Opinion
2:22-cr-00142-CDS-DJA
09-16-2024
UNITED STATES OF AMERICA, Plaintiff v. MEELAD DEZFOOLI, Defendant
JASON M. FRIERSON, United States Attorney, Nevada Bar No. 7709, DANIEL D. HOLLINGSWORTH, Assistant United States Attorney, Nevada Bar No. 1925, Attorneys for the United States. JASON M. FRIERSON, United States Attorney. DANIEL D. HOLLINGSWORTH, Assistant United States Attorney.
JASON M. FRIERSON, United States Attorney, Nevada Bar No. 7709, DANIEL D. HOLLINGSWORTH, Assistant United States Attorney, Nevada Bar No. 1925, Attorneys for the United States.
JASON M. FRIERSON, United States Attorney.
DANIEL D. HOLLINGSWORTH, Assistant United States Attorney.
ORDER GRANTING UNITED STATES OF AMERICA'S MOTION FOR AN INTERLOCUTORY ORDER SALE OF 176 GLEN FALLS AVENUE, HENDERSON, NEVADA 89002
CRISTINA D. SILVA, UNITED STATES DISTRICT JUDGE.
The United States moves this Court to issue an order for an Interlocutory Sale of real property held in the name of Sanam Limited, located at 176 Glen Falls Avenue, Henderson, Nevada 89002 (176 Glen Falls), which is subject to criminal forfeiture and forfeited in the Preliminary Order of Forfeiture, and to authorize Doug Sawyer as the designated real estate agent to sell 176 Glen Falls. Meelad Dezfooli identified himself as the sole owner of Sanam Limited.
176 Glen Falls Avenue, Henderson, Nevada 89002 (176 Glen Falls)1, more particularly described as:
LOT 17 IN BLOCK “C” OF PARADISE HILLS NO. 16, AS SHOWN BY MAP THEREOF ON FILE IN BOOK 97 OF PLATS, PAGE 8, IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA. EXCEPTING THEREFROM ALL MINERALS, OIL, GAS PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND ALL GEOTHERMAL ENERGY SOURCES IN OR UNDER OR WHICH MAY BE PRODUCED FROM THE WITHIN-DESCRIBED LAND WHICH LIE BELOW A PLANE PARALLEL TO AND FIVE HUNDRED (500) FEET BELOW THE SURFACE OF THE WITHIN-DESCRIBED LAND, FOR THE PURPOSE OF PROSPECTING, EXPLORATION, DEVELOPMENT, PRODUCTION, OR EXTRACTION OF SAID SUBSTANCES BY MEANS OF MINES, WELLS, DERRICKS, AND/OR OTHER EQUIPMENT; PROVIDED, HOWEVER, THAT THE OWNER OF SAID SUBSTANCES SHALL HAVE NO RIGHT TO ENTER THE SURFACE OF THE WITHIN-DESCRIBED LAND NOR TO USE SAID LAND ABOVE SAID PLANE PARALLEL TO AND FIVE HUNDRED (500) FEET BELOW THE SURFACE OF SUCH LAND; TOGETHER WITH ALL IMPROVEMENTS AND APPURTENANCES THEREON, APN: 179-31-212-022.
Superseding Criminal Indictment (SCI), ECF No. 97.
Preliminary Order of Forfeiture (POOF), ECF No. 251.
SCI, ECF No. 97, p. 2.
The grounds for granting the Order for an Interlocutory Sale of 176 Glen Falls are as follows. First, 176 Glenn Falls is subject to taxes, its fees, HOA fees, and liens, and the granting of an interlocutory sale will stop the accruing of taxes, its fees, HOA fees, and liens against its value. Second, granting an interlocutory sale will avoid accidents and liability accruing against 176 Glen Falls. Third, this Court is authorized to approve interlocutory sales.
This Motion is made and is based on the following Memorandum of Points and Authorities, the pleadings and papers on file herein, and the attached Exhibits.
All Exhibits are attached hereto and incorporated herein by reference as if fully set forth herein.
MEMORANDUM OF POINTS AND AUTHORITIES
I. STATEMENT OF FACTS
The United States adopts and incorporates the facts stated in the Superseding Criminal Indictment; Motion to Prevent HOA Eldorado Third Community Association's Default Foreclosure Sale of 1829 La Calera Avenue, North Las Vegas, NV 89084 (La Calera Prevent Sale Motion); Motion to Prevent Pearl Creek HOA Default Foreclosure Sale of 890 Harbor Avenue, Henderson, NV 89002 (Harbor Ave. Prevent Sale Motion);Motion to Prevent Foreclosure Sale of 6033 Watermelon Street, North Las Vegas, NV 89081 (Watermelon Prevent Sale Motion); Motion for an Interlocutory Order of Sale of 6116 Chinook Way, Las Vegas, NV 89108 (Chinook Interlocutory Sale Motion), and Motion to Prevent the Sales of 176 Glen Falls Avenue, Henderson, Nevada 89002 (Glen Falls Prevent Sale Motion).
SCI, ECF No. 97.
Government's Motion to Prevent HOA Eldorado Third Community Association's Default Foreclosure Sale of 1829 La Calera Avenue, North Las Vegas, NV 89084, ECF No. 60.
Government's Motion to Prevent Pearl Creek HOA's Default Foreclosure Sale of 890 Harbor Avenue, Henderson, NV 89002, ECF No. 93.
Government's Motion to Prevent Foreclosure Sale of 6033 Watermelon Street, North Las Vegas, NV 89081, ECF No. 95.
Government's Motion to Prevent the Sale of 176 Glen Falls Avenue, Henderson, NV 89002, ECF No. 231.
Beginning on or around April 2020 and continuing until at least on or around March 2021, Meelad Dezfooli knowingly executed, and attempted to execute, a scheme to defraud and artifice to obtain money and property owned by, and under the custody and control of, financial institutions by means of materially false and fraudulent pretenses, representations, and promises. Dezfooli submitted fraudulent PPP loan applications and obtained approximately $11.2 million to unjustly enrich himself and others.
SCI, ECF No. 97.
On or about April 8, 2020, Dezfooli completed and signed the PPP Borrower Application Form in support of a $1,093,606.52 loan for Best Floors through Financial Institution A. Dezfooli caused Financial Institution A to disburse the proceeds of the fraudulently obtained PPP loan, $1,093,606.52, to First Savings Bank account ending in 4648 (FSB x4648) held in the name of Best Floors (dba Best Buy Flooring). Dezfooli had sole signatory authority over FSB x4648.
SCI, ECF No. 97 p. 5-7; Harbor Ave. Prevent Sale Motion ECF No. 93-1, Exhibit (Ex.) 1-1 excerpt, PPP Loan Application, p. 3-37.
SCI, ECF No. 97, p. 6; Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book 7 excerpt, line 8; Ex. 1-2 excerpt, FSB signature cards, p. 38-51.
After receiving the PPP loan proceeds from Financial Institution A, Dezfooli wrote a check to “cash” for $225,000 that was drawn on FSB x4648, containing the fraudulently obtained proceeds, and deposited it into an account at U.S. Bank account ending in 4334 (USB x4334), held in the name of A-Series.
SCI, ECF No. 97, p. 7; Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book 7 excerpt, p. 123, line 22; deposit - book 6, p. 121, line 9.
As further part of the scheme to defraud, on or about April 12, 2020, Dezfooli completed and submitted another PPP loan application through Financial Institution B's online lending portal in support of a $1,464,780 loan for A-Series. Dezfooli identified himself as the CEO and 100% owner of A-Series and had sole signatory authority over USB x4334. Dezfooli caused Financial Institution B to disburse the proceeds of the fraudulently obtained PPP loan, $1,464,780, into USB x4334.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 2-1 excerpt, A-Series PPP Loan application, p. 52-82; Ex. 2-2 excerpt, U.S. bank signature card, p. 83-86.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book 6 excerpt, p. 121, line 10.
On May 16, 2020, Dezfooli purchased three cashier's checks - check nos. x6727, x6728, x6729 - in the amount of $100,000 each from the illegal proceeds in USB x4334. Check nos. x6728, x6729 were used as partial payments for the purchase of 890 Harbor Avenue, Henderson, Nevada.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book 6 excerpt, p. 121, line 23; Ex. 7-1, book Property Tracing excerpt, p. 125.
On May 21,2020, Dezfooli used the third check, check no. x6727 for $100,000, from USB x4334 to purchase 6033 Watermelon Street, North Las Vegas, Nevada, 89081 for $40,000 at a Trustee's Sale to be vested under the name of Sanam Limited, another entity formed by Dezfooli to further his scheme of PPP loan applications. Dezfooli received a $60,000 refund from this transaction that was deposited into a Wells Fargo account ending in 4756 (WF x4756) held in the name of Sanam Limited.
Watermelon Prevent Sale Motion, ECF No. 95-1, Ex. 7-1, book 6, p. 84, line 23; Ex. 7-1, book Property Tracing, p. 89, line 289.
Watermelon Prevent Sale Motion, ECF No. 95-1, Ex. 7-1, book Property Tracing, p. 89, line 280-293; Ex. 12-1 Trustee's Deed Upon Sale for 6033 Watermelon, p. 90-93; Ex. 12-2 Sale Documents for 6033 Watermelon, p. 94-108.
Ex. 7-1, book 4, line 30; Watermelon Prevent Sale Motion, ECF No. 95-1, Ex. 7-1, book Property Tracing, p. 89, lines 292-293; Ex. 12-2 Sale Documents for 6033 Watermelon, p. 94-108.
As further part of the scheme to defraud, Dezfooli completed and signed a third PPP loan application around April 27, 2020, for a $8,672,800 loan through Financial Institution C on behalf of Nevada Sales, dba Nevada Design. Dezfooli identified himself as the manager and 100% owner of Nevada Sales.
Chinook Interlocutory Sale Motion, ECF No. 136-1, Ex. 3-1, PPP Loan Application, p. 2- 22.
Dezfooli caused $8,672,800 of the fraudulently obtained PPP loan to be disbursed by Financial Institution C into a Wells Fargo account ending in 3281 (WF x3281), held in the name of Nevada Design, LLC. Dezfooli had signatory authority for WF Account x3281.
Chinook Interlocutory Sale Motion, ECF No. 136-1, Ex. 4-1, WFB Account x3281 signature cards, p. 23-30; Ex. 7-1, book 1, p. 36, line 265.
After receiving the illegally obtained PPP loan proceeds, Dezfooli purchased four cashier's checks totaling $1,668,872.56 using funds from WF x3281. One of those cashier's checks, no. x1811, in the amount of $790,406.21 was used to purchase 6116 Chinook Way, Las Vegas, Nevada 89108 for $228,000 at auction on behalf of Sanam Limited. A subsequent refund of $562,406.21 was issued to Dezfooli that was deposited in WF x4756 held in the name of Sanam Limited.
Chinook Interlocutory Sale Motion, ECF No. 136-1, Ex. 7-1, book 1, p. 36, line 268; Ex. 7-1, book 2, p. 40, lines 16-20; Ex. 7-1, book Property Tracing, p. 42; Ex. 8-1, Trustee's Deed Upon Sale, p. 43-46; Ex. 8-2, Cashier's Check No. x1811, p. 48.
Chinook Interlocutory Sale Motion, ECF No. 136-1, Ex. 7-1, book 2, p. 40, line 16; Ex. 71, book Property Tracing, p. 42.
Ex. 7-1, book 4, line 11; Chinook Interlocutory Sale Motion, ECF No. 136-1, Ex. 7-1, book Property Tracing, line 33.
Dezfooli also purchased cashier's checks totaling $770,000 from the fraudulently obtained illegal proceeds in WF x3281. Three of the cashier's checks totaling $100,000, x4915, x4916, and x4917, were used in the purchase of 890 Harbor Avenue.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book 1 excerpt, p. 117, line 267; book 2, p. 119, lines 6-7, 10; book property tracing, p.125.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book 2 excerpt, p. 119, lines 67, 10; book property tracing, p. 125.
On or about July 31, 2020, Dezfooli purchased 890 Harbor Ave. at auction for Sanam Limited for $290,000. Dezfooli used checks x6728 and x6729 from USB x4334 totaling $200,000 and checks x4915, x4916, and x4917 from WF x3281 totaling $100,000 for the purchase of the property. Escrow issued a refund of $10,000 that was deposited in WF x4756 held in the name of Sanam Limited.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 13-1, Clark County Deed for sale of 890 Harbor Ave, p. 126-129.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, book 2, p. 119, lines 6-7, 10; book 6, p. 121, line 23; Ex. 7-1, book property tracing excerpt, p. 125.
Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book property tracing excerpt.
Ex. 7-1, book 4, line 30; Harbor Ave. Prevent Sale Motion, ECF No. 93-1, Ex. 7-1, book Property Tracing, p. 125, line 33.
On May 12, 2020, Dezfooli purchased cashier's check (no. x1812) of $868,466.35 from fraudulently obtained illegal proceeds in WF x3281. Dezfooli purchased 180 Ruby Ridge Avenue at auction on behalf of Sanam Limited for $310,401, using cashier's check no. x1812 to purchase the property. The escrow agent subsequently issued a refund of $558,065.35 that was deposited in WF x4756.
La Calera Prevent Sale Motion, ECF No, 60-1, Ex. 7-1, book 2, p. 50, line 17.
SCI, ECF No. 97, p. 11; La Calera Prevent Sale Motion, ECF No, 60-1, Ex. 7-1, book 1, p. 46, line 268; Ex. 7-1, book 2, p. 50, line 17; Ex. 7-1, book property tracing, p. 58.
SCI, ECF No. 97, p. 11; Ex. 7-1, book 4, line 9; La Calera Prevent Sale Motion, ECF No, 60-1, Ex. 7-1, book property tracing, p. 58.
On September 3, 2020, Dezfooli purchased a cashier's check (no. x5116) on behalf of Nevada Sales Limited for $50,000 from the fraudulently obtained illegal proceeds in WF x4756. On September 14, 2020, Dezfooli purchased cashier's checks (nos. x1834 and x5138) of $200,000 and $100,000 from fraudulently obtained illegal proceeds in WF Account x3281 for Nevada Sales Limited. The three cashier's checks were used to purchase 1829 La Calera for $327,224.35. A subsequent refund of $22,775.65 was issued to Dezfooli and deposited into WF x4756.
La Calera Prevent Sale Motion, ECF No, 60-1, Ex. 7-1, book 4, p. 52, line 27; Ex. 7-1, book 5, p. 54, line 27.
La Calera Prevent Sale Motion, ECF No, 60-1, Ex. 7-1, book 1, p. 48, line 396; Ex. 7-1, book 2, p. 50, lines 48-49; Ex. 7-1, book property tracing, p. 59.
La Calera Prevent Sale Motion, ECF No, 60-1, Ex. 7-1, book property tracing, p. 59; Exs. 11-1, 11-2, 11-3, p. 61-72.
Ex. 7-1, book 4, line 58.
On December 21, 2020, Dezfooli purchased cashier's checks from the fraudulently obtained illegal proceeds in WF x3281, nos. x5363 and x5364, for $50,000 each. On February 4, 2021, Dezfooli purchased cashier's checks, nos. x1862 and x1864 from the fraudulently obtained illegal proceeds in WF x4756 for $200,000 each. The four cashier's checks were used to purchase 176 Glen Falls Avenue, Henderson, Nevada 89002 (176 Glen Falls) for $452,000 at public auction. A subsequent refund of $48,000 was issued to Dezfooli and deposited into WFB x4756.
Ex. 7-1, book 1, line 477; Ex. 7-1, book 2, lines 62-63, 67; Ex. F, Receipt of Funds; Ex. G, Cashier's Checks.
Ex. 7-1, book 4, line 100; Ex. 7-1, book 5 lines 40, 42, 45; Ex. F, Receipt of Funds; Ex. G, Cashier's Checks.
Ex. F, Receipt of Funds; Ex. G, Cashier's Checks; Ex. H, Deed Upon Sale; Ex. I, Refund Check; Ex. 7-1, book 4, line 224.
On June 22, 2022, a Grand Jury returned an Eight-Count Criminal Indictment charging Dezfooli with bank fraud, concealment money laundering, and monetary transactions in criminally derived property. On December 12, 2023, a Ten-Count Superseding Criminal Indictment was returned charging Dezfooli with three counts of bank fraud in violation of 18 U.S.C. § 1344(2), three counts of concealment money laundering in violation of 18 U.S.C. § 1956(a)(1)(B)(i), and four counts of monetary transactions in criminally derived property in violation of 18 U.S.C. § 1957. At his arraignment, Dezfooli plead not guilty to all ten Counts.
Criminal Indictment, ECF No. 1; Minutes of Proceedings, ECF No. 3.
SCI, ECF No. 97.
Court Minutes - Arraignment & Plea, ECF No. 104.
In the Superseding Criminal Indictment, forfeiture is alleged under 18 U.S.C. § 981(a)(1)(A) with 28 U.S.C. § 2461(c); 18 U.S.C. § 981(a)(1)(C) with 28 U.S.C. § 2461(c); and 18 U.S.C. § 982(a)(1) and 982(a)(2)(A) and identified 176 Glen Falls, four other real properties, a 2021 Tesla, and a 2021 Bentley as forfeitable property, and criminal forfeiture money judgments of at least $11,231,186.52, $2,303,872.56, and $965,276.11.
SCI, ECF No. 97, p. 16-21.
The Jury trial commenced on August 26, 2024, and the Jury found Dezfooli guilty on all Ten Counts of the Superseding Indictment. The Jury also determined there was requisite nexus between property set forth in the Forfeiture Allegations of the Superseding Criminal Indictment and the offenses to which Meelad Dezfooli was found guilty.
Minutes of Jury Trial Day 7, ECF No. 239; Minutes of Jury Trial Day 8, ECF No. 240; Jury Verdict, ECF No. 243; Forfeiture Jury Instructions and Special Verdict Forms, ECF No. 246.
A records search on 176 Glen Falls from the Clark County Recorder's website reveals that the Clark County Treasurer recorded a Tax Certificate for Delinquent Taxes on January 3, 2023. A property inquiry of 176 Glen Falls from the Clark County Treasurer's website reveals that taxes have not been paid since March 2021 and unpaid taxes, interest, penalties, and fees have accrued to $17,359.84 as of August 20, 2024.
Glen Falls Prevent Sale Motion, ECF No. 231-1, Ex. C, Clark County Recorder Property Search for 176 Glen Falls, p. 16.
On July 22, 2024, the United States Attorney's Office received a cover letter from Red Rock Financial Services with a copy of the Notice of Default and Election to Sell 176 Glen Falls issued by Paradise Hills Landscape Maintenance Association, Inc. (Paradise Hills HOA). An amount of $2,903.96 is owed for unpaid HOA fees as of July 9, 2024, excluding additional accruing assessments, interests, costs, and fees.
Glen Falls Prevent Sale Motion, ECF No. 231-1, Ex. E, Notice of Default and Election to Sell 176 Glen Falls, p. 21-25.
Id.
To protect and preserve its forfeiture interests in 176 Glen Falls, the United States filed a Motion to prevent the Clark County Treasurer from pursuing a tax sale and to prevent Paradise Hills HOA from proceeding with a HOA default foreclosure sale on 176 Glen Falls and this Court granted the Motion.
Glen Falls Prevent Sale Motion, ECF No. 231.
Order Granting the Glen Falls Prevent Sale Motion, ECF No. 258.
Besides the unpaid taxes and the HOA default, additional liens have been placed against the property that further reduces the property's value. The Henderson Police Department recently went out to this property because of a shooting and four squatters fled the area and another possible squatter claimed to rent it but could not produce the lease. Afterwards, the HPD notified the United States of these problems. These issues increase risks, liability, and damages and further decreasing its value.
Glen Falls Prevent Sale Motion, ECF No. 231-1, Ex. C, Clark County Recorder, Property Search for 176 Glen Falls, p. 16.
II. ARGUMENT
This Court has authority to issue the Interlocutory Order of Sale. “At any time before entry of a final forfeiture order, the court, in accordance with Supplemental Rule G(7) of the Federal Rules of Civil Procedure, may order the interlocutory sale of property alleged to be forfeitable.”
Only one of the grounds for interlocutory sale is required since Supplemental Rule G(7)(b) is disjunctive.
See Shelter Cove Marina, Ltd. v. M/YISABELLA, No. 3:17-cv-01578-GPC-BLM, 2017 WL 5906673, 2 (S.D. Cal. Nov. 30, 2017) (explaining that another Supplemental Rule for interlocutory sale with similar language is disjunctive); Cal. Yacht Marina-Chula Vista, LLC v. S/V OPILY, No. 14-cv-1215-BAS-BGS, 2015 WL 1197540, 2 (S.D. Cal. Mar. 16, 2015) (explaining the same).
On motion by a party or a person having custody of the property, the court may order all or part of the property sold if: (A) the property is perishable or at risk of deterioration, decay, or injury by being detained in custody pending the action; (B) the expense of keeping the property is excessive or is disproportionate to its fair market value; (C) the property is subject to a mortgage or to taxes on which the owner is in default; or (D) the court finds other good cause.
Supp. R. G(7)(b) (paragraphs omitted).
Under Supplemental Rule G(7)(b), this case meets four grounds for issuing an Order for an Interlocutory Sale: (1) the property is at risk of deterioration, decay, damage, and injury as time passes; (2) the expense of keeping the property will become disproportionate to its fair market value because it is subject to taxes, its fees, HOA fees, assessments, special assessment, late fees, interest, penalties, and their continual accrual against the real property's value; (3) the property is in default to taxes and HOA fees due to unpaid taxes, and HOA assessments; and (4) the court finds other good cause: (a) the value of the property depreciates as mortgage interest rates have increased; (b) unpaid taxes and fees will continue to accrue and need to be paid; and (c) HOA fees will continue to accrue and need to be paid.
Supplemental Rule G(7)(b); Fed. R. Crim. P. 32.2(b)(7); see United States v. One Parcel of Real Prop. Described as Lot 41, Berryhill Farm Estates, 128 F.3d 1386, 1389-90 (10th Cir. 1997) (explaining the district court orders an interlocutory sale when the property is deteriorating and decaying). See United States v. All Right, Title & Interest in Prop., Appurtenances, & Improvements Known as 479 Tamarind Drive, Hallendale, Fla., 98 CIV. 2279 DLC, 2012 WL 3886698, 2 (S.D.N.Y. Sept. 7, 2012) (explaining that interlocutory sale order was granted because of past due taxes would lower the value of the real property).
The accruing non-payments of the taxes, its fees, HOA fees, assessments, special assessment, late fees, interest, penalties, additional liens, shooting, and squatters are decreasing the property's equity. In 479 Tamarind Drive, the court granted the interlocutory sale because the property had “[m]ore than $40,437.55 in taxes... currently due... raising the risk that the County may move to impose a lien and thereby diminish the property's value to the Government should this forfeiture action succeed.” The property's value of 176 Glen Falls is decreasing rapidly. Additionally, property damage by potential squatters will further decline the property's value.
United States v. All Right, Title & Interest in Prop., Appurtenances, & Improvements Known as 479 Tamarind Drive, Hallendale, Fla., 98 CIV. 2279 DLC, 2012 WL 3886698, 2 (S.D.N.Y. Sept. 7, 2012).
In Fisch, the interlocutory sale was granted due to the accumulation of past due taxes. The Fisch property was substitute property and was divisible with the defendant's wife. In this case, the property was purchased with illegal proceeds and is subject to forfeiture after any liens and fees are paid.
United States v. Fisch, No. H-11-722, 2016 WL 4702588 (S.D. Tex. Sep. 8, 2016).
Id.
If an accident occurred on the property or the property is damaged in any way by squatters, that would further cut into the property's equity. The risk of accident and damages on the property immediately increases when occupants are involved, as in this case. The government seeks to preserve as much of the equity as. The sale proceeds of 176 Glen Falls will be the “substitute res subject to forfeiture in place of the property that was sold [, and] the proceeds must be in an interest-bearing account maintained by the United States pending the conclusion of the forfeiture action.”
United States v. Haley, No. 11-CR-0540-WDQ, 2011 WL 6202787, 1 (D. Md. Dec. 8, 2011) (granting the interlocutory sale to avoid liability for accidents and to “avoid falling in arrears on the payment of applicable property taxes.”).
Supplemental Rule G(7)(b)(iv) (brackets added); United States v. King, No. 10 CR. 122 (JGK), 2010 WL 4739791, 4 (S.D.N.Y. Nov. 12, 2010).
“A sale must be made by a United States agency that has authority to sell the property, by the agency's contractor, or by any person the court designates.” If the Court grants this Motion, the United States recommends this Court authorize Doug Sawyer to sell the property under “28 U.S.C. §§ 2001, 2002, and 2004.”
Supplemental Rules G(7)(b)(ii) (emphasis added).
Supplemental Rules G(7)(b)(iii).
III. JUDICIAL SALES PROCEDURE
If a court orders an interlocutory sale of property over the objection of any interested party, the sale must comply with the provisions of 28 U.S.C. §§ 2001 and 2002. These statutes provide procedural safeguards to ensure that court-ordered sales are made on terms that best preserve the parties' interests. Section 2001(a) authorizes public sales of property and sales by court-appointed receivers. Section 2001(b) permits private sales of property for cash or other consideration after a hearing of which notice to all interested parties shall be given by publication, or as otherwise directed by the court, and after the court finds that the best interests of the estate will be conserved thereby.
Through this Motion, the United States requests authorization to proceed with a private sale of the above-listed property. Based upon the reasons set forth herein, the United States believes that a prompt sale of the property by the United States, followed promptly by releasing the proceeds to the United States affords the best protection to all concerned. The United States believes that a private sale versus a public sale will allow the United States the discretion to sell the properties in the most commercially feasible manner and maintain the most value.
As required by 28 U.S.C. § 2001(b), notice of the Government's Motion must be given by publication or otherwise as this Court directs. The sale of the property through the multiple listing service and other major internet websites for real property meets the requirements of 18 U.S.C. §§ 2001, 2002, and 2004.
Under 28 U.S.C. § 2001(b), three disinterested persons must appraise the properties. To meet that requirement, the United States has obtained the following neutral appraisal estimates as of September 12, 2024:
1. Zillow.com for $672,300;
2. Realtor.com for $622,944; and
3. Redfin.com for $584,573.
III. CONCLUSION
For the foregoing reasons, this Court should order the Interlocutory Sale of 176 Glenn Falls Avenue, Henderson, Nevada 89002 and to authorize Doug Sawyer as the designated real estate agent to sell it.
IT IS SO ORDERED:
Index of Exhibits
Exhibit 7-1, book 1 .................................................... WF x3281 LIBR Analysis (Excerpt)
Exhibit 7-1, book 2 ................................................ WF x3281 Cashier's Checks (Excerpt)
Exhibit 7-1, book 4 .................................................... WF x4756 LIBR Analysis (Excerpt)
Exhibit 7-1, book 5 ................................................ WF x4756 Cashier's Checks (Excerpt)
Exhibit F ................................................................... Receipt of Funds for 176 Glen Falls
Exhibit G ..................................................... Cashier's Checks to Purchase 176 Glen Falls
Exhibit H ................................................................... Deed Upon Sale for 176 Glen Falls
Exhibit I ................................................... Refund Check from Purchase of 176 Glen Falls
Exhibit 7-1, book 1 - WF x3281 LIBR Analysis (Excerpt)
(Exhibit Omitted)