Inc21.com Corporation v. Flora et al

Filing 33

ORDER GRANTING MOTION TO STAY AND VACATING HEARING by Judge William Alsup [in case 3:08-cv-02967-WHA; granting (27) Motion to Stay in case 3:09-cv-03119-WHA]. (whasec, COURT STAFF) (Filed on 10/15/2009)

1 2 3 4 5 6 7 8 9 10 UNITED STATES OF AMERICA, Plaintiff, v. APPROXIMATELY $2,822,224.75 IN FUNDS SEIZED FROM EIGHT BANK ACCOUNTS; ONE 2007 PORSCHE C4 CABRIOLET (VIN: WP0CB29927S777234); ONE 2005 PORSCHE CAYENNE S (VIN: WP1AB29P35LA66041); AND SEVEN PARCELS OF REAL PROPERTY AND IMPROVEMENTS, Defendants. / No. C 09-03119 WHA IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

United States District Court

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For the Northern District of California

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ORDER GRANTING MOTION TO STAY AND VACATING HEARING

Plaintiff the United States of America seeks a stay of this civil forfeiture action pursuant to 18 U.S.C. 981(g)(1). The Court has read the government's ex-parte submission concerning this matter. The government's motion to stay is GRANTED and all discovery will be stayed until January 29, 2010. The government contends that the primary claimants in this civil forfeiture case, GST U.S.A, INC21.com, Jumpage Solutions Incorporated, and John Lin, are the subjects of the criminal investigation. Thus, starting January 29, discovery may proceed so long as these primary claimants, including their employees and managers, sit for depositions by the government and answer questions without invoking their Fifth Amendment rights, or, if the government does

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not proceed to take those depositions, said individuals file a waiver of their Fifth Amendment rights with the Court. This condition is necessary to prevent the risk that civil litigation will be used as a way for criminal targets to obtain testimony from witnesses against them in the criminal proceedings. The reason for the January 29 stay is to allow the government to proceed with its investigation without any embarrassment at all from the civil litigation. By January 29, however, the government should have made sufficient progress that the balance of considerations will favor allowing discovery to proceed subject to the above-stated requirements. Thus, the government's motion to stay is GRANTED and the hearing scheduled for October 22, 2009, is VACATED.

IT IS SO ORDERED.

United States District Court

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For the Northern District of California

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Dated: October 14, 2009.

WILLIAM ALSUP UNITED STATES DISTRICT JUDGE

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