Opinion
STEPHANIE YONEKURA, Acting United States Attorney, ROBERT E. DUGDALE, Assistant United States Attorney, Chief, Criminal Division, STEVEN R. WELK, Assistant United States Attorney, Chief, Asset Forfeiture Section, JENNIFER RESNIK, Assistant United States Attorney, Asset Forfeiture Section, Los Angeles, California, Attorneys for Plaintiff, UNITED STATES OF AMERICA.
JONATHAN AMINOFF, Deputy Federal Public Defender, Counsel for REGIS POSSINO.
RANDOLPH & ASSOCIATES, DONALD C. RANDOLPH, ESQ., Counsel for KAREN CICERO.
RANDOLPH & ASSOCIATES, DONALD C. RANDOLPH, ESQ., Counsel for Palisades Investment Trust under Agreement.
AMENDED CONSENT JUDGMENT
STEPHEN V. WILSON, District Judge.
This action was filed on June 6, 2014. Notice was given and published in accordance with law. Claimants Regis Possino, Karen Cicero and the Palisades Investment Trust under Agreement Dated April 16, 1997 (collectively "Claimants") filed claims to the defendant Real Property located in Pacific Palisades, California, Assessor Parcel Number XXXX-XXX-XXX (the "defendant property"), more particularly described below. No other statements of interest or answers have been filed, and the time for filing such statements of interest and answers has expired. Plaintiff (the "government") and Claimants have reached an agreement that is dispositive of the claims to the defendant property in this action. The parties have requested that the Court enter this Consent Judgment.
On October 13, 2014, Mountain Park Management, LLC and EMAD Management, LLC, through their attorney, filed an answer to the Complaint and a Petition for Remission or Mitigation, (See Docket Nos. 10-12), which were withdrawn on November 13, 2014. (See Docket Nos. 19-20). On October 31, 2014, HSBC Bank USA, N.A., through its attorney, filed a claim and certificate of interested party (See Docket Nos. 16 and 17), which were withdrawn on November 26, 2014. (See Docket No. 24).
WHEREFORE, IT IS ORDERED, ADJUDGED AND DECREED:
A. This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355 and over the parties hereto.
B. The Complaint for Forfeiture states a claim for relief pursuant to 18 U.S.C. § 981(a)(1)(A) and (C).
C. Notice of this action has been given in accordance with law. All potential claimants to the defendant property other than Claimants are deemed to have admitted the allegations of the Complaint.
D. The defendant property shall be sold for fair market value in accordance with the terms of this paragraph. The legal description of the defendant property is:
LOT 32 OF TRACT 30453, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1006 PAGES 42 THROUGH 49 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL MINERALS, OILS, PETROLEUM AND KINDRED SUBSTANCES AND NATURAL GAS UNDER SAID LAND, BUT WITHOUT RIGHT OF SURFACE ENTRY TO THE SURFACE OR THE SUBSURFACE THERETO TO A DEPTH OF 500 FEET OF SAID LAND, AS RESERVED IN DEED RECORDED FEBRUARY 18, 1957 AS INSTRUMENT NO. 1863.
i. Claimants shall cause the defendant property to be sold at the highest available reasonable price. Within 30 days of the entry of this Judgment, Claimants shall undertake to list the defendant property with the Multiple Listing Service and/or any other forum to market the property to the public, and shall attempt to procure a ready, willing and able buyer. The minimum price to be accepted is $2,500,000. The listing agent(s) shall be a licensed real estate broker with experience selling properties in the area where the defendant property is located.
ii. At least 21 days prior to the close of escrow with respect to any attempted sale of the defendant property pursuant to this Judgment, Claimants must disclose to the government the following: (i) the identities of the prospective buyer(s), including current address(es) and driver's license number(s); (ii) the purchase price; and (iii) the final escrow instructions. The government must notify Claimants within 4 business days thereafter if it does not approve of the buyer, the purchase price and/or the final escrow instructions, in which case escrow shall be cancelled.
iii. Not later than three (3) days prior to the anticipated close of escrow as described above, the United States shall deliver to the escrow agent a conditional withdrawal of its lis pendens recorded against the defendant property. This conditional withdrawal may be recorded only if the terms of this Judgment have been completely satisfied.
iv. If the defendant property is not sold within 120 days after entry of the Judgment, subject to the terms of paragraph D(v), the government shall have the power to take custody and control of the defendant property, sell the defendant property and transfer valid title to the defendant property in its entirety without the need to gain further consent of Claimants or this Court with respect to any aspect of the sale.
v. The proceeds of the sale of the defendant property shall be distributed as follows:
a. First, payment of all outstanding real property taxes to the Los Angeles County Tax Collector to the date of closing of escrow;
b. Second, payment of all costs of escrow and sale, including real estate sales commissions and applicable fees triggered by the sale of the defendant property;
c. Third, to the extent funds remain, payment to any secured lienholders whose security interests were recorded prior to recording of the United States of America's lis pendens in this action, namely, HSBC Mortgage Corporation (in first position) and Mountain Park Management, LLC and Emad Management, LLC (in second position);
d. Fourth, to the extent funds remain (the "net proceeds"), $877,000.00 of the net proceeds shall be wired from escrow directly to the Clerk of Court for the Central District of California and shall be applied first to any restitution order, and second to any fines or fees, entered in United States v. Regis Possino, CR No. 13-48(A)-SVW. The government shall provide payment instructions directly to the escrow company handling the sale of the defendant property. If the $877,000.00 has not been disbursed within one year of the date the funds are deposited with the Clerk of Court, the funds shall be transferred to the United States Department of Treasury's Victim Fund. If a restitution order has not yet been entered in United States v. Regis Possino, CR No. 13-48(A)-SVW at the close of escrow, the $877,000.00 shall be held by the United States Marshals Service until such time as an order is entered and then transferred forthwith to the Clerk of Court as described above.
e. Fifth, to the extent net proceeds remain, those funds shall be paid to claimant Karen Cicero, who shall provide payment instructions directly to the escrow company handling the sale of the defendant property.
vi. The parties shall execute any and all documents necessary to consummate the sale of the defendant property, to convey clear title of the property to the buyers, and to further implement the terms of this Judgment.
E. Claimants have released the United States of America, its agencies, agents, and officers, including employees and agents of the Federal Bureau of Investigation, from any and all claims, actions or liabilities arising out of or related to this action, including, without limitation, any claim for attorney's fees, costs or interest which may be asserted on behalf of the Claimants, whether pursuant to 28 U.S.C. § 2465 or otherwise. Nothing in this Consent Judgment is intended as, nor should anything in this Consent Judgment be interpreted as an admission by Claimants of any liability or wrongdoing.
F. The court finds that there was reasonable cause for the institution of these proceedings. This judgment shall be construed as a certificate of reasonable cause pursuant to 28 U.S.C. § 2465.