United States of America v. Gorokhovsky et al

Filing 227

ORDER OF SALE OF MEQUON PROPERTY AND APPOINTMENT OF RECEIVER signed by Judge Brett H Ludwig on 2/15/22. SEE Order for details. (cc:all counsel, Financial,and mailed to pro se party)(kwb)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WISCONSIN
______________________________________________________________________________
UNITED STATES OF AMERICA,
Plaintiff,
v.

Case No. 18-cv-0590-bhl

VLADIMIR M GOROKHOVSKY, et al.,
Defendants.
______________________________________________________________________________
ORDER OF SALE OF MEQUON PROPERTY AND APPOINTMENT OF RECEIVER
______________________________________________________________________________
The United States filed this case in January 2019, seeking to reduce federal tax assessments
to judgment and foreclose tax liens against Vladimir Gorokhovsky’s real estate. (ECF No. 1.) On
December 22, 2021, the Court entered a final in rem judgment—against all Defendants and in
favor of the United States—enforcing the aforementioned federal tax liens against the real
properties located at 10919 N. Hedgewood Lane, Mequon, Wisconsin (the Mequon Property) and
4275 Cherrywood Lane, Brown Deer, Wisconsin (the Brown Deer Property). (ECF No. 218.) The
judgment directed that the properties be sold subject to further order of the Court. (Id. at 2-3.) On
February 7, 2022, the United States filed a motion seeking an order of sale and order appointing a
receiver with respect to the Mequon Property. (ECF No. 219.) 1 That same day, Gorokhovsky
responded, objecting to the appointment of a receiver and asking to be allowed to sell the Mequon
Property himself. (ECF No. 222.)

The Brown Deer Property is currently in a state of disrepair. (See generally, ECF No. 221.) For that reason, at this
time, the United States has not sought entry of an order of sale or order appointing a receiver with respect to that
property. (ECF No. 219 at 2.)

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Under 26 U.S.C. Section 7403, the Court may, at the instance of the United States, appoint
a receiver to enforce federal tax liens. 26 U.S.C. §7403(d). Once the United States’ lien interest
has been established, a federal district court has “broad authority . . . to order the sale of the
property and to appoint receivers.” Wilmington Savings Fund Society, FSB v. Cosmano, 2022 WL
160286, at *5 (N.D. Ill. Jan. 18, 2022). In addition, “[t]he appointment of a receiver is an especially
appropriate remedy in cases involving fraud and the possible dissipation of assets.” In re
McGaughey, 24 F.3d 904, 907 (7th Cir. 1994).
Gorokhovsky insists that he will be able to sell the Mequon Property for greater value than
proposed receiver Peter Gohsman. (ECF No. 222 at 3-4.) His opinion might carry more weight
with the Court had he not conducted so much of this litigation in bad faith. (See e.g. ECF Nos.
142 & 192.) This history aside, there can be no debate over whether Gohsman or Gorokhovsky is
best positioned to sell the Mequon Property. Gohsman is a licensed Milwaukee area realtor with
decades of experience. (ECF No. 225 at 6.) Gorokhovsky is not a real estate professional and,
within the last two years, has treated his properties in Chicago and Brown Deer so poorly as to
render them virtually uninhabitable. (Id. at 6-7.) A debtor who has a history of fraud, tax evasion,
and asset dissipation is not fit to maximize the return on a real estate transaction. See McGaughey,
24 F.3d at 908. Therefore, the Court will order sale of the Mequon Property and appoint Gohsman
as receiver.
Accordingly,
IT IS HEREBY ORDERED that the United States’ motion for an order of sale and
appointment of a receiver (ECF No. 219) is GRANTED.
IT IS FURTHER ORDERED THAT:
1.

Peter Gohsman, of the Gohsman Group of Keller Williams Realty – Milwaukee

North Shore, located in Whitefish Bay, Wisconsin, is appointed as Receiver for the purposes
of assisting in the enforcement of the federal tax liens against the Mequon Property pursuant

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to 26 U.S.C. §§ 7402(a) and 7403(d) and is directed to take custody and arrange for the sale of
the property that is subject of Count II of the United States’ Second Amended Complaint,
referred to herein as the Mequon Property, with the address 10919 N. Hedgewood Lane,
Mequon, Wisconsin, and the following legal description:

2.

The Receiver is directed to arrange for the sale of the Property free and clear of any

rights, titles, claims, or interests of any of the parties to this action.
3.

The Receiver shall have the authority to promote and advertise the Property as the

Receiver deems appropriate, including but not limited to (i) displaying signs on the Property,
(ii) placing the Property in any multiple listing service in which the Receiver participates, (iii)
promoting the Property on the Receiver’s internet website and/or through any other advertising
medium which Receiver may subscribe to or otherwise use, and (iv) releasing information as
to the amount of the selling price, type of financing, and number of days to sell this Property
to any multiple listing service in which the Receiver participates at the time a sale is completed.
4.

The Receiver shall have the authority to arrange for the sale of the Property, subject

to confirmation by this Court, in any manner approved by the United States. The terms of the
purchase agreement shall include the balance of the purchase price paid in cash at closing, and
shall include an earnest money deposit, in an amount to be approved by the United States,
forfeitable upon the purchaser’s failure to perform, and to be paid to the United States as
liquidated damages.
5.

The closing for the Mequon Property shall not occur until after the sale for the

Property has been confirmed by further order of this Court. At closing, the purchaser or
purchasers shall receive a Receiver’s Deed to such purchased parcel executed by the Receiver.
6.

The sale shall be subject to building lines, if established, all laws, ordinances, and

governmental regulations (including building and zoning ordinances) affecting the Property
and easements and restrictions of record, if any.
7.

The Property shall be offered for sale “as is,” with all faults and without any

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warranties either express or implied, and the sale(s) shall be made without any right of
redemption.
8.

The Clerk of the District Court is directed to accept the proceeds of the sale(s) and

deposit them into the Court’s interest bearing registry account and hold them until distribution
is directed pursuant to further order of this Court.
9.

Up until the date to vacate the respective Property (set forth in paragraph 11 below),

Vladimir Gorokhovsky and all occupants of the Property, shall neither commit waste against
the Property nor cause or permit anyone else to do so. In particular, Gorokhovsky shall ensure
the Property is properly winterized to avoid any damage as a result from burst pipes or
otherwise.
10.

All of the defendants in this case shall neither do anything that tends to reduce the

value or marketability of the Property nor cause or permit anyone else to do so. Such
defendants shall not record any instruments, publish any notice, or take any other action (such
as running newspaper advertisements, posting signs, or making internet postings) that may
directly or indirectly tend to adversely affect the value of the Property or that may tend to deter
or discourage potential bidders from participating in the sale, nor shall they cause or permit
anyone else to do so. If the Property is damaged or destroyed before its sale and Gorokhovsky
is entitled to insurance proceeds, the insurance proceeds shall be made payable to the Clerk of
the United States District Court for the Eastern District of Wisconsin and the Clerk of the Court
is directed to accept cash and checks and deposit such items into the Court’s registry for
distribution pursuant to further order of this Court. Violation of this paragraph shall be deemed
a contempt of court and punishable as such.
11.

The Mequon Property shall be vacated permanently as follows:
(1) All persons occupying the Mequon Property shall vacate the Property
permanently within 30 days of the date of the Court’s entry of this order
of sale, each taking with them his or her personal property (but leaving all
improvements, buildings, fixtures, and appurtenances to the Property). If
any person fails or refuses to vacate the Property by the date specified, the
Receiver is authorized to coordinate with the United States Marshal to
take all actions that are reasonably necessary to have those persons ejected
or excluded. The U.S. Marshals Service is authorized to and directed to

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take any and all necessary actions, including the use of reasonable force,
to enter and remain on the premises, which includes, but is not limited to,
the land, the buildings, vehicles, and any structures located thereon, for
the purpose of executing this Order. The United States Marshals Service
is further authorized and directed to arrest and/or evict from the premises
any and all persons who obstruct, attempt to obstruct, or interfere or
attempt to interfere, in any way with the execution of this Order.
(2) Any personal property remaining on the Mequon Property 30 days
after the date of the Court’s entry of this order of sale is deemed forfeited
and abandoned and the Receiver is authorized to dispose of it in any
manner they see fit, including sale, in which case the proceeds of the sale
are to be applied first to the costs and expenses of sale and the balance
shall be paid into the Court for further distribution. Money orders and
checks for the purchase of the personal property shall be made payable to
the Clerk of the United States District Court for the Eastern District of
Wisconsin and the Clerk of the Court is directed to accept cash and checks
and deposit such items into the Court’s registry for distribution pursuant
to further order of this Court. This order of sale shall also serve as a Writ
of Assistance or Writ of Possession, as appropriate, and no further order
from the Court shall be required for these purposes.
12.

Up until the date that this Court confirms the sales of the Property, the Receiver

and their representatives are authorized to and shall have free and full access to the Property
in order to take any and all actions necessary to preserve the Property, including, but not limited
to, retaining a locksmith or other person to change or install locks or other security devices on
any part of the Property.
13.

The Receiver shall have all of the rights and powers necessary to fulfill the

Receiver’s obligations under this order, specifically including, but not necessarily limited to:
the power to retain the services of a locksmith in order to gain access into and to secure the
Property; to advertise the sale of the Property; to enter into a listing agreement, if necessary;
to obtain insurance for the Property, if deemed necessary; to take any action reasonably
necessary to protect and preserve the value of the Property prior to their sale; and to put the

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Property into saleable condition, including making expenditures of funds that are first approved
by the United States for reasonable and necessary maintenance and minor improvements.
14.

The Receiver shall set an initial listing price for the Mequon Property and inform

the appearing parties of that price, and may reduce the listing price as necessary in the
Receiver’s judgment. If the Receiver proposes to reduce the listing price the Property, he shall
inform the appearing parties and, within seven days of being so informed, if any party that
objects to the Receiver’s proposed reduction may file an objection. Any non-objecting party
may then file a response to the objection within seven days thereafter.
15.

The Receiver, through the United States, is required to submit status/progress

reports to the Court every ninety (90) days from the date of this Order until there is a final
confirmation of sale.
16.

The Receiver will provide a report of sales of comparable properties to the Court

along with any motion for the confirmation of a sale of the Property.
17.

The Receiver shall be compensated from the proceeds of the sale of the Mequon

Property: (a) in an amount not to exceed six (6) percent of the gross sale proceeds to be split
with the buyer’s agent, and (b) reimbursed for his reasonable and necessary expenditures to
protect and preserve the value of the Property that was first approved by the United States.
Distribution of the Mequon Property Sale Proceeds
18.

After the Court confirms the sale of the Mequon Property, the sale proceeds

deposited with the Clerk of this Court shall be distributed in the following order of priority:
a. First, to the Receiver, for the reasonable costs of the sale, costs of necessary
maintenance of the Mequon Property during the pendency of a sale, and
commission costs as set forth paragraph 17 above;
b. Second, to outstanding property taxes, if any, due to Ozaukee County Wisconsin at
the time of sale;
c. Third, to satisfy Wells Fargo’s interest in the Mequon Property arising out of the
mortgage filed on August 16, 2005 with the Ozaukee County Register of Deeds as
Document No. 0824244 with World Savings Bank for which Wells Fargo serves as
a successor in interest;
d. Fourth, to the United States to satisfy, in part, the balance of the federal tax liens
notice of which was filed against Vladimir Gorokhovsky on July 25, 2014 at
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Document No. 1005172, September 26, 2014 at Document No. 1007760, May 1,
2017 at Document No. 1048916, and nominee lien filed March 15, 2018 at
Document No. 1061812 with Ozaukee County, Wisconsin and reduced to a money
judgment on Count II at ECF No. 218 in the above-captioned case.
i. The funds due to the United States shall be paid by check and made payable
to “U.S. Department of Justice” and sent by regular mail to “Department of
Justice, ATTN: TAXFLU, P.O. Box 310, Ben Franklin Station,
Washington, D.C. 20044.”
e. Fifth, if any proceeds remain after distribution of sale proceeds as described above,
any remaining funds will be paid to WDOR for outstanding state tax warrants.
Dated at Milwaukee, Wisconsin on February 15, 2022.
s/ Brett H. Ludwig
BRETT H. LUDWIG
United States District Judge

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