United States of America v. Wilkins et al

Filing 21

ORDER granting 20 Motion for Default Judgment. The Clerk of Court shall enter a final judgment in accordance with Order. Within fourteen days the United States shall submit a proposed decree of foreclosure and order of sale. See Order for details. Signed by Judge Elizabeth A. Kovachevich on 4/6/2015. (JM)

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

CASE NO. 8:14-CV-993-T-17AEP

LAWRENCE N. WILKINS,
et al.,
Defendants.
/

ORDER
This cause is before the Court on:
Dkt. 20

Motion for Default Judgment

Plaintiff United States of America moves for entry of default judgment against
Defendants Lawrence N. Wilkins, Carol G. Wilkins, The Wilkins Foundation, Inc. and
Living Light Ministries, Inc.

Plaintiff obtained service by publication, and a Clerk’s

Default has been entered. (Dkts. 16,18). The current amount of unpaid tax due is
$6,749,871.06.

The Amended Complaint includes the following:
Count I - To Foreclose Tax Liens Against the Malton Street Property
The real property located at 5868 Malton Street, North Port, Florida,
34286-7111 (“the Malton Property”) is more particularly described as Lot
23, Block 30, SECOND ADDITION TO NORTH PORT ESTATES,
according to Plat thereof recorded at Plat Book 19, Pages 44-440, of the
Public Records of Sarasota County, Florida.

Case No. 8:14-CV-993-T-17AEP
Count II - To Foreclose Tax Liens Against the Bliffert Street Property
The real property located at 5685 Bliffert Street, North Port, Florida,
34287-2874 (“Bliffert Street Property”) is more particularly described as
Lot 37, Block 2766, First Replat in Fortieth Addition to Port Charlotte
Subdivision, a Subdivision according to the Plat thereof as recorded in
Plat Book 26, Page(s) 33, 33A and 33B, inclusive, of the Public Records
of Sarasota County, Florida.
Defendant Lawrence N. Wilkins is the taxpayer, and has an interest in the Subject
Properties as follows:

On or about October 14, 2004 defendant Lawrence N. Wilkins purchased
the Malton Street Property as his residence in the name of The Wilkins
Foundation, Inc. for $449,000. Both the $15,000 deposit and the
$104,334.07 down payment were paid by checks drawn on the account of
The Wilkins Foundation, Inc. The balance of the purchase price was paid
with funds from a loan secured by a mortgage obtained by Lawrence N.
Wilkins’ wife, Carol G. Wilkins, individually and as Treasurer of The
Wilkins Foundation, Inc. in the amount of $336,750. Thereafter mortgage
payments were made by checks drawn on the account of The Wilkins
Foundation, Inc. with funds provided by Lawrence N. Wilkins. The
mortgage was satisfied on March 31, 2006.
Lawrence N. Wilkins has resided in the Malton Street Property since its
purchase. Checks drawn on the account of Living Light Ministries, Inc., in
the total amount of $141, 967.64 were used for construction, materials
and work completed on the Malton Street Property after its purchase.
Checks from the same account were also used to care and feed horses at
the Malton Street Property.
By quitclaim deed dated May 31, 2006 defendant The Wilkins Foundation,
Inc. conveyed legal title in the Malton Street Property to Living Light
Ministries, Inc. The quit claim deed shows that documentary stamps in
the amount of $.70 were paid on the transfer. On that same date, Carol
G. Wilkins, as President of The Wilkins Foundation, Inc. executed a
resolution authorizing The Wilkins Foundation, Inc. to transfer the Malton
Street Property to Living Light Ministries, Inc. as a charitable gift. Bank
records show that on March 16, 2006, Living Light Ministries, Inc.
transferred $322,000. into the account of The Wilkins Foundation, Inc.
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Case No. 8:14-CV-993-T-17AEP
The Wilkins Foundation, Inc. used these funds to satisfy the mortgage.
Despite the fact that title to the Malton Street Property is held by Living
Light Ministries, Inc., defendant Lawrence N. Wilkins remains the true and
beneficial owner of that property. Defendant Lawrence N. Wilkins
acquired the property with his funds, has retained exclusive use of the
property for himself and his family members, and has maintained the
property with funds he deposited into the account of nominee Living Light
Ministries, Inc.
In April, 2006, Lawrence N. Wilkins paid $172,385 to acquire the Bliffert
Street Property. Although he provided the funds for the property,
Lawrence N. Wilkins directed the agent who handled the transaction to
issue title to the Bliffert Street property to Living Light Ministries, Inc.
Despite the fact that title to the Bliffert Street Property is held by Living
Light Ministries, Inc., defendant Lawrence N. Wilkins remains the true and
beneficial owner of that property. Defendant Lawrence N. Wilkins
acquired the property with his funds and has retained control over the use
of the property.
On November 27, 2006 and July 7, 2008, a delegate of the Secretary of the
Treasury assessed federal income taxes, penalties and interest for the years 1996
through 2005 against Defendant Lawrence N. Wilkins. Despite notice of the
assessments and demand for payment, Defendant Lawrence N. Wilkins has refused to
pay the full amount of the assessments, and $6,583,487.08, as of March 1, 2014,
remains due and owing, plus fees, interest, and all statutory additions thereafter, as
provided by law. Federal tax liens arose and attached to property owned by Defendant
Lawrence N. Wilkins at the time of the assessment made against him. 26 U.S.C. Secs.
6321,6322.
Pursuant to 26 U.S.C. Sec. 7403(a), the Court has jurisdiction to enforce a lien
and subject a property to payment of tax where the United States brings suit at the
request of the Secretary of the Treasury to enforce a tax liability. 26 U.S.C. Sec.
7403(c) allows the Court to finally determine all claims upon or liens to the subject
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Case No. 8:14-CV-993-T-17AEP
properties, to decree a sale of the properties if appropriate, and to determine the
distribution of the proceeds of the sale.
After consideration, the Court grants Plaintiffs Motion for Default Judgment as
follows:
1. A Final Default Judgment in favor Plaintiff United States of America
and against Defendants Lawrence N. Wilkins, Carol G. Wilkins, The
Wilkins Foundation, Inc. and Living Light Ministries, Inc. shall be entered;
2. The Wilkins Foundation, Inc. and Living Light Ministries, Inc. hold title
to the subject properties as nominees of Lawrence N. Wilkins, who is the
true and beneficial owner of the real property described in Paragraph 4 of
the Amended Complaint (the Malton Street Property and the Bliffert Street
Property;
3. The federal tax liens in favor of the United States of America against
all property and rights to property belonging to Lawrence N. Wilkins
attach to the real property described in Paragraph 4 of the Amended
Complaint;
4. The claim of the United States of America to the property described in
paragraph 4 of the Amended Complaint has priority over claims of
Defendants Lawrence N. Wilkins, Carol G. Wilkins, The Wilkins
Foundation Inc., and Living Light Ministries, Inc.
5. The tax liens of the United States of America be foreclosed on the
property described in paragraph 4 of the Amended Complaint, and the
property be sold free and clear of the liens and claims of all parties, and
the proceeds of sale be distributed to the United States in accordance
with the priority determined by the Court and to the extent of the unpaid
balance of the assessments described in Paragraph 14 of the Amended
Complaint, plus fees, interest and statutory additions thereto as provided
by law.
6. Within fourteen days of the date of this Order, the United States shall
subm it a proposed decree of foreclosure and order of sale; and
7. The Clerk of Court shall promptly enter a final judgment in accordance
herewith.
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Case No. 8:14-CV-993-T-17AEP

DONE and ORDERED in Chambers in Tampa, Florida on this / o
2015.

Copies to:
All parties and counsel of record

5

day of April,