UNITED STATES OF AMERICA v. LORENO et al

Filing 139

MEMORANDUM ORDER denying 135 Motion to add properties to auction, and requiring Loreno and government to file Status Report by 10/18/16, as explained therein. Signed by Judge Terrence F. McVerry on 9/8/16. (mh)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF PENNSYLVANIA
UNITED STATES OF AMERICA,
Plaintiff,
v.
LARRY A. LORENO, et al.,
Defendants.

)
)
)
)
)
)
)
)

1:10-cv-183

MEMORANDUM ORDER
Now pending before the Court is a MOTION TO ADD PROPERTIES TO AUCTION
(ECF NO. 135) filed pro se by Third-Party Defendants Gary Lawhead and Tina Gilpin. The
government and Loreno have filed responses in opposition to the motion and it is ripe for
disposition.
Over one year ago, the United States and Loreno reported that they had entered into a
settlement agreement to resolve this action. On March 13, 2015, the Court granted their joint
motion for a Consent Order (ECF No. 109) and administratively closed the case. From the
Status Reports filed by Loreno, it appears that he has made very little to no progress in selling
the real estate to satisfy his outstanding IRS tax lien, as contemplated in the settlement
agreement.
On August 5, 2016, the United States and Loreno filed a joint status report, with an
attached contract for two properties owned by Loreno to be sold at auction on October 11, 2016.
The properties are located at 14 and 24 Conneaut Lake Road, Greenville, Pennsylvania. The
parties have represented that they believe the proceeds from the auction will be sufficient to
satisfy Loreno’s tax liability. The parties have also represented that they will “work
expeditiously” to schedule future auctions, if necessary, to satisfy the judgment “as quickly as

possible with the least interference with third parties’ [i.e., Lawhead’s and Gilpin’s] property
rights as possible.”
Lawhead and Gilpin are understandably frustrated by the slow pace of the payment in this
case, and by the government’s refusal to dismiss its third-party claims against them. The Court
shares their frustration. Nevertheless, for the practical reasons set forth in the government’s
response, the Court will not intrude into the arrangements already made for the October 11th
auction. Loreno and the government shall file a joint Status Report on or before October 18,
2016 regarding the results of the auction, the remaining balance owed by Loreno, and (if the
Judgment is not fully satisfied or the claims against Lawhead and Gilpin remain pending) the
contract, date and properties to be included in the next auction.
In accordance with the foregoing, the MOTION TO ADD PROPERTIES TO AUCTION
(ECF NO. 135) is DENIED.
SO ORDERED this 8th day of September, 2016.

BY THE COURT:
s/ Terrence F. McVerry
United States District Judge

cc:

All counsel of record
(Via CM/ECF)
Gary L. Lawhead and Tina L. Gilpin
56 Wood Street
Franklin, PA 16323
(Via US Mail)

2