REPORT AND RECOMMENDATION
ALICIA M. OTAZO-REYES, Magistrate Judge.
THIS CAUSE came before the Court upon the Government's Second Motion for Rule 37 Sanctions (hereafter, "Second Motion for Sanctions") [D.E. 52]. This matter was referred to the undersigned pursuant to 28 U.S.C. § 636 by the Honorable Robert N. Scola, Jr., United States District Judge [D.E. 57]. For the reasons stated below, the undersigned respectfully recommends the entry of the Proposed Permanent Injunction, attached hereto as Exhibit A.
On March 16, 2017, the Government filed a Complaint for Permanent Injunction (hereafter, "Compl.") against Defendants Jean-Philippe Boursiquot, Roberton Boursiquot, (together, "Individual Defendants"), B&C Royalty Multi-Services, Inc., and RBS Flamboyant Solutions, Inc. (together, "Corporate Defendants") (Individual Defendants and Corporate Defendants collectively, "Defendants") alleging that Defendants had engaged in fraudulent conduct and seeking injunctive relief. See Compl. [D.E. 1].
On August 30, 2017, the Government filed a Motion to Compel Responses to the Government's First Sets of Interrogatories (hereafter, "Motion to Compel") [D.E. 24]. On September 18, 2017, the undersigned granted the Motion to Compel in part and ordered Defendants to respond to the outstanding requests for production and interrogatories by October 5, 2017 [D.E. 26].
On November 13, 2017, the Government filed an Amended Motion for Rule 37 Sanctions (hereafter, "First Motion for Sanctions"), asking the Court to enter a default judgment of permanent injunction against Defendants and to order Defendants to reimburse the Government's expenses incurred due to Defendants' non-compliance with the September 18, 2017 Order. See First Motion for Sanctions [D.E. 31 at 1]. On December 4, 2017, the undersigned held a hearing on the First Motion for Sanctions and issued an Order granting the First Motion for Sanctions in part. See Order [D.E. 35].
On February 1, 2018, the Government filed the Second Motion for Sanctions alleging Defendants' further non-compliance with the Court's discovery orders and asking the Court to enter a default judgment of permanent injunction against Defendants [D.E. 52 at 1]. On March 8, 2018, the undersigned held a hearing on the Second Motion for Sanctions and issued an Order directing Defendants to supplement their discovery responses and setting a Telephonic Discovery Status Conference [D.E. 76]. At the Telephonic Discovery Status Conference on April 2, 2018, the undersigned granted the Second Motion for Sanctions as to the Corporate Defendants and directed the parties to submit a proposed permanent injunction as to those Defendants only [D.E. 79]. On April 3, 2018, the Government submitted the Proposed Permanent Injunction. See Exhibit A.
Based on the undersigned's rulings on the Second Motion for Sanctions and a review of the Proposed Permanent Injunction, the undersigned RESPECTFULLY RECOMMENDS that a Permanent Injunction be entered against the Corporate Defendants in the form attached hereto as Exhibit A.
The parties have fourteen days from the date of receipt of this Report and Recommendation within which to serve and file objections, if any, with the Honorable Judge Robert N. Scola, Jr., United States District Judge. See Local Magistrate Rule 4(b). Failure to timely file objections shall bar the parties from attacking on appeal the factual findings contained herein. See Resolution Tr. Corp. v. Hallmark Builders, Inc., 996 F.2d 1144, 1149 (11th Cir. 1993). Further, "failure to object in accordance with the provisions of [28 U.S.C.] § 636(b)(1) waives the right to challenge on appeal the district court's order based on unobjected-to factual and legal conclusions." See 11th Cir. R. 3-1 (I.O.P. - 3).
RESPECTFULLY SUBMITTED.
EXHIBIT A
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF FLORIDA
MIAMI DIVISION
UNITED STATES OF AMERICA,
Plaintiff, Case No. 0:17-cv-60550-RNS
v.
JEAN-PHILLIPPE BOURSIQUOT,
B&C ROYALTY MULTI-SERVICES, INC.,
ROBERTON BOURSIQUOT, and
RBS FLAMBOYANT SOLUTIONS, INC.,
Defendants.
[PROPOSED] PERMANENT INJUNCTION
Plaintiff, the United States of America, moves for entry of default judgment in the form of a permanent injunction against Defendants B&C Royalty Multi-Services, Inc. and RBS Flamboyant Solutions, Inc. (the "Corporate Defendants") in this matter. Based on the record, the Court hereby finds as follows:
1. The United States of America filed a Complaint for Permanent Injunction under 26 U.S.C. §§ 7402(a), 7407, and 7408 and Other Relief against Defendants. Doc. No. 1.
2. For the purposes of this permanent injunction, this Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1340 (internal revenue laws) and 1345 (United States as plaintiff), and 26 U.S.C. § 7402(a) (render judgments).
3. The United States filed its Second Motion for Sanctions on February 1, 2018, which sought entry of default judgment against Jean-Philippe Boursiquot, I3&C Royalty Multi-Services, Inc., Roberton Boursiquot, and RBS Flamboyant Solutions, Inc., as to Counts I through III of the Complaint. Doc. No. 52.
4. On April 2, 2018, the Court granted the United States' Second Motion for Sanctions in part as to Corporate Defendants. Doc. No. 79.
5. For purposes of the permanent injunction against Corporate Defendants, the Court finds the allegations in the Complaint for Permanent Injunction are deemed admitted.
6. Defendants further understand and agree that:
a. The permanent injunction will be entered under FED. R. CRT. P. 65;
b. Defendants waive any right they might have to appeal the permanent injunction;
c. If Defendants violate the permanent injunction, they may be subject to civil and criminal sanctions for contempt of court; and
d. In addition to the specific directives in the permanent injunction, Defendants have an obligation to preserve all pertinent documents in their possession, including tax returns, informational returns, correspondence, working papers, or any other documents connected to their tax preparation activities, whether stored electronically or on paper, as required by the Internal Revenue Code.
IT IS HEREBY ORDERED pursuant to 26 U.S.C. §§ 7402(a), 7407, and 7408 that Defendants, individually and doing business as or through any entity, and anyone acting in concert or participation with them are PERMANENTLY ENJOINED from, directly or indirectly:
1. Preparing, filing, directing, or assisting the preparation or filing of federal tax returns, amended returns, or other related documents or forms, including any electronically submitted tax returns or tax-related documents, for any person or entity other than themselves;
2. Preparing or assisting in the preparation of federal tax returns, amended returns, or other related documents or forms that they know will result in the understatement of federal tax liabilities or the overstatement of federal tax refunds;
3. Receiving fees or remuneration from any tax return preparation business;
4. Owning, operating, controlling, licensing, or consulting with any tax return preparation business;
5. Engaging in any other activity subject to penalty under 26 U.S.C. §§ 6694, 6695, and 6701; and
6. Engaging in any fraudulent or deceptive conduct that substantially interferes with the proper administration and enforcement of the Internal Revenue Code.
IT IS FURTHER ORDERED that any Preparer Tax Identification Numbers (PTIN) and/or Electronic Filing Identification Numbers (EFIN) held by, assigned to, or used by Corporate Defendants may be immediately revoked without any further proceedings.
IT IS FURTHER ORDERED that, within 30 days of entry of the permanent injunction, Corporate Defendants shall:
1. Contact, by regular mail or email, all persons for whom they have prepared a federal tax return since January 1, 2013, to inform them of the permanent injunction entered against Corporate Defendants and provide those persons with a copy thereof (but including no other documents or enclosures unless agreed to by counsel for the United States or approved by the Court), and file with the Court a sworn certificate stating that they have complied with this requirement; and
2. Produce to counsel for the United States a list of all persons for whom they prepared federal income tax returns or claims for refund since January 1, 2013, including names, social security numbers, addresses, email addresses, telephone numbers, and all relevant tax periods.
IT IS FURTHER ORDERED that the United States is allowed full post-judgment discovery to monitor compliance with the Permanent Injunction.
IT IS FURTHER ORDERED that the Court will retain jurisdiction over Counts I, II, and III with respect to Corporate Defendants for the purpose of implementing and enforcing the permanent injunction and any additional orders necessary and appropriate to the public interest, and retain jurisdiction over Count IV with respect to Corporate Defendants for all matters.
Accordingly, the CLERK OF COURT is DIRECTED to enter Final Judgment against Corporate Defendants B&C Royalty Multi-Services, Inc. and RBS Flamboyant Solutions, Inc. as to Counts I, II, and III of the Complaint. Count IV remains pending.
It is SO DONE AND ORDERED.
