Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-04412/USCOURTS-cand-3_05-cv-04412-8/pdf.json

Nature of Suit Code: 690
Nature of Suit: Other Forfeiture and Penalty Suits
Cause of Action: 28:1345 Recovery of Erroneous Refund

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JOSEPH P. RUSSONIELLO (CSBN 44332)

United States Attorney

BRIAN J. STRETCH (CSBN 163973) 

Acting Chief, Criminal Division

STEPHANIE M. HINDS (CSBN 154284)

Assistant United States Attorney

450 Golden Gate Avenue, Box 36055

San Francisco, CA 94102

Telephone: 415.436.6816

Facsimile: 415.436.6748

Email: stephanie.hinds@usdoj.gov

Attorneys for the United States of America

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

UNITED STATES OF AMERICA, 

Plaintiff,

v.

$2,526.70 FROM CITIBANK ACCOUNT NO. 

40017922317; $31,502.09 FROM CITIBANK

ACCOUNT NO. 40017922234; $5,086.46 FROM

CITIBANK NO. 50439595; $31,502.09 FROM

CITIBANK ACCOUNT NO. 40017922259; $5,175.11

FROM CITIBANK ACCOUNT NO. 50439637;

$31,502.90 FROM CITIBANK ACCOUNT NO.

40017922275; $4,662.74 FROM CITIBANK

ACCOUNT NO. 50439611; $17,296.00 FROM

CITIBANK ACCOUNT NO. 40017742160; AND

$2,749.25 FROM CITIBANK ACCOUNT NO.

50439579, 

 

Defendants.

 

ANNA WONG AND NANCY QUAN, 

Claimants. 

 

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CV 04-0933 WBS

(CORRECTED)

SETTLEMENT STIPULATION AND

[PROPOSED] ORDER

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 1 of 10
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SETTLEMENT STIPULATION AND 

[PROPOSED] ORDER

CV 04-0933 WBS

CV 05-4412 WBS 2

UNITED STATES OF AMERICA, ) CV 05-4412 WBS

 )

Plaintiff, )

 )

v. ) 

 ) 

NET PROCEEDS FROM THE SALE OF ) 

REAL PROPERTY AND IMPROVEMENTS ) 

LOCATED AT 935-945 FOLSOM STREET, )

SAN FRANCISCO, CALIFORNIA, )

 )

 Defendant. )

 )

NANCY QUAN, )

Claimant. )

 )

STIPULATION

Plaintiff United States of America and Claimant Nancy Quan, in full settlement of all issues

directly and indirectly related to the seizure, detention and pending forfeiture action against the abovecaptioned defendant property in case C 04-0933 WBS and case C 05-4412 WBS, which currently total

$1,456,829.15 plus accrued interest (collectively hereinafter referred to as “defendant funds”), hereby

stipulate and agree as follows:

1. The defendant funds in case C 05-4412 WBS were seized by the Federal Bureau of

Investigation pursuant to a duly authorized seizure warrant as there was probable cause to believe the

funds were proceeds from bankruptcy fraud and involved in money laundering transactions and thus

subject to forfeiture under Title 18, United States Code, Sections 981(a)(1)(A) and 981(a)(1)(C). The

funds seized in case C 05-4412 WBS were seized from the bankruptcy court concerning litigation of the

estate of debtor Tomi LLC (case C 03-31971). The defendant funds are currently in the custody of the

United States Marshal’s Service (USMS). The principal funds in case C 05-4412 WBS total

$1,324,826.62. 

2. The United States filed a civil forfeiture complaint against the defendant funds in case C

05-4412 WBS on October 28, 2005.

3. Nancy Quan asserted claims to the defendant funds in case C 05-4412 WBS. 

Mohammed Poonja, in his capacity of trustee for Tomi LLC, asserted claims in the defendant funds on

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 2 of 10
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SETTLEMENT STIPULATION AND 

[PROPOSED] ORDER

CV 04-0933 WBS

CV 05-4412 WBS 3

behalf of the creditors of Tomi LLC, which also included creditors of the related bankruptcy estates of

Wins Fashions and Wins of California. Jimmy Quan and Anna Wong have either an ownership and/or

controlling interest in each of these entities. Mr. Poonja subsequently withdrew his claim.

4. The parties agree that rather than engage in costly and lengthy forfeiture litigation over

the defendant funds, in the interest of justice, the defendant funds in case C 05-4412 WBS, including both

principal and accumulated interest, should be transferred to Mohammed Poonja in his capacity as trustee

in bankruptcy case 03-31971, In re Tomi LLC, to be distributed as indicated below, subject to appropriate

bankruptcy court order, consistent with the terms of this stipulation and [proposed] Order.

5. Within ten days of the entry of an Order as set forth in this stipulation, the USMS shall

transfer the funds in case C 05-4412 WBS, consisting of both principal and interest accumulated to the

date of distribution, to Mohammed Poonja (“trustee”) in his capacity as trustee in bankruptcy case 03-

31971, In re Tomi LLC, at P.O. Box 1510, Los Altos, California 94023-1510, for distribution consistent

with the provisions of paragraphs 6 through 8, below. The trustee shall distribute the funds, subject to the

appropriate bankruptcy court order, consistent with the terms of this stipulation and [proposed] Order.

6. Distribution of the principal defendant funds in case C 05-4412 WBS ($1,324,826.62)

shall be made to the following payees, at the addresses which will be provided by the United States

Attorney within fourteen days of the entry of an Order as set forth in this stipulation, in the amounts listed

:

a. Lih-Woan Lii $ 308,000.00

b. Michael Lewis $ 212,500.00

c. Lynn Schoenmann

 as trustee of Win Fashion, Inc.

 & Wins of California, Inc.

 bankruptcy estates $ 40,000.00

d. Internal Revenue Service $ 59,379.04

e. State of California

 Employment Development

 Department $ 100,000.00

f. City and County of San

 Francisco Tax Collector $ 30,000.00

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 3 of 10
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SETTLEMENT STIPULATION AND 

[PROPOSED] ORDER

CV 04-0933 WBS

CV 05-4412 WBS 4

g. Lansing Street Partners $ 36,000.00

h. State of California

 Franchise Tax Board $ 3,100.00

i. Better Methods Alexander $ 1,339.62

j. C.R. Daniels, Inc. $ 2,143.39

k. PG & E (Win Fashion, Inc.) $ 2,357.73

l. Saha Union International, Inc. $ 4,661.87

m. Sunclipse, Inc. $ 589.43

n. Burlington Industries, Inc. $ 5,465.65

o. Sun Trust Bank $ 1,661.13

p. Feldman Co., Inc.

 Euler American Credit

 Idemnity $ 4,661.87

q. Phoenix Ribbon Co., Inc. $ 10,824.12

r. Acker & Jablow $169,327.84

s. Reynaud Rexo

 c/o Milton J. Moser Assoc. $ 6,805.26

t. Baroff Container & Supply Co. $ 2,893.58

u. Weber & Sons Button Co. $ 1,178.86

v. PG & E (for Wins of Ca.) $ 643.02 

w. Milberg Factors, Inc. $ 3,911.69

x. Gehring Textiles, Inc. $ 696.60

y. Artistic Ribbon, Inc. $ 2,036.22

z. ABC Embroidered 

 Accessories $ 214.34

aa. Super Trim, Inc. $ 29,096.52

 

 bb. Crafland, Inc. $ 1,446.79 

cc. Robert Kaufman $ 9,591.67

dd. Sani-Line Sales $ 696.60

ee. Emday $ 61,943.98

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 4 of 10
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SETTLEMENT STIPULATION AND 

[PROPOSED] ORDER

CV 04-0933 WBS

CV 05-4412 WBS 5

ff. Neman Brothers $103,793.68

gg. E.T.C. Trims Co. $ 2,464.90

hh. Fabric Country $ 2,089.81

ii. PG&E (Wins of CA) $ 428.68

jj. Compupunch, Inc. $ 1,553.96

kk. San Francisco Elevator Co. $ 3,268.67

ll. Euler / American Credit

 Indemnity, Agent of 

 Feldman Co., Inc. $ 7,716.21

mm. HSBC Business Credit

 USA, Inc. $ 4,179.61

nn. Alden, Curtis and 

 Michaels, Ltd.

 World Wide Collections $ 2,411.31 

oo. Euler-Hermes ACI $ 20,362.21

pp. GMAC Commercial Credit,

 LLC $ 3,161.50

qq. Logistics Links $ 29,310.86

rr. Lansing Street Partners $ 11,735.06

ss. MK Fabrics, Inc. $ 19,183.34

7. The parties further agree that, as to any interest that has accrued on the principal net sum

of funds in case C 05-4412 WBS while the defendant funds have been in U.S. Marshal custody, the first

$140,000 of said interest shall be distributed to creditor Internal Revenue Service, identified above in

6(d), with both such payments representing losses incurred by the Internal Revenue Service for employee

trust fund taxes that the Wins companies failed to pay. Any additional interest beyond the first $140,000

that has accrued on the principal amount as of the day of distribution to the trustee by the USMS, as well

as any additional funds available that would otherwise be part of action C 05-0411 WBS and that are

being held by the trustee, minus any necessary and reasonable professional fees and costs incurred by the

trustee in effecting the distributions set forth in this stipulation and the Court’s Order in action C 05-0411

WBS, shall be distributed by the trustee to the parties identified in paragraph 6, subparagraphs i through

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 5 of 10
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SETTLEMENT STIPULATION AND 

[PROPOSED] ORDER

CV 04-0933 WBS

CV 05-4412 WBS 6

ss, above, on the same pro rata basis.

8. Any checks that are distributed and remain uncashed after 120 days, and any additional

funds that may be available due to accrual of additional interest, shall be re-distributed by the trustee pro

rata to the creditors listed paragraph 6, subparagraphs i through ss, above. The United States Attorney

will make good faith efforts to locate all said creditors. The trustee is under no obligation to search for

other addresses before re-distributing the funds pro rata. 

9. Claimant Nancy Quan shall hold harmless the United States of America, the Federal

Bureau of Investigation, the United States Marshal’s Service, and all agents, officers and employees

thereof, including any and all state and local law enforcement officers, for any and all acts directly or

indirectly related to the seizure, detention and distribution of the defendant funds. 

10. Each party shall bear its own attorneys fees and costs.

11. In exchange for the settlement described above in case C 05 4412 WBS, the United

States agrees to move to dismiss the civil forfeiture action in case C 04-0933 WBS. 

12. The terms of this settlement agreement are contingent upon the Court’s entry of the

proposed Order concerning the distribution of funds.

13. The distribution in accordance with the terms of this agreement will constitute full

satisfaction of any restitution that may be due and owing under United States v. Quan, et al., criminal

case CR-04-323 WBS. 

SO STIPULATED.

Dated: 6/3 , 2008 _________/s/____________

STEPHANIE M. HINDS

Assistant United States Attorney 

Dated: 6/2 , 2008 _________/s/____________

JOHN CHU

Attorney for Nancy Quan and Anna Wong

Dated: 5/31 , 2008 _________/s/____________

NANCY QUAN

Claimant

ORDER

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 6 of 10
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SETTLEMENT STIPULATION AND 

[PROPOSED] ORDER

CV 04-0933 WBS

CV 05-4412 WBS 7

Upon the above stipulation of the parties, and good cause appearing, the Court hereby finds that

there was probable cause to seize the defendant funds in case C 05-4412 WBS as suspected proceeds of

bankruptcy fraud and property involved in money laundering transactions. The Court further finds and

orders that in the interest of justice, the defendant funds at issue in case C 05-4412 WBS, currently held in

the custody of the United States Marshal’s Service (USMS), shall be transferred to Mohammed Poonja in

his capacity as trustee in bankruptcy case 03-3197, In re Tomi LLC, for distribution, subject to

appropriate bankruptcy court order, as set forth below:

1. Within ten days of the entry of this Order, the USMS shall transfer the defendant funds in

case C 05-4412 WBS, consisting of both principal and interest accumulated to the date of distribution, to

Mohammed Poonja (“trustee”) in his capacity as trustee in bankruptcy case 03-31971, In re Tomi LLC, at

P.O. Box 1510, Los Altos, California 94023-1510, for distribution consistent with the provisions of

paragraphs 2 through 4, below. The trustee shall distribute the funds, subject to the appropriate

bankruptcy court order, consistent with the terms of the parties’s stipulation and this Order.

2. Distribution of the principal of the defendant funds, $1,324,826.62, shall be made to the

following payees, at the addresses which will be provided by the United States Attorney within fourteen

days of the entry of this Order, in the amounts listed :

a. Lih-Woan Lii $ 308,000.00

b. Michael Lewis $ 212,500.00

c. Lynn Schoenmann

 as trustee of Win Fashion, Inc.

 & Wins of California, Inc.

 bankruptcy estates $ 40,000.00

d. Internal Revenue Service $ 59,379.04

e. State of California

 Employment Development

 Department $ 100,000.00

f. City and County of San

 Francisco Tax Collector $ 30,000.00

g. Lansing Street Partners $ 36,000.00

h. State of California

 Franchise Tax Board $ 3,100.00

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 7 of 10
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SETTLEMENT STIPULATION AND 

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i. Better Methods Alexander $ 1,339.62

j. C.R. Daniels, Inc. $ 2,143.39

k. PG & E (Win Fashion, Inc.) $ 2,357.73

l. Saha Union International, Inc. $ 4,661.87

m. Sunclipse, Inc. $ 589.43

n. Burlington Industries, Inc. $ 5,465.65

o. Sun Trust Bank $ 1,661.13

p. Feldman Co., Inc.

 Euler American Credit

 Idemnity $ 4,661.87

q. Phoenix Ribbon Co., Inc. $ 10,824.12

r. Acker & Jablow $169,327.84

s. Reynaud Rexo

 c/o Milton J. Moser Assoc. $ 6,805.26

t. Baroff Container & Supply Co. $ 2,893.58

u. Weber & Sons Button Co. $ 1,178.86

v. PG & E (for Wins of Ca.) $ 643.02 

w. Milberg Factors, Inc. $ 3,911.69

x. Gehring Textiles, Inc. $ 696.60

y. Artistic Ribbon, Inc. $ 2,036.22

z. ABC Embroidered 

 Accessories $ 214.34

aa. Super Trim, Inc. $ 29,096.52

 

 bb. Crafland, Inc. $ 1,446.79 

cc. Robert Kaufman $ 9,591.67

dd. Sani-Line Sales $ 696.60

ee. Emday $ 61,943.98

ff. Neman Brothers $103,793.68

gg. E.T.C. Trims Co. $ 2,464.90

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 8 of 10
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SETTLEMENT STIPULATION AND 

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hh. Fabric Country $ 2,089.81

ii. PG&E (Wins of CA) $ 428.68

jj. Compupunch, Inc. $ 1,553.96

kk. San Francisco Elevator Co. $ 3,268.67

ll. Euler / American Credit

 Indemnity, Agent of 

 Feldman Co., Inc. $ 7,716.21

mm. HSBC Business Credit

 USA, Inc. $ 4,179.61

nn. Alden, Curtis and 

 Michaels, Ltd.

 World Wide Collections $ 2,411.31 

oo. Euler-Hermes ACI $ 20,362.21

pp. GMAC Commercial Credit,

 LLC $ 3,161.50

qq. Logistics Links $ 29,310.86

rr. Lansing Street Partners $ 11,735.06

ss. MK Fabrics, Inc. $ 19,183.34

3. As to any interest that has accumulated on the principal funds in case C 05-4412 WBS

as of the date of distribution by the USMS, the first $140,000 of said interest shall be distributed to

creditor Internal Revenue Service, identified above in 2(d), with both payments to the Internal Revenue

Service representing losses incurred by the Internal Revenue Service for employee trust fund taxes that

the Wins companies failed to pay. And additional interest beyond the first $140,000 that has accrued on

the principal amount as of the day of distribution to the trustee by the USMS, as well as any additional

funds available that would otherwise be part of action C 05-0411 WBS and that are being held by the

trustee, minus any necessary and reasonable professional fees and costs incurred by the trustee in

effecting the distributions set forth in this Order, shall be distributed by the trustee to the parties identified

in paragraph 2, subparagraphs i through ss, above on the same pro rata basis. 

4. Any checks that are distributed and remain uncashed after 120 days, and any additional

funds that may be available due to accrual of additional interest, shall be re-distributed by the trustee pro

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 9 of 10
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SETTLEMENT STIPULATION AND 

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CV 04-0933 WBS

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rata to those creditors listed in paragraph 2, in subparagraphs i through ss, above who cashed their checks. 

The United States Attorney will make good faith efforts to locate all said creditors. The trustee is under

no obligation to search for other addresses before re-distributing the funds pro rata. 

5. Claimant Nancy Quan shall hold harmless the United States of America, the Federal

Bureau of Investigation, the United States Marshals Service, and all agents, officers and employees

thereof, including any and all state and local law enforcement officers, for any and all acts directly or

indirectly related to the seizure, detention and distribution of the defendant funds. 

6. Each party shall bear its own attorneys fees and costs.

7. The distribution in accordance with the settlement's terms will constitute full satisfaction

of any restitution that may be due and owing in United States v. Quan, et al., criminal case CR-04-323

WBS.

8. Within five days of the USMS’s transmission of funds to the trustee, the United States

shall file its formal motion and proposed order for dismissal of case C 04-0933 WBS. The government’s

motion shall include instructions to the USMS regarding distribution of the funds held in case C 04-0933

WBS to claimants Nancy Quan and Anna Wong.

IT IS SO ORDERED.

Dated: June 11, 2008

Case 3:05-cv-04412-WBS Document 52 Filed 06/11/08 Page 10 of 10