Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_06-cv-00419/USCOURTS-caed-1_06-cv-00419-1/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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McGREGOR W. SCOTT

United States Attorney

KAREN A. ESCOBAR

Assistant U.S. Attorney

Federal Courthouse, Suite 4401

2500 Tulare Street

Fresno, California 93721

Telephone: (559) 497-4000

IN THE UNITED STATES DISTRICT COURT FOR THE 

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

REAL PROPERTY LOCATED AT 8500

SIMMERLY RD., COVELO,

MENDOCINO COUNTY, CALIFORNIA,

APNs: 033-030-04-00, 033-040-33-00,

032-226-03-00, 032-226-04-00, 032-226-

05-00, INCLUDING ALL

APPURTENANCES AND

IMPROVEMENTS THERETO,

Defendant.

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1:06-CV-00419-OWW-DLB

STIPULATION AND ORDER

RE: INTERLOCUTORY SALE OF 

DEFENDANT REAL PROPERTY

Plaintiff United States of America, claimant Benjamin Jeffrey Lomax, and potential

claimants Adrian Vasquez and Rebecca Giauque, individually, and as Conservator of the Estate of

Chris Giauque, hereby agree and STIPULATE as follows:

1. This is a civil forfeiture action of certain real property listed in the caption above, and

more particularly described in Exhibit A attached hereto.

2. A Complaint for Forfeiture In Rem was filed on April 12, 2006, seeking the forfeiture of

the defendant real property, alleging that the property is subject to forfeiture to the United States of

America pursuant to 21 U.S.C. § 881(a)(7).

3. Prior to institution of this action, Benjamin Jeffrey Lomax, Adrian Vasquez and Rebecca

Giauque had entered into a written Purchase Agreement for the sale of the defendant real property,

Case 1:06-cv-00419-OWW -DLB Document 13 Filed 06/02/06 Page 1 of 8
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Valid liens are to include a Deed of Trust recorded August 21, 1995 as Book 2272, Page 1

649 for the benefit of Robert H. Lynch, beneficiary, to secure a note in the original amount of

$154,000.00 and a Deed of Trust recorded February 12, 2001 as 2001-02426 for the benefit of Leo

Schmidt, a single man, beneficiary, to secure a note in the original amount of $48,000.00.

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and placed the subject real property on the market for sale with Four Star Realty. On or about

February 16, 2006, Benjamin Jeffrey Lomax, Adrian Vasquez and Rebecca Giauque accepted a

sales offer in the amount of $525,000 on the subject real property. Escrow was estimated to close

the week of April 24, 2006, but for the Plaintiff’s recorded lis pendens in this action. The buyers of

the real property are Frank Bushman and Tony Gozzarino.

4. The parties to this stipulation agree that the sale shall be allowed to proceed upon written

approval by the United States of the terms of the sale. The proceeds therefrom, after payment of any

valid liens, real property taxes, real estate commissions, costs for title insurance policies, county 1

transfer taxes, loan fees, points, or other reasonable costs, as may be provided in the sale’s

agreement, shall be paid to the United States, by cashier’s check payable to the U.S. Marshals

Service. The original Installment Note and Deed of Trust in the amount of $125,000.00 held by

Rebecca Giauque, individually, and as Conservator of the Estate of Chris Giauque, shall be

deposited with the U.S. Marshals Service. The buyers of the defendant real property shall make the

payments described in the Installment Note to the U.S. Marshals Service according to the terms

described in the Installment Note. The original Installment Note and Deed of Trust in the amount

of $100,000.00 held by Benjamin Jeffrey Lomax and Adrian Vasquez shall be deposited with the

U.S. Marshals Service. The buyers of the defendant real property shall make the payments

described in the Installment Note to the U.S. Marshals Service according to the terms described in

the Installment Note. The proceeds to be paid to the U.S. Marshals Service out of escrow include

the total net proceeds that would have been paid out of escrow to the sellers.

5. Any payments under the terms of this Stipulation, including payments of the net proceeds

from the sale, the two Installment Notes and payments on the Notes shall me mailed to the U.S.

Attorney’s Office, Att: Asset Forfeiture Unit, 501 I Street, Suite 10-100, Sacramento, CA 95814. 

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The net proceeds from the sale, the two Installment Notes and the payments on the Notes shall be

held in the care, custody and control of the U.S. Marshals Service, pending further order of this

Court, and shall be substituted for the defendant real property.

6. This Stipulation and Order is entered into solely for the purpose of creating a substitute

res in the underlying action. It shall not affect any of the parties’ rights and remedies available to

them or that existed prior to the execution of this Stipulation and Order, and any rights and defenses

available to any party under federal civil forfeiture law. 

7. The United States, Benjamin Jeffrey Lomax, Adrian Vasquez and Rebecca Giauque,

individually, and as Conservator of the Estate of Chris Giauque, each agree to execute all

documents necessary to close escrow and pass clear title to the buyers.

8. Execution of this stipulation does not relieve Benjamin Jeffrey Lomax, Adrian Vasquez

and Rebecca Giauque, individually, and as Conservator of the Estate of Chris Giauque, of their

requirement to file a timely statement of interest and answer in this civil forfeiture action in

accordance with Rule C(6) of the Supplemental Rules for Certain Admiralty and Maritime Claims,

Federal Rules of Civil Procedure.

9. Claimant and potential claimants agree that they will retain custody, control and

responsibility for the defendant real property until the interlocutory sale has been completed. 

Claimant and potential claimants further agree that they will retain existing insurance on the

defendant real property and shall maintain the defendant real property in the same condition and

repair as existed as of the date of the recording of the lis pendens, normal wear and tear excepted,

until the interlocutory sale has been completed. The term "maintain" shall include, but is not limited

to, keeping the property free of hazard and structural defects; keeping all heating, air conditioning,

plumbing, electrical, gas, oil, or other power facilities in good working condition and repair; keeping

the property clean and performing such necessary sanitation and waste removal; keeping the

property in good condition by providing for lawn and yard maintenance; and other ordinary and

necessary items of routine maintenance.

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10. The parties hereby acknowledge that they obtained or declined to obtain the advice of

counsel prior to executing this stipulation, and that they are entering into this stipulation knowingly

and voluntarily.

11. The buyers consent to the exercise of the Court’s jurisdiction over them in the event it is

necessary to enforce any term of this stipulation.

DATED: 5/24/06 McGREGOR W. SCOTT

United States Attorney

/s/ Stephanie Hamilton Borchers for 

KAREN A. ESCOBAR

Assistant U.S. Attorney

DATED: May 19/06 /s/ Rebecca Giaugue 

REBECCA GIAUQUE

Potential Claimant

 ACKNOWLEDGMENT

State of California )

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County of Humboldt )

On 5/19/2006 before me, Susan R. May , personally appeared 

Rebecca Giauque , personally known to me (or proved to me on the basis of satisfactory

evidence) to be the person whose name is subscribed to this instrument and acknowledged to me that

she executed the same in her authorized capacity, and that by her signature on the instrument the

person, or the entity upon behalf of which the person acted, executed the instrument.

SUSAN R. MAY WITNESS my hand and official seal.

COMM. #1444510

NOTARY PUBLIC-CALIFORNIA /s/ Susan R. May 

HUMBOLDT COUNTY SIGNATURE

My Comm. Expires Nov. 5, 2007

DATED: 5-17-06 /s/ David Michael 

DAVID MICHAEL

Attorney for Potential Claimant Rebecca

Giauque, individually, and as Conservator of

the Estate of Chris Giauque

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DATED: 5-22-06 /s/ Benjamin Jeffrey Lomax 

BENJAMIN JEFFREY LOMAX

Claimant

 ACKNOWLEDGMENT

State of California )

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County of Mendocino )

On 5-22-06 before me, D. Dwain Preston, Notary Public, personally appeared 

Benjamin Jeffrey Lomax , personally known to me (or proved to me on the basis of

satisfactory evidence) to be the person whose name is subscribed to this instrument and

acknowledged to me that he executed the same in his authorized capacity, and that by his signature

on the instrument the person, or the entity upon behalf of which the person acted, executed the

instrument.

D. DWAIN PRESTON, II WITNESS my hand and official seal.

COMM. #1447205

NOTARY PUBLIC-CALIFORNIA /s/ D. Dwain Preston 

MENDOCINO COUNTY SIGNATURE

My Comm. Expires Oct. 25, 2007

DATED: 5/24/06 /s/ Ean Vizzi 

EAN VIZZI

Attorney for Claimant Benjamin Jeffrey

Lomax

DATED: 5/24/06 /s/ Ean Vizzi 

EAN VIZZI

Attorney for Potential Claimant Adrian

Vasquez

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DATED: 5/22/06 /s/ Adrian Vasquez 

ADRIAN VASQUEZ

Potential Claimant

 ACKNOWLEDGMENT

State of California )

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County of Humboldt )

On May 22, 2006 before me, Jody Rundel , personally appeared 

Adrian Vasquez , personally known to me (or proved to me on the basis of satisfactory

evidence) to be the person whose name is subscribed to this instrument and acknowledged to me that

he executed the same in his authorized capacity, and that by his signature on the instrument the

person, or the entity upon behalf of which the person acted, executed the instrument.

JODY RUNDEL WITNESS my hand and official seal.

Comm. # 1379811

NOTARY PUBLIC-CALIFORNIA /s/ Jody Rundel 

Humboldt County SIGNATURE

My Comm. Expires Oct. 13, 2006

We have reviewed the foregoing Stipulation Re: Interlocutory Sale of Defendant Real

Property and have no objection to entry of an Order in accordance with it.

DATED: 5-15-06 /s/ Frank Bushman 

FRANK BUSHMAN

Buyer of Real Property

DATED: 5-15-06 /s/ Tony Gozzarino 

TONY GOZZARINO

Buyer of Real Property

(Original signatures retained by attorney)

ORDER

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IT IS SO ORDERED.

DATED: May 31, 2006 /s/ OLIVER W. WANGER 

OLIVER W. WANGER

United States District Judge

EXHIBIT A

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Real Property in the unincorporated area of the County of Mendocino, State of California, described

as follows:

TRACT ONE:

The West half of Lot 8 of Section 3, Township 22 North, Range 14 West, Mount Diablo Meridian.

APN: 033-030-04

TRACT TWO:

Lots 3, 5, and 6 of Section 4, Township 22 North, Range 14 West, Mount Diablo Meridian.

APN: 033-040-33

TRACT THREE:

The Northeast quarter of the Northwest quarter, the South half of the Northwest quarter, the North

half of the Southwest quarter, the Southeast quarter of the Southwest quarter and the Northwest

quarter of the Southeast quarter of Section 33, Township 23 North, Range 14 West, Mount Diablo

Meridian.

Excepting therefrom the following:

Commencing at the center of Section 33, Township 23 North, Range 14 West, Mount Diablo

Meridian, and running thence East 400 feet; thence South 35 feet to the point of beginning of this

description; thence on the exterior boundaries of the parcel of land to be described, South 700 feet;

thence East 250 feet; then North 700 feet; thence West 250 feet to the point of beginning. Being a

portion of the Northwest quarter of the Southeast quarter of Section 33, Township 23 North, Range

14 West, Mount Diablo Meridian.

APN: 032-226-03,04

TRACT FOUR:

That portion of Section 33, Township 23 North, Range 14 West, Mount Diablo Base and Meridian.

Commencing at the center of Section 33, Township 23 North, Range 14 West, Mount Diablo

Meridian, and running thence East 400 feet; thence South 35 feet to the point of beginning of this

description; thence on the exterior boundaries of the parcel of land to be described, South 700 feet;

thence East 250 feet; thence North 700 feet; thence West 250 feet to the point of beginning. Being a

portion of the Northwest quarter of the Southeast quarter of Section 33, Township 23 North, Range

14 West, Mount Diablo Meridian.

APN: 32-226-05

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