Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_18-cv-00777/USCOURTS-caed-2_18-cv-00777-1/pdf.json

Nature of Suit Code: 625
Nature of Suit: Drug Related Seizure of Property
Cause of Action: 21:881 Forfeiture Property-Drugs

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Stipulation to Stay Further Proceedings and Order

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IN THE UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

UNITED STATES OF AMERICA, 

 Plaintiff, 

 v. 

REAL PROPERTY LOCATED AT 7320 

DEL CORONADO WAY, 

SACRAMENTO, CALIFORNIA, 

SACRAMENTO COUNTY, APN: 051-

0361-005-0000, INCLUDING ALL 

APPURTENANCES AND 

IMPROVEMENTS THERETO, 

REAL PROPERTY LOCATED AT 7701 

MANET PARKWAY, SACRAMENTO, 

CALIFORNIA, SACRAMENTO 

COUNTY, APN: 050-0223-010-0000, 

INCLUDING ALL APPURTENANCES 

AND IMPROVEMENTS THERETO, 

REAL PROPERTY LOCATED AT 7701 

VALLECITOS WAY, SACRAMENTO, 

CALIFORNIA, SACRAMENTO 

COUNTY, APN: 040-0081-001-0000, 

INCLUDING ALL APPURTENANCES 

AND IMPROVEMENTS THERETO, 

REAL PROPERTY LOCATED AT 7109 

18TH STREET, RIO LINDA, 

CALIFORNIA, SACRAMENTO 

COUNTY, APN: 207-0170-079-0000 

INCLUDING ALL APPURTENANCES 

AND IMPROVEMENTS THERETO, and 

 2:18−CV−00777−KJM−CKD 

STIPULATION TO STAY FURTHER 

PROCEEDINGS AND ORDER

McGREGOR W. SCOTT 

United States Attorney 

KEVIN C. KHASIGIAN 

Assistant U. S. Attorney 

501 I Street, Suite 10-100 

Sacramento, CA 95814 

Telephone: (916) 554-2700 

Attorneys for the United States 

Case 2:18-cv-00777-KJM-CKD Document 30 Filed 08/07/18 Page 1 of 4
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Stipulation to Stay Further Proceedings and Order

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REAL PROPERTY LOCATED AT 8333 

KAMELIA COURT, ELK GROVE, 

CALIFORNIA, SACRAMENTO 

COUNTY, APN: 115-1840-053-0000, 

INCLUDING ALL APPURTENANCES 

AND IMPROVEMENTS THERETO 

 

 Defendants. 

 The United States and Claimants Wen X. Zhang, Wen Hui Lin, Mei Quan Yang, MX 

International Trading, LLC, Hai Yan Chen, PS Funding, Inc., and Bruce Fonarow hereby stipulate that a 

stay is necessary in the above-entitled action and request that the Court enter an order staying all further 

proceedings until the resolution of the related criminal cases, United States v. Leonard Yang, et al., Case 

2:16-CR-00189-KJM and United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM. 

1. This is a forfeiture in rem action against five properties pursuant to 21 U.S.C. § 881(a)(7) 

because they were allegedly used to commit or facilitate violations of federal drug laws: 

a. Real Property located at 7320 Del Coronado Way, Sacramento, California, the “Defendant Del Coronado Way.” Wen X. Zhang has filed a claim asserting an ownership 

interest in defendant Del Coronado Way. 

b. Real Property located at 7701 Manet Parkway, Sacramento, California, the “Defendant Manet Parkway.” Wen Hui Lin has filed a claim asserting an ownership 

interest in defendant Manet Parkway. PS Funding, Inc. filed a claim asserting a lienholder 

interest in defendant Manet Parkway. 

c. Real Property located at 7701 Vallecitos Way, Sacramento, California, the “Defendant Vallecitos Way.” Mei Quan Yang has filed a claim asserting an ownership 

interest in defendant Vallecitos Way. 

d. Real Property located at 7109 18th Street, Rio Linda, California, the “Defendant 

18th Street.” MX International Trading, LLC has filed a claim asserting an ownership 

interest in defendant 18th Street. Bruce Fonarow filed a claim asserting a lienholder 

interest in defendant 18th Street. 

e. Real Property located at 8333 Kamelia Court, Elk Grove, California, the “Defendant Kamelia Court.” Hai Yan Chen has filed a claim asserting an ownership 

interest in defendant Kamelia Court. 

2. The stay is requested pursuant to 18 U.S.C. §§ 981(g)(1), 981(g)(2), and 21 U.S.C. § 

881(i). The United States contends that the defendant properties were used and intended to be used to 

commit or facilitate violations of federal drug laws in violation of 21 U.S.C. §§ 841 et seq. Claimants 

deny these allegations. 

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Stipulation to Stay Further Proceedings and Order

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3. To date, several individuals have been charged with federal crimes related to marijuana 

manufacturing and distribution in United States v. Leonard Yang, et al., Case 2:16-CR-00189-KJM and 

United States v. Xiu Ping Li, et al., Case No. 2:17-CR-00136-KJM. It is the United States’ position that 

the statute of limitations has not expired on potential criminal charges relating to the drug trafficking 

involving the defendant properties. Nevertheless, the United States intends to depose claimants (and 

others) regarding their ownership of the defendant properties, as well as their knowledge and 

participation in large scale marijuana cultivation, including the marijuana grow at the defendant 

properties, as well as the circumstances behind the purchase of the properties. If discovery proceeds at 

this time, claimants will be placed in the difficult position of either invoking their Fifth Amendment 

rights against self-incrimination and losing the ability to pursue their claims to the defendant properties, 

or waiving their Fifth Amendment rights and submitting to a deposition and potentially incriminating 

themselves. If they invoke their Fifth Amendment rights, the United States will be deprived of the ability 

to explore the factual basis for the claims they filed with this court. 

 4. In addition, claimants intend to depose, among others, the agents involved with this 

investigation, including but not limited to, the agents with the Department of Homeland Security, 

Homeland Security Investigations (“HSI”). Allowing depositions of the law enforcement officers at this 

time would adversely impact the federal prosecution and ongoing investigation. 

 5. The parties recognize that proceeding with these actions at this time has potential adverse 

effects on the investigation of the underlying criminal conduct and/or upon the claimant’s ability to assert 

any defenses to forfeiture. For these reasons, the parties jointly request that these matters be stayed until 

the conclusion of the related criminal cases. At that time the parties will advise the court of the status of 

the criminal investigation, if any, and will advise the court whether a further stay is necessary. 

6. If any of the defendant properties go into default, the parties reserve the right to seek all 

avenues of redress to preserve the real properties, including filing a motion for interlocutory sale or 

seeking a receiver appointment to collect rents and maintain the properties. 

/// 

/// 

/// 

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Stipulation to Stay Further Proceedings and Order

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Dated: 8/1/2018 McGREGOR W. SCOTT 

United States Attorney 

 By: /s/ Kevin C. Khasigian 

 KEVIN C. KHASIGIAN 

 Assistant U.S. Attorney 

Dated: 7/31/2018 /s/ Candice Fields 

 CANDICE FIELDS 

 Attorney for Claimant Wen X. Zhang 

Dated: 7/31/2018 /s/ Linda Parisi 

 LINDA PARISI 

 Attorney for Claimant Wen Hui Lin 

Dated: 7/31/2018 /s/ Eric R. Olah 

 ERIC R. OLAH 

 Attorney for Claimant PS Funding, Inc. 

Dated: 7/27/2018 /s/ Ernest Chen 

 ERNEST CHEN 

 Attorney for Claimant Mei Quan Yang, Hei Yan 

 Chen and MX International Trading, LLC 

Dated: 7/30/2018 /s/ Douglas R. Schwartz 

 DOUGLAS R. SCHWARTZ 

 Attorney for Claimant Bruce Fonarow 

ORDER 

 For the reasons set forth above, this matter is stayed under 18 U.S.C. §§ 981(g)(1), 981(g)(2) and 

21 U.S.C. § 881(i) until the resolution of companion criminal cases. The parties shall file a joint status 

report within 30 days of the conclusion of the parallel criminal cases, or as the court deems appropriate. 

 IT IS SO ORDERED. 

DATED: August 6, 2018. 

Case 2:18-cv-00777-KJM-CKD Document 30 Filed 08/07/18 Page 4 of 4