United States of America v. Allahyari et al

Filing 102

ORDER of Foreclosure and Judicial Sale. Signed by Judge Thomas S. Zilly. (SWT) (cc: Komron Allahyari via USPS)

Honorable Thomas S. Zilly

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
SEATTLE DIVISION

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UNITED STATES OF AMERICA,

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Plaintiff,
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v.
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KOMRON M. ALLAHYARI and SHAUN
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ALLAHYARI,
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Defendants.
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_______________________________________)

Case No. 2:17-cv-00668-TSZ
ORDER OF FORECLOSURE AND
JUDICIAL SALE

Pursuant to 28 U.S.C. §§ 2001 and 2002 and 26 U.S.C. §§ 7402 and 7403, the Court
hereby orders as follows:
1.

The parcel of real property upon which foreclosure is sought (the “Subject

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Property”) is commonly described as 3453 77th Place SE, Mercer Island, Washington 98040,

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and bears King County Assessor’s Parcel No. 545880-0265-09. The legal description of the

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Subject Property is as follows:

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LOT 8, BLOCK 4, MERCERDALE NUMBER 1, ACCORDING TO THE PLAT
THEREOF RECORDED IN VOLUME 59 OF PLATS, PAGES 94 THROUGH
96, IN KING COUNTY, WASHINGTON

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2.

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Judgment was entered in favor of the United States and against Komron M.

Allahyari on June 29, 2018 for the First Claim for Relief, in the amount of $2,859,853.75, plus

Order of Foreclosure and Judicial Sale
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interest and statutory additions from June 14, 2018, pursuant to 26 U.S.C. §§ 6601, 6621 &

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6622, and 28 U.S.C. § 1961(c), for the 1999-2002 and 2004-2008 federal income tax years. Dkt.

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# 50.

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3.

Judgment was entered in favor of the United States and against Komron M.

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Allahyari on June 29, 2018 for the Second Claim for Relief, in the amount of $614,755.49, plus

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interest and statutory additions from June 14, 2018, pursuant to 26 U.S.C. §§ 6601, 6621 &

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6622, and 28 U.S.C. § 1961(c), for the 2009 and 2011-2013 federal income tax years. Dkt. # 50.

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4.

Judgment was entered in favor of the United States and against Komron M.

Allahyari on June 29, 2018 for the Third Claim for Relief, in the amount of $435,861.11, plus

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interest and statutory additions from June 14, 2018, pursuant to 26 U.S.C. §§ 6601, 6621 &

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6622, and 28 U.S.C. § 1961(c), for all four quarters of 2000-2004 and the first two quarters of

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2005 for trust fund recovery penalties pursuant to 26 U.S.C. § 6672 . Dkt. # 50.

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5.

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

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against the Subject Property in order to apply the proceeds towards the tax liabilities of Komron

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M. Allahyari.

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6.

King County has consented to the foreclosure of the federal tax and judgment

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liens upon the Subject Property as long as after the payment of costs of sale, the proceeds of the

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sale are distributed next to King County to satisfy any existing liens King County may have on

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the Subject Property for unpaid real property taxes or special assessments. Dkt. # 17, 18.

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7.

The United States’ federal tax liens and judgment liens against the Subject

Property are hereby foreclosed.
8.

The United States Marshal for the Western District of Washington, his/her

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representative, or an Internal Revenue Service (“IRS”) Property Appraisal and Liquidation

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Specialist (“PALS”) representative is authorized and directed under 28 U.S.C. §§ 2001 and 2002

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to offer for public sale and to sell the Subject Property, free and clear of the right, title, and

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interest of all parties to this action and any successors in interest or transferees of those parties.

Order of Foreclosure and Judicial Sale
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The United States may choose either the United States Marshal or a PALS representative to carry

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out the sale under this Order of Foreclosure and Judicial Sale and shall make the arrangements

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for any sale as set forth in this Order.

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9.

This Order of Foreclosure and Judicial Sale shall act as a special writ of execution

and no further orders or process from the Court shall be required.
10.

The United States Marshal for the Western District of Washington, his/her

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representative, or a PALS representative is authorized to have free access to the Subject Property

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and to take all actions necessary to preserve the Subject Property, including, but not limited to,

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retaining a locksmith or other person to change or install locks or other security devices on any

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part of the property, until a deed to the Subject Property is delivered to the ultimate purchaser(s).
11.

The terms and conditions of the sale shall be:
a. Except as otherwise stated herein, the sale of the Subject Property shall be by

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public auction to the highest bidder, free and clear of all liens and interests.

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b. The sale shall be subject to all laws, ordinances, and governmental regulations

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(including building and zoning ordinances), affecting the premises, and easements

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and restrictions of record, if any.

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c.

The sale shall be held at the courthouse of the county or city in which the Subject

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Property is located, on the Subject Property’s premises, or at any other place in

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accordance with the provisions of 28 U.S.C. §§ 2001 and 2002.

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d. Notice of the sale shall be published once a week for at least four consecutive

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weeks before the sale in at least one newspaper regularly issued and of general

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circulation in King County, and, at the discretion of the Marshal, his/her

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representative, or a PALS representative, by any other notice deemed appropriate.

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The notice(s) of sale shall contain a description of the Subject Property and shall

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contain the material terms and conditions of sale in this Order of Foreclosure and

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Judicial Sale.

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e. The sale of the Subject Property is ordered pursuant to 26 U.S.C. §§ 7402, 7403

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and 28 U.S.C. §§ 2001, 2002. State or local law notice requirements for

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

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

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law.

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f. The minimum bid will be set by the IRS for the Subject Property. If the minimum

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bid is not met or exceeded, the Marshal, his or her representative, or a PALS

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representative may, without further permission of this Court, and under the terms

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and conditions in this order of sale, hold a new public sale, if necessary, and

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reduce the minimum bid or sell to the highest bidder.
g. The successful bidder for the Subject Property shall be required to deposit at the

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time of the same with the Marshal, his/her representative, or a PALS

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representative, a minimum of ten percent of the minimum bid, with the deposit to

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be made by certified or cashier’s check or cash payable to the United States

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District Court for the Western District of Washington. Before being permitted to

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bid at the sale, bidders shall display to the Marshal, his/her representative, or a

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PALS representative proof that they are able to comply with this requirement. No

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bids will be received from any person(s) who have not presented proof that, if

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they are the successful bidders(s), they can make the deposit required by this

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order.

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h. The balance of the purchase price for the Subject Property is to be paid to the

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Marshal, his/her representative, or a PALS representative (whichever person is

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conducting the sale) within thirty (30) days after the date the bid is accepted, by a

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certified or cashier’s check payable to the United States District Court for the

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Western District of Washington. If the successful bidder fails to fulfill this

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requirement, the deposit shall be forfeited and shall be applied to cover the

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expenses of the sale, including commissions due under 28 U.S.C. § 1921(c), with

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any amount remaining to be applied to the unpaid federal tax liabilities of

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Komron M. Allahyari at issue herein. The Subject Property shall again be offered

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for sale under the terms and conditions of this order of sale, or, in the alternative,

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sold to the second highest bidder(s). The United States may bid as a credit against

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its judgment without tender of cash.

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i. The sale of the Subject Property shall be subject to confirmation by this Court.

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The Marshal or a PALS representative shall file a report of sale with the Court

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within thirty (30) days after the Clerk notifies the United States that the balance of

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the purchase price has been received into the Court’s registry.

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j. Upon confirmation of the sale, the Marshal or PALS representative shall promptly

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execute and deliver a deed of judicial sale conveying the Subject Property to the

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purchaser(s).

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k. The purchaser(s) shall proceed to have the King County Auditor record the

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transfer of the Subject Property upon that county’s register of title. The

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responsibility for recording the deed with the King County Auditor, and the

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payment of all costs, fees, and taxes of whatever kind related to the recording of

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such deed, shall be borne by the purchaser(s) as a term and condition of the sale.

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l. Upon confirmation of the sale, all interests in, liens against, or claims to, the

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Subject Property that are held or asserted by any and all parties to this action or

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any successors in interest or transferees of those parties shall be discharged and

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extinguished.

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12.

Until the Subject Property is sold, Komron M. Allahyari, Leslie R. Cover, Shaun

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Allahyari, and any occupant of the Subject Property shall take all reasonable steps necessary

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to preserve the Subject Property (including all buildings, improvements, fixtures and

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appurtenances on the property) in its current condition. Any occupant of the Subject Property

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and Komron M. Allahyari must maintain a fire and casualty insurance policy on the Subject

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Property. Komron M. Allahyari, Leslie R. Cover, Shaun Allahyari, and any occupant of the

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property shall neither commit waste against the Subject Property nor cause nor permit anyone

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else to do so. They shall neither do anything that tends to reduce the value or marketability of the

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Subject Property nor cause or permit anyone else to do so. They shall not record any instruments,

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publish any notice, or take any other action (such as running newspaper advertisements or

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posting signs) that may directly or indirectly tend to adversely affect the value of the Subject

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Property or that may tend to deter or discourage potential bidders from participating in the public

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auction, nor shall they cause or permit anyone else to do so. Violation of this paragraph shall

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be deemed a contempt of court and punishable as such.
13.

All persons occupying the Subject Property shall leave and vacate the Subject

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Property permanently within thirty (30) days of the date of this Order, each taking with them his

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or her personal property (but leaving all improvements, buildings, fixtures, and appurtenances to

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the Subject Property). If any person fails or refuses to leave and vacate the Subject Property by

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the time specified in this Order, the United States Marshal’s Office is authorized to take

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whatever action it deems appropriate to remove such person from the premises, whether or not

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the sale of such Subject Property is being conducted by a PALS representative. Such action may

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include, but is not limited to, the use of reasonable force, and to enter and remain on the

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premises, including, but not limited to, the land, and any structures or vehicles thereon, for the

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purpose of executing this Order. The United States Marshal is further authorized and directed to

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arrest and/or evict from the premises any and all persons who obstruct, attempt to obstruct, or

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interfere or attempt to interfere in any way with the execution of this Order. When the United

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States Marshal concludes that all unauthorized persons have vacated, or been evicted from the

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Subject Property, he/she shall relinquish possession and custody of the Subject Property to the

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Internal Revenue Service, or its designee. No person shall be permitted to return to the Subject

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Property and/or remain thereon without the express written authorization by the United States

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Marshal and/or the Internal Revenue Service, and/or the United States Department of Justice, or

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their respective representatives and/or designees. Unauthorized persons who re-enter the Subject

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Property during the time this Order is in effect may be ejected by the United States Marshal

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without further order of the Court.

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14.

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

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sale of the Subject Property is confirmed by this Court, the Subject Property remains occupied, a

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writ of assistance may, without further notice, be issued by the Clerk of Court to the purchaser(s)

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thereof.

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15.

If any person fails or refuses to remove his or her personal property from the

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Subject Property by the time specified herein, the personal property remaining on the Subject

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Property thereafter is deemed forfeited and abandoned, and the United States Marshal’s Office or

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the PALS representative is authorized and directed to remove it and to dispose of it in any

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manner they see fit, including sale, in which case the proceeds of the sale are to be applied first

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to the expenses of sale, and then to the outstanding liabilities at issue in this action.

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16.

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

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amount paid by the purchaser into the registry of the Court. Upon appropriate motion for

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disbursement or stipulation of the parties, the Court will disburse the funds in the following

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partial order of preference until these expenses and liens are satisfied:

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a. First to the IRS, for allowed costs and expenses of sale, including any

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commissions due under 28 U.S.C. § 1921(c) and including an amount sufficient to

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

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pending sale and confirmation by the Court;

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b. Second, to King County, for any and all liens it may have on the Subject Property
for unpaid real property taxes or special assessments at the time of the sale;

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c. Third, to Shaun Allahyari, in the amount of $510,766.26 plus interest accruing at

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4.125% annually after September 30, 2018 of the proceeds of the sale of the

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Subject Property based on the 2010 Assignment of Deed of Trust, which was

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recorded in King County, Washington at instrument number 20100908000072;

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d. Fourth, the United States, in the amount of the remaining proceeds up to the

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amount of the outstanding balance of the tax liens reduced to judgment against

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Komron M. Allahyari.

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17.

If there are any remaining proceeds after application of the foregoing paragraph,

the Clerk shall retain such proceeds pending further application by the parties to this action.

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IT IS SO ORDERED.
Dated: October 30, 2018.

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Thomas S. Zilly
United States District Judge

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Presented by,

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RICHARD E. ZUCKERMAN
Principal Deputy Assistant Attorney General

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/s/ Yael Bortnick
YAEL BORTNICK
Trial Attorney, Tax Division

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/s/ Nithya Senra
NITHYA SENRA
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683
Washington, D.C. 20044
202-514-6632 (Bortnick)
202-307-6570 (Senra)
202-307-0054 (fax)
[e-mail]
[e-mail]
Attorneys for the United States of America
ANNETTE L. HAYES
United States Attorney
Western District of Washington
Of Counsel
Order of Foreclosure and Judicial Sale
(Case No. 2:17-cv-00668-TSZ)

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