United States of America v. Approximately 1439 Sabre Defence Industries M16 A2, A3, and A4 5.56 caliber machine guns et al

Filing 87

DEFAULT JUDGMENT granting the Government's 86 Motion for Default Judgment of Forfeiture in favor of the United States against all persons and entities in the world, excluding Zeta Capital Limited, with respect to the Defendant Properties. See Order for further details. Signed by District Judge Martin Reidinger on 6/19/2019. (kby)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
ASHEVILLE DIVISION
CASE NO. 1:16-cv-00359-MR-WCM

UNITED STATES OF AMERICA

)
)
vs.
)
)
Approximately 1439 Sabre
)
Defence Industries M16 A2, A3, )
and A4 5.56 caliber machineguns; )
)
Approximately 538 Manroy XR16 )
5.56 caliber machineguns;
)
)
Approximately 124 Sabre Defence )
Industries XR16 5.56 caliber
)
machineguns;
)
)
Approximately 6 Sabre Defence )
Industries XR15 A2 and A3 5.56 )
caliber machineguns;
)
)
Approximately 1 Manroy XR15
)
5.56 caliber machinegun;
)
)
Approximately 1 Browning M2 .50 )
caliber machinegun;
)
)
Approximately 1 SAW M249
)
machinegun;
)
)
Approximately 1 Colt 9mm
)
machinegun;
)
)
Approximately 1 Heckler & Koch )
MP5 9mm machinegun;
)
)

DEFAULT JUDGMENT
OF FORFEITURE

Approximately 1 Miscellaneous
Silencer Suppressor Part for .50
caliber machinegun;

)
)
)
)
Approximately 5 Ramo Inc. M-2 )
.50 caliber machineguns;
)
)
Approximately 15 XR16 5.56
)
caliber machineguns for which
)
the manufacturer is unknown;
)
)
Approximately 107 Sabre Defence )
IndustriesM2 .50 caliber
)
machineguns;
)
Approximately 17 M16 / XR16 type )
machine gun receivers for which )
the manufacturer is unknown and )
unmarked;
)
)
Approximately 142 machine gun )
receiver right hand side plates for )
which the manufacturer is
)
unknown and unmarked, All such )
items seized from Manroy
)
Defense Systems and more
)
specifically identified on
)
Attachment A to this Complaint )
for Forfeiture
)
In Rem.
)
_____________________________
THIS MATTER is before the Court on the Government’s Motion for
Default Judgment of Forfeiture pursuant to Fed. R. Civ. P. 55(b)(2). [Doc.
86].

2

The Government requests that the Court enter a Default Judgment of
Forfeiture as to all persons and entities in the world, excluding Zeta Capital
Limited, with respect to the Defendant Properties named in the Complaint.
On November 4, 2016, the Government filed a verified Complaint for
Forfeiture In Rem [Doc. 1] against numerous assets1 (“the Defendant
Properties”) seized in the Western District of North Carolina pursuant to a
federal Search and Seizure Warrant executed on or around July 29, 2016.
As set forth in detail in the Complaint and other materials placed on the
docket during summary judgment proceedings in this case, the Properties
constitute items involved in one or more violations of 26 U.S.C. § 5861 and
are therefore subject to forfeiture pursuant to 26 U.S.C. § 5872 of the
National Firearms Act. The Clerk issued a Warrant of Arrest In Rem on
November 7, 2016. [Doc. 2].
The Government thereafter provided direct notice of this action to all
know potential claimants, as specified in the Government’s Motion for
Default Judgment of Forfeiture. [Doc. 86]. Additionally, the Government
provided notice by publication as to all persons with potential claims to the
Defendant Property by publishing notice via www.forfeiture.gov from

1

This Court previously dismissed a Ramo firearm from this case and, therefore, that
firearm is not included in the Properties identified in this Motion. [Doc. 61].
3

December 7, 2016 through January 15, 2017, as shown in the Declaration
of Publication. [Doc. 22].
As a result, Zeta Capital Limited (“Zeta”), Sabre Defence Industries,
Inc. (“Sabre’), and Manroy USA, LLC (“Manroy”) submitted claims and
answers as to the Defendant Properties.
Both Sabre and Manroy submitted pro se claims and answers. [Docs.
7, 8]. On January 6, 2017, the Court struck the pro se claims and answers
submitted by Sabre and Manroy, ruling that a corporation may not appear in
federal court pro se, and instead must appear through licensed counsel. The
Court gave the pro se claimants ten days to obtain counsel and, when they
failed to do so, the Court issued an Order [Doc. 27] directing the Clerk to
remove Manroy and Sabre as claimants, and to proceed with Zeta as the
sole claimant. Then, the Government and Zeta entered into a proposed
Consent Order that the Court issued [Doc. 73] settling Zeta’s Claim [Doc. 5].
The time for filing claims has now expired, and the Clerk of Court has
issued an Entry of Default. [Doc. 85].
Other than Sabre and Manroy, whose claims have been stricken, and
Zeta, whose Claim is settled, no other persons or entities have filed a claim
or answer within the time required by the Complaint, the public notice, or the
Supplemental Rules for Certain Admiralty and Maritime claims. On June 11,
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2019, the Clerk entered Default as to all persons and entities in the world,
excluding Zeta Capital Limited. [Doc. 85]. Under such circumstances, Rule
55(b)(2) provides for the entry of a default judgment of forfeiture by the Court.
Having reviewed the Government’s motion, the Court concludes that
the entry of a default judgment of forfeiture is appropriate.
Accordingly, IT IS, THEREFORE, ORDERED, ADJUDGED, AND
DECREED that The Government’s Motion for Default Judgment of Forfeiture
[Doc. 86] is GRANTED, and judgment is entered in favor of the United States
against all persons and entities in the world, excluding Zeta Capital Limited,
with respect to the Defendant Properties.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that any
right, title, and interest of all persons and entities in the world, excluding Zeta
Capital Limited, to the Defendant Properties is FORFEITED to the United
States, subject to the stipulations and agreements in the Consent Order for
Third Party Claims [Doc. 73]. The United States Marshal, or designated
custodian, is respectfully directed to dispose of the Defendant Properties as
provided by law.
Signed: June 19, 2019

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