UNITED STATES OF AMERICA v. Nilsson

Filing 18

17 CONSENT JUDGMENT in favor of United States of America against Kayla M. Nilsson. Signed by Judge Haywood S. Gilliam, Jr. on 5/24/2016. (ndrS, COURT STAFF) (Filed on 5/24/2016)

1 BRIAN J. STRETCH (CABN 163973)
Acting United States Attorney
2 SARA WINSLOW (DCBN 457643)
Chief, Civil Division
3
JULIE C. REAGIN (CABN 167934)
4 Assistant United States Attorney
450 Golden Gate Avenue, Box 36055
5
San Francisco, California 94102-3495
Telephone: [phone]
6
Fax: [phone]
Email: [e-mail]
7
8 Attorneys for Plaintiff
9

UNITED STATES DISTRICT COURT

10

NORTHERN DISTRICT OF CALIFORNIA

11

SAN FRANCISCO DIVISION

12
13

Plaintiff,

14
15

Case No. 3:15-CV-00694-HSG

UNITED STATES OF AMERICA,

STIPULATION AND ORDER FOR ENTRY
OF CONSENT JUDGMENT

v.

16 KAYLA MAE NILSSON,
17

Defendant.

18
19

Plaintiff, United States of America (“United States”), by and through its attorneys, and defendant

20 Kayla Mae Nilsson (“Nilsson”), appearing in pro per, stipulate and agree as follows:
21
22

RECITALS
A.

The United States filed a Complaint in this action, seeking to recover a debt of

23 approximately $113,428.13, plus interest, made as Health Education Assistance Loans (HEAL) under
24 Section 701-720 of the Public Health Service Act (42 U.S.C. 292 f-p), by plaintiff, United States of
25 America, Department of Health and Human Services (“Plaintiff”), which has not been repaid.
26

B.

Nilsson filed an Answer in which she asserted that the HEAL loans had been

27 consolidated along with other student loans and were, therefore, not in default.
28
STIP. AND ORDER FOR ENTRY OF CONSENT JUDGMENT
CASE No. 3:15-CV-00694-HSG
1

1

C.

It is the United States’ position that Nilsson owes the amount set forth in the Complaint.

2

D.

The parties are desirous of resolving their dispute under the terms outlined below.

3

STIPULATION

4

1.

5

The parties to this Stipulation for Entry of Consent Judgment are the United States and Nilsson.

6

2.

7

Nilsson acknowledges receipt of the Complaint, a copy of which is attached as Exhibit A.

8

3.

9

The court has personal jurisdiction over Nilsson. This court has jurisdiction over the subject

Parties

Acknowledgment of Service of Complaint

Jurisdiction

10 matter of this action pursuant to 28 U.S.C. § 1345.
11

4.

12

The complaint states a claim for relief upon which relief may be granted.

13

5.

14

Venue is proper in this District pursuant to 28 U.S.C. § 1391.

15

6.

16

The parties agree that this Stipulation for Entry of Consent Judgment constitutes a compromise

Claim for Relief

Venue

Compromise

17 and settlement of the contentions of the United States asserted in the Complaint.
18

7.

19

To resolve this matter, the United States has agreed to accept monthly payments of $50.00 from

Periodic Payments

20 Nilsson, in an amount totaling $48,400.00. Nilsson has agreed to make those payments using the
21 electronic system PAY.GOV. A summary of the terms of PAY.GOV is attached as Exhibit B. Nilsson
22 will make her first monthly payment no later than June 15, 2016, and each subsequent payment on the
23 fifteenth day of each succeeding month. If the fifteenth day of the month is a holiday or weekend, the
24 payment shall be made on the next regular or business day. Nilsson shall make this monthly payment
25 until the balance due under the Consent Judgment has been paid in full.
26

8.

27

Upon payment in full of the agreed-upon amount of $48,400.00, Nilsson’s payment obligation

Consent Judgment

28
STIP. AND ORDER FOR ENTRY OF CONSENT JUDGMENT
CASE No. 3:15-CV-00694-HSG
2

1 will cease and the United States will cease any further collection action on the debt at issue.
2

9.

Stay of Execution

3

The United States shall stay execution on the Consent Judgment for so long as Nilsson is not in

4 default of the terms of the payments required under Paragraph 7.
5

10.

Default

6

A.

Default under this Consent Judgment shall be defined as the failure to make any monthly

7 payment required by the terms of Paragraph 8, when due or in the required amount.
8

B.

In the event Nilsson defaults under this Stipulation for Entry of Consent Judgment, the

9 entire unpaid balance of the Consent Judgment shall be immediately due and payable.
10

11.

Retention of Jurisdiction

11 The Court shall retain jurisdiction over this action in order to enforce this Stipulation for Entry of
12 Consent Judgment.
13

12.

Notices

14

All notices to Nilsson shall be sent to:
Kayla Mae Nilsson
5526 Alameda Avenue, Apt 3
Richmond, CA 94804-4889

15
16
17

13.

18

The parties shall bear their own costs, fees and expenses incurred regarding this action and

Costs and Fees

19 regarding the negotiation, drafting and execution of this Stipulation for Entry of Consent Judgment.
20

14.

Release

21

Nilsson accepts the terms of this Stipulation for Entry of Consent Judgment as full settlement

22 and satisfaction of the above-captioned lawsuit and releases and forever discharges the United States and
23 any and all past and present agencies, officials, employees, agents, attorneys, their successors and
24 assigns, from any and all obligations, damages, liabilities, actions, causes of action, claims and demands,
25 of any kind and nature whatsoever, whether suspected or unsuspected, at law, in equity, known or
26 unknown, arising out of this matter.
27

15.

California Civil Code § 1542 Waiver

28
STIP. AND ORDER FOR ENTRY OF CONSENT JUDGMENT
CASE No. 3:15-CV-00694-HSG
3

1
2
3
4
5

The provisions of California Civil Code § 1542 are set forth below:
A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor.
Nilsson, having been apprised of the statutory language of Civil Code Section 1542, and fully

6 understanding the same, nevertheless elects to waive the benefits of any and all rights Nilsson may have
7 pursuant to the provision of that statute and any similar provision of federal law. Nilsson understands
8 that, if the facts are later found to be other than or different from the facts now believed to be true, the
9 Stipulation for Entry of Consent Judgment shall be and remain effective notwithstanding such material
10 difference.
11

16.

12

Each party acknowledges that, except as herein expressly set forth, no representations of any

Complete Agreement & Merger

13 kind or character have been made by the other party or that party’s agents, representatives, or attorneys
14 to induce execution of this Stipulation for Entry of Consent Judgment or delivery of the documents or
15 payments required by this Stipulation for Entry of Consent Judgment. This Stipulation for Entry of
16 Consent Judgment represents the full and complete agreement by and between the parties regarding the
17 subject matter of this Stipulation for Entry of Consent Judgment. This Stipulation for Entry of Consent
18 Judgment shall not be modified or amended except in a writing signed by the person or entity against
19 whom enforcement is sought.
20

17.

21

Nothing in this Stipulation for Entry of Consent Judgment is intended to affect or bind, nor shall

No Binding Effect on Other Obligations to United States or Its Agencies or Departments.

22 it affect or bind, the United States Internal Revenue Service with respect to any liability that Nilsson has
23 or may have with respect to claims arising under the Internal Revenue Service Code, Title 26 of the
24 United States Code, or any other United States Government agencies or departments.
25

18.

26

The parties consent to the entry of the foregoing Stipulation for Entry of Consent Judgment, and

Waiver of Trial and Appeal

27 defendant Nilsson hereby waives her right to a trial of this action and waives all rights to appeal this
28
STIP. AND ORDER FOR ENTRY OF CONSENT JUDGMENT
CASE No. 3:15-CV-00694-HSG
4

1 action or the Stipulation for Entry of Consent Judgment.
2

SO STIPULATED:

3

I/we have read the foregoing, Ilwe understand the terms, and I/we sign this Stipulation for Entry

4
5

of Consent Judgment as a free and voluntary act.

6
7

Dated: 5/t::t

~~~a_ryw>-b~

/010 I b

KA A MAE NILSSON
Defendant

8

9
10

BRIAN J. STRETCH
United States Attorney

11

12
13

Dated: May4, 2016

14

By:
United States Attorney
Assis
For the United States of America

15
16
17
18

ORDER APPROVING STIPULATION FOR ENTRY OF CONSENT JUDGMENT
IT IS SO ORDERED.

19
20
21
22
23

Dated:

5/24/2016
THE HON. HAYWOOD S. GILLIAM, Jr.
UNITED STATES DISTRICT JUDGE

24
25
26
27
28
STIP. AND ORDER FOR ENTRY OF CONSENT JUDGMENT
CASE No. 3:15-CV-00694-HSG
5

EXHIBIT “A”

Case3:15-cv-00694 Document1 Filed02/13/15 Page1 of 6

1 MELINDA HAAG (CABN 132612)
United States Attorney
2 ALEX G. TSE (CABN 152348)
Chief, Civil Division
3 RAVEN M. NORRIS (SBN 232868)
Assistant United States Attorney
4
450 Golden Gate Avenue, Box 36055
San Francisco, California 94102-3495
5
Telephone: [phone]
Fax: [phone]
6
Email: [e-mail]
7
Attorneys for Plaintiff
8
UNITED STATES DISTRICT COURT
9
NORTHERN DISTRICT OF CALIFORNIA
10
SAN FRANCISCO DIVISION
11
12 UNITED STATES OF AMERICA,

Case No. 3:15-cv-00694

13
Plaintiff,

COMPLAINT FOR COLLECTION OF
DEBT

14
15

v.

DEBT COLLECTION CASE [L.R. 16-6]

16 KAYLA MAE NILSSON,
17
Defendant.
18
19
20

The Plaintiff, United States of America, alleges as follows:

21

1.

This is an action to recover funds lent to defendant Kayla Mae Nilsson (“Defendant”)

22 under promissory notes with original principal amounts totaling $113,428.13, made as a Health
23 Education Assistance Loans (HEAL), under Section 701-720 of the Public Health Service Act (42
24 U.S.C. 292 f-p), by plaintiff, United States of America, Department of Health and Human Services
25 (“Plaintiff” or “HHS”), which has not been repaid.
Jurisdiction

26
2.

27
28

This Court has jurisdiction over the subject matter of this action pursuant to 28 U.S.C. §

1345.
COMPLAINT
CASE No. 3:15-cv-00694

1

Case3:15-cv-00694 Document1 Filed02/13/15 Page2 of 6

Venue

1
2

3.

The Defendant, Kayla Mae Nilsson, is a resident in Contra Costa County, California,

3 which is within the jurisdiction of the Court
The Debt

4
5

4.

The debt arises from Defendant’s execution of promissory notes with original principal

6 amounts totaling $113,428.13, made as HEAL loans. Defendant promised to repay the loans at a
7 variable rate of interest beginning the first day of the tenth month after ceasing to be a full-time student
8 or completing a residency program.
9

5.

After Defendant executed the notes, the Student Loan Marketing Association (“SMLA”)

10 purchased the notes and received an assignment.
11

6.

On February 14, 2007, SLMA furnished Defendant with a repayment schedule requiring

12 her to begin repaying the loans on May 11, 2007. Defendant did not make any payments.
13

7.

On February 27, 2012, Defendant initiated bankruptcy proceedings in the United States

14 Bankruptcy Court, Northern District of California in Case No. 12-41738. On April 4, 2012, the
15 bankruptcy was dismissed but Defendant’s HEAL loans were not dischargeable under bankruptcy.
16

8.

Due to the bankruptcy proceeding, SLMA filed an insurance claim with the Department

17 of Health and Human Services (HHS) for the amount due on the loans, which was $110, 163.00. HHS
18 paid SLMA’s claim on April 16, 2012 and received an assignment of the notes.
19

9.

On April 24, 2012 and August 3, 2012, HHS provided Defendant with instructions for

20 entering a repayment agreement on the loans. Defendant did not execute a repayment agreement or
21 make any payments on the outstanding loans.
22

10.

On August 29, 2012, HHS sent a final demand letter to defendant and advised Defendant

23 to resolve her delinquent debt within sixty (60) days or the loans would be immediately referred to the
24 Office of the Inspector General (OIG) for exclusion from participation in the Medicare/Medicaid
25 Programs. On May 29, 2013, HHS sent a letter to Defendant with instructions for entering into a
26 repayment agreement. HHS also notified Defendant that failure to respond would result in her debt
27 being referred to the Department of Justice.
28
COMPLAINT
CASE No. 3:15-cv-00694

2

Case3:15-cv-00694 Document1 Filed02/13/15 Page3 of 6

Failure to Pay

1
2

11.

As of July 1, 2013, the Defendant owes the Plaintiff a total of $114,214.69, consisting of

3 current principal of $113,428.13, interest of $786.56, and administrative costs of $0.00, plus interest at a
4 variable rate accruing from and after July 1, 2013. See the Certificate of Indebtedness attached hereto as
5 “Exhibit A” and made a part hereof.
6

12.

The principal balance and interest shown on the Certificate of Indebtedness is correct as

7 of the date of the Certificate of Indebtedness after application of all prior payments, credits, and offsets.
8 Prejudgment interest accrues currently at the rate of 3.125% per annum or $9.73 per day.
9

13.

Demand has been made upon the defendant for payment of the indebtedness, and the

10 Defendant has refused to pay the same.
Prayer

11
12

WHEREFORE, plaintiff prays for judgment against defendant as follows:

13

1.

For the sum of $114,214.69, plus prejudgment interest through the date of judgment, all

14 administrative costs allowed by law, and post-judgment interest;
15

2.

For court costs and an amount equal to the filing fee as allowed pursuant to 28 U.S.C. §

16 2412(a)(2); and,
17

3.

For such other and further relief as the Court deems just and proper.

18
19 Dated: February 13, 2015

Respectfully submitted,

20

MELINDA HAAG
United States Attorney

21
22
23

By:

24

/s/ Raven M. Norris
RAVEN M. NORRIS
Assistant United States Attorney

25
26
27
28
COMPLAINT
CASE No. 3:15-cv-00694

3

Case3:15-cv-00694 Document1 Filed02/13/15 Page4 of 6

Case3:15-cv-00694 Document1 Filed02/13/15 Page5 of 6

Case3:15-cv-00694 Document1 Filed02/13/15 Page6 of 6

EXHIBIT “B”

CMYK
Nationwide Central Intake Facility
Washington, DC 120530
U.S. Department of Justice, JMD/DCM
Nationwide Central Intake Facility
Washington, DC 20530

U.S. Department of Justice, JMD/DCM

MAKE YOUR
MAKE YOUR
PAYMENTS
PAYMENTS

If you have any questions
If you have any questions
about accessing the Pay.gov,
about accessing DOJ
NCIF form on Pay.gov,
please, contact your
please, contact your
collection office. collection
office, or contact the NCIF
Helpdesk at
[e-mail]., or
301-585-2391.

Pay.gov is a secure Government
website that allows you to submit
payments for your debt(s)
electronically. Pay.gov is managed
by the Department of Treasury,
Financial Management Service.

If you have any questions
about accessing Pay.gov,
please contact your
collection office.

MAKE YOUR
PAYMENTS
ON-LINE
AT

BENEFITS
No more paper. No mail delay.
You can submit your payments
on-line.
You can make a payment
anytime and anywhere with
Internet access.
You can pay via credit card or via
a debit transaction from your
bank account.
You can schedule recurring
payments through your bank
account so your payments will
always be on time.

FINANCIAL MANAGEMENT SERVICES
United States Department of the Treasury

U.S. Department of Justice, JMD/DCM
Nationwide Central Intake Facility
Washington, DC 20530

Job: 300581_paygov

ON-LINE
ON-LINE
AT
AT

WHAT IS
PAY.gov?

CMYK
Nationwide Central Intake Facility
Washington, DC 120530
U.S. Department of Justice, JMD/DCM
Nationwide Central Intake Facility
Washington, DC 20530

U.S. Department of Justice, JMD/DCM

MAKE YOUR
MAKE YOUR
PAYMENTS
PAYMENTS

If you have any questions
If you have any questions
about accessing the Pay.gov,
about accessing DOJ
NCIF form on Pay.gov,
please, contact your
please, contact your
collection office. collection
office, or contact the NCIF
Helpdesk at
[e-mail]., or
301-585-2391.

HOW DO I PAY
ON-LINE?

HOW TO SET UP

The Pay.gov site is available 24
hours a day, 7 days a week
(holidays included) for users to
submit payments.

Step 1: Obtain your DOJ CDCS case

number from your statement or
contact your collection office.

lf you would like to set up recurring
payments through Pay.gov, please do
the following:

Step 2: Log on to the Internet and

Job: 300581_paygov

ON-LINE
ON-LINE
AT
AT

HOW DOES
PAY.gov WORK?

Step 1: Go to https://www.pay.gov.

Pay.gov provides real-time
authorization for all credit card
payments. However, payments will
generally be processed the next
business day.
Debit Transactions
Debit payments are processed the
next business day as long as the
transaction is entered before 8:00
p.m. Eastern Standard Time.
Transactions entered after 8:00 p.m.
Eastern Standard Time may take two
business days to process.
Debit processing follows the Federal
Reserve holiday schedule. You can
find the holiday schedule at:
http://clevelandfed.org/banking/
utilities.banking_holidays.cfm

type https://www.pay.gov into your
browser's location bar, and hit
“enter” to access the Pay.gov web
page.
Step 3: Go to the SEARCH box at the
top of the page and enter:

DOJ DAOG/CDCS
Press “enter” or click “Search”.
Step 4: Click "Continue to the Form"
on the next two pages as they appear.
Step 5: Use your DOJ CDCS case

number and payment information
to complete the form. Click submit
and then the web-site will walk
you through all the screens to
finalize your submission.
NOTE: To schedule recurring
payments you must first register
and create a Username and
Password.

Step 2: At the top right of the page you
should see: Log in/Register.
Step 3: Click on the "Register" link and
complete the self-enrollment process.
Step 4: Once you are registered, the
login page opens. Log into Pay.gov.
NOTE: For further instructions, select
'ONLINE HELP' from the blue bar at
the top of the page, then click on
'Register with Pay.gov'.
Step 5: On the left side of the menu
select "Payments", then "Automatic
Payments", then "Schedule Automatic
Payment".
Step 6: Enter the required information
to complete the transaction.

CMYK

Credit Card Payments

Recurring Payments

1 BRIAN J. STRETCH (CABN 163973)
United States Attorney
2 SARA WINSLOW (DCBN 457643)
Chief, Civil Division
3
JULIE C. REAGIN (CABN 167934)
4 Assistant United States Attorney
450 Golden Gate Avenue, Box 36055
5
San Francisco, California 94102-3495
Telephone: [phone]
6
Fax: [phone]
Email: [e-mail]
7
8 Attorneys for Plaintiff
9
UNITED STATES DISTRICT COURT

10

NORTHERN DISTRICT OF CALIFORNIA

11

SAN FRANCISCO DIVISION

12
13

UNITED STATES OF AMERICA ,

14

CASE NO. 3:15-cv-00694-HSG

Plaintiff,

15

PROOF OF SERVICE

v.

16
17

KAYLA MAE NILSSON,

18

Defendant.

19
20
The undersigned hereby certifies that she is an employee of the Office of the United States
21
22
23
24

Attorney for the Northern District of California and is a person of such age and discretion to be
competent to serve papers. The undersigned further certifies that on May 13, 2016, she caused a copy
of:
•

STIPULATION AND ORDER FOR ENTRY OF CONSENT JUDGMENT

25
26 filed May 13, 2016, to be served by U.S Mail upon the person(s) at the place and address stated below,
27 which is the last known address:
28
PROOF OF SERVICE
CASE NO. 3:15-cv-00694 - HSG

1

1 Kayla Mae Nilsson
5526 Alameda Avenue, Apt 3
2
Richmond, CA 94804-4889
3
4

I declare under penalty of perjury under the laws of the United States of America that the

5 foregoing is true and correct
6
7

DATED: May 13, 2016
/s/ Gina Vieyra
GINA VIEYRA
Paralegal Specialist

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PROOF OF SERVICE
CASE NO. 3:15-cv-00694 - HSG

2