Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_11-cv-02738/USCOURTS-caed-2_11-cv-02738-10/pdf.json

Nature of Suit Code: 625
Nature of Suit: Drug Related Seizure of Property
Cause of Action: 21:881 Forfeiture Property - Real Estate

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Stipulation to Stay Further 

Proceedings and Order 

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IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

REAL PROPERTY LOCATED AT 105 THREE 

HILLS ROAD, HAYFORK, CALIFORNIA, 

TRINITY COUNTY, APN: 019-530-23-00 

INCLUDING ALL APPURTENANCES AND 

IMPROVEMENTS THERETO, et al.,

Defendants.

2:11-CV-02738-GEB-DAD

STIPULATION TO STAY FURTHER 

PROCEEDINGS AND ORDER

[7th request]

The United States and claimants Lapoe Smith and Katherine Renee Smith, by and through their 

respective counsel, hereby stipulate that a stay is appropriate in the above entitled action, and request that 

the Court enter an order staying further proceedings for three months until October 16, 2015. 

1. This matter was previously stayed for three months on April 6, 2015, based on the federal 

criminal action against claimant Lapoe Smith, filed April 3, 2013 in the Western District of Texas, 

United States v. Lapoe Smith, Case No. 13-CR-0280. In that federal indictment, Lapoe Smith was 

charged with one count of evading taxes in violation of 26 U.S.C. § 7201, from August 10, 2005 

continuing to May 11, 2011; and four counts of subscribing a false tax return in violation of 26 U.S.C. § 

7206(1), from April 2007 to October 2010. That matter is currently pending before Chief Judge Fred 

Biery in the Western District of Texas.

BENJAMIN B. WAGNER

United States Attorney

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 2:11-cv-02738-GEB-CKD Document 43 Filed 07/07/15 Page 1 of 3
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Stipulation to Stay Further 

Proceedings and Order 

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2. Each of the claimants have filed claims and answers to the defendant properties, (ECF 

Nos. 5-6, 12), which were sold pursuant to an interlocutory sale in March 2013, (ECF No. 23). The net 

sale proceeds were deposited into a U.S. Treasury bank account and constitute the substitute res. ECF 

No. 23.

3. The stay is requested pursuant to 18 U.S.C. §§ 981(g)(1), 981(g)(2), and 21 U.S.C. §

881(i).

4. Claimant Lapoe Smith has been charged with violations of federal tax laws, United States 

v. Lapoe Smith, Case No. 13-CR-0280, substantially based on the joint tax return filed on behalf of 

himself and co-claimant Katherine Smith. Claimant Katherine Smith has not been charged with any 

federal crimes and it is the parties’ understanding that the statute of limitations has not expired on 

potential criminal charges relating to filing of the tax returns for the relevant years and/or the alleged tax 

evasion scheme. The United States intends to depose and request written discovery from claimants 

regarding their income and tax return information, as well as information regarding their financial ability 

to purchase the defendant properties in May 2010. If discovery proceeds at this time, these individuals, 

or some of them, will be placed in the difficult position of either invoking their Fifth Amendment rights 

against self-incrimination or waiving their Fifth Amendment rights and submitting to a deposition and 

potentially incriminating themselves regarding their income and ability to purchase the property forming 

the basis of this civil in rem case. If they invoke their Fifth Amendment rights, the United States will be 

deprived of the ability to explore the factual basis for the claims they filed with this court.

5. Further, claimants intend to depose, among others, the agents involved with this 

investigation, including but not limited to the agents with the Internal Revenue Service. Allowing 

depositions of the law enforcement officers at this time would adversely affect the ability of the federal 

authorities to prepare for the criminal trial and/or further investigate the alleged underlying criminal 

conduct.

6. The parties recognize that proceeding with these actions at this time could have potential 

adverse effects on the investigation of the underlying criminal conduct and/or upon the claimants' ability 

to prove their claims to the defendant properties and to assert any defenses to forfeiture. For these 

reasons, the parties jointly request that these matters be stayed until October 16, 2015, in accordance with 

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Stipulation to Stay Further 

Proceedings and Order 

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the terms of this stipulation. At that time the parties will advise the court of the status of the criminal

case and will advise the court whether a further stay is appropriate.

7. Prior to the federal indictment against claimant Lapoe Smith, the United States planned to 

amend the complaint to reflect information learned during depositions taken on March 1, 2013. The 

parties agree that any potential amendment to the complaint, based on the above information or 

otherwise, will be addressed by the Court when the stay expires.

8. The United States does not waive a potential challenge to each claim based on lack of 

statutory and/or Article III standing. That issue of standing is preserved until the stay is lifted under 18 

U.S.C. § 981(g)(7).

9. For good cause shown, any party to this stipulation may seek relief from this stay prior to 

October 16, 2015. 

Dated: 7/2/15 BENJAMIN B. WAGNER

United States Attorney

 By: /s/ Kevin C. Khasigian 

KEVIN C. KHASIGIAN

Assistant U.S. Attorney

Dated: 7/1/15 /s/ David M. Michael 

DAVID M. MICHAEL 

Attorney for claimants Lapoe Smith

and Katherine Renee Smith

(Authorized by email)

ORDER

For the reasons set forth above, this matter is stayed until October 16, 2015. For good cause 

shown, any party to the above stipulation may seek relief from this stay prior to October 16, 2015. On or 

before that date, the parties will advise the Court whether a further stay is necessary.

IT IS SO ORDERED.

Dated: July 6, 2015

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