USA v. Zinnel

Filing 161

STIPULATION and ORDER signed by Chief District Judge Troy L. Nunley on 11/22/24 DIRECTING Any and all amounts remaining in the TD Ameritrade IRA are the property of Michael Brumbaugh in his capacity as Trustee of the CASTANA TRUST, DATED 03/04/2009 (the "Castana Trust"), and TD Ameritrade shall either convert the remaining balance in the existing TD Ameritrade IRA to another financial institution in care of "Michael Brumbaugh, Successor Trustee of the Castana Trust" and pursuant to written instructions provided by Michael Brumbaugh. (Licea Chavez, V)

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K. Greg Peterson, Esq. (SBN: 118287)
K. GREG PETERSON, a Professional Law Corporation
455 Capitol Mall, Suite 325
Sacramento, California 95814
Telephone:
[phone]
Facsimile:
[phone]
Email:
[e-mail]
Attorney for Michael Brumbaugh, Administrator of the Estate
of David P. Zinnel and Trustee of the Castana Trust, dtd Mar. 4, 2009

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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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Case No.: 2:21-mc-00098 TLN AC

Plaintiff,

STIPULATION AND ORDER RE
DISPOSITION OF REMAINING
BALANCE OF TD AMERITRADE IRA
ACCOUNT (*0613) PURSUANT TO
SETTLEMENT AGREEMENT

v.
STEVEN ZINNEL
Defendant and Judgment Debtor.

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DAVID ZINNEL, SUCCESSOR TRUSTEE OF
THE CASTANA TRUST, DATED MARCH 4,
2009,
Garnishee.

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IT IS HEREBY STIPULATED AND AGREED UPON by and between Third-Party

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Michael Brumbaugh, Administrator of the Estate of David P. Zinnel and as successor Trustee of

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the Castana Trust, dated March 4, 2009, by and through K. Greg Peterson, his attorney of record,

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and STEVEN ZINNEL, appearing Pro Se, as follows:

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RECITALS

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This action involves an Application for Writ of Garnishment filed on April 2, 2021, by

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Plaintiff UNITED STATES OF AMERICA (“USA”) in connection with criminal monetary

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penalties totaling $3,014,294 assessed against STEVEN ZINNEL (“Steven”) in criminal case
-1STIPULATION AND ORDER RE DISPOSITION OF REMAINING BALANCE OF TD AMERITRADE IRA
ACCOUNT (*0613) PURSUANT TO SETTLEMENT AGREEMENT

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number 2:11–CR–00234–TLN;

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The Garnishee, TD AMERITRADE CLEARING, INC. (“TD Ameritrade”), responded

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in this action by disclosing its possession of Rollover IRA Accounts 787–727536 and 72–830613

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(together, the “TD Ameritrade IRA”) in which it claimed Steven has an interest;

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Third Party Claimant DAVID ZINNEL (“David”), who was served with a copy of the

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USA’s Application for Writ of Garnishment, responded in his capacity as Successor Trustee of

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The Castana Trust, Dated March 4, 2009 (the “Castana Trust”) and in his capacity as a 50%

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beneficiary of the Castana Trust by claiming an interest in the entirety of the TD Ameritrade IRA

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as an asset of the Castana Trust.

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1.

On June 3, 2022, the USA agreed to limit the total amount of its criminal

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monetary penalties owed by Steven to $1,013,056.06 ($513,056.06 restitution; $500,000.00

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penalty) and its litigation surcharge to $150,000.00, for a total amount of $1,163,056.06 (the

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“Agreed Amount”) [Transcript 6:15]1;

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2.

David and Steven previously agreed that David is then entitled to everything that

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remains in the TD Ameritrade IRA [Transcript 5:22-6:5] as an asset of the Castana Trust

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[Transcript 6:19-22, 9:20-21], and any balance remaining is to be sent to the Castana Trust

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[Transcript 7:10] or the account may be converted to a Castana Trust account [Transcript 7:11-

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12]. Steven and David agreed, prior to David’s death, that any remaining balance of the TD

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Ameritrade IRA will be a Castana Trust asset and that they will agree to execute whatever

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paperwork is necessary to effectuate their agreement [Transcript 15:23-16:3, 16:7-12, 26:13-18];

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3.

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Ameritrade IRA;

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4.

The parties acknowledge that the USA has been paid in full from the TD

On October 14, 2022, David passed away.

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All references to Transcript are to the Transcript of Proceedings of the Settlement Conference

held on June 3, 2022, before the Hon. Kendall J Newman, Chief Magistrate Judge in this matter
and as transcribed Thresha Spencer, CSR (ECF 134).

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-2STIPULATION AND ORDER RE DISPOSITION OF REMAINING BALANCE OF TD AMERITRADE IRA
ACCOUNT (*0613) PURSUANT TO SETTLEMENT AGREEMENT

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5.

On August 15, 2023, Michael Brumbaugh was appointed as Administrator of the

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Estate of David P. Zinnel. On August 30, 2023 Michael Brumbaugh was appointed as successor

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trustee of the Castana Trust.

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6.

Michael Brumbaugh and Steven entered into a settlement agreement reiterating

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their agreement that the remaining funds in the TD Ameritrade IRA are assets of the Castana

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Trust, and should be distributed to Michael Brumbaugh in his capacity as Successor Trustee of

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the Castana Trust.

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7.

Steven Zinnel has no further interest in the TD Ameritrade IRA.

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STIPULATION

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NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED TO by and

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between Third-Party Michael Brumbaugh, Administrator of the Estate of David P. Zinnel and as

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successor Trustee of the Castana Trust, dated March 4, 2009, and Steven Zinnel:

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On the basis of their settlement agreement, Steven and Michael Brumbaugh agree to the
entry of an order by this Court as follows:
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Any and all amounts remaining in the TD Ameritrade IRA are the property of

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Michael Brumbaugh in his capacity as successor trustee of the Castana Trust, and TD Ameritrade

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shall either convert the remaining balance in the existing TD Ameritrade IRA to an account held

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by Michael Brumbaugh in said capacity or TD Ameritrade shall transfer the balance of the

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account to another financial institution in care of "Michael Brumbaugh, Successor Trustee of the

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Castana Trust" and pursuant to written instructions provided by Michael Brumbaugh.

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IT IS SO STIPULATED.
Dated: November 18, 2024

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/s/ Michael Brumbaugh
Michael Brumbaugh, Administrator of the Estate
and Successor Trustee of the Castana Trust

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Dated: November 15, 2024

/s/ Steven Zinnel
STEVEN ZINNEL, PRO SE

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-3STIPULATION AND ORDER RE DISPOSITION OF REMAINING BALANCE OF TD AMERITRADE IRA
ACCOUNT (*0613) PURSUANT TO SETTLEMENT AGREEMENT

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ORDER

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The Court, having received, read, and considered the stipulation of Michael Brumbaugh,

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Administrator of the Estate of David Zinnel and Successor Trustee of the Castana Trust, and

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STEVEN ZINNEL (the “Parties”), and good cause appearing, hereby adopts the stipulation of

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the Parties in its entirety as its order, as follows:

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1. Any and all amounts remaining in the TD Ameritrade IRA are the property of Michael

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Brumbaugh in his capacity as Trustee of the CASTANA TRUST, DATED MARCH 4, 2009 (the

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“Castana Trust”), and TD Ameritrade shall either convert the remaining balance in the existing

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TD Ameritrade IRA to another financial institution in care of "Michael Brumbaugh, Successor

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Trustee of the Castana Trust" and pursuant to written instructions provided by Michael

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Brumbaugh;

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IT IS SO ORDERED.

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Dated: November 22, 2024

____________________________
Troy L. Nunley
Chief United States District Judge

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STIPULATION AND ORDER RE DISPOSITION OF REMAINING BALANCE OF TD AMERITRADE IRA
ACCOUNT (*0613) PURSUANT TO SETTLEMENT AGREEMENT