. GILLIGAN
Attorney for Claimant Signet Management LLC

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ORDER
For the reasons set forth above, this matter is stayed under 18 U.S.C. §§ 981(g)(1), 981(g)(2) and

21 21 U.S.C. § 881(i) until the resolution of companion criminal cases. The parties shall file a joint status
22 report within 30 days of the conclusion of the parallel criminal cases, or as the court deems appropriate.
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IT IS SO ORDERED.

24 DATED: August 6, 2018.
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UNITED STATES DISTRICT JUDGE

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Amended Stipulation to Stay Further Proceedings
and Order