Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_02-cv-00288/USCOURTS-caed-2_02-cv-00288-0/pdf.json

Nature of Suit Code: 690
Nature of Suit: Other Forfeiture and Penalty Suits
Cause of Action: 28:1341 Complaint for Forfeiture

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EX PARTE APPLICATION AND ORDER

AUTHORIZING TRUSTEE TO TURN OVER

ASSET TO THE U.S. MARSHALS

SERVICE

McGREGOR W. SCOTT

United States Attorney

KENDALL J. NEWMAN

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, California 95814

Telephone: (916) 554-2700

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) 2:02-CV-00288-DFL-DAD

)

Plaintiff, )

)

 v. )

)

ALL BENEFICIAL INTEREST IN A )

SECURED PROMISSORY NOTE )

DATED JULY 1, 1999, IN THE )

AMOUNT OF $5,500,000.00, )

SECURED BY DEED OF TRUST )

DATED MARCH 26, 1999, TO 38 )

UNPATENTED MINING CLAIMS IN )

SIERRA COUNTY, NEW MEXICO, )

)

Defendant. )

______________________________)

The United States of America hereby applies ex parte for an

order authorizing the Trustee to turn over the asset referred to as

All beneficial interest in a secured promissory note dated July 1,

1999, in the amount of $5,500,000.00, secured by deed of trust

dated march 26, 1999, to 38 unpatented mining claims in Sierra

County, New Mexico (hereinafter "the Asset") to the U.S. Marshals

Service to be disposed of according to law. This application is

based on the Court’s files and records in this action, the

declaration of Srinivasa Krishnan filed herein, and any argument

that the Court may entertain. 

Case 2:02-cv-00288-DFL-DAD Document 31 Filed 11/13/06 Page 1 of 4
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I.

PROCEDURAL BACKGROUND

This civil forfeiture action arises out of the same events as

those set forth in the Superseding Indictment filed in United

States v. Larry Wilcoxson, CR S-99-0359 DFL. The United States

initiated this civil forfeiture action against the Asset on

February 5, 2002. On August 14, 2002, an Order on Plaintiff’s Ex

Parte Application for Default Judgment and Final Judgment of

Forfeiture was filed forfeiting all right, title and interest in

the Asset to the United States. 

On August 16, 2002, Robb Evans was appointed as the Trustee to

receive, protect and liquidate the Asset. (Declaration of

Srinivasa Krishnan at ¶ 3.) To date, the Trustee has been unable

to liquidate the Asset and has been paying annual fees to the

Bureau of Land Management, the owner of the land. Id., at ¶¶ 8 -

10. 

The Trustee approached the United States Marshals Service

(“USMS”), with the consent of the United States Attorney’s Office,

to explore liquidation of the Asset with the assistance of the

USMS. Id., at ¶ 12. USMS has agreed to accept transfer of the

Asset, subject to approval from this Court, and to start efforts to

sell the Note and the Deed through sources known and avenues

available to the USMS. Id. The Trustee believes that the proposed

arrangement is cost-effective, would help facilitate closure of the

Trust sooner and will be in the best interests of the Wilcoxson

victims. Id., at ¶ 15. The United States agrees with the Trustee.

/// 

///

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II.

CONCLUSION 

For the forgoing reasons, the United States requests that the

Court grant its application and order authorizing the Trustee to

turn over the above-described Asset to the U.S. Marshals Service,

to be disposed of according to law.

DATED: 11/02/06 McGREGOR W. SCOTT

United States Attorney

/s/ Kendall J. Newman 

KENDALL J. NEWMAN

Assistant U.S. Attorney

ORDER

Substantially for the reasons given in the United States’

application, the Court has determined that it would be in the

interest of the Government, and in the public interest, to

authorize the transfer of the forfeited asset referred to as "All

beneficial interest in a secured promissory note dated July 1,

1999, in the amount of $5,500,000.00, secured by deed of trust

dated march 26, 1999, to 38 unpatented mining claims in Sierra

County, New Mexico", to the U.S. Marshals Service. Accordingly,

the Court makes the following orders:

1. Robb Evans, Trustee, shall transfer custody of the Asset

to the U.S. Marshals Service within thirty days of entry of this

order.

2. The U.S. Marshals Service shall take custody of and

control over the Asset, and shall dispose of the Asset

///

///

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according to law.

IT IS SO ORDERED.

DATED: November 9, 2006

/s/ David F. Levi 

 DAVID F. LEVI

United States District Judge

Case 2:02-cv-00288-DFL-DAD Document 31 Filed 11/13/06 Page 4 of 4