United States of America v. 6 Porsche Cayennes et al

Filing 32

ORDER granting 29 the Plaintiff, United States of America's Contested Motion for Stay of Civil Forfeiture Proceedings. The case is hereby STAYED pending the Government's criminal investigation. The Government shall file a written status reports regarding the progress of the investigation every sixty (60) days and notify the Court when the criminal investigation is concluded so the stay can be lifted. Signed by Judge Sheri Polster Chappell on 1/27/2014. (LMF)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.

Case No: 2:13-cv-636-FtM-38DNF

VIN: WP1AD2A26DLA72280,
VIN: WP1AA2A20DLA05294,
VIN: 5UXZV4C5XD0B20600,
VIN: WP1AA2A25DLA03721,
VIN: WP0AA2A78DL011101,
VIN: WP0AF2A79DL076170,
VIN: WP1AA2A29DLA02832
and VIN: WP1AA2A25DLA02679,
Defendants.
/
ORDER1
This matter comes before the Court on the Plaintiff, United States of America's
Contested Motion for Stay of Civil Forfeiture Proceedings (Doc. #29) filed on January 3,
2014. The Claimant, IFYI, Inc. filed its Response in Opposition (Doc. #31) to the stay on
January 13, 2014. The Motion is now ripe for the Court’s review.
FACTS
Sometime in late 2012, United States Customs and Border Protection detained
four (4) automobiles that belonged to the Claimant IFYI. Seizure warrants were issued
on the vehicles in April 2013. On July 15, 2013, the Claimant IFYI filed suit in this Court

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against the Government case number IFYI, Inc. v. USA, 2:13-cv-525-FtM-JES. The
Claimant subsequently voluntarily dismissed its case against the Government. On August
30, 2013, the Government filed a Complaint in rem against the Defendant Vehicles
pursuant to 18 U.S.C. §§ 981(a)(1)(A) and 981(a)(1)(C). (Doc. #1). The Government now
moves the Court for a stay in the civil case pending the outcome of its criminal
investigation.
DISCUSSION
The Plaintiff, the United States of America (Government), moves the Court to stay
the instant civil forfeiture proceeding pending the outcome of a criminal investigation
involving the Claimant IFYI. The Claimant argues that the Government has not met its
burden under the law to justify a stay.
Eighteen U.S.C. § 981(g) provides for stay of a civil forfeiture case pending the
conclusion of a related criminal investigation or trial. The statute reads in pertinent part
“[u]pon the motion of the United States, the court shall stay the civil forfeiture proceeding
if the court determines that civil discovery will adversely affect the ability of the
Government to conduct a related criminal investigation or the prosecution of a related
criminal case.” 18 U.S.C. § 981(g)(1).
Two things are obvious from this language: 1) the Government must satisfy the
court that civil discovery would adversely affect the criminal case; if so, then 2) the court
must grant the stay. Indeed, “civil discovery may not be used to subvert limitations on
discovery in criminal cases, by either the government or by private parties.” U.S. v. All
Funds on Deposit in Suntrust Account Number XXXXXXXXX8359, in Name of Gold and
Silver Reserve, Inc., 456 F.Supp.2d 64, 65 -66 (D.D.C. 2006) (citing McSurely v.

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McClellan, 426 F.2d 664, 671-72 (D.C.Cir.1970)). However, the government must make
an actual showing that civil discovery will adversely affect the investigation or prosecution
of a related criminal case. U.S. v. GAF Financial Servs., Inc., 335 F.Supp.2d 1371, 1373
(S.D.Fla.2004); cf. U.S. v. All Funds ($357,311.68) Contained in N. Trust Bank of Fla.
Account, WL 1834589, at *3-4 (N.D. Tex. Aug. 10, 2004) (motion to stay denied because
government did not show that civil discovery would adversely affect its criminal
investigation). The parties and the facts of the civil and criminal cases need not be
identical but must be similar. GAF Financial Servs., 335 F.Supp.2d at 1373. Where a
criminal investigation and a civil forfeiture action have common facts, similar alleged
violations and some common parties, the actions are clearly related. Id. Where civil
discovery would subject the government's criminal investigation to “early and broader civil
discovery than would otherwise be possible in the context of the criminal proceeding,” a
stay should be granted. U.S. v. One Assortment of Seventy-Three Firearms, 352
F.Supp.2d 2, 4 (D. Me.2005).
The Government states that the Claimants and others are subjects of an ongoing
criminal investigation. According to the Government, the criminal investigation involves
the same scheme alleged in the instant civil action. The Government states that its
investigation involves information obtained from witnesses and the discovery of the
witnesses’ identity by the Claimants would hinder the ongoing investigation. In addition,
the Government states that the disclosure of certain materials during the civil discovery
may jeopardize the ongoing criminal investigation.

Thus the Government argues that

the civil discovery would have an adverse effect on its ability to conduct the related
criminal investigation.

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Based upon the Governments claims, the Court believes that good cause exists to
stay the instant civil action. The civil case involves the same events and common facts,
related witnesses, and the materials disclosed during the civil discovery would hinder an
ongoing criminal investigation. Thus, the case will be stayed.
Accordingly, it is now
ORDERED:
The Plaintiff, United States of America's Contested Motion for Stay of Civil
Forfeiture Proceedings (Doc. #29) is GRANTED.
1. The case is hereby STAYED pending the Government’s criminal
investigation.
2. The Government shall file a written status reports regarding the progress of
the investigation every sixty (60) days and notify the Court when the criminal
investigation is concluded so the stay can be lifted.
DONE and ORDERED in Fort Myers, Florida this 27th day of January, 2014.

Copies: All Parties of Record

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