United States of America v. Schwartz et al

Filing 25

JUDGMENT in favor of plaintiff United States of America; signed by Chief Judge Paul L. Maloney (Chief Judge Paul L. Maloney, acr)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF MICHIGAN
UNITED STATES OF AMERICA,

)
)
Plaintiff,
)
v.
)
)
EDWARD J. SCHWARTZ,
)
SHARON D. SCHWARTZ,
)
STATE OF MICHIGAN, and
)
SAINT JOSEPH COUNTY TREASURER,
)
)
Defendants.
)
_______________________________________ )

Case No. 1:12-cv-00120-PLM
District Judge Paul L. Maloney
Magistrate Judge Joseph Scoville

JUDGMENT
This matter having come before the Court upon the Stipulation for Judgment and Entry of
Judgment, and the Court being fully apprised of the matter, the Court approves of such
stipulation and grants judgment as follows:
It is hereby ORDERED, ADJUDGED AND DECREED that–
A.

Judgment is entered in favor of the plaintiff United States of America and against
defendants Edward J. Schwartz and Sharon D. Schwartz, jointly and severally, in the
amount $491,523.68 plus statutory additions accruing from and after February 6, 2012,
including interest pursuant to 26 U.S.C. §§ 6601, 6621, and 6622, and 28 U.S.C.
§ 1961(c).

B.

Judgment is entered in favor of the plaintiff United States of America and against
defendant Edward J. Schwartz in the amount $1,264,107.79, plus statutory additions
accruing from and after February 6, 2012 including interest pursuant to 26 U.S.C.
§§ 6601, 6621, and 6622, and 28 U.S.C. § 1961(c).

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C.

Judgment is entered that the United States is entitled to enforce its federal tax liens
against the property commonly known as 22199 Storms Road, Centreville, Michigan,
(“Subject Property”) more fully described in the United States’ complaint (Doc. No. 1),
and the Subject Property shall be sold free and clear of all rights, titles, claims, liens, and
interest of the parties to this case with the net proceeds of the sale, after the payment of
the reasonable costs of the sale and any real estate taxes due and owing to be paid to the
United States of America. In accordance with the Court’s order in Mr. Schwartz’s
criminal case, 1:08-cr-10-1 (see Dkt. No. 73), the proceeds of the sale of the Subject
Property shall replace Mr. Schwartz’s obligation to pay a $100,000.00 lump sum
payment that he was ordered to pay ninety days after the commencement of his
supervised release. Pursuant to 18 U.S.C. § 3664(j)(2), the proceeds from the sale of the
Subject Property shall be credited towards Mr. and Mrs. Schwartz’s joint and several
restitution judgment of $475,869.28 in their criminal case, 1:08-cr-10. In the event of
any excess sale proceeds after satisfaction of the federal tax liens, such proceeds shall be
distributed in the appropriate order of any remaining liens on the Subject Property.

D.

Judgment is entered that Edward J. Schwartz and Sharon D. Schwartz shall have until
January 11, 2014, to find a proposed buyer and finalize the sale of the Subject Property
by that date, subject to the express written approval of the United States. The United
States shall be promptly notified of any offers and be forwarded copies of such offers. If
the Subject Property is not sold on or before January 11, 2014, then, unless mutually
agreed otherwise, the property shall be sold by the IRS Property Appraisal and
Liquidation Specialists (“PALS”), or other person designated by the United States, or as
otherwise ordered by the Court. So long as Edward J. Schwartz and Sharon D. Schwartz

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maintain the Subject Property, make good faith attempts to help sell it, and allow the IRS
access to it, they shall be able to remain in the Subject Property until 15 days before the
public auction or sale closing. At that time, they shall turn over the keys to the premises
to the IRS. Good faith compliance by Edward J. Schwartz and Sharon D. Schwartz will
be left to the reasonable discretion of counsel for the United States, or as otherwise
determined by the Court.

IT IS SO ORDERED, ADJUDGED, AND DECREED:

November
Date: ________ 14, 2013

/s/ Paul L. Maloney
__________________________________
CHIEF JUDGE PAUL L. MALONEY

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