Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-00613/USCOURTS-caed-2_05-cv-00613-1/pdf.json

Nature of Suit Code: 152
Nature of Suit: Recovery of Defaulted Student Loans
Cause of Action: 28:1345 Default of Student Loan

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CONSENT JUDGMENT (PURSUANT TO

STIPULATION) 

McGREGOR W. SCOTT

United States Attorney

BOBBIE J. MONTOYA

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, California 95814-2322

Telephone: (916) 554-2775

Attorneys for Plaintiff

United States of America

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) 2:05-CV-00613-WBS-PAN

)

Plaintiff, )

)

v. )

)

WILLIAM G. BELL, )

)

Defendant. )

____________________________________)

Pursuant to the Settlement Agreement; Stipulation for Consent Judgment between plaintiff

United States of America and defendant William G. Bell, D.C., filed herein on July 13, 2005

(hereinafter referred to as "Stipulation"), the Court finds:

In order to settle the above-captioned civil action, plaintiff United States of America and

defendant William G. Bell, D.C. (hereinafter referred to as “Debtor”) agreed as follows:

1. Default on HEAL. By letter dated March 29, 2004, the Debtor was notified by the

United States Department of Health and Human Services ("HHS"), Program Support Center

("PSC"), of the default on a Health Education Assistance Loan (HEAL) resulting from the Debtor’s

failure to repay the loan in accordance with the agreed upon terms. The PSC notice demanded

repayment. The Debtor failed to respond to this notice. Therefore, as required by 42 U.S.C. §

1395ccc(a)(3), PSC referred the matter to the United States Attorney for collection. Agreement

at ¶ 2. 

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2. Exclusion Under 42 U.S.C. §§ 1320a-7(b)(14) and 1395ccc(a)(3). By letter dated

April 27, 2005, HHS notified the Debtor that, due to the failure to repay the HEAL debt, the Debtor

was subject to exclusion from participation in the Medicare, Medicaid and all other Federal health

care programs. See 42 U.S.C. §§ 1320a-7(b)(14) and 1395ccc(a)(3). This exclusion, if imposed,

would remain in effect until the HEAL debt is completely satisfied. Said letter also advised the

Debtor that the exclusion, if imposed, would have national effect and would apply to all other

Federal procurement and non-procurement programs and activities. By said letter, the Debtor was

given the opportunity to contact the United States Attorney's Office and resolve the Debtor's

delinquent indebtedness. Agreement at ¶ 3. 

3. Indebtedness and Consent Judgment. As of July 1, 2005, the total amount of the debt

owed by the Debtor for HHS Claim Number HHRS-50063161 is $20,007.63 (Twenty Thousand

Seven and 63/100 Dollars) (hereinafter "debt"), which includes the principal, accrued interest and

late payment charges, if any. The Debtor agreed to have Judgment entered against him for the total

amount of his indebtedness. Accordingly, as part of the Agreement, the parties agreed that interest

shall accrue at the post-judgment interest rate applicable to judgments entered in federal court as

provided by 28 U.S.C. § 1961. Agreement at ¶ 5. 

4. Payment Schedule. The Debtor agreed to make payments of at least $375.00 (Three

Hundred Seventy-Five Dollars) per month, due on the 15 day of each month, beginning on th

August 15, 2005, and continuing at such monthly amount until the Debtor is notified otherwise by

amendment to the Agreement issued by the U.S. Department of Justice ("DOJ"). This payment

schedule will be evaluated at least annually and may be modified based on the documented financial

condition of the Debtor. The Debtor agreed to submit in a timely manner each year any and all

financial documentation required by DOJ. Agreement at ¶ 6. 

a. All payments shall be made payable to: "U.S. Department of Justice" and mailed

to: United States Attorney's Office, attention: Financial Litigation Unit, 501 I Street, Suite 10-100,

Sacramento, California 95814, unless and until directed otherwise in writing by the United States

Attorney's Office. Agreement at ¶ 6.a. 

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5. Status of Exclusion Pending Compliance with the Agreement. In consideration of the

Debtor’s agreement to satisfy the underlying loan obligation through regular payments, pursuant to

the terms in paragraph 6, HHS will suspend its pursuance of the exclusion of the Debtor’s eligibility

to receive reimbursement from Medicare, Medicaid and other Federal health care programs, as

defined in 42 U.S.C. § 1320a-7b(f). Agreement at ¶ 7. 

6. Default on Agreement. Should a default on the Agreement occur, the United States may

take any steps authorized by law to enforce its Judgment, as provided for in paragraph 5. In addition,

should a default on the Agreement occur, the Debtor's case will be referred to HHS's Office of the

Inspector General ("OIG") for exclusion from participation in the Medicare, Medicaid and all other

Federal health care programs until the entire Judgment amount and all accrued interest, as specified

in paragraph 5, have been paid in full to the satisfaction of the PSC and the OIG. Agreement at ¶ 8. 

7. Bankruptcy. As further consideration to induce the United States to enter into the

Agreement, the Debtor agreed that if a voluntary or involuntary bankruptcy is commenced by or

against the Debtor, then the imposition of the exclusion prior to the bankruptcy is not subject to the

automatic stay imposed by 11 U.S.C. § 362(a). The Debtor also agreed not to oppose or otherwise

object to any motion filed by the United States seeking relief from or modification to the automatic

stay imposed by 11 U.S.C. § 362(a) with regard to imposition of the exclusion prior to the

bankruptcy. Agreement at ¶ 9. 

a. The Debtor further agreed that the Debtor’s failure to comply with the Agreement,

including but not limited to the payment terms in paragraph 6, is not excused by the commencement

of the bankruptcy by or against the Debtor, and will be considered a default on the Agreement for

purposes of paragraph 8, notwithstanding the commencement of the bankruptcy. Agreement at ¶ 9.a. 

8. Severability Clause. In the event any parts of the Agreement are found to be void, the

remaining provisions of the Agreement shall nevertheless be binding with the same effect as though

the void parts were deleted. Agreement at ¶ 10. 

9. Effect of the Agreement. The Agreement contains a complete description of the

settlement between the parties. All material representations, understandings and promises of the

parties concerning the repayment of the debt are contained in the Agreement. Any modifications to

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the Agreement must be set forth in writing and signed by all parties. Agreement at ¶ 11. 

a. The Debtor represented that he entered into the Agreement with full knowledge of

the events described therein. The Debtor further represented that he voluntarily entered into the

Agreement in order to settle the above-captioned civil action. Agreement at ¶ 11.a. 

Based upon the above findings and the stipulation for consent judgment entered into between

the parties, and the Court being otherwise fully advised in the premises, it is hereby 

ORDERED AND ADJUDGED:

That the Court adopts the Settlement Agreement; Stipulation for Consent Judgment entered

into by and between the parties and Consent Judgment is hereby entered in accordance therewith.

IT IS SO ORDERED.

DATED: July 14, 2005

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