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U.S. v. $24,101,762.88

United States District Court, N.D. California
Jun 16, 2003
No. C 02-5747 JSW (N.D. Cal. Jun. 16, 2003)

Opinion

No. C 02-5747 JSW.

June 16, 2003.

Robert D. Ward, Assistant United States Attorney, Kevin v. Ryan, United States Attorney, Charles B. Burch, Chief, Attorneys for Plaintiff.

Brenda Grantland, Esquire, Attorney for Steven Fontaine, Niloufer Fontaine and Regalia Fund Limited, Claimants.

Darrell Mook, Esquire, Attorney for Herford Humanitarian Business Trust, Huibert Johannes Van Praag and Longmead Properties Limited (Investors), Claimants.


SETTLEMENT STIPULATION AND ORDER OF FORFEITURE


INTRODUCTION

In this Stipulation and Order, the following in rem defendants, further described in Paragraph 2a, b, c, k and 1 of the Complaint for Forfeiture are collectively identified as the "Defendant Funds."

a. $24,101,762.88 seized from the Banc of America LLC Account 209-15381-1-2 456. on October 10, 2002 by Seizure Warrant No. 4-02-0186 WDB;
b. $239,571.32 seized from Bank of America checking account #01755-03172, on October 10, 2002 by Seizure Warrant No. 4-02-0186 WDB;
c. $244,438.29 — Bank of America cashiers check #405278663, payable of New Century Title Company, seized on October 11, 2002 by Seizure Warrant No. 4-02-0197 WDB;
k. $10,000 from New Century Title Company escrow account no. 0502751, seized on October 11, 2002 by Seizure Warrant No. 4-02-193 WDB;
l. $11,556.47 seized from Banc of America Securities LLC Account 11064996-1-7, on November 1, 2002 by Seizure Warrant No. 4-02-0234 WDB

Total: $24,607,328.96

In this Stipulation and Order, the following in rem defendants, further described in Paragraph 2d, e, f, g, h, i and j of the Complaint, are collectively identified as "Defendant Personal Property."

d. Cartier Jewelry — White gold tennis necklace in case, white gold tennis bracelet in case, pair of white gold diamond earrings in case and American Tank white gold man's watch, seized on October 15, 2002 by Seizure Warrant No. 4-02-0190 WDB;
e. 2002 Black GMC Yukon Denali, VIN 1GKFK66U52J327819 seized on October 15, 2002 by Seizure Warrant No. 4-02-0189 WDB;
f. 2002 Blue Ford Mustang Convertible, VIN 1FAFP45X02F208078 seized on October 15, 2002 by Seizure Warrant No. 4-02-0191 WDB;
g. 1999 Green Cadillac STS Sedan, VIN 1G6KY549XXU929626 seized on October 15, 2002 by Seizure Warrant No. 4-02-0194 WDB;
h. 2002 Gold Chrysler Sebring convertible, VIN 1C3EL45X72N328634, seized on October 15, 2002 by Seizure Warrant No. 4-02-0195 WDB;
i. 2003 Silver Volkswagen Passat GLS, VIN WVWPD63B63P099616, seized on October 15, 2002 by Seizure Warrant No. 4-02-0196 WDB;
j. 8 premium season tickets for Golden State Warriors Professional Basketball franchise, purchased on September 24, 2002 by Reglia Fund Ltd. and/or Steven J. Fontaine, seized on October 11, 2002 by Seizure Warrant No. 4-02-0192 WDB (by agreement exchanged for 2003/2004 season)

STIPULATION

In this in rem civil forfeiture case, the United States, and all Claimants, stipulate and agree as follows:

1. Regalia Fund Limited, Steven Fontaine, a.k.a. Steven Fountaine, a.k.a Steven Fountain, Niloufer Fontaine, Brenda Fountaine and Ronald Fountaine withdraw and waive any and all claims to and interest in all of the Defendant Funds (as described in the Introduction above) and agree to the Order below.

2. Hereford Humanitarian Business Trust, Longmead Properties Limited and Huibert Johannes Van Praag ("Investors") withdraw any and all claims to and interest in $175,000 of said Defendant Funds and all of the Defendant Personal Property, (including the right to seek remission of forfeiture), consent to the forfeiture of same and agree to the Order below.

3. $175,000 of the Defendant Funds, shall be forfeited to the United States pursuant to 18 U.S.C. § 981(a)(1)(A) and (C) as alleged in the Complaint for Forfeiture.

4. $24,432,328.96 of the Defendant Funds, with interest from the date of seizure, shall be promptly returned to the Investors. Interest shall be calculated and paid only on $21,128,257.98. The funds shall be disbursed via wire transfers to accounts designated by the Investors. A portion of said funds, in the amount of $2,767,202.27, identified as "Highlander Global Trust" funds, shall be wire transferred directly to the custody of the United States Marshal, Central District of Illinois, for disposition in the Matter of the Seizure of $2,999,982, No. 03-P-32 (Central District of Illinois). The United States shall take all steps to effectuate the wire transfers with the Treasury Executive Office of Asset Forfeiture within two business days from the date of the Order below. The United States withdraws any and all claims to the $24,432,328.96 and the returned interest, based upon information presently possessed concerning the alleged criminal activity of Steven Fontaine set forth in the Complaint for Forfeiture.

5. This case (against the Defendant Personal Property) shall be stayed pursuant to 18 U.S.C. § 981(g) pending the conclusion of the criminal investigation and prosecution of Steven Fontaine in the United States District Court for the Northern District of California.

6. In the event of a federal prosecution and conviction of Steven Fontaine in the Northern District of California for offenses related to the facts alleged in the Complaint for Forfeiture, the government will recommend that Steven Fontaine be given credit for restitution of all amounts forfeited, and disbursed to Investors, herein.

7. The United States and all of its agents and employees shall be held harmless for any and all acts directly and indirectly related to the seizure of the Defendant Funds and Personal Property, and this forfeiture action.

8. Each party shall pay its own costs and attorneys fees.

ORDER

IT IS SO ORDERED.

1. The claims of Regalia Fund Limited, Steven Fontaine, a.k.a. Steven Fountaine, a.k.a. Steven Fountain, Niloufer Fontaine, Brenda Fontaine and Ronald Fontaine to all of the Defendant Funds (as described in the Introduction above) are ordered withdrawn, with prejudice.

2. All claims of Hereford Humanitarian Business Trust, Longmead Properties Limited and Huibert Johannes Van Pragg (Investors) to $175,000 of the Defendant Funds and all of the Defendant Personal Property (including the right to seek remission of forfeiture) are hereby ordered withdrawn.

3. $175,000 of the Defendant Funds shall be and hereby is forfeited to the United States pursuant to 18 U.S.C. § 981(a)(1)(A) and (C) as alleged in the Complaint for Forfeiture. All right, title and interest in the $175,000 is hereby vested in the United States of America. All other claims to same are hereby barred forever. The Internal Revenue Service shall dispose the forfeited $175,000 according to law.

4. $24,432,328.96 of the Defendant Funds with interest from the date of seizure, shall be promptly returned to the Investors. Interest shall be calculated and paid only on $21,128,257.98. The funds shall be disbursed via wire transfers to accounts designated by the Investors. A portion of said funds, in the amount of $2,767,202.27, identified as "Highlander Global Trust" funds, shall be wire transferred directly to the custody of the United States Marshal, Central District of Illinois, for disposition in the Matter of the Seizure of $2,999,982, No. 03-P-32 (Central District of Illinois). The United States shall take all steps to effectuate the wire transfers with the Treasury Executive Office of Asset Forfeiture within two business days from the date of this Order. All claims of the United States to the $24,432,328.96 and the returned interest, based upon information presently possessed concerning the alleged criminal activity of Steven Fontaine set forth in the Complaint for Forfeiture, are withdrawn.

5. This case (against the Defendant Personal Property) shall be stayed pursuant to 18 U.S.C. § 981 (g) pending the conclusion of the criminal investigation and prosecution of Steven Fontaine in the United States District Court for the Northern District of California.

6. In the event of a federal prosecution and conviction of Steven Fontaine in the Northern District of California for offenses related to the facts alleged in the Complaint for Forfeiture, the government shall recommend to the Court that Steven Fontaine be given credit for restitution for all amounts forfeited, and disbursed to Investors, herein.

7. The United States and all of its agents and employees shall be held harmless for any and all acts directly and indirectly related to the seizure of the Defendant Funds and Personal Property, and this forfeiture action.

8. Each party shall pay its own costs and attorneys fees.


Summaries of

U.S. v. $24,101,762.88

United States District Court, N.D. California
Jun 16, 2003
No. C 02-5747 JSW (N.D. Cal. Jun. 16, 2003)
Case details for

U.S. v. $24,101,762.88

Case Details

Full title:UNITED STATES OF AMERICA, Plaintiff, v. $24,101,762.88, et al., Defendants

Court:United States District Court, N.D. California

Date published: Jun 16, 2003

Citations

No. C 02-5747 JSW (N.D. Cal. Jun. 16, 2003)