USA v. Wells

Filing 14

FINDINGS and RECOMMENDATIONS signed by Magistrate Judge Sean C. Riordan on 3/10/2025 RECOMMENDING that Garnishee Robinhood Financial, LLC & Robinhood Securities, LLC, be directed to pay the Clerk of the United States District Court all funds held by Garnishee within fifteen (15) days of the filing of the Final Order. The garnishment shall terminate when the payment is deposited with the Clerk of the Court. These Findings and Recommendations are submitted to U.S. District Judge William B. Shubb. Objections to these F&Rs due within fourteen days. (Deputy Clerk LMS)

1
2
3
4
5
6
7
8

IN THE UNITED STATES DISTRICT COURT

9

EASTERN DISTRICT OF CALIFORNIA

10
11

UNITED STATES OF AMERICA,

12

Plaintiff,

13
14
15

v.
ROBERT KIRBY WELLS,

Case No. 2:24-mc-00353-WBS-SCR
FINDINGS AND RECOMMENDATIONS FOR
FINAL ORDER OF CONTINUING
GARNISHMENT
Criminal Case No. 2:21-CR-00164-WBS

Debtor.

16
17
18
19

ROBINHOOD FINANCIAL, LLC &
ROBINHOOD SECURITIES, LLC,
Garnishee.

20
21

On September 12, 2024, the United States filed an application for a writ of continuing

22 garnishment concerning property owned by Robert Kirby Wells in the possession, custody, or control of
23 Garnishee Robinhood Financial, LLC & Robinhood Securities, LLC. (ECF No. 1). The writ of
24 garnishment was issued on September 18, 2024. (ECF No. 3). Garnishee filed an answer indicating it
25 has possession, custody, or control of property in which Debtor maintains an interest. (ECF No. 6).
26 Robert Kirby Wells, filed objections and a request for hearing, claiming that the property was subject to
27 three enumerated exemptions and alleged that the United States’ application suffered fatal procedural
28 deficiencies. (ECF No. 9). After full briefing and a hearing conducted on November 19, 2024, and
FINDINGS AND RECOMMENDATIONS

1

1 having reviewed the arguments of the parties, the undersigned finds that no exemption applies to the
2 funds at issue and that the government followed the procedures required by statute, for reasons
3 explained on the record. The undersigned accordingly recommends that Debtor’s objections be
4 overruled, and the application be granted.
5

Accordingly, IT IS RECOMMENDED that:

6

1.

Garnishee Robinhood Financial, LLC & Robinhood Securities, LLC, be directed to pay

7 the Clerk of the United States District Court all funds held by Garnishee within fifteen (15) days of the
8 filing of the Final Order. Payment shall be made in the form of a check, money order, or company draft,
9 made payable to the “Clerk of the Court” and delivered to:
10

Office of the Clerk
501 I St., Rm. 4-200
Sacramento, CA 95814

11

12 The criminal docket number (2:21-CR-00164-WBS) shall be stated on the payment instrument;
2.

13

The Court shall retain jurisdiction to resolve matters through ancillary proceedings in the

14 case, if necessary; and
3.

15

The garnishment shall terminate when the payment is deposited with the Clerk of the

16 Court.
17

These findings and recommendations are submitted to the United States District Judge assigned

18 to the case pursuant to the provisions of 28 U.S.C. § 636(b)(1). Within fourteen (14) days, after being
19 served with these findings and recommendations, any party may file written objections with the court
20 and serve a copy on all parties. Such a document should be captioned “Objections to Magistrate Judge’s
21 Findings and Recommendations.” Failure to file objections within the specified time may waive the
22 right to appeal the District Court’s order. Turner v. Duncan, 158 F.3d 449, 455 (9th Cir. 1998); Martinez
23 v. Ylst, 951 F.2d 1153, 1156-57 (9th Cir. 1991).
24 Dated: March 10, 2025
25
26
27
28
FINDINGS AND RECOMMENDATIONS

2