Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_19-cv-00485/USCOURTS-caed-2_19-cv-00485-11/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 and Order to Establish

and Forfeit Substitute Res

 MCGREGOR W. SCOTT

 United States Attorney

 ANDRE M. ESPINOSA KEVIN C. KHASIGIAN Assistant U. S. Attorneys 501 I Street, Suite 10-100 Sacramento, CA 95814 Telephone: (916) 554-2700

 Attorneys for the United States

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

APPROXIMATELY $6,567,897.50 SEIZED 

FROM CTBC BANK, ACCOUNT NUMBER 

3800191916, ET AL., 

 Defendants.

2:19-CV-00485-JAM-DB

STIPULATION AND ORDER TO 

ESTABLISH AND FORFEIT THE

SUBSTITUTE RES; STIPULATION 

AND WITHDRAWAL OF VERIFIED 

CLAIMS OF THE NETJETS 

COMPANIES

IT IS HEREBY STIPULATED by and between the United States of America and 

Claimants NetJets Sales, Inc., NetJets Aviation, Inc., and Marquis Jet Partners, Inc. 

(collectively, “NetJets”), and Jeff and Paulette Carpoff (the “Carpoffs”), as follows: In or 

about December 2018, the United States seized certain fractional aircraft interests in various 

airplanes owned by the Carpoffs and DC Solar, managed and held by NetJets, namely: (1) 

certain 15.625% undivided interest in Embraer Executive Aircraft, Inc. EMB-505 Aircraft, 

Serial Number 50500441, U.S. Registration Number N414QS; (2) certain 21.875% undivided 

interest in Textron Aviation Inc. 680A Airframe, Serial Number 680A0114, U.S. Registration 

Number N564QS; and (3) certain 18.750% undivided interest in Bombardier Inc. BD-100-

1A10 Aircraft, Serial Number 20709, U.S. Registration Number N746QS (hereinafter referred 

to as “Defendant Airplane Shares”). 

The United States alleged, and the Carpoffs have since agreed, that the Defendant 

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 1 of 8
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Stipulation and Order to Establish

and Forfeit Substitute Res

Airplane Shares were connected to the DC Solar fraud described in this case and their criminal 

plea agreements.

1

 By this Stipulation, the United States, the Carpoffs, and NetJets agree to 

substitute $3,900,000.00 in place of the Defendant Airplane Shares, and the Carpoffs agree to 

forfeit those same shares—now represented by the $3,900,000.00 to the United States by and 

through this Stipulation and Proposed Order. Therefore, the parties represent:

1. Jeffrey and Paulette Carpoff represent and warrant that they were owners of the 

In Rem Defendant Airplane Shares, either personally or through a corporation, LLC, or another 

entity they controlled. 

2. On or about May 9, 2019, Jeffrey and Paulette Carpoff filed claims stating an 

ownership interest in the Defendant Airplane Shares. Jeffrey and Paulette Carpoff have since 

signed stipulations that forfeit their interests in the Defendant Airplane Shares.

3. On or about June 14, 2019, NetJets Sales, NetJets Aviation, and Marquis Jet 

Partners each individually filed verified claims as to the Defendant Airplane Shares as described 

in the verified claims of NetJets. 

4. No other party has filed a claim to the Defendant Airplane Shares.

5. All right, title, and interest Jeffrey Carpoff and Paulette Carpoff possess, or 

may possess, in their personal and corporate capacities, in the Defendant Airplane Shares, shall 

be forfeited to the United States pursuant to 18 U.S.C. §§ 981(a)(1)(A) and (C), to be disposed 

of according to law.

6. The United States agrees to release all rights, title, and interest to Defendant 

Airplane Shares as described in the verified claims of NetJets, and above.

7. Jeffrey and Paulette Carpoff and the United States agree to execute all 

documents required to effectuate legal transfer and proper registration of title to these interests, 

effectuating the transfer of unencumbered title to the airplanes described above.

8. The United States further agrees to obtain all signatures required on all 

documents to release all rights, title, and interest to the aircraft as described above, and to the 

1 See Plea Agreement, United States v. Jeff Carpoff, 2:20-CR-17, ECF No. 10; Plea Agreement, 

United States v. Paulette Carpoff, 2:20-CR-18, ECF No. 10

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 2 of 8
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Stipulation and Order to Establish

and Forfeit Substitute Res

Defendant Airplane Shares, and to transfer all rights, title, and interest to the Defendant 

Airplane Shares to NetJets, prior to entry of the Order by the Court. Unless and until, the 

United States has transferred all rights, title, and interest to the Defendant Airplane Shares to 

NetJets, NetJets shall have no obligations to make any payments to the United States or release 

its claims to the Defendant Airplane Shares. 

9. Upon entry of the Order by the Court, NetJets agrees to pay to the United 

States the sum total of Three Million Nine Hundred Thousand Dollars ($3,900,000.00), which 

encompasses the Defendant Airplane Shares in totality.

10. The Three Million Nine Hundred Thousand Dollars ($3,900,000.00) will 

constitute the substitute res in the case, subject to the continued jurisdiction of the U.S. District 

Court.

11. Accordingly, upon receipt of the fully executed documents, Claimant NetJets 

hereby withdraws their claims filed June 15, 2019 [Dk. 12, 13 & 14] in the above-captioned 

case with respect to the Defendant Airplane Shares.

12. To the extent required under the Federal Rules of Civil Procedure, Rule 41(a), 

the United States agrees to dismiss with prejudice Claimant NetJets in the above-captioned case 

pursuant to the Federal Rules of Civil Procedure, Rule 41(a). 

13. All parties to this Stipulation hereby release the United States and its servants, 

agents, and employees from any and all liability arising out of or in any way connected with the 

filing of the Complaint and the arrest and seizure of the In Rem Defendants forfeited under this 

stipulation. This is a full and final release applying to all unknown and unanticipated injuries 

and/or damages arising out of or in any way connected with the filing of the Complaint and the 

arrest and seizure of the In Rem Defendants forfeited under this stipulation, as well as those now 

known or disclosed. The parties to this stipulation also waive the provisions of California Civil 

Code § 1542, which provides:

A general release does not extend to claims which the creditor does not know or suspect 

to exist in his or her favor at the time of executing the release, which if known by him or 

her must have materially affected his or her settlement with the debtor.

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 3 of 8
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Stipulation and Order to Establish

and Forfeit Substitute Res

14. There was probable cause for the seizure of the Defendant Airplane Shares, 

and for the commencement and prosecution of this forfeiture action, and the Court may enter a 

Certificate of Reasonable Cause pursuant to 28 U.S.C. § 2465.

15. Each party represents, and the parties agree, that no party substantially 

prevailed in this action within the meaning of 28 U.S.C. § 2465.

16. Each party represents, and the parties agree, that there was probable cause for 

arrest and seizure of the In Rem Defendants forfeited under this stipulation, and for the 

commencement and prosecution of this forfeiture action against those defendants, and that the 

Court should enter a certificate of reasonable cause pursuant to 28 U.S.C. § 2465.

17. Nothing in this Stipulation shall be construed as an admission of liability, fault, 

or wrongdoing by Claimant NetJets.

18. Each party shall bear his or her own costs and attorney’s fees.

19. Each person signing this Stipulation warrants and represents that he or she 

possesses full authority to bind the party on whose behalf he is signing to the terms of the 

Stipulation.

20. Each party warrants and represents that no promises, inducements, or other 

agreements not expressly contained herein have been made; that this Stipulation contains the 

entire agreement between the parties; and that the terms of this Stipulation are contractual and 

not mere recitals. All prior oral understandings, agreements, and writings are superseded by 

this Stipulation and are of no force or effect.

21. This Stipulation may not be altered, amended, modified, or otherwise changed 

in any respect, except by a writing duly executed by the party to be charged.

22. Each party represents that he or she understands the content of this Stipulation 

and enters it voluntarily, and has not been influenced by any person acting on behalf of any 

other party.

23. Notwithstanding the entry of a Final Judgment of Forfeiture herein, the parties 

hereby stipulate that the U.S. District Court for the Eastern District of California, Hon. John A. 

Mendez, District Judge, shall retain jurisdiction to enforce the terms of this compromise 

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 4 of 8
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Stipulation and Order to Establish

and Forfeit Substitute Res

settlement.

24. Claimant NetJets is hereby removed from the Service List for the abovecaptioned case.

Date: 4/10/2020 McGREGOR W. SCOTT

United States Attorney

By: /s/ Kevin C. Khasigian

KEVIN C. KHASIGIAN

Assistant U.S. Attorney

Date: 4/8/2020 NETJETS AVIATION, INC. 

By: /s/ Brad Ferrell

Executive Vice President & Corporate Secretary

Date: 4/8/2020 NETJETS SALES, INC. 

By: /s/ Brad Ferrell

Executive Vice President & Corporate Secretary

Date: 4/8/2020 MARQUIS JET PARTNERS, INC. 

By: /s/ Brad Ferrell

Executive Vice President & Corporate Secretary

 

 Date: 4/8/2020 SQUIRE PATTON BOGGS (US) LLP

By: /s/ Gabriel Colwell

GABRIEL COLWELL

Attorney for Claimants NetJets Sales, Inc., 

NetJets Aviation, Inc., and Marquis Jet Partners, 

Inc. 

Date: 4-7-2020 JEFF CARPOFF

By: /s/ Jeff Carpoff

Date: 4-7-2020 PAULETTE CARPOFF

By: /s/ Paulette Carpoff

(Signatures retained by attorney)

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 5 of 8
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Stipulation and Order to Establish

and Forfeit Substitute Res

ORDER

The Court has read and considered the Stipulation to Establish and Forfeit Substitute 

Res and for Withdrawal of Verified Claims (“Stipulation”) by Claimants NetJets Sales, Inc., 

NetJets Aviation, Inc., and Marquis Jet Partners, Inc. (collectively “Claimants” or “NetJets”), 

and Plaintiff, United States of America, by and through their respective counsel. For the 

reasons stated in the Stipulation and for good cause shown,

IT IS HEREBY ORDERED as follows:

1. The Stipulation is approved and the $3,900,000.00 is substituted in place of the 

Defendant Airplane Shares. The substitute res is $3,900,000.00. 

2. All right, title, and interest Jeffrey Carpoff and Paulette Carpoff possess, or 

may possess, in their personal and corporate capacities, in the Defendant Airplane Shares, shall 

be forfeited to the United States pursuant to 18 U.S.C. §§ 981(a)(1)(A) and (C), to be disposed 

of according to law.

3. The United States has obtained all signatures required on all documents to 

release all rights, title, and interest to the aircraft as described above, and to the Defendant 

Airplane Shares, and has transferred all rights, title, and interest to the Defendant Airplane 

Shares to NetJets.

4. Upon entry of this Order, and subject to #3 above, NetJets shall wire to the 

United States the sum total of Three Million Nine Hundred Thousand Dollars ($3,900,000.00), 

which encompasses all assets to which NetJets has pending claims, and/or that were restrained 

by Seizure Warrants upon probable cause provided by the United States in December 2018, 

including (1) certain 15.625% undivided interest in Embraer Executive Aircraft, Inc. EMB-505 

Aircraft, Serial Number 50500441, U.S. Registration Number N414QS; (2) certain 21.875% 

undivided interest in Textron Aviation Inc. 680A Airframe, Serial Number 680A0114, U.S. 

Registration Number N564QS; and (3) certain 18.750% undivided interest in Bombardier Inc. 

BD-100-1A10 Aircraft, Serial Number 20709, U.S. Registration Number N746QS (hereinafter 

referred to as “Defendant Airplane Shares”).

5. The Three Million Nine Hundred Thousand Dollars ($3,900,000.00) will 

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 6 of 8
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Stipulation and Order to Establish

and Forfeit Substitute Res

constitute the substitute res in the case, which will be forfeited to the United States based on its 

connection to the DC Solar fraud described in the Verified Complaint.

6. Upon transfer of title in the aircraft interests to NetJets and proper registration 

of the transfer, Claimant’s claims filed June 14, 2019 [Dk. 12, 13 & 14] in the above-captioned 

case are hereby deemed WITHDRAWN.

7. Based upon the allegations set forth in the Complaint for Forfeiture In Rem 

filed March 18, 2019, and the Stipulation to Establish and Forfeit Substitute Res and for 

Withdrawal of Verified Claims filed herewith, the Court enters this Certificate of Reasonable 

Cause pursuant to 28 U.S.C. § 2465, that there was reasonable cause for the seizure of the 

Defendant Airplane Shares, and for the commencement and prosecution of this forfeiture 

action.

8. Claimants are hereby deemed dismissed from the above-captioned case. 

Date: 4/13/2020 /s/ John A. Mendez____________

JOHN A. MENDEZ

United States District Court Judge

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 7 of 8
C:\Users\gcolwell\Documents\Netjets\Stip and Ord Substitute 

Res and to Withdraw Claims of NetJets (4-2-20 NetJets rev to 

EDCA USAO Rev 3 25 20) docx

Case 2:19-cv-00485-DAD-DB Document 52 Filed 04/13/20 Page 8 of 8