Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-02176/USCOURTS-caed-2_05-cv-02176-0/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7401 IRS: Tax Liability

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McGREGOR W. SCOTT

United States Attorney

PAUL S. HAM

Trial Attorney, Tax Division

U.S. Department of Justice

P.O. Box 683

Ben Franklin Station

Washington, D.C. 20044-0683

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

Attorneys for the United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

MICHAEL CAREY; LEONE CAREY;

DOUGLAS CARPA and Robert Talbot (or their

successor trustees), as Trustees of the RANCH

HOLDING TRUST; MICHAEL BLOOMQUIST

(or his successor trustee), as Trustee of the

HIDDEN MEADOWS HOLDING TRUST;

PAMELA GRAFF; PATRICIA WELCH (aka

PATRICIA KOERNER); STATE OF

CALIFORNIA FRANCHISE TAX BOARD, and

STATE OF CALIFORNIA DEPARTMENT OF

INDUSTRIAL RELATIONS,

Defendants.

 

Civil No. CIV-S-05-2176 MCE/CMK 

UNITED STATES’ EX-PARTE

APPLICATION TO SERVE

ROBERT TALBOT, AS TRUSTEE

OF THE RANCH HOLDING

TRUST, BY PUBLICATION, and 

ORDER

 Plaintiff United States hereby moves this Court for an order permitting the United States to serve

Robert Talbot, as co-trustee of the Ranch Holding Trust, by publication under applicable law. In support

thereof, the United States states as follows: 

1. On October 27, 2005, the United States filed this action seeking to reduce certain federal

tax assessments made against defendants Michael and Leone Carey to judgment. See Docket, No. 1. 

Robert Talbot was named as a defendant because he and Douglas Carpa are the alleged trustees of the

Ranch Holding Trust, an entity which purports to hold title to certain real property located in Redding,

Case 2:05-cv-02176-MCE-CMK Document 8 Filed 12/16/05 Page 1 of 4
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California (“subject property”). See generally, United States’ Complaint. The United States asserts that

the Careys are the true and beneficial owners of the subject property despite any purported interest held

by the Ranch Holding Trust. Therefore, the United States asserts that its federal tax liens against the

Careys encumber the subject property and that it should be allowed to foreclose its tax liens to satisfy the

Careys’ outstanding federal tax liabilities, plus penalties and interest. Id.

2. The United States is attempting service of its Complaint upon all parties except for Robert

Talbot because his precise whereabouts are unknown. See Declaration of Paul S. Ham in Support of the

United States’ Ex-Parte Application (“Ham Decl.”), ¶¶ 4-5. Douglas Carpa, Robert Talbot’s co-trustee in

the Ranch Holding Trust, has been convicted of federal tax avoidance schemes related to the fraudulent

use of trusts. See, e.g., United States v. Carpa, 271 F.3d 962 (11th Cir. 2001); United States v. Sullivan,

2001 WL 273246 (10th Cir.); United States v. Marsh, 144 F.3d 1229 (9th Cir. 1998); Carpa v. United

States, 1993 WL 597491 (N.D. Okl.). The United States Tax Court has already adjudicated that the

Careys operated several sham trusts related to their residential care facility business. See United States’

Complaint, ¶¶ 25-27. Similarly, the United States asserts that the Ranch Holding Trust is a sham, created

solely in an attempt to hide and shelter the subject property from the Careys’ creditors, including the

United States.

3. Despite reasonable diligence, the United States has been unable to precisely locate Robert

Talbot. See Ham Decl., ¶¶ 4-5. Given the Careys’ fraudulent use of various trusts including the Ranch

Holding Trust, the United States asserts that continued efforts to locate Robert Talbot would not yield

any meaningful results. In fact, Robert Talbot could be a fictitious person wholly created by Douglas

Carpa, or by other persons, to further the Careys’ efforts to hide and shelter the subject property from the

reach of their creditors through the use of sham trusts. See Ham Decl., ¶¶ 6. Consequently, the United

States asserts that the only practical means of serving Robert Talbot (if such an individual actually

exists), as co-trustee of the Ranch Holding Trust, is by publication under applicable law.

4. Rule 4(e)(1) of the Federal Rules of Civil Procedure permits service of process to be made

“pursuant to the law of the state in which the district court is located.” California law permits that a

“summons may be served by publication if upon affidavit it appears to the satisfaction of the court in

which the action is pending that the party to be served cannot with reasonable diligence be served in

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28 Under Ca. Civ. Proc. § 415.50, service of a summons by publication is deemed complete as 1

provided in Section 6064 of the California Government Code. 

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another manner.” See Ca. Civ. Proc. § 415.50. Further, given good cause, Rule 4(m) of the Federal 1

Rules of Civil Procedure permits the court to extend the time for service for an appropriate period.

5. Under Section 6064 of the California Government Code, the notice must be published

once a week for four successive weeks. Rule 4(m) of the Federal Rules of Civil Procedure ordinarily

gives plaintiffs 120 days after the filing of a complaint to serve the named defendants. Therefore, the

United States requests an reasonable extension, until April 28, 2006, in which to complete service by

publication against Robert Talbot, as co-trustee of the Ranch Holding Trust.

6. A proposed Order is submitted herewith.

Dated this 13th day of December, 2005.

MCGREGOR W. SCOTT

United States Attorney

 /s/ - Paul Ham 

PAUL S. HAM

Trial Attorney, Tax Division

United States Department of Justice

P.O. Box 683, Ben Franklin Station

Washington, DC 20044-0683

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

Attorneys for the United States

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ORDER

Having considered the United States’ Ex-Parte Application to Serve Robert Talbot, as co-trustee

 of the Ranch Holding Trust, as good cause being shown, it is ORDERED that:

1. the United States has until April 28, 2006 to serve Robert Talbot, as co-trustee of the

Ranch Holding Trust, by publication, as provided under California law; and

2. that a copy of the Summons, Complaint and this Order will be mailed to Robert Talbot, as

co-trustee of the Ranch Holding Trust, in the event that his identity and address are ascertained before the

expiration of the time herein prescribed for publication.

Dated: December 15, 2005

___________________________________

MORRISON C. ENGLAND, JR

UNITED STATES DISTRICT JUDGE

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