USA v. Real Property located at 8744 Vytina Drive, Elk Grove, California, Sacramento County, APN: 115-1460-028-0000 et al

Filing 39

STIPULATION and ORDER signed by District Judge Kimberly J. Mueller on 8/6/2018 ORDERING this matter is 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-00825-KJM-CKD

Plaintiff,
v.

STIPULATION TO STAY FURTHER
PROCEEDINGS AND ORDER

REAL PROPERTY LOCATED AT 8744
VYTINA DRIVE, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 115-1460-028-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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REAL PROPERTY LOCATED AT 6439
VALLEY HI DRIVE, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 117-0032-004-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 8613
ORISON COURT, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 121-0900-024-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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REAL PROPERTY LOCATED AT 4630
COUNTRY SCENE WAY,
SACRAMENTO, CALIFORNIA,
SACRAMENTO COUNTY, APN: 1170550-004-0000, 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 8139
VALLEY GREEN DRIVE,
SACRAMENTO, CALIFORNIA,
SACRAMENTO COUNTY, APN: 1170280-013-0000, INCLUDING ALL
APPURTENANCES AND
IMPROVEMENTS THERETO,
REAL PROPERTY LOCATED AT 3975
DEER CROSS WAY, SACRAMENTO,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 119-0291-016-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO, and

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REAL PROPERTY LOCATED AT 4713
LAGUNA WEST WAY, ELK GROVE,
CALIFORNIA, SACRAMENTO
COUNTY, APN: 119-0830-041-0000,
INCLUDING ALL APPURTENANCES
AND IMPROVEMENTS THERETO,

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Defendants.

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The United States and Claimants Zhoubing Yang, PS Funding, Inc., Northern California

14 Mortgage Fund XII, LLC, Zun Jin Chen, Mei Hui Chen, Min Hui Jiang, Ketong Cai, Xiuqin Lin, Dong
15 Li, Xuehong Yang, East West Bank and Lone Oak Fund, LLC, through their respective counsel, and
16 Larry R. Blanchard and Carol Blanchard, as Trustees of the Blanchard Family Trust, Kasey Olin, and
17 Joseph Ciranni, appearing pro per, hereby stipulate that a stay is necessary in the above-entitled action
18 and request that the Court enter an order staying all further proceedings until the resolution of the related
19 criminal cases, United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and United States v. Xiu
20 Ping Li, et al., Case No. 2:17-CR-00136-KJM, and ongoing criminal investigation into marijuana grows
21 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. §

23 881(a)(7) because they were allegedly used and intended to be used to commit or facilitate violations of
24 federal drug laws:
a. Real Property located at 8744 Vytina Drive in Elk Grove, California, the “Defendant
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Vytina Drive.” Zhoubang Yang has filed a claim asserting an ownership interest in
defendant Vytina Drive. PS Funding, Inc. filed a claim asserting a lienholder interest
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in defendant Vytina Drive.
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b. Real Property located at 6439 Valley Hi Drive in Sacramento, California, the
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Stipulation to Stay Further Proceedings and Order

“Defendant Valley Hi Drive.” Mei Hui Chen has filed a claim asserting an ownership
interest in defendant Valley Hi Drive. No other party has filed a claim asserting an
interest in defendant Valley Hi Drive.

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c. Real Property located at 8613 Orison Court in Elk Grove, California, the “Defendant
Orison Court.” Min Hui Jiang has filed a claim asserting an ownership interest in
defendant Orison Court. Lone Oak Fund, LLC filed a claim asserting a lienholder
interest in defendant Orison Court.

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d. Real Property located at 4630 Country Scene Way in Sacramento, California, the
“Defendant Country Scene Way.” Xuehong Yang has filed a claim asserting an
ownership interest in defendant Country Scene Way. Larry R. Blanchard and Carol
Blanchard, Trustees of the Blanchard Family Trust, filed claims asserting a lienholder
interest in defendant Country Scene Way.

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e. Real Property located at 8139 Valley Green Drive in Sacramento, California, the
“Defendant Valley Green Drive.” Ketong Cai and Xiuqin Lin have filed claims
asserting an ownership interest in defendant Valley Green Drive. East West Bank
filed a claim asserting a lienholder interest in defendant Valley Green Drive.

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f. Real Property located at 3975 Deer Cross Way in Sacramento, California, the
“Defendant Deer Cross Way.” Dong Li has filed a claim asserting an ownership
interest in defendant Deer Cross Way. Kasey Olin and Joseph Ciranni filed claims
asserting a lienholder interest in defendant Deer Cross Way.

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g. Real Property located at 4713 Laguna West Way in Elk Grove, California, the
“Defendant Laguna West Way.” Zun Jin Chen has filed a claim asserting an
ownership interest in defendant Laguna West Way. Northern California Mortgage
Fund XII, LLC filed a claim asserting a lienholder interest in defendant Laguna West
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. §

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

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

23 manufacturing and distribution in two related cases, United States v. Leonard Yang, et al., Case 2:16-CR24 00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM, and the
25 investigation continues concerning the marijuana grows at the defendant properties. It is the United
26 States’ position that the statute of limitations has not expired on potential criminal charges relating to the
27 drug trafficking involving the defendant properties. Nevertheless, the United States intends to depose
28 claimants (and others) regarding their ownership of the defendant properties, as well as their knowledge
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Stipulation to Stay Further Proceedings and Order

1 and participation in large scale marijuana cultivation, including the marijuana grow at the defendant
2 properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at
3 this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment
4 rights against self-incrimination and losing the ability to pursue their claims to the defendant properties,
5 or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating
6 themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability
7 to explore the factual basis for the claims they filed with this court.
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5.

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

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

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

13 effects on the investigation of the underlying criminal conduct and/or upon the claimant’s ability to assert
14 any defenses to forfeiture. For these reasons, the parties jointly request that these matters be stayed until
15 the conclusion of the related criminal cases. At that time the parties will advise the court of the status of
16 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

18 avenues of redress to preserve the real properties, including filing a motion for interlocutory sale or
19 seeking a receiver appointment to collect rents and maintain the properties.
20 Dated: 7/26/2018

McGREGOR W. SCOTT
United States Attorney

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By:

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Dated: 7/27/18

/s/ Kevin C. Khasigian
KEVIN C. KHASIGIAN
Assistant U.S. Attorney
/s/ J. Patrick McCarthy
J. PATRICK McCARTHY
Attorney for Claimants Zun Jin Chen
(Authorized by email)
/s/ Simon Aron
SIMON ARON
Attorney for Claimant Lone Oak Fund, LLC
(Authorized by email)
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Stipulation to Stay Further Proceedings and Order

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/s/ Eric R. Olah
ERIC R. OLAH
Attorney for PS Funding, Inc.
(Authorized by email on July 27, 2018)

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Dated: 7/31/18

/s/ William G. Malcolm
WILLIAM G. MALCOLM
Attorney for Claimant East West Bank
(Authorized by email)

Dated: 7/31/18

/s/ Robert J. Saria
ROBERT J. SARIA
Attorney for Claimant Mei Hui Chen
(Authorized by phone)

Dated: 8/2/18

/s/ David Foos
DAVID FOOS
Attorney for Claimant Xuehong Yang
(Authorized by email)

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12 Dated: 7/31/18
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/s/ Terry R. Hunt
TERRY R. HUNT
Attorney for Claimant Zhoubing Yang Yang
(Authorized by email)

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15 Dated: 7/30/18
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/s/ Patrick J. Wingfield
PATRICK J. WINGFIELD
Attorney for Claimant Northern California Mortgage
Fund XII, LLC
(Authorized by email)
/s/ Kasey Olin
KASEY OLIN
Pro Per Claimant
(Authorized by email)

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21 Dated: 8/1/18
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/s/ Joseph Ciranni
JOSEPH CIRANNI
Pro Per Claimant
(Authorized by email)

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Dated: 7/30/18

/s/ Larry R. Blanchard
LARRY R. BLANCHARD
Pro Per Claimant
(Authorized by email)

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/s/ Carol F. Blanchard
CAROL F. BLANCHARD
Pro Per Claimant
(Authorized by email)

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Stipulation to Stay Further Proceedings and Order

1 Dated: 7/31/18
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/s/ Linda M. Parisi
LINDA M. PARISI
Attorney for Claimants Ketong Cai, Xiuqin Lin,
Dong Li, and Min Hui Jiang
(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

8 21 U.S.C. § 881(i) until the resolution of companion criminal cases. The parties shall file a joint status
9 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

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

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Stipulation to Stay Further Proceedings and Order