Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-00753/USCOURTS-cand-3_05-cv-00753-0/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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Stipulation for Stay and [proposed ] Order 1

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SCOTT A. SUGARMAN 

SUGARMAN & CANNON 

44 Montgomery Street, Suite 2080 

San Francisco, Ca. 94104 

Telephone: (415) 362-6252 

Facsimile: (415) 677-9445 

email: scottsugar@aol.com 

Attorneys for Claimant 

 NANSI MASIHI DANILOO 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

UNITED STATES OF AMERICA, 

 Plaintiff, 

 vs. 

1. 2004 LAMBORGHINI GALLARDO VIN 

ZHWGU11M34LA00860,

2. 2004 MERCEDES BENZ G55, VIN 

WDCYR46E84X147340,

3. 2004 MERCEDES BENZ S500, VIN 

WDBNG75J34425979,

4. 2005 FLEETWOOD STORM RV, VIN 

1F6NF53S240A05854,

5. $250,000 CASHIER’S CHECK, AND 

6. 8 ITEMS OF JEWELRY, 

 Defendants. 

___________________________________________

NANSI MASIHI DANILOO, 

 Claimant. 

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No.: C 05 0753 WHA 

JOINT STIPULATION TO STAY 

FORFEITURE PROCEEDINGS (18 

U.S.C. § 981(g)) AND [proposed] 

ORDER

Case 3:05-cv-00753-WHA Document 24 Filed 06/01/05 Page 1 of 5
Stipulation for Stay and [proposed ] Order 2

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 Claimant Nansi Masihi Daniloo, through counsel, hereby moves, with the agreement and 

stipulation of all other parties, to stay further proceedings in this forfeiture action pursuant to 18 

U.S.C. § 981(g)(2). Section 981(g)(2) provides that a court “shall” stay a civil forfeiture 

proceeding if: 

1) the claimant is the “subject of a related criminal investigation,” 

2) the claimant has standing to assert a claim in the forfeiture proceeding, and 

3) continuing the forfeiture proceedings “will burden the right of the claimant against selfincrimination in the related investigation or case”. 

 In the above-entitled action, the government has filed a Complaint for Forfeiture with 

regard to a number of items of personal property. All such property has been seized/arrested by 

the government and is in the custody and/or control of the government and/or its agents. Neither 

claimant has possession of any of the defendant property. 

 In brief, the government alleged in its Complaint that Tony Daniloo engaged in a scheme 

to defraud clients of several mortgage brokerage companies that he operated between 2000 and 

2004. The Complaint identified several employees of two escrow companies (First American 

Title Company [“First American”] and Fidelity National Title [“Fidelity”]) who may have 

participated in the alleged fraudulent schemes. The government further alleged that Tony Daniloo 

engaged in a scheme to defraud Ernestine Malone to whom he was a financial advisor. The 

government alleged that these fraudulent schemes cost the alleged victims a total of at least several 

million dollars. 

 The Complaint filed by the government did not allege that claimant Nansi Daniloo was an 

employee, principal, shareholder, or held some other manner position, with regard to the named 

mortgage brokerage companies or escrow companies. 

 The government further alleged that Daniloo purchased the defendant vehicles, jewelry and 

cashier check from accounts controlled by Daniloo into which funds from the alleged frauds were 

deposited.

Case 3:05-cv-00753-WHA Document 24 Filed 06/01/05 Page 2 of 5
Stipulation for Stay and [proposed ] Order 3

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 Claimant First American filed a timely Claim and Answer. In brief, First American 

contended in its Claim and Answer that it serves has an escrow agent and title insurer. First 

American contended that between May 2004 and December 2004 Tony Daniloo and his company, 

Dreamlife Investments, Inc. dba Dreamlife Financial defrauded First American and mutual clients 

of some 4.5 millions dollars through false representations and forged documents that induced First 

American to pay to Tony Daniloo money that should have rightfully been paid to others.

 First American further alleged that it filed suit in Stanislaus County (California) Superior 

Court in December 2004 against Tony Daniloo and others to recoup its damages. First American 

asserted that it obtained a default judgment against Tony Daniloo on April 15, 2004 in the amount 

of $4,000,000, and further obtained a judgment from that court imposing a constructive trust on 

most, but not all, of the items of defendant property that are the subject of this forfeiture action. 

 Claimant Nansi Masihi Daniloo is the wife of Tony Daniloo. She filed a timely Claim in 

this proceeding claiming an interest in the defendant personal property. The government granted 

her an extension of time to file an Answer, but no Answer has yet been filed. 

 Tony Daniloo and claimant Nansi Daniloo are presently charged with diverse fraud and 

theft offenses in the Alameda County (California) Superior Court (No. 379851-7). The 

Complaint, filed in February 2005, contains 43 counts. Tony Daniloo is named as a defendant in 

all but one of those charges; he is the sole defendant in 39 of those charges. Nansi Daniloo is 

named as a codefendant with Tony Daniloo in 4 of the counts, and is named as the sole defendant 

in 1 count. The District Attorney has alleged that some of the crimes alleged in that Complaint 

may have commenced as early as January 1, 1998 and that some offenses may have continued up 

to and including December 31, 2002. 

 Each defendant is represented by separate counsel in that state criminal proceeding. 

Undersigned counsel for Nansi Daniloo is not her attorney in that action. Undersigned counsel 

understands that the parties in that action are engaged in reviewing extensive discovery and that 

pretrial motions are pending. No trial date has been set. 

Case 3:05-cv-00753-WHA Document 24 Filed 06/01/05 Page 3 of 5
Stipulation for Stay and [proposed ] Order 4

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 The government has represented that the United States Attorney’s Office for the Northern 

District of California is currently conducting a criminal investigation into the conduct underlying 

the pending criminal charges in Alameda County and the Complaint for Forfeiture in the aboveentitled action, as well as other suspected or alleged misconduct by Tony Daniloo and others. 

That investigation may result in the filing of criminal charges in this Court against Tony Daniloo, 

Nansi Daniloo and/or other individuals. 

 To file an Answer in this civil forfeiture proceeding, Claimant Nansi Daniloo would have 

to respond to allegations about alleged criminal conduct that either the prosecution in the pending 

Alameda County proceedings, or the government in the pending criminal investigation, may use to 

prosecute her and/or to discover evidence that may be used against her. Hence, Claimant Nansi 

Daniloo contends, and counsel for the other parties stipulate, that further proceedings in this action 

will burden her privilege against self-incrimination as provided in section 981(g)(2). 

 The parties therefore STIPULATE that the conditions in 18 U.S.C. § 981(g)(2) being met, 

proceedings in this civil forfeiture action should be stayed. 

 Counsel for the parties agree to continue to communicate cooperatively and to provide 

information, records and documents that may facilitate a resolution of this matter. 

 Counsel for all parties request that the Case Management Conference scheduled for June 9, 

2005 be vacated. 

 Counsel for all parties suggest that they submit a written status report to this Court in 120 

days on the status of the pending criminal action and criminal investigation, and any other progress 

with regard to this forfeiture action. 

DATE ______ /s__________________________

 Scott A. Sugarman 

 Attorney for Claimant Nansi Daniloo 

DATE: _______/s__________________________

 Thomas M. Swett 

 Attorney for Claimant First American 

Case 3:05-cv-00753-WHA Document 24 Filed 06/01/05 Page 4 of 5
Stipulation for Stay and [proposed ] Order 5

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DATE: ______/s________________________

 Stephanie M. Hines 

 Assistant United States Attorney 

 GOOD CAUSE APPEARING, and upon stipulation of the parties, all proceedings in this 

forfeiture action are STAYED pursuant to 18 U.S.C. § 981(g) (2). The Case Management 

Conference scheduled for June 9, 2005 is hereby vacated. 

 The parties are directed to submit a written joint status report to this court in 120 days from 

the date of this Order describing the status of any related pending criminal investigation and/or 

proceedings.

DATED: ____________________________

 WILLIAM ALSUP 

 UNITED STATES DISTRICT JUDGE 

by September 29, 2005

The parties shall also appear for a case management 

conference on October 13, 2005 at 11:00 a.m.

June 1, 2005

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge William Alsup

Case 3:05-cv-00753-WHA Document 24 Filed 06/01/05 Page 5 of 5