USA v. Real Property located at 8804 Sailfish Bay, Sacramento, California, Sacramento County, APN: 115-1720-0192-0000 et al

Filing 40

STIPULATION and ORDER TO STAY FURTHER PROCEEDINGS signed by District Judge Kimberly J. Mueller on 8/6/18. CASE STAYED until the resolution of companion criminal cases. 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.(Mena-Sanchez, L)

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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−00751−KJM−CKD

Plaintiff,
v.
REAL PROPERTY LOCATED AT 8804
SAILFISH BAY, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 115-1720-0192-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

STIPULATION TO STAY FURTHER
PROCEEDINGS AND ORDER

REAL PROPERTY LOCATED AT 9085
COBBLE FIELD DRIVE,
SACRAMENTO, CALIFORNIA,
SACRAMENTO COUNTY, APN: 1210700-093-0000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 13390
IVIE ROAD, GALT, CALIFORNIA,
SACRAMENTO COUNTY, APN: 1520270-005-0000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 1950
ESTEREL WAY, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 052-0270-001-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
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Stipulation to Stay Further Proceedings and Order

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REAL PROPERTY LOCATED AT 21
JEANROSS COURT, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 052-0270-015-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 5935
64TH STREET, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 027-0296-006-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 6010
POWER INN ROAD, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 038-0071-011-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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Defendants.
The United States and Claimants Su Yuan Hua, Ming Ren Yan, Yong Qiang Chen, Sui Yin Lui,

14 Spartan Mortgage Services, Inc. dba Spartan Home Loans, Neal L. Horn, M.D., and Conventus, LLC
15 hereby stipulate that a stay is necessary in the above-entitled action and request that the Court enter an
16 order staying all further proceedings until the resolution of the related criminal cases, United States v.
17 Leonard Yang, et al., Case 2:16-CR-00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:1718 CR-00136-KJM.
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1.

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

20 881(a)(7) because they were allegedly used to commit or facilitate violations of federal drug laws:
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a.
Real Property located at 8804 Sailfish Bay, Sacramento, California, the
“Defendant Sailfish Bay.” Su Yuan Hua has filed a claim asserting an ownership interest
in defendant Sailfish Way.
b.
Real Property located at 9085 Cobble Field Drive, Sacramento, California, the
“Defendant Cobble Field Drive.” Ming Ren Yan has filed a claim asserting an ownership
interest in defendant Cobble Field Drive. Spartan Mortgage Services, Inc. dba Spartan
Home Loans filed a claim asserting a lienholder interest in defendant Cobble Field Drive.
c.
Real Property located at 13390 Ivie Road, Galt, California, the “Defendant Ivie
Road.” Yong Qiang Chen has filed a claim asserting an ownership interest in defendant
Ivie Road. Neal L. Horn, M.D. filed a claim asserting a lienholder interest in defendant
Ivie Road.
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Stipulation to Stay Further Proceedings and Order

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d.
Real Property located at 1950 Esterel Way, Sacramento, California, the
“Defendant Esterel Way.” Jian Ping Ke, the owner of the property, has not filed a claim
asserting an ownership interest in defendant Esterel Way and will be defaulted shortly.
Conventus, LLC filed a claim asserting a lienholder interest in defendant Esterel Way.

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e.
Real Property located at 21 Jeanross Court, Sacramento, California, the
“Defendant Jeanross Court.” Chao Long Chen, the owner of the property, has not filed a
claim asserting an ownership interest in defendant Jeanross Court and will be defaulted
shortly. Conventus, LLC filed a claim asserting a lienholder interest in defendant Jeanross
Court.

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f.
Real Property located at 5935 64th Street, Sacramento, California, the “Defendant
64th Street.” Sui Yin Lui has filed a claim asserting an ownership interest in defendant
64th Street.

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g.
Real Property located at 6010 Power Inn Road, Sacramento, California, the
“Defendant Power Inn Road.” Vo Huu Duc Nguyen, the owner of the property, did not
file a claim asserting an ownership interest in defendant Power Inn Road and was
defaulted on July 26, 2018.

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2.

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

14 881(i). The United States contends that the defendant properties were used and intended to be used to
15 commit or facilitate violations of federal drug laws in violation of 21 U.S.C. §§ 841 et seq. Claimants
16 deny these allegations.
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3.

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

18 manufacturing and distribution in United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and
19 United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM. It is the United States’ position that
20 the statute of limitations has not expired on potential criminal charges relating to the drug trafficking
21 involving the defendant properties. Nevertheless, the United States intends to depose claimants (and
22 others) regarding their ownership of the defendant properties, as well as their knowledge and
23 participation in large scale marijuana cultivation, including the marijuana grow at the defendant
24 properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at
25 this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment
26 rights against self-incrimination and losing the ability to pursue their claims to the defendant properties,
27 or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating
28 themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability
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Stipulation to Stay Further Proceedings and Order

1 to explore the factual basis for the claims they filed with this court.
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4.

In addition, claimants intend to depose, among others, the agents involved with this

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

7 effects on the investigation of the underlying criminal conduct and/or upon the claimant’s ability to assert
8 any defenses to forfeiture. For these reasons, the parties jointly request that these matters be stayed until
9 the conclusion of the related criminal cases. At that time the parties will advise the court of the status of
10 the criminal investigation, if any, and will advise the court whether a further stay is necessary.
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6.

If any of the defendant properties go into default, the parties reserve the right to seek all

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

8/1/2018

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By:

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18 Dated:

McGREGOR W. SCOTT
United States Attorney
/s/ Kevin C. Khasigian
KEVIN C. KHASIGIAN
Assistant U.S. Attorney

7/30/2018

/s/ J. Patrick McCarthy
J. PATRICK MCCARTHY
Attorney for Claimant Yong Qiang Chen

7/31/2018

/s/ Edward T. Weber
EDWARD T. WEBER
Attorney for Claimant Neal L. Horn, M.D.

8/2/2018

/s/ Larissa L. Branes
LARISSA L. BRANES
Attorney for Claimant Conventus, LLC

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21 Dated:
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Stipulation to Stay Further Proceedings and Order

1 Dated:

7/31/2018

/s/ Linda M. Parisi
LINDA M. PARISI
Attorney for Claimants Su Yuan Hua
and Ming Ren Yan

7/31/2018

/s/ Kerie Lee Bieber
KERIE LEE BIEBER
Claimant, Owner of Spartan Mortgage Services, Inc.
dba Spartan Home Loans

7/27/2018

/s/ Ernest Chen
ERNEST CHEN
Attorney for Claimant Sui Yin Lui

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4 Dated:
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7 Dated:
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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

13 21 U.S.C. § 881(i) until the resolution of companion criminal cases. The parties shall file a joint status
14 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.

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

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Stipulation to Stay Further Proceedings and Order