Commodity Futures Trading Commission v. Mason et al

Filing 62

ORDER entered on 59 Motion REGARDING SALE OF REAL PROPERTY - 2222 HICKORY RUN, GRAHAM, NORTH CAROLINA. Signed by Senior Judge Graham Mullen on 3/11/2014. (blf)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION

U.S. COMMODITY FUTURES TRADING
COMMISSION,
Plaintiff,
v.

NO. 3:13-CV-196

JAMES HARVEY MASON,
Defendant, and
THE JHM FOREX ONLY POOL (f/k/a
THE JHM FOREX ONLY POOL, LP), and
FOREX TRADING AT HOME,
Relief Defendants.

SUPPLEMENTAL ORDER REGARDING SALE OF REAL PROPERTY - 2222
HICKORY RUN, GRAHAM, NORTH CAROLINA
This matter was heard on the Receiver’s Motion To Transfer Lien to Proceeds Regarding
Real Property 2222 Hickory Run, Graham, North Carolina (the “Motion”) (D.E. 59) filed on
February 3, 2014 and the correspondence response by the Assistant U. S. Attorney District of
South Carolina (the “Response”) (D.E. 61) filed on March 3, 2014 concerning the sale of a
condominium unit more fully described below known as 2222 Hickory Run. The Court finds
that it has jurisdiction over this matter, notice was proper, the only response filed was the
Response and the deadline to object to the Motion has passed. The Court has reviewed the
Motion and Response and finds and concludes as follows:
1. On March 27, 2013, the U.S. Commodity Futures Trading Commission (the “CFTC”)
filed a civil complaint against James Harvey Mason as Defendant and The JHM Forex Only Pool

(f/k/a The JHM Forex Only Pool, LP) and Forex Trading At Home as Relief Defendants (the
“Relief Defendants”), initiating case number 3:13-cv-196 (the “CFTC Action”), in the United
States District Court for the Western District of North Carolina (this “Court”).
2. Also on March 27, 2013, this Court entered an order in the CFTC Action entering a
temporary injunction and appointing the Receiver (the “Temporary Receivership Order”).
3. On May 22, 2013, this Court entered its Order of Preliminary Injunction, creating a
preliminary injunction and confirming the appointment and the powers and duties of the
Receiver (the “Receivership Order”) and restating the stay of activities involving property of the
Defendant or Relief Defendants.
4. The Receiver’s investigation revealed that certain real property purchased by James
H. Mason Trustee of the JHM Trust U/W/A Dated July 18, 2008 (collectively, “Mason”),
consisting of condominium unit No. 9 of Hickory Run Condominiums along with a 5.3
percentage undivided interest as tenant in common and as appurtenant to unit No. 9 in all
“Common Areas and Facilities” located in Graham, Alamance County, North Carolina is
available for liquidation for the benefit of the Receivership Estate (the “Real Property”). The
PIN number for the Real Property is 8893406581 and it is also known as 2222 Hickory Run. It
was transferred to Mason via General Warranty Deed dated September 17, 2012 and filed at the
Alamance County Registry at Book 3140, Page 597-599. The Real Property was used by Mason
as an office prior to the filing of this action.
5. On or about August 6, 2014, the Receiver entered into an Exclusive Right to Sell and
Listing Agreement with a realtor for the purpose of marketing and selling the Real Property.
6.

On or about January 7, 2014, the Receiver received an Offer to Purchase and

Contract as to the Real Property (the “Contract”) and in Receiver’s Motion for Approval of Offer

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to Purchase and Contract as to Real Property and For Authority to Consummate Sale of Real
Property – 2222 Hickory Run, Graham, North Carolina, (the “Sale Motion”) filed herein on
January 7, 2014, the Receiver sought this Court’s approval to sell the Real Property. On January
23, 2014, this Court entered its Order Granting Receiver’s Motion for Approval of Offer to
Purchase and Contract as to Real Property and For Authority to Consummate Sale of Real
Property – 2222 Hickory Run, Graham, North Carolina. A closing on the transaction was set for
Tuesday, January 28, 2014.
7. On the eve of closing, the buyer’s closing attorney disclosed to the Receiver that a
document titled “Notice Of Lien For Fine And/or Restitution Imposed Pursuant To The AntiTerrorism And Death Penalty Act Of 1996” had been filed with the Alamance County Clerk of
Superior Court by the Department of Justice, United States Attorney’s Office for the District of
South Carolina on September 3, 2013 against James H. Mason (the “U.S. Lien”). A true copy of
the U.S. Lien is attached to the Motion as “Exhibit A”.

Ultimately the closing did not occur

and the buyer terminated the Contract.
8. To complete a sale of the Real Property, the Receiver must be able to transfer the
Real Property free and clear of liens.
9. The outstanding amount owing pursuant to the U.S. Lien as of the date of this Order
is $21,133.10 with an interest rate of 0%.
10. Upon selling the Real Property the U.S. Lien should be paid out of the proceeds of the
sale and the U.S. Lien should be released.
It is THEREFORE ORDERED as follows:
(a)

Upon a sale and a closing of the Real Property, the Receiver shall
cause $21,133.10, or such amount that is then due , to be paid out of

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the proceeds of such sale to the United States pursuant to the U.S.
Lien; and
(b)

Prior to such closing the U.S. Attorney’s Office, District of South
Carolina shall provide an executed Lien Release to the Receiver to be
held in trust until closing, to be filed in Alamance County upon
payment being made to the United States on the U.S. Lien.

SO ORDERED.

Signed: March 11, 2014

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