Filed: Aug. 07, 2018
Latest Update: Aug. 07, 2018
Summary: STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER KIMBERLY J. MUELLER , District Judge . The United States and Claimants Alan R. Zheng, Socotra Fund, LLC, Kingston Wu, Xiuyun Liu, Jocelyn H. Yu, Neal L. Horn, M.D., Dong Hai Lin, Ge Gao, Jing Shen Jiang, Wen Hui Lin and Jiang Nai Yi, through their respective counsel, hereby stipulate that a stay is necessary in the above-entitled action and request that the Court enter an order staying all further proceedings until the resolution of the rela
Summary: STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER KIMBERLY J. MUELLER , District Judge . The United States and Claimants Alan R. Zheng, Socotra Fund, LLC, Kingston Wu, Xiuyun Liu, Jocelyn H. Yu, Neal L. Horn, M.D., Dong Hai Lin, Ge Gao, Jing Shen Jiang, Wen Hui Lin and Jiang Nai Yi, through their respective counsel, hereby stipulate that a stay is necessary in the above-entitled action and request that the Court enter an order staying all further proceedings until the resolution of the relat..
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STIPULATION TO STAY FURTHER PROCEEDINGS AND ORDER
KIMBERLY J. MUELLER, District Judge.
The United States and Claimants Alan R. Zheng, Socotra Fund, LLC, Kingston Wu, Xiuyun Liu, Jocelyn H. Yu, Neal L. Horn, M.D., Dong Hai Lin, Ge Gao, Jing Shen Jiang, Wen Hui Lin and Jiang Nai Yi, through their respective counsel, hereby stipulate that a stay is necessary in the above-entitled action and request that the Court enter an order staying all further proceedings until the resolution of the related criminal cases, United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM, and ongoing criminal investigation into marijuana grows at the defendant properties.
1. This is a forfeiture in rem action against seven properties pursuant to 21 U.S.C. § 881(a)(7) because they were allegedly used and intended to be used to commit or facilitate violations of federal drug laws:
a. Real Property located at 653 Main Avenue in Sacramento, California, the "Defendant Main Avenue." Alan R. Zheng has filed a claim asserting an ownership interest in defendant Main Avenue. Lantzman HVHC Inc./JTA, LLC filed claims asserting lienholder interests in defendant Main Avenue. This property was sold and the proceeds were used to satisfy Lantzman HVHC Inc./JTA, LLC's loan.1
b. Real Property located at 8656 Daimler Way, Sacramento in California, the "Defendant Daimler Way." Ge Gao has filed a claim asserting an ownership interest in defendant Daimler Way. Socotra Fund, LLC filed a claim asserting a lienholder interest in defendant Daimler Way.
c. Real Property located at 12660 Sharon Bee Lane in Herald, California, the "Defendant Sharon Bee Lane." Xiuyun Liu has filed a claim asserting an ownership interest in defendant Sharon Bee Lane. Kingston Wu filed a claim asserting a lienholder interest in defendant Sharon Bee Lane.
d. Real Property located at 22698 N. Sowles Road in Acampo, California, the "Defendant N. Sowles Road." Jocelyn H. Yu has filed a claim asserting an ownership interest in defendant N. Sowles Road. Neal L. Horn, M.D. filed a claim asserting a lienholder interest in defendant N. Sowles Road.
e. Real Property located at 23900 N. Bryant Road in Acampo, California, the "Defendant N. Bryant Road." Dong Hai Lin filed a claim asserting an ownership interest in defendant N. Bryant Road. No other party has filed a claim asserting an interest in defendant N. Bryant Road.
f. Real Property located at 4700 Blossom Ranch Drive in Elk Grove, California, the "Defendant Blossom Ranch Drive." Jiang Nai Yi filed a claim asserting an ownership interest in defendant Blossom Ranch Drive. No other party has filed a claim asserting an interest in defendant Blossom Ranch Drive.
g. Real Property located at 7211 Ovar Court in Elk Grove, California, the "Defendant Ovar Court." Wen Hui Lin has filed a claim asserting an ownership interest in defendant Ovar Court. Jing Shen Jiang filed a claim asserting an ownership interest in defendant Ovar Court.
3. The stay is requested pursuant to 18 U.S.C. §§ 981(g)(1), 981(g)(2), and 21 U.S.C. § 881(i). The United States contends that the defendant properties were used and intended to be used to commit or facilitate violations of federal drug laws in violation of 21 U.S.C. §§ 841 et seq. Claimants deny these allegations.
4. To date, several individuals have been charged with federal crimes related to marijuana manufacturing and distribution in two related cases, United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM, and the investigation continues concerning the marijuana grows at the defendant properties. It is the United States' position that the statute of limitations has not expired on potential criminal charges relating to the drug trafficking involving the defendant properties. Nevertheless, the United States intends to depose claimants (and others) regarding their ownership of the defendant properties, as well as their knowledge and participation in large scale marijuana cultivation, including the marijuana grow at the defendant properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment rights against self-incrimination and losing the ability to pursue their claims to the defendant properties, or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability to explore the factual basis for the claims they filed with this court.
5. In addition, claimants intend to depose, among others, the agents involved with this investigation, including but not limited to, the agents with the Drug Enforcement Administration ("DEA") and Internal Revenue Service ("IRS"). Allowing depositions of the law enforcement officers at this time would adversely impact the federal prosecution and ongoing investigation.
6. The parties recognize that proceeding with these actions at this time has potential adverse effects on the investigation of the underlying criminal conduct and/or upon the claimant's ability to assert any defenses to forfeiture. For these reasons, the parties jointly request that these matters be stayed until the conclusion of the related criminal cases. At that time the parties will advise the court of the status of the criminal investigation, if any, and will advise the court whether a further stay is necessary.
7. If any of the defendant properties go into default, the parties reserve the right to seek all avenues of redress to preserve the real properties, including filing a motion for interlocutory sale or seeking a receiver appointment to collect rents and maintain the properties.
ORDER
For the reasons set forth above, this matter is stayed under 18 U.S.C. §§ 981(g)(1), 981(g)(2) and 21 U.S.C. § 881(i) until the resolution of companion criminal cases. The parties shall file a joint status report within 30 days of the conclusion of the parallel criminal cases, or as the court deems appropriate.
IT IS SO ORDERED.
