USA v. Real Property located at 653 Main Avenue, Sacramento, California, Sacramento County, APN: 226-0240-037-0000 et al

Filing 47

STIPULATION and ORDER TO STAY FURTHER PROCEEDINGS signed by District Judge Kimberly J. Mueller on 8/6/18. This matter is STAYED under 18 U.S.C. §§ 981(g) (1), 981(g)(2) and 21 U.S.C. § 881(i) 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-00773-KJM-CKD

Plaintiff,
v.

STIPULATION TO STAY FURTHER
PROCEEDINGS AND ORDER

REAL PROPERTY LOCATED AT 653
MAIN AVENUE, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 226-0240-037-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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REAL PROPERTY LOCATED AT 8656
DAIMLER WAY, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 115-0680-059-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 12660
SHARON BEE LANE, HERALD,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 152-0130-057-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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REAL PROPERTY LOCATED AT 22698
N. SOWLES ROAD, ACAMPO,
CALIFORNIA, SAN JOAQUIN COUNTY,
APN: 007-370-09-000, 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 23900
N. BRYANT ROAD, ACAMPO,
CALIFORNIA, SAN JOAQUIN COUNTY,
APN: 007-070-470-000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,

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REAL PROPERTY LOCATED AT 4700
BLOSSOM RANCH DRIVE, ELK
GROVE, CALIFORNIA, SACRAMENTO
COUNTY, APN: 132-1060-066-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO, and
REAL PROPERTY LOCATED AT 7211
OVAR COURT, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 132-1240-062-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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Defendants.
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The United States and Claimants Alan R. Zheng, Socotra Fund, LLC, Kingston Wu, Xiuyun Liu,

14 Jocelyn H. Yu, Neal L. Horn, M.D., Dong Hai Lin, Ge Gao, Jing Shen Jiang, Wen Hui Lin and Jiang Nai
15 Yi, through their respective counsel, hereby stipulate that a stay is necessary in the above-entitled action
16 and request that the Court enter an order staying all further proceedings until the resolution of the related
17 criminal cases, United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and United States v. Xiu
18 Ping Li, et al., Case No. 2:17-CR-00136-KJM, and ongoing criminal investigation into marijuana grows
19 at the defendant properties.
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1.

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

21 881(a)(7) because they were allegedly used and intended to be used to commit or facilitate violations of
22 federal drug laws:
a. Real Property located at 653 Main Avenue in Sacramento, California, the “Defendant
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Main Avenue.” Alan R. Zheng has filed a claim asserting an ownership interest in
defendant Main Avenue. Lantzman HVHC Inc./JTA, LLC filed claims asserting
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lienholder interests in defendant Main Avenue. This property was sold and the
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proceeds were used to satisfy Lantzman HVHC Inc./JTA, LLC’s loan.1
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b. Real Property located at 8656 Daimler Way, Sacramento in California, the “Defendant
Daimler Way.” Ge Gao has filed a claim asserting an ownership interest in defendant

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Accordingly, Lantzman HVHC Inc./JTA, LLC no longer have an interest in Defendant Main Avenue.
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Stipulation to Stay Further Proceedings and Order

Daimler Way. Socotra Fund, LLC filed a claim asserting a lienholder interest in
defendant Daimler Way.

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c. Real Property located at 12660 Sharon Bee Lane in Herald, California, the “Defendant
Sharon Bee Lane.” Xiuyun Liu has filed a claim asserting an ownership interest in
defendant Sharon Bee Lane. Kingston Wu filed a claim asserting a lienholder interest
in defendant Sharon Bee Lane.

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d. Real Property located at 22698 N. Sowles Road in Acampo, California, the
“Defendant N. Sowles Road.” Jocelyn H. Yu has filed a claim asserting an ownership
interest in defendant N. Sowles Road. Neal L. Horn, M.D. filed a claim asserting a
lienholder interest in defendant N. Sowles Road.

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e. Real Property located at 23900 N. Bryant Road in Acampo, California, the “Defendant
N. Bryant Road.” Dong Hai Lin filed a claim asserting an ownership interest in
defendant N. Bryant Road. No other party has filed a claim asserting an interest in
defendant N. Bryant Road.

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f. Real Property located at 4700 Blossom Ranch Drive in Elk Grove, California, the
“Defendant Blossom Ranch Drive.” Jiang Nai Yi filed a claim asserting an ownership
interest in defendant Blossom Ranch Drive. No other party has filed a claim asserting
an interest in defendant Blossom Ranch Drive.

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g. Real Property located at 7211 Ovar Court in Elk Grove, California, the “Defendant
Ovar Court.” Wen Hui Lin has filed a claim asserting an ownership interest in
defendant Ovar Court. Jing Shen Jiang filed a claim asserting an ownership interest in
defendant Ovar Court.

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3.

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

18 881(i). The United States contends that the defendant properties were used and intended to be used to
19 commit or facilitate violations of federal drug laws in violation of 21 U.S.C. §§ 841 et seq. Claimants
20 deny these allegations.
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4.

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

22 manufacturing and distribution in two related cases, United States v. Leonard Yang, et al., Case 2:16-CR23 00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM, and the
24 investigation continues concerning the marijuana grows at the defendant properties. It is the United
25 States’ position that the statute of limitations has not expired on potential criminal charges relating to the
26 drug trafficking involving the defendant properties. Nevertheless, the United States intends to depose
27 claimants (and others) regarding their ownership of the defendant properties, as well as their knowledge
28 and participation in large scale marijuana cultivation, including the marijuana grow at the defendant
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Stipulation to Stay Further Proceedings and Order

1 properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at
2 this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment
3 rights against self-incrimination and losing the ability to pursue their claims to the defendant properties,
4 or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating
5 themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability
6 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

8 investigation, including but not limited to, the agents with the Drug Enforcement Administration
9 (“DEA”) and Internal Revenue Service (“IRS”). Allowing depositions of the law enforcement officers at
10 this time would adversely impact the federal prosecution and ongoing investigation.
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6.

The parties recognize that proceeding with these actions at this time has potential adverse

12 effects on the investigation of the underlying criminal conduct and/or upon the claimant’s ability to assert
13 any defenses to forfeiture. For these reasons, the parties jointly request that these matters be stayed until
14 the conclusion of the related criminal cases. At that time the parties will advise the court of the status of
15 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

17 avenues of redress to preserve the real properties, including filing a motion for interlocutory sale or
18 seeking a receiver appointment to collect rents and maintain the properties.
19 Dated: 7/27/2018

McGREGOR W. SCOTT
United States Attorney

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By:
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/s/ Kevin C. Khasigian
KEVIN C. KHASIGIAN
Assistant U.S. Attorney

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23 Dated: 7/31/18
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/s/ Ernest Chen
ERNEST CHEN
Attorney for Claimant Alan R. Zheng
(Authorized by email)

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26 Dated: 7/30/18
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/s/ J. Patrick McCarthy
J. PATRICK McCARTHY
Attorneys for Claimant Xiuyun Liu and
Jocelyn H. Yu
(Authorized by email)
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Stipulation to Stay Further Proceedings and Order

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/s/ Larissa A. Branes
LARISSA A. BRANES
Attorney for Claimant Socotra Fund, LLC
(Authorized by email)

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5 Dated: 8/1/18
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/s/ Edward Singer
EDWARD SINGER
Attorney for Kingston Wu
(Authorized by email)

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8 Dated: 8/1/18
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/s/ Edward Weber
EDWARD WEBER
Attorney for Neal L. Horn, M.D.
(Authorized by email)

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11 Dated: 7/31/18
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/s/ Samuel D. Berns
SAMUEL D. BERNS
Attorney for Dong Hai Lin
(Signature retained by attorney)

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14 Dated: 7/31/18
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/s/ Linda M. Parisi
Linda M. Parisi
Attorney for Claimants Ge Gao, Jiang Nai Yi,
Jing Shen Jiang, and Wen Hui Lin
(Authorized by email)

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ORDER

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

20 21 U.S.C. § 881(i) until the resolution of companion criminal cases. The parties shall file a joint status
21 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.

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

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Stipulation to Stay Further Proceedings and Order