Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_19-cv-00485/USCOURTS-caed-2_19-cv-00485-9/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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United States’ Request to Extend the Deadline to 

Submit a Joint Status Report

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IN THE 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

UNITED STATES’ REQUEST TO 

EXTEND THE DEADLINE TO 

SUBMIT A JOINT STATUS REPORT 

FROM MARCH 11, 2020 TO JUNE 10, 

2020

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

Report from March 11, 2020 to June 10, 2020. The United States has moved for final judgment of 

forfeiture as to eighty-three In Rem Defendants, reserving four In Rem Defendants for future 

proceedings in this Court. No party opposed the United States’ motion. 

Introduction

On March 18, 2019, the United States filed a civil forfeiture complaint in rem against more than 

sixty bank accounts, over $1.8 million in U.S. currency, prepaid flight hours with a private jet company, 

a luxury box with a professional sports team, and various items of jewelry (“defendant assets” or “In 

Rem Defendants”) connected to fraud and money laundering crimes in the Eastern District of California 

and other areas. As described below, the bank accounts are associated with DC Solar and its related 

investment funds, which the United States alleges are involved in, and contained proceeds of, a Ponzi 

scheme orchestrated through a tax equity investment fraud. All known potential claimants to the 

McGREGOR W. SCOTT

United States Attorney

ANDRE M. ESPINOZA

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-00485-DAD-DB Document 48 Filed 03/12/20 Page 1 of 4
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United States’ Request to Extend the Deadline to 

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defendant assets 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 May 4, 2019, and ran for thirty consecutive 

days, as required by Rule G(4)(a)(iv)(C) of Supplemental Rules for Admiralty or Maritime Claims and 

Asset Forfeiture Actions. Dkt. 4. A Declaration of Publication was filed on June 6, 2019, which set 

forth, among other items, that publication on the government’s forfeiture website was complete on June 

2, 2019. Dkt. 9. 

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

United States v. 725 Main Street, Martinez, California, et al., Case 2:19−CV−00247-JAM-DB and 

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

Good Cause

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

States served copies of the complaint documents on all interested parties, including financial institutions, 

a professional sports franchise, a private jet operator, investors in the tax equity funds, and the LLCs and 

individuals listed as signors on the seized bank accounts. The United States specifically served copies

of the complaint documents on the LLCs through their registered agent for service of process, as listed 

on the California Secretary of State’s website. Further, the government served copies of the complaint 

on the principals of DC Solar, Jeffrey and Paulette Carpoff. Lastly, the government has provided notice 

of this action to any entities or individuals that may have a security interest in the accounts, such as a 

certificate of deposit required as part of a larger financial loan package extended to DC Solar.

A few parties have so far appeared in the case. First, the principals of DC Solar and the LLCs 

associated with many of the In Rem Defendants, Jeff and Paulette Carpoff, filed claims as to each of the 

eighty-seven In Rem Defendants. See Dkt. 6-7. The Carpoffs have since agreed to forfeit their interests 

in each of the In Rem Defendants. Dkt. 46. Second, NetJets, through their wholly-owned subsidiaries,1

1 The NetJets subsidiaries are: (1) NetJets Sales, Inc., (2) NetJets Aviation, Inc., and (3) Marquis Jet Partners, Inc. Dkt 12-14.

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filed claims concerning the prepaid flight shares purchased by the Carpoffs with alleged fraud proceeds. 

Dkt. 12-14. The United States and NetJets are currently working with the Federal Aviation 

Administration and others to liquidate the partial interests held by the Carpoffs in three planes, deposit 

the net equity with the Court as the substitute res, and allow NetJets to withdraw its claim. While this 

process is finalized, NetJets has requested an extension to file an answer, and the United States agreed.

Third, East West Bank and Solar Eclipse Investment Fund XXXV, LLC filed claims to In Rem

Defendant Approximately $9,004,531.62, which was seized from the Investment Fund’s bank account 

during the government’s law enforcement operation on December 18, 2018. Dkt. 15-16. East West 

Bank states that it was an investor in Solar Eclipse Investment Fund XXXV, LLC.

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 Dkt. 15. 

Furthermore, one financial institutions and one sports franchise have requested extensions of 

time to file answers and/or claims in this case. Based on the claimants’ requests for additional time to 

review the allegations—in the civil complaint as well as in companion criminal cases—and potential 

privilege issues, other defenses, and logistical concerns with complicated assets, and given the lengthy 

facts and complicated issues in this case, the United States has agreed to their requests for more time. 

Those filings currently due on April 30, 2020. Lastly, a ruling on the pending motion will determine 

who and what assets remain in the case, allowing for coordinated future proceedings.

Accordingly, there is good cause to extend the deadline to file a joint status report in this case 

from March 11, 2020 to June 10, 2020, or to a date the Court deems appropriate.

Dated: 3/11/2020 McGREGOR W. SCOTT

United States Attorney

/s/ Kevin C. Khasigian

ANDRE M. ESPINOZA

KEVIN C. KHASIGIAN

Assistant U.S. Attorney

///

///

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 The Solar Eclipse Fund and East West Bank filed answers. No other party has filed an answer in this case. 

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[PROPOSED] 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 currently due on March 11, 2020, is extended to June 

10, 2020. 

IT IS SO ORDERED.

Dated: 3/11/2020 /s/ John A. Mendez____________

JOHN A. MENDEZ

United States District Court Judge

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