Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00816/USCOURTS-caed-2_07-cv-00816-7/pdf.json

Nature of Suit Code: 690
Nature of Suit: Other Forfeiture and Penalty Suits
Cause of Action: 28:1345 Complaint for Forfeiture

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 1

McGREGOR W. SCOTT

United States Attorney

KRISTIN S. DOOR, SBN 84307

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, CA 95814

Telephone: (916) 554-2723

Attorney for Plaintiff

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) 2:07-CV-00816 FCD/KJM

)

Plaintiff, )

) STIPULATION AND ORDER TO

v. ) EXTEND STAY OF FURTHER 

) PROCEEDINGS

APPROXIMATELY $79,784.78 IN MONEY )

ORDERS, )

)

APPROXIMATELY $193,250.00 IN U.S. )

CURRENCY, )

)

APPROXIMATELY $1,598.00 IN U.S. )

CURRENCY, AND )

)

MISCELLANEOUS SMOKELESS TOBACCO )

PRODUCTS, )

)

Defendants. ) )

Plaintiff United States of America and claimant LA Price King,

Inc., submit the following Stipulation To Extend Stay of Further

Proceedings and Order and request that the Court enter an order

extending the stay now in effect for an additional six months,

until May 9, 2009. The parties make this request for the

following reasons: 

Case 2:07-cv-00816-KJM-EFB Document 25 Filed 11/07/08 Page 1 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 2

1. Pursuant to 18 U.S.C. §§ 981(g)(1), and 981(g)(2) the

parties seek a stay of further proceedings in this civil forfeiture

case. The United States contends that the defendant property

consisting of currency, money orders, and miscellaneous tobacco

products (collectively referred to as the "defendant assets") are

forfeitable to the United States because they are the proceeds of

mail and/or wire fraud, and/or are traceable to money laundering

offenses. The details of the underlying criminal investigation

involving claimant are set forth in detail the affidavit of Special

Agent Trista K. Frederick, U.S. Department of Justice, Bureau of

Alcohol, Tobacco, Firearms, and Explosives, attached as Exhibit A

to the Complaint for Forfeiture In Rem filed on April 27, 2007.

2. The defendant property was seized from claimant’s

business premises at 338 East 3rd Street, Los Angeles, California,

on October 17, 2006, during the execution of a search warrant.

3. Varun Kumar, in his capacity as President of LA Price

King, Inc., submitted a claim to the defendant assets. The United

States intends to depose Kumar about various topics, including but

not limited to his knowledge of the operation of LA Price King and

other companies in the tobacco distribution business in the Los

Angeles area. Kumar will also be questioned about LA Price King’s

payment, or non-payment, of excise taxes due to the State of

California, Board of Equalization, in connection with the sale of

tobacco products. The United States also intends to depose other

individuals who the United States contends are the true owners of

LA Price King. 

Counsel for claimant LA Price King has informed counsel for

Case 2:07-cv-00816-KJM-EFB Document 25 Filed 11/07/08 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 3

the United States that if discovery proceeds, Kumar and the

principals of LA Price King would be placed in the difficult

position of either invoking their Fifth Amendment right against

self-incrimination and losing the ability to protect its interest

in the defendant assets, or waiving their Fifth Amendment rights

and submitting to depositions and potentially incriminating

themselves in a related criminal investigation. If Kumar or the

individuals the United States believes are the true owners of LA

Price King invoke the Fifth Amendment, the United States will be

deprived of the ability to explore the factual basis for the claims

LA Price King has filed with this Court. 

4. In addition, claimant intends to depose federal law

enforcement officers involved in the investigation that led to the

issuance of the search warrant. Allowing depositions of the law

enforcement investigators involved in the criminal investigation

would adversely affect the ability of the U.S. Attorney's Office to

properly investigate and prosecute their case.

5. Accordingly, the parties recognize that proceeding with

this action at this time has potential adverse affects on the

related criminal investigation and/or upon claimant’s ability to

prove its claim that the defendant assets belongs to them, and that

they came from legitimate sources. For these reasons, the parties

jointly request that this matter be stayed for a period of six

months until May 9, 2009. At that time the parties will advise

the court of the status of the criminal investigation and will, if

necessary, seek a further stay.

6. The parties to this stipulation reserve all claims and

Case 2:07-cv-00816-KJM-EFB Document 25 Filed 11/07/08 Page 3 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 4

defenses to this forfeiture. In particular, by agreeing to this

stay, the United States has not waived its right to challenge

claimant’s standing to contest the forfeiture of the defendant

assets. 

Dated: November 5, 2008 McGREGOR W. SCOTT

United States Attorney

By /s/ Kristin S. Door 

KRISTIN S. DOOR

Assistant U.S. Attorney

Dated: November 5, 2008 BENSINGER, RITT, TAI & THVEDT

By /s/ Kerry R. Bensinger KERRY R. BENSINGER

Attorneys for LA Price King, Inc.

(Original signatures retained by

plaintiff’s counsel)

ORDER

For the reasons set forth above, this matter is stayed

pursuant to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) for a period of

six months. On or before May 8, 2009, the parties will advise the

court whether a further stay is necessary.

IT IS SO ORDERED.

Dated: November 7, 2008

_____________________________

FRANK C. DAMRELL, JR. 

UNITED STATES DISTRICT JUDGE

Case 2:07-cv-00816-KJM-EFB Document 25 Filed 11/07/08 Page 4 of 4