Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_19-cv-00247/USCOURTS-caed-2_19-cv-00247-9/pdf.json

Nature of Suit Code: 690
Nature of Suit: Other Forfeiture and Penalty Suits
Cause of Action: 21:881 Forfeiture Property - Real Estate

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United States’ Request to Extend the Deadline to 

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IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

REAL PROPERTY LOCATED AT 725 MAIN 

STREET, MARTINEZ, CALIFORNIA, 

CONTRA COSTA COUNTY, APN: 373-192- 007-4, INCLUDING ALL APPURTENANCES 

AND IMPROVEMENTS THERETO, et al., 

Defendants.

2:19-CV-00247-JAM-DB

UNITED STATES’ REQUEST TO 

EXTEND THE DEADLINE TO 

SUBMIT A JOINT STATUS REPORT 

FROM JANUARY 9, 2020 TO MARCH 

11, 2020

The United States submits the following Request to Extend the Deadline to file a Joint Status 

Report from January 9, 2020 to March 11, 2020. 

Introduction

On February 8, 2019, the United States filed a forfeiture complaint in rem against twenty-five

real properties (“In Rem Defendants”) connected to fraud and money laundering crimes in the Eastern 

District of California and other areas. All known potential claimants to the In Rem Defendants were 

served in a manner consistent with Dusenbery v. United States, 534 U.S. 161, 168 (2002) and the 

applicable statutory authority. Furthermore, public notice on the official internet government forfeiture 

site, www.forfeiture.gov, began on February 26, 2019, and ran for thirty consecutive days, as required 

by Rule G(4)(a)(iv)(C) of Supplemental Rules for Forfeiture Actions. See Dkt. 4. A Declaration of 

Publication was filed on April 11, 2019, which set forth, among other items, that publication on the 

McGREGOR W. SCOTT

United States Attorney

ANDRE M. ESPINOSA

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 2:19-cv-00247-DAD-DB Document 73 Filed 01/09/20 Page 1 of 5
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government’s forfeiture website was complete on March 27, 2019. Dkt 36. Additionally, the United 

States has posted copies of the complaint on many of the properties and filed the restraint of a lis 

pendens against each of the In Rem Defendants. See Dkt. 5-35. 

This case is related to four other cases filed in the Eastern District of California: two civil cases, 

United States v. 5383 Stonehurst Drive, Martinez, California, et al., Case 2:19-cv-00636-JAM-DB and 

United States v. Approximately $6,567,897.50 Seized From CTBC Bank, Account Number 3800191916, 

et al., Case 2:19-cv-00485-JAM-DB; and two recently filed criminal cases, United States v. Ronald 

Roach, et al., 2:19-cr-00182-JAM and United States v. Robert Karmann, 2:19-cr-00222-JAM. A notice 

of related case was also filed this week in another criminal case involving the DC Solar fraud, United 

States v. Ryan Guidry, 2:20-cr-00003-KJM.

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The United States has also lodged the complaint on the bankruptcy docket for DC Solar’s parent 

company, In re Double Jump Inc., Case 19-bk-50102, a bankruptcy case filed in Reno, Nevada after the 

United States executed federal search and seizure warrants at DC Solar’s business and other locations in 

California associated with the company and its founders. The United States and the Chapter 7 Trustees 

for the entities related to DC Solar and its principals have since entered a Coordination Agreement 

concerning the In Rem Defendants and other assets connected to DC Solar and its principals. An order 

approving the Coordination Agreement was entered in late November 2019, resulting in the dismissal of

six In Rem Defendants from this case.2 See Dkt. 59-60.

Good Cause

The United States has provided notice to all potential claimants pursuant to law. Specifically, 

the defendant properties are collectively owned by five California LLCs, Dora Dog Properties, LLC, 

Dog Blue Properties, LLC, Brandy Boy Properties, LLC, 140 Mason Circle, LLC, and Park Road, LLC. 

The government served copies of the complaint documents on the above LLCs through their registered 

agent for service of process, as listed on the California Secretary of State’s website. Further, the 

 1 The Securities and Exchange Commission (“SEC”) has filed a notice of related cases to relate this case (and others) with 

their civil enforcement against criminal defendants Ronald Roach and Joe Bayliss, SEC v. Bayliss, et al., Case No. 2:19-CV2140-MCE-AC.

2 Accordingly, there are presently nineteen In Rem Defendants in this case. See Dkt. 59-60. Under the Coordination 

Agreement, Chapter 7 Trustees have agreed not to file claims to these In Rem Defendants. 

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government served copies of the complaint on the principals of each respective LLC, Jeffrey and 

Paulette Carpoff. Lastly, the government has provided notice of this action to the lienholders who are 

identified on chain-of-title documents and may have a security interest in the defendant properties.

Several parties have so far appeared in the case. First, the only parties to assert an ownership

interest, Jeff and Paulette Carpoff, filed claims as to each property, but have since agreed to forfeit their 

interests and signed stipulations for final judgments of forfeiture. See Dkt. 42-3. Second, two banks 

(CTBC and Heritage Bank) filed claims concerning outstanding loans as relates to two In Rem

Defendants (4901 Park Road [CTBC] and 140 Mason Circle [Heritage Bank]) currently being sold by 

the U.S. Marshals Service, as discussed below. Dkt. 39, 43. Third, AMAC Construction filed a claim 

associated with labor/materials supplied in connection with improvements at three In Rem Defendants. 

Dkt. 48. Fourth, Cemcon, Inc. and Legacy Framers, Inc. filed claims associated with labor/materials 

supplied in connection with improvements at In Rem Defendants located in El Sobrante, California. 

Dkt. 53-54. Lastly, a few days ago, a Tahoe-based Homeowners Association filed a claim and answer to 

collect unpaid HOA fees connected to the two cabins located in South Lake Tahoe. Dkt. 69-70.

No other claimant has filed an answer. No other party has filed an answer in this case. 

However, based on the claimants’ requests for additional time to review the allegations—in the civil 

complaint as well as the four recently filed criminal informations and plea agreements—and potential 

privilege issues and other defenses, and given the lengthy facts and complicated issues in this case, the 

United States has agreed to their requests for more time. The answers are currently due on January 15, 

2020. As discussed below, the United States anticipates the two banks (CTBC and Heritage Bank) will 

withdraw their claims given their loans will be paid off when the escrows are finalized. 

Furthermore, several potential tax equity investor-victims and those associated with the 

transactions have requested extensions of time to file claims in this case. For similar reasons underlying 

the agreement to extend the time to file answers, the United States granted each request for an extension 

and those entities currently have until January 15, 2020 to file a claim.

To allow the above individuals, entities and investors sufficient time to file a claim, and the 

claimants to file their answers, the United States seeks to continue the deadline to file a Joint Status 

Report from January 9, 2020 to March 11, 2020, or to a date the Court deems appropriate.

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U.S. Marshalls Efforts to Manage and Sell In Rem Defendants 

4901 Park Road and 140 Mason Circle 

As explained in the United States’ application for a restraining order, 4901 Park Road and 140 

Mason Circle were purchased using a combination of alleged fraud proceeds and millions of dollars in 

bank loans, which went into default following the search warrants at DC Solar. To preserve the 

availability equity, the Court ordered the U.S. Marshals to maintain and sell each property, and the U.S. 

Marshals started those efforts in May 2019.

The U.S. Marshals secured each property, changed the locks and alarm codes, entered occupancy 

agreements with existing tenants, and taken other actions to ensure the properties are safe and properly 

monitored by professional custodians. The U.S. Marshals obtained appraisals and title reports for each 

property and engaged an experienced commercial broker to market and sell the properties. As to 4901 

Park Road, several offers were submitted and the strongest offer was accepted after a subsequent “best 

and final” round. That buyer ultimately pulled out of the transaction and the backup offer was accepted. 

The 4901 Park Road property recently sold for approximately $12,500,000. As to 140 Mason Circle, a 

“best and final” offer was accepted in August 2019 and the transaction closed in December 2019 for 

approx. $5,000,000. Thus, the efforts of the U.S. Marshals have achieved total sales of $17,500,000, a 

figure exceeding the appraised values. 

Dated: 1/8/2020 McGREGOR W. SCOTT

United States Attorney

/s/ Kevin C. Khasigian

ANDRE M. ESPINOSA

KEVIN C. KHASIGIAN

Assistant U.S. Attorney

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ORDER

Pursuant to the United States’ request and good cause appearing, the Court makes the following 

order:

The deadline to file a Joint Status Report is extended from January 9, 2020 to March 11, 2020. 

IT IS SO ORDERED.

Dated: 1/8/2020 /s/ John A. Mendez___________

JOHN A. MENDEZ

United States District Court Judge

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