USA v. Real Property located at 2033 Bastona Drive, Elk Grove, California, Sacramento County, APN: 119-1860-037-0000 et al

Filing 32

AMENDED STIPULATION and ORDER signed by District Judge Kimberly J. Mueller on 8/6/2018 ORDERING this matter 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. CASE STAYED. (Zignago, K.)

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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−00799−KJM−CKD

Plaintiff,
v.
REAL PROPERTY LOCATED AT 2033
BASTONA DRIVE, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 119-1860-037-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

AMENDED STIPULATION TO STAY
FURTHER PROCEEDINGS AND
ORDER

REAL PROPERTY LOCATED AT 5313
KUNGSTING WAY, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 132-1620-047-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 5759
MUSKINGHAM WAY, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 117-1280-034-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 8061
MAYBELLINE WAY, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 117-0051-008-0000,
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 9043
PEMBRIDGE DRIVE, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 134-0730-009-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO, and

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REAL PROPERTY LOCATED AT 9445
MEDSTEAD WAY, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 116-0670-046-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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Defendants.

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The United States and Claimants Fu Long Liu, Li Tan Lin, Min H. Jiang, Jing Shen Jiang, James

10 B. Keegan, Diane E. Keegan, Zhong Chen, and Zhaowei Xie, through their respective counsel, and Jan
11 Horn and Maureen Horn, appearing pro per, hereby stipulate that a stay is necessary in the above-entitled
12 action and request that the Court enter an order staying all further proceedings until the resolution of the
13 related criminal cases, United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and United
14 States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM, and ongoing criminal investigation into
15 marijuana grows at the defendant properties.
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1.

This is a forfeiture in rem action against six properties pursuant to 18 U.S.C. §§

17 981(a)(1)(A) and 981(a)(1)(C) and 21 U.S.C. §§ 881(a)(6) and 881(a)(7) because they were allegedly
18 used to commit or facilitate violations of federal drug and money laundering laws:
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a. Real Property located at 2033 Bastona Drive in Elk Grove, California, the “Defendant
Bastona Drive.” Min H. Jiang filed a claim asserting an ownership interest in
defendant Bastona Drive. No other party has filed a claim asserting an interest in
defendant Bastona Drive.

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b. Real Property located at 5313 Kungsting Way, Elk Grove, California, the “Defendant
Kungsting Way.” Fu Long Liu has filed a claim asserting an ownership interest in
defendant Kungsting Way. Corey Fenig and Faye Fenig filed claims asserting a
lienholder interest in defendant Kungsting Way. This property was sold and the
proceeds were used to satisfy Corey and Faye Fenig’s loan.1 The net proceeds from
the sale shall be substituted for the defendant Kungsting Way.

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c. Real Property located at 5759 Muskingham Way in Sacramento, California, the
“Defendant Muskingham Way.” Li Tan Lin has filed a claim asserting an ownership

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Accordingly, Corey Fenig and Faye Fenig no longer have an interest in Defendant Kungsting Way.
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Amended Stipulation to Stay Further Proceedings and Order

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interest in defendant Muskingham Way. James B. Keegan and Diane E. Keegan filed
claims asserting a lienholder interest in defendant Muskingham Way.

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d. Real Property located at 8061 Maybelline Way in Sacramento, California, the
“Defendant Maybelline Way.” Zhong Chen has filed a claim asserting an ownership
interest in defendant Maybelline Way. No other party has filed a claim asserting an
interest in defendant Maybelline Way.

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e. Real Property located at 9043 Pembridge Drive in Elk Grove, California, the
“Defendant Pembridge Way.” Jing Shen Jiang has filed a claim asserting an
ownership interest in defendant Pembridge Drive. Jan Horn and Maureen Horn filed a
claim asserting a lienholder interest in defendant Pembridge Drive.

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f. Real Property located at 9445 Medstead Way in Elk Grove, California, the “Defendant
Medstead Way.” Zhaowei Xie filed a claim asserting an ownership interest in
defendant Medstead Way. No other party has filed a claim asserting an interest in
defendant Medstead Way.

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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. §

12 881(i). The United States contends that the defendant properties were used and intended to be used to
13 commit or facilitate violations of federal drug laws in violation of 21 U.S.C. §§ 841 et seq. Claimants
14 deny these allegations.
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4.

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

16 manufacturing and distribution in two related cases, United States v. Leonard Yang, et al., Case 2:16-CR17 00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM, and the
18 investigation continues concerning the marijuana grows at the defendant properties. It is the United
19 States’ position that the statute of limitations has not expired on potential criminal charges relating to the
20 drug trafficking involving the defendant properties. Nevertheless, the United States intends to depose
21 claimants (and others) regarding their ownership of the defendant properties, as well as their knowledge
22 and participation in large scale marijuana cultivation, including the marijuana grow at the defendant
23 properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at
24 this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment
25 rights against self-incrimination and losing the ability to pursue their claims to the defendant properties,
26 or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating
27 themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability
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Amended 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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In addition, claimants intend to depose, among others, the agents involved with this

3 investigation, including but not limited to, the agents with the Internal Revenue Service – Criminal
4 Investigation. Allowing depositions of the law enforcement officers at this time would adversely impact
5 the federal 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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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: 7/27/2018
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By:

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Dated: 7/31/18

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McGREGOR W. SCOTT
United States Attorney
/s/ Kevin C. Khasigian
KEVIN C. KHASIGIAN
Assistant U.S. Attorney
/s/ Ernest Chen
ERNEST CHEN
Attorney for Claimants Fu Long Liu and
Zhong Chen
(Authorized by email)
/s/ David Foos
DAVID FOOS
Attorney for Li Tan Lin
(Signature retained by attorney)
/s/ Anh Nguyen
ANH NGUYEN
Attorney for Claimant Zhaowei Xie
(Authorized by email)
/s/ Clayton Clement
CLAYTON CLEMENT
Attorney for James B. Keegan and Diane E. Keegan
(Signature retained by attorney)
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Amended Stipulation to Stay Further Proceedings and Order

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/s/ Linda M. Parisi
LINDA M. PARISI
Attorney for Claimants Min Hui Jiang
and Jing Shen Jiang
(Authorized by email)

Dated: 7/30/18

/s/ Jan Horn
Jan Horn
Pro Per Claimant
(Authorized by email)

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/s/ Maureen Horn
Maureen Horn
Pro Per Claimant
(Authorized by email)

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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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Amended Stipulation to Stay Further Proceedings and Order