United States of America v. Gachette

Filing 126

ORDER adopting 125 REPORT AND RECOMMENDATIONS - GRANTING IN PART 120 MOTION for Sanctions (Contempt) filed by United States of America. Defendant Walner G. Gachette is ORDERED not to transfer title to any residential rental pr operties currently titled to himself, A2Z Rentals, LBS Home Loan, or the Trust, unless in an arm's length transaction for adequate consideration, and not to encumber any of these properties with mortgages or other liens;Defendant Walner G. Gache tte is ORDERED, in the event that any real estate of his, A2Z Rentals, LBS Home Loan, or the Trust is sold, to immediately provide an accounting of the sale proceeds to counsel for the United States and deposit the net sale proceeds into the registry of the court. Defendant Walner G. Gachette shall produce to counsel for the United States a monthly accounting of all rent receipts, no later than the last day of every month and continuing until further notice. Signed by Judge Anne C. Conway on 11/9/2020. (copies mailed/emailed)(AKC)

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

Case No: 6:14-cv-1539-Orl-22EJK

WALNER G. GACHETTE,
Defendant.

ORDER
This cause is before the Court on Magistrate Judge Kidd’s Order to Show Cause to
Defendant, Walner G. Gachette (Doc. 109), issued April 8, 2020, to explain why he should not be
held in contempt of Court for failure to fully satisfy the disgorgement award included in the Court’s
2016 Order and Judgment of Permanent Injunction and Disgorgement; and Plaintiff United States
of America’s subsequent Motion for Contempt Sanctions Against Defendant Walner G. Gachette
(the “Motion”) (Doc. 120) filed on May 27, 2020. Defendant Gachette, proceeding pro se, filed a
Response to the Motion and the Order to Show Cause. (Docs. 110-112; Docs. 121-124).
On November 16, 2016, the Court entered the Order and Judgment of Permanent Injunction
and Disgorgement Against Walner Gachette which awarded the United States $5,000,000 to be
disgorged from Gachette for unjust profits. (Doc. 63 at 5–6). At the time of the Magistrate’s Report
and Recommendation on October 21, 2020, Gachette had paid the United States a total of
$953,657.21; however, he had made no payments since May 2, 2019. (Docs. 82-1, ¶ 2; 113-1 at
1).
The Magistrate Judge had previously determined that the deadline to pay the Settlement
amount of $1,500,000 had passed, and thus, Gachette was responsible for paying the entire
$5,000,000 (plus interest), which was set forth in the Disgorgement Order. (Doc. 109 at 4.). The

United States Magistrate Judge has submitted a report recommending that the Court GRANT in
part the Motion for contempt sanctions, find Gachette in civil contempt, and issue sanctions. (Doc.
125).
After an independent de novo review of the record in this matter, and noting that no
objections were timely filed,1 the Court agrees entirely with the findings of fact and conclusions
of law in the Report and Recommendation.
Therefore, it is ORDERED as follows:
1.

The Report and Recommendation filed October 21, 2020 (Doc. No. 125) is

ADOPTED and CONFIRMED and made a part of this Order.
2.

The Motion for Contempt Sanctions Against Defendant Walner G. Gachette (Doc.

120) is hereby GRANTED in part. The Court finds Walner G. Gachette is in civil contempt of
Court for failure to make satisfactory payments under the Order and Judgment of Permanent
Injunction and Disgorgement Against Walner Gachette. (Doc. 63 at 5–6.).
3.

The Court ORDERS the following sanctions be imposed for civil contempt:
a. Defendant Walner G. Gachette is ORDERED not to transfer title to any
residential rental properties currently titled to himself, A2Z Rentals, LBS
Home Loan, or the Trust, unless in an arm’s length transaction for adequate
consideration, and not to encumber any of these properties with mortgages
or other liens;
b.

Defendant Walner G. Gachette is ORDERED, in the event that any real
estate of his, A2Z Rentals, LBS Home Loan, or the Trust is sold, to
immediately provide an accounting of the sale proceeds to counsel for the

1

The Report and Recommendation was electronically mailed to Gachette at [e-mail] on
October 21, 2020. (Doc. 125, Notice of Electronic Filing).

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United States, and to deposit the net sale proceeds into the registry of the
Court; and
c. Defendant Walner G. Gachette is ORDERED to produce to counsel for the
United States a monthly accounting of all rent receipts, no later than the last
day of every month, and continuing until further notice.
DONE and ORDERED in Orlando, Florida on November 9, 2020.

Copies furnished to:
Counsel of Record
Defendant Walner G. Gachette

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