Lake Las Vegas Master Trust v. United States Internal Revenue Service et al

Filing 54

ORDER OF FORECLOSURE AND JUDICIAL SALE. Signed by Chief Judge Gloria M. Navarro on 4/11/16. (Copies have been distributed pursuant to the NEF - MMM)

Case 2:14-cv-00435-GMN-NJK Document 53 Filed 04/05/16 Page 1 of 10

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CAROLINE D. CIRAOLO
Acting Assistant Attorney General
VIRGINIA CRONAN LOWE
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683
Washington, D.C. 20044
202-307-6484 (v)
202-307-0054 (f)
[e-mail]
Of Counsel:
DANIEL G. BOGDEN
United States Attorney
District of Nevada
IN THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF NEVADA

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LAKE LAS VEGAS MASTER TRUST,

)
)
Plaintiff,
)
)
v.
)
)
UNITED STATES INTERNAL REVENUE
)
SERVICE; Z’S, a defaulted Nevada
)
Corporation; and DOES 1 through 10, inclusive )
)
Defendants.
)
______________________________
_____ )
LN MANAGEMENT LLC SERIES 31 RUE )
MEDITERRA
)
)
Plaintiff,
)
)
v.
)
)
UNITED STATES INTERNAL REVENUE
)
SERVICE; Z’S, a defaulted Nevada
)
Corporation; and DOES 1 through 10, inclusive )
)
Defendants.
)
______________________________
_____ )

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Case No. 2:14-cv-00435-GMN-NJK
(Consolidated with
Case No. 2:14-cv-00658 GMN-NJK)
[Proposed]
ORDER OF FORECLOSURE AND
JUDICIAL SALE

Case 2:14-cv-00435-GMN-NJK Document 53 Filed 04/05/16 Page 2 of 10

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The Court has entered judgment in favor of the United States and ordered foreclosure of
the United States’ federal tax lien against four parcels of real property located at 27 Rue
Mediterra Dr., Henderson, NV 89011, 29 Rue Mediterra Dr., Henderson, NV 89011, 31 Rue
Mediterra Dr., Henderson, NV 89011 and 33 Rue Mediterra Dr., Henderson, NV 89011 the
Subject Property. This Order of Foreclosure and Judicial Sale is entered pursuant to the
provisions of 28 U.S.C. §§ 2001, 2002, and 3201 and 26 U.S.C. §§ 7402 and 7403. The Court

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hereby orders as follows:
1.

On March 28, 2016, this Court entered Judgment in favor of the United States and

against plaintiff Lake Las Vegas Master Trust (Doc. Nos. 51 and 52) in Civil No. 2:14-cv-00435-

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GMN-NJK and on March 29, 2016, this Court entered Judgment in favor of the United States

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and against plaintiff LN Management LLC Series 31 Rue Mediterra (Doc. Nos. 19 and 20) in

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Civil No. 2:14-cv-00658-GMN-NJK.

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2.

The real properties at issue, referred to as the “Subject Properties,” upon which

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the United States is entitled to foreclose its tax lien are located at27 Rue Mediterra Drive,

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Henderson, Nevada 89109, APN 160-23-213-004; 29 Rue Mediterra Dr., Henderson, NV

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89011, APN 160-23-213-003; 31 Rue Mediterra Dr., Henderson, NV 89011, APN 160-23-213002; and 33 Rue Mediterra Dr., Henderson, NV 89011, APN 160-23-213-001, respectively, and
are more particularly described as follows:
Lot Four Nineteen (419) of Marseilles (also known as “Lake Las Vegas – Parcel 25”) as
shown by map thereof on file in Book 66 of Plats, Page 80, in the Office of the County
Recorder of Clark County, Nevada.
Lot Four Twenty (420) of Marseilles (also known as “Lake Las Vegas –
Parcel 25”) as shown by map thereof on file in Book 66 of Plats, Page 80, in
the Office of the County Recorder of Clark County, Nevada.

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Case 2:14-cv-00435-GMN-NJK Document 53 Filed 04/05/16 Page 3 of 10

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Lot Four Twenty-One (421) of Marseilles (also known as “Lake Las Vegas –
Parcel 25”) as shown by map thereof on file in Book 66 of Plats, Page 80, in
the Office of the County Recorder of Clark County, Nevada.
Lot Four Twenty-Two (422) of Marseilles (also known as “Lake Las Vegas –
Parcel 25”) as shown by map thereof on file in Book 66 of Plats, Page 80, in
the Office of the County Recorder of Clark County, Nevada.
3.

The United States has a valid and subsisting federal tax lien based on Z’s, A

Nevada Corporation’s unpaid corporate income tax liabilities for 2004 and 2005 against all

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property and rights to property belonging to Z’s, including but not limited to the Subject
Properties.
4.

Section 7403 of Title 26 (U.S.C.) entitles the United States to enforce its lien

against the Subject Properties in order to apply the proceeds towards the liabilities described in
paragraph 3.
5.

The United States’ federal tax lien against the Subject Properties is hereby

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foreclosed. The United States Marshal for the District of Nevada, his/her representative, or an

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Internal Revenue Service Property Appraisal and Liquidation Specialist (“PALS”) representative

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is authorized and directed under 28 U.S.C. §§ 2001 and 2002 to offer for public sale and to sell

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the Subject Properties, free and clear of the right, title and interest of all parties to these actions
and any successors in interest or transferees of those parties. The United States may choose
either the United States Marshal or a PALS representative to carry out the sale(s) under this
Order of Sale and shall make the arrangements for any sale(s) as set forth in this Order. This

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Order of Sale shall act as a special writ of execution and no further orders or process from the
Court shall be required.
6.

The United States Marshal for the District of Nevada, his/her representative, or a

PALS representative shall have sole discretion to sell the Subject Properties together as one or
more units or to sell the Subject Properties separately. For the purposes of this order, any
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Case 2:14-cv-00435-GMN-NJK Document 53 Filed 04/05/16 Page 4 of 10

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reference to the “sale” or “sales” shall be construed to refer to the sale of the Subject Properties

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separately, or together, as determined by the United States Marshal for the District of Nevada,

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his/her representative, or a PALS representative.

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7.

The United States Marshal for the District of Nevada, his/her representative, or a

PALS representative is authorized to have free access to the Subject Property and to take all
actions necessary to preserve the property, including without limitation retaining a locksmith or
other person to change or install locks or other security devices on any part thereof, until a deed

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thereto is delivered to the ultimate purchaser(s).
8.

The terms and conditions of the sale(s) are as follows:
a. Except as otherwise stated herein, the sale(s) shall be by public auction to
the highest bidder(s), free and clear of all liens and interests.

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b. The sale(s) shall be subject to all laws, ordinances, and governmental

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regulations (including building and zoning ordinances), affecting the

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premises, and easements and restrictions of record, if any.

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c. The sale(s) shall be held at the Clark County Courthouse, on the Subject
Properties premises, or at any other place in accordance with the
provisions of 28 U.S.C. §§ 2001 and 2002, at a date and time announced
by the United States Marshal, his/her representative, or a PALS
representative.
d. Notice of the sale(s) shall be published once a week for at least four

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consecutive weeks before the date fixed for the sale(s) in at least one
newspaper regularly issued and of general circulation in Clark County,
Nevada, and, at the discretion of the Marshal, his/her representative, or a

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PALS representative, by any other notice that it or its representative may

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deem appropriate. State or local law notice requirements for foreclosures

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or execution sales do not apply to this sale or sales under federal law and

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state or local law regarding redemption rights do not apply to this sale or
sales. The notice(s) of sale(s) shall describe the Subject Properties and
shall contain the material terms and conditions of sale in this Order of
Sale.

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e. The minimum bid will be set by the Internal Revenue Service. If the
minimum bid is not met or exceeded, the Marshal, his or her
representative, or a PALS representative may, without further permission

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of this Court, and under the terms and conditions in this Order of Sale,

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hold new public sales, if necessary, and reduce the minimum bid, or sell to

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the highest bidder(s);

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f. Bidders shall be required to deposit at the time of sale with the Marshal,

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his/her representative, or a PALS representative, ten percent of the

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minimum bid, with the deposit to be made by a certified or cashier’s check

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payable to the United States District Court for the District of Nevada.
Before being permitted to bid at the sale(s), bidders shall display to the
Marshal, his/her representative, or a PALS representative satisfactory
proof of compliance with this requirement.

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g. The balance of the purchase price in excess of the deposit tendered shall
be paid to the Marshal or a PALS representative (whichever person is
conducting the sale) within thirty (30) days after the date the bid is

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accepted by a certified or cashier’s check payable to the United States

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District Court for the District of Nevada. If the successful bidder(s) fail(s)

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to fulfill this requirement, the deposit shall be forfeited and shall be

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applied to cover the expenses of the sale(s), including commissions due
under 28 U.S.C. § 1921(c), with any amount remaining to be applied to
Z’s, a Nevada Corporation’s federal tax liabilities, described in
Paragraph 3. The Subject Properties shall be again offered for sale under

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the terms and conditions of this Order of Sale or, in the alternative, sold to
the second highest bidder or bidders. The United States may bid as a credit
against its judgment without tender of cash.

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h. The sale(s) of the Subject Properties shall not be final until confirmed by

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this Court. The Marshal or a PALS representative shall file a report of

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sale(s) with the Court within 30 days from the date of receipt of the

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balance of the purchase price.

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i. Upon confirmation of the sale(s), the Marshal or PALS representative
shall promptly execute and deliver a deed of judicial sale conveying the
Subject Properties to the purchaser(s).
j. Upon confirmation of the sale(s), the interests of, liens against, or claims
to the Subject Properties held or asserted by the United States in the
Counterclaims and any other parties to this action or any successors in

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interest or transferees of those parties shall be discharged and
extinguished. The sale(s) is ordered pursuant to 28 U.S.C. § 2001.

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Redemption rights under state or local law shall not apply to this sale or

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sales under federal law.
k. Upon confirmation of the sale(s), the purchaser shall have the recorder of

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deeds, Clark County, Nevada, to cause transfer of the Subject Property to

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be reflected upon that County’s register of title.

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9.

Until the Subject Properties are sold, Lake Las Vegas Master Trust and LN

Management LLC Series 31 Rue Mediterra shall take all reasonable steps necessary to preserve

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the Subject Properties (including all buildings, improvements, fixtures and appurtenances
thereon, if any) including, without limitation, maintaining any current fire and casualty insurance
on the Subject Properties. Lake Las Vegas Master Trust and LN Management LLC Series 31

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Rue Mediterra shall not commit waste against the Subject Properties, nor shall they cause or

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permit anyone else to do so. Lake Las Vegas Master Trust and LN Management LLC Series 31

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Rue Mediterra shall not do anything that tends to reduce the value or marketability of the Subject

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Properties, nor shall they cause or permit anyone else to do so. Lake Las Vegas Master Trust

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and LN Management LLC Series 31 Rue Mediterra shall not record any instruments, publish any

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notice, or take any other action that may directly or indirectly tend to adversely affect the value

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of the Subject Properties or that may tend to deter or discourage potential bidders from
participating in the public sale, nor shall they cause or permit anyone else to do so. Violation of
this paragraph shall be deemed a contempt of court and punishable as such. Should Lake
Las Vegas Master Trust and LN Management LLC Series 31 Rue Mediterra fail to comply with

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this paragraph, the United may take steps to protect the Subject Properties by seeking further
Court order.

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10.

All persons occupying the Subject Properties shall leave and permanently vacate

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the Subject Properties no later than 30 days after the entry of this Order, each taking his or her

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personal property (but leaving all improvements, buildings, fixtures, and appurtenances) when

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leaving and vacating. If any person fails or refuses to leave and vacate the Subject Properties by
the time specified in this Order, the United States Marshal’s Office is authorized to take
whatever action it deems appropriate to remove such person or persons from the premises,
whether or not the sale of such property is being conducted by a PALS representative. If any

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person fails or refuses to remove his or her personal property from the Subject Properties by the
time specified herein, the personal property remaining at the Subject Properties thereafter is
deemed forfeited and abandoned, and the United States Marshal’s Office or the PALS

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representative is authorized and directed to remove and dispose of it in any manner they see fit,

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including sale, in which case the proceeds of sale are to be applied first to the expenses of sale,

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and then to the tax liabilities described in Paragraph 3.

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11.

Notwithstanding the terms of the immediately preceding paragraph, if, after the

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sale(s) of the Subject Properties are confirmed by this Court, the Subject Properties remain

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occupied, a writ of assistance may, without further notice, be issued by the Clerk of Court to the

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purchaser(s) thereof.
12.

The Marshal, his or her representative, or a PALS representative, shall deposit the

amount paid by the purchaser(s) into the registry of the court. Upon appropriate motion for
disbursement or stipulation of the parties, the Clerk will disburse the funds in the following order

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of preference until these expenses and liens are satisfied or the proceeds are exhausted:
a. First, to the IRS, for allowed costs and expenses of the sale(s), including any
commissions due under 28 U.S.C. § 1921(c) and including an amount sufficient to

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Case 2:14-cv-00435-GMN-NJK Document 53 Filed 04/05/16 Page 9 of 10

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cover the costs of any steps taken to secure or maintain the Subject Properties

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pending sale and confirmation by the Court;

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b. Second, to Clark County, Nevada, for any unpaid real property taxes due and
owing at the time of the sale(s), including statutory accruals and interest, and less
any payments or credits;
c. Third, to the United States for the federal tax liabilities described in paragraph 3.

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DATED this _________ day of ______________, 2016.
April

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__________________________________

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UNITED STATES DISTRICT JUDGE

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