United States of America v. Currency $1,670,080 From An Interbank Account Maintained At HSBC USA N.A., New York, New York, By HSBC Bank Middle East Limited, Ramallah, Palestine, Which Sum Reflects Certain Funds Deposited In

Filing 16

STIPULATED CONSENT JUDGMENT as to $696,902.13 of the Defendant In Rem. Signed by District Judge Robert H. Cleland. (LWag)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

UNITED STATES OF AMERICA,
Plaintiff,
vs.

Civil No. 2:13-cv-13596-RHC-MKM
Honorable Robert H. Cleland

ONE MILLION SIX HUNDRED
SEVENTY THOUSAND AND EIGHTY
DOLLARS ($1,670,080.00) SEIZED
FROM AN INTERBANK ACCOUNT
MAINTAINED AT HSBC USA N.A.,
NEW YORK, NEW YORK, BY HSBC
BANK MIDDLE EAST LIMITED,
RAMALLAH, PALESTINE, WHICH SUM
REFLECTS CERTAIN FUNDS DEPOSITED
INTO HSBC BANK MIDDLE EAST LIMITED,
RAMALLAH, PALESTINE, ACCOUNT
NO. 011-005444-087
Defendant in rem.
________________________________/
STIPULATED CONSENT JUDGMENT
AS TO SIX HUNDRED NINETY SIX THOUSAND NINE HUNDRED TWO
DOLLARS AND THIRTEEN CENTS ($696,902.13) OF THE
DEFENDANT IN REM
NOW COMES the Plaintiff, the UNITED STATES OF AMERICA
(hereinafter the AUnited States@), by and through its counsel, BARBARA L.
McQUADE, United States Attorney, and GJON JUNCAJ, Assistant United States
Attorney, and Claimant HSBC BANK MIDDLE EAST LIMITED, RAMALLAH,

PALESTINE (hereinafter “HBME”), by and through its attorneys, RICHARD E.
ZUCKERMAN and DOUGLAS GREENBURG, who enter into this Stipulated
Consent Judgment as to Six Hundred Ninety Six Thousand Nine Hundred Two
Dollars And Thirteen Cents ($696,902.13) of the Defendant in Rem as evidenced
by their signatures below, under the terms and conditions hereinafter set forth:
WHEREAS, the Defendant In Rem, captioned above and described as the
following:
One Million Six Hundred Seventy Thousand and Eighty Dollars
($1,670,080.00) seized from an interbank account maintained at HSBC
USA N.A., New York, New York, by HSBC Bank Middle East
Limited, Ramallah, Palestine, which sum reflects certain funds
deposited into HSBC Bank Middle East Limited, Ramallah, Palestine,
account No. 011 005444 087, in the name of Waleed M. Yaghmour
(hereinafter “Defendant In Rem”);
was seized by agents of the United States pursuant to a federally authorized seizure
warrant issued by the United States District Court for the Eastern District of
Michigan and served on HSBC USA NA on or about March 19, 2013;
WHEREAS, on August 20, 2013, a Complaint for Forfeiture was filed in this
case alleging that the Defendant In Rem is subject to forfeiture to the United States
pursuant to 18 U.S.C. § 981(k), 21 U.S.C. § 881(a)(6) and/or 18 U.S.C.
§ 981(a)(1)(C) because it constitutes or is derived from the proceeds of narcotics
crimes in violation 21 U.S.C. §§ 841, 846 and/or health care fraud, in violation of 18
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U.S.C. §§ 1347, 1349, and that the Defendant In Rem is also subject to forfeiture to
the United States pursuant to 18 U.S.C. §§ 981(k) and 981(a)(1)(A) because it is
property involved in money laundering transactions in violation of 18 U.S.C. §
1956(a)(1)(B)(i) and 1957;
WHEREAS, on August 20, 2013, the Court issued a Warrant of Arrest and
Notice In Rem as to the Defendant In Rem;
WHEREAS, on September 16, 2013, HBME filed a Claim For Relief Against
Forfeiture, seeking the return of $696,912.13 of the Defendant In Rem, an amount
HBME claims reflects the difference between the Defendant In Rem and
$973,177.87, the balance remaining in HBME Account No. 011-00544-087 (held
for the benefit of Waleed M. Yaghmour) at the time the seizure warrant was served;
WHEREAS, HBME has provided the United States with evidence
substantiating that there was a total of $973,177.87 on deposit in HBME Account
No. 011-00544-087 at the time the seizure warrant was served;
WHEREAS, pursuant to 18 U.S.C. § 981(k)(4)(B)(ii)(II) and relying on
HBME’s representations and evidence submitted, the United States is satisfied that a
preponderance of evidence shows that HBME had discharged part of its obligation
to the owner of HBME Account No. 011-00544-087 and that, therefore,
$696,902.13 of the seized funds were owned by HBME before the seizure warrant
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was served;
WHEREAS, on October 16, 2013, Waleed Yaghmour filed a claim to
$973,177.87 of the Defendant In Rem but did not claim the $696,902.13 portion of
the Defendant In Rem subject to this Stipulation and claimed by HBME;
NOW, THEREFORE, conditioned upon the veracity of HBME’s
representations and evidence submitted to the United States, the United States and
HBME stipulate as follows:
1.

The undersigned individuals signing this Stipulation on behalf of the

United States and on behalf of the HSBC Bank Middle East Limited, Ramallah,
Palestine represent and warrant that they are authorized to execute this Stipulation.
2.

To correct a technical error, HBME hereby amends its Claim For

Relief Against Forfeiture (dkt. #8) to claim the amount of $696,902.13 of the
Defendant in Rem.

The United States and HBME agree that the amount of

$696,902.13 reflects the difference between the Defendant in Rem ($1,670,080.00)
and the amount remaining in account HBME Account No. 011-00544-087 at the
time relevant seizure warrant was served ($977,177.87).
3.

For the reasons set forth in the whereas clauses above, the United

States agrees to return the amount of $696,902.13 of the Defendant in Rem to
HBME.

Following entry of this Stipulation and Order and receipt by the U.S.
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Attorney’s Office, and after HBME’s attorneys have supplied Automated Clearing
House (ACH) information to the government for electronic fund transfer, the U.S.
Department of Treasury or its delegate shall disburse the funds through the
Electronic Payment System (EPS). Funds will only be disbursed after the U.S.
Attorney’s Office has received the ACH information required for electronic
deposit of the funds into the designated account.
4.

This Stipulation constitutes the entire agreement between the United

States and HBME, and is made without prejudice to any claim the United States or
HBME has with respect to the remaining $973,177.87 plus accrued interest of the
Defendant In Rem not released pursuant to this Stipulation.
5.

In the event the United States becomes aware that HBME has

intentionally misrepresented the extent to which it has discharged its obligations to
the owner of HBME Account No. 011-00544-087, then the United States may, at
its option (1) be released from all of its obligations under this Stipulation; and (2)
may seek to forfeit an equivalent amount of funds representing the amount for
which HSBC Bank Middle East Limited has not discharged its obligation to the
owner of HBME Account No. 011-00544-087 prior to the service of the seizure
warrant on March 19, 2013.
6.

HBME agrees to release and forever discharge the United States and
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its officers, agents, attorneys, employees, and representatives from any and all
claims, causes of action, liability and damages, including claims for attorney’s fees
or costs, and claims asserting a violation of constitutional, statutory, regulatory or
common law duties, arising out of or in connection with the restraint and seizure of
$696,902.13 of the Defendant In Rem from the interbank account of HBME which
was maintained at HSBC USA NA.
7.

The parties agree that the terms of this Stipulation constitute the entire

agreement between the United States and HBME and that no other promises or
agreements or representations exist. This Stipulation may not be amended except
by written consent of the parties and order of the Court.
8.

The parties agree that each party shall bear its own costs and

attorney’s fees in this matter.
WHEREFORE, the parties stipulate to entry of this Stipulated Consent
Judgment.
APPROVED AS TO SUBSTANCE AND FORM:
BARBARA L. McQUADE
United States Attorney

Date: January 16, 2014

s/ Gjon Juncaj
GJON JUNCAJ
Assistant United States Attorney
211 W. Fort Street, Ste. 2001
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Detroit, Michigan 48226
313-226-9100
[e-mail]
(P63256)
HSBC BANK MIDDLE EAST LIMITED
By its attorneys,

Date: January 15, 2014

s/ Richard E. Zuckerman
RICHARD E. ZUCKERMAN
Honigman, Miller, Schwartz and Cohn LLP
2290 First National Building
660 Woodward Avenue
Detroit, Michigan 48226
[phone]
[e-mail]
(P26521)
OF COUNSEL:
DOUGLAS GREENBURG
Latham and Watkins LLP
555 Eleventh Street, NW
Suite 1000
Washington, D.C. 20004-1304

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STIPULATED CONSENT JUDGMENT
IT IS SO ORDERED.

s/Robert H. Cleland
HONORABLE ROBERT CLELAND
United States District Court Judge

Dated: January 17, 2014

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