United States of America v. Tran

Filing 12

ORDER - The government's Motion For Extension of Temporary Restraining Order and for Permission To Open Bank Account Not Subject to Temporary Restraining Order (filing 11 ) is granted in part as stated herein. Ordered by Judge John M. Gerrard. (Copy mailed to pro se party)(JAB)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
UNITED STATES OF AMERICA,
Plaintiff,

4:15-CV-3036

vs.
ORDER
SCOTT T. TRAN,
Defendant.
This matter is before the Court on the government's Motion For
Extension of Temporary Restraining Order and for Permission To Open Bank
Account Not Subject to Temporary Restraining Order. Filing 11. By its terms,
the Court's previous Temporary Restraining Order ("the TRO") was set to
expire at close of business on April 14, 2015. See filing 8. The government
seeks an order extending the TRO to close of business on May 14, 2015, as
this will allow the parties an opportunity to negotiate the terms of a
preliminary injunction by consent.
Injunctions under 18 U.S.C. § 1345 are subject to the Federal Rules of
Civil Procedure. 18 U.S.C. § 1345(b). And under Fed. R. Civ. P. 65(b)(2), a
temporary restraining order expires after 14 days "unless before that time
the court, for good cause, extends it for a like period or the adverse party
consents to a longer extension." That Rule further provides that the reasons
for an extension must be entered in the record. Id.
At this time, defendant Scott T. Tran has not consented to the
extension. The Court finds, however, that good cause exists to extend the
TRO—this is a complex case with many moving parts, and if the parties can
negotiate a preliminary injunction, it will save everyone significant time and
expense. Pursuant to Fed. R. Civ. P. 65(b)(2), however, the TRO may only be
extended for an additional 14 days (unless Tran later consents to a lengthier
extension). So, the Court will grant the government's motion to extend in
part, and the previously-entered TRO will remain in effect until the close of
business on April 28, 2015.
The government also requests that Tran Pharmacy, Inc., a Nebraska
corporation d/b/a Pharmacy Specialty Services (the "Pharmacy")
be permitted to open a single new account at Wells Fargo Bank
for the sole purpose of receiving legitimate payments from

private insurance providers and individuals for legitimate
[P]harmacy claims and paying legitimate operating expenses
incurred by the [P]harmacy in the ordinary course of its business;
provided, however, none of the money from the new [P]harmacy
account shall be transferred to Scott Tran, any of his family
members, or the attorneys or agents for Scott Tran, his family, or
the [P]harmacy, with the exception of reimbursing such family
members for monies loaned to the [P]harmacy for purposes of
paying federal payroll taxes which are due April 15, 2015 and
wages owed to non-family employees which are due April 16,
2015. The [P]harmacy will provide the government with a weekly
accounting of financial transactions through the new [P]harmacy
account, including the repayment of the family loan made to the
[P]harmacy to pay the federal payroll taxes which are due April
15, 2015 and wages owed to non-family employees which are due
April 16, 2015. If the [P]harmacy does not receive payment for
claims unrelated to health care fraud, the government reserves
the right to seek an amendment to the TRO.
Filing 11.
The Court does not see how this will prejudice Tran and (in the absence
of any objection on his part) finds it to be an appropriate modification of the
existing TRO. This portion of the government's motion will be granted.
THEREFORE, IT IS ORDERED:
1.

The government's Motion For Extension of Temporary
Restraining Order and for Permission To Open Bank
Account Not Subject to Temporary Restraining Order
(filing 11) is granted in part;

2.

The Court's previous Temporary Restraining Order (“TRO”)
entered on March 31, 2015 (filing 8), as modified on this
date, shall remain in force until the close of business on
April 28, 2015, or at such later date as may be extended by
the Court, or agreed upon by the parties;

3.

Tran Pharmacy, Inc., a Nebraska corporation d/b/a
Pharmacy Specialty Services (the "Pharmacy"), is
permitted to open a single new account at Wells Fargo
Bank for the sole purpose of receiving legitimate payments
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from private insurance providers and individuals for
legitimate Pharmacy claims and paying legitimate
operating expenses incurred by the Pharmacy in the
ordinary course of its business;
4.

Except for reimbursing Tran family members for monies
loaned to the Pharmacy for purposes of paying federal
payroll taxes which are due April 15, 2015 and wages owed
to non-family employees which are due April 16, 2015, none
of the money from the Pharmacy account in the preceding
paragraph may be transferred to Scott Tran, any of his
family members, or the attorneys or agents for Scott Tran,
his family, or the Pharmacy;

5.

The Pharmacy shall provide the government with a weekly
accounting of financial transactions through the new
Pharmacy account, including the repayment of the family
loan made to the Pharmacy to pay the federal payroll taxes
which are due April 15, 2015 and wages owed to non-family
employees which are due April 16, 2015; and

6.

If the Pharmacy does not receive payment for claims
unrelated to health care fraud, the government shall retain
the right to seek an amendment to the TRO.

Dated this 14th day of April, 2015.
BY THE COURT:

John M. Gerrard
United States District Judge

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