Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00816/USCOURTS-caed-2_07-cv-00816-14/pdf.json

Nature of Suit Code: 690
Nature of Suit: Other Forfeiture and Penalty Suits
Cause of Action: 28:1345 Complaint for Forfeiture

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BENJAMIN B. WAGNER 

United States Attorney

KELLI L. TAYLOR

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, CA 95814

Telephone: (916)554-2700

Attorneys for Plaintiff

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) 2:07-CV-00816 FCD-EFB 

)

Plaintiff, )

) STIPULATION AND ORDER

v. ) TO EXTEND STAY OF FURTHER

) PROCEEDINGS

APPROXIMATELY $79,784.78 IN MONEY )

ORDERS, )

)

APPROXIMATELY $193,250.00 IN U.S. )

CURRENCY, )

)

APPROXIMATELY $1,598.00 IN U.S. )

CURRENCY, AND )

)

MISCELLANEOUS SMOKELESS TOBACCO )

PRODUCTS, )

)

Defendants. ) )

Plaintiff United States of America and claimant LA Price King,

Inc., submit the following Stipulation To Extend Stay of Further

Proceedings and Order [Proposed] and request that the Court enter

an order extending the stay now in effect until August 12, 2011. 

The parties make this request for the following reasons: 

1. Pursuant to 18 U.S.C. §§ 981(g)(1), and 981(g)(2) the

parties seek a stay of further proceedings in this civil forfeiture

 1 Stipulation and Order to Extend Stay of Further 

of Further Proceedings 

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case. The United States contends that the defendant property

consisting of currency, money orders, and miscellaneous tobacco

products (collectively referred to as the "defendant assets") are

forfeitable to the United States because they are the proceeds of

mail and/or wire fraud, and/or are traceable to money laundering

offenses. The details of the underlying criminal investigation

involving claimant are set forth in detail in the affidavit of

Special Agent Trista K. Frederick, U.S. Department of Justice,

Bureau of Alcohol, Tobacco, Firearms, and Explosives, attached as

Exhibit A to the Complaint for Forfeiture In Rem filed on April 27,

2007.

2. The defendant property was seized from claimant LA Price

King’s business premises at 338 East 3rd Street, Los Angeles,

California, on October 17, 2006, during the execution of a search

warrant.

3. Varun Kumar, in his capacity as President of LA Price

King, Inc., submitted a claim to the defendant assets. The United

States intends to depose Kumar about various topics, including but

not limited to his knowledge of the operation of LA Price King and

other companies in the tobacco distribution business in the Los

Angeles area. Kumar will also be questioned about LA Price King’s

payment, or non-payment, of excise taxes due to the State of

California, Board of Equalization, in connection with the sale of

tobacco products. 

4. Anil Mahli was indicted on December 18, 2008, by a

federal grand jury in this district on charges relating to the

operation of LA Price King, including conspiracy to commit mail

fraud and mail fraud. That case is United States v. Salam S.

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Kalasho, Anil Mahli, and Pisces International, Inc., 2:08-CR-577

KJM. The indictment charges that Mahli was the de facto owner of

LA Price King, and was in charge of day-to-day operations at LA

Price King. To proceed with discovery in this case plaintiff would

need to depose Anil Mahli on the same topics described in the

previous paragraph. 

5. Counsel for claimant LA Price King has informed counsel

for the United States that if discovery proceeds, Kumar and the

principals of LA Price King, including defendant Anil Mahli, would

be placed in the difficult position of either invoking their Fifth

Amendment right against self-incrimination and losing the ability

to protect its interest in the defendant assets, or waiving their

Fifth Amendment rights and submitting to depositions and

potentially incriminating themselves in a related criminal

investigation. If Mahli or the other individuals the United States

believes are the true owners of LA Price King invoke the Fifth

Amendment, the United States will be deprived of the ability to

explore the factual basis for the claims LA Price King has filed

with this Court. 

6. In addition, claimant intends to depose federal law

enforcement officers involved in the investigation that led to the

issuance of the search warrant. Allowing depositions of the law

enforcement investigators involved in the criminal investigation

would adversely affect the ability of the U.S. Attorney's Office to

properly prosecute their case.

7. Accordingly, the parties recognize that proceeding with

this action at this time has potential adverse affects on the

related criminal prosecution and/or upon claimant’s ability to

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prove its claim that the defendant assets belongs to them, and that

they came from legitimate sources. However, the parties are

informed and believe that the criminal matter involving Mahli may

be resolved in the near future. The status conference in Mahli’s

criminal case has been continued again to May 12, 2011. For these

reasons, the parties jointly request that this matter be stayed

until August 12, 2011. At that time the parties will advise the

court of the status of the criminal prosecution and will, if

necessary, seek a further stay.

8. The parties to this stipulation reserve all claims and

defenses to this forfeiture. In particular, by agreeing to this

stay, the United States has not waived its right to challenge

claimant’s standing to contest the forfeiture of the defendant

assets. 

Dated: 5/3/11 BENJAMIN B. WAGNER 

United States Attorney

By /s/ Kelli L. Taylor 

KELLI L. TAYLOR

Assistant U.S. Attorney

Dated: 5/3/11 BENSINGER, RITT, TAI & THVEDT

By: /s/ Kerry R. Bensinger 

 KERRY R. BENSINGER

Attorneys for LA Price King, Inc.

(Original signature retained by 

attorney)

///

///

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ORDER

For the reasons set forth above, this matter is stayed

pursuant to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) until August 12,

2011. On or before August 12, 2011, the parties will advise the

court whether a further stay is necessary.

IT IS SO ORDERED.

Dated: May 4, 2011

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