Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_19-cv-00636/USCOURTS-caed-2_19-cv-00636-7/pdf.json

Nature of Suit Code: 690
Nature of Suit: Other Forfeiture and Penalty Suits
Cause of Action: 21:881 Forfeiture Property - Real Estate

---

1

United States’ Request to Extend the Deadline to 

Submit a Joint Status Report

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

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

IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

REAL PROPERTY LOCATED AT 5383 

STONEHURST DRIVE, MARTINEZ, 

CALIFORNIA CONTRA COSTA COUNTY, 

APN: 367-230-018-7, INCLUDING ALL 

APPURTENANCES AND IMPROVEMENTS 

THERETO, et al., 

Defendants.

2:19-CV-00636-JAM-DB

UNITED STATES’ REQUEST TO 

EXTEND THE DEADLINE TO 

SUBMIT A JOINT STATUS REPORT 

FROM JANUARY 9, 2020 TO MARCH

11, 2020 

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

Report from January 9, 2020 to March 11, 2020. 

Introduction

On April 15, 2019, the United States filed a civil forfeiture complaint in rem against fourteen real 

properties (“In Rem Defendants”) connected to fraud and money laundering crimes in the Eastern 

District of California and other areas. All known potential claimants to the In Rem Defendants 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. 

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-00636-DAD-DB Document 60 Filed 01/09/20 Page 1 of 5
2

United States’ Request to Extend the Deadline to 

Submit a Joint Status Report

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

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

See ECF No. 4. A Declaration of Publication was filed on July 12, 2019, which set forth, among other 

items, that publication on the government’s forfeiture website was complete on June 2, 2019. See Dkt.

40. 

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. Approximately $6,567,897.50 Seized From CTBC Bank, Account Number 3800191916, 

et al., Case 2:19-cv-00485-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.

1

The United States has also lodged the complaint on the bankruptcy docket for DC Solar’s parent 

company, In re Double Jump Inc., Case 19-bk-50102, a bankruptcy case filed in Reno, Nevada after the 

United States executed federal search and seizure warrants at DC Solar’s business and other locations in 

California associated with the company and its founders. The United States and the Chapter 7 Trustees 

for the entities related to DC Solar and its principals have since entered a Coordination Agreement 

concerning the In Rem Defendants and other assets connected to DC Solar and its principals. An order 

approving the Coordination Agreement was entered in late November 2019, resulting in the dismissal of 

two In Rem Defendants from this case.2 See Dkt. 49, 51.

Good Cause

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

the In Rem Defendants are collectively owned by Jeffrey and Paulette Carpoff personally and through 

several LLCs, Dora Dog Properties, LLC, Dog Blue Properties, LLC, 475 Channel Road, LLC, 2750 

Maxwell Way, LLC, Fou Dog, LLC, Antioch Mini Storage, LLC, and 4021 Pike Lane, LLC. The 

government served copies of the complaint documents on the above LLCs through their registered agent 

 1 The Securities and Exchange Commission (“SEC”) has filed a notice of related cases to relate this case (and others) with 

their civil enforcement against criminal defendants Ronald Roach and Joe Bayliss, SEC v. Bayliss, et al., Case No. 2:19-CV2140-MCE-AC.

2 Accordingly, there are presently twelve In Rem Defendants in this case. See Dkt. 51. Under the Coordination Agreement, 

Chapter 7 Trustees have agreed not to file claims to these In Rem Defendants. 

Case 2:19-cv-00636-DAD-DB Document 60 Filed 01/09/20 Page 2 of 5
3

United States’ Request to Extend the Deadline to 

Submit a Joint Status Report

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

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

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 each respective LLC, Jeffrey and Paulette Carpoff. 

Lastly, the government has provided notice of this action to the lienholders who are identified on chainof-title documents and may have a security interest in the In Rem Defendants.

Four parties have so far appeared in the case.3 First, the only parties who have asserted an 

ownership interest, Jeff and Paulette Carpoff, filed claims as to each property in their personal capacity 

and through their LLCs. See Dkt. 27-28. Second, a bank filed claims concerning outstanding loans as 

relates to two In Rem Defendants (2750 Maxwell Way and 4021 Pike Lane) being sold by the U.S. 

Marshals Service, as discussed below. Dkt. 6-7. Third, a construction company filed a claim and 

answer associated with labor/materials supplied in connection with retaining walls installed at one of the 

In Rem Defendants. Dkt. 37. Lastly, the California Franchise Tax Board (“FTB”) filed a claim to 

several of the In Rem Defendants based on alleged taxes owed to the FTB by Jeff and Paulette Carpoff. 

Dkt. 35. The FTB and Daysh Development filed answers.

No other party has filed an answer in this case. However, based on the claimants’ requests for 

additional time to review the allegations—in the civil complaint as well as the four recently filed 

criminal informations and plea agreements—and potential privilege issues and other defenses, and given 

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

more time. The answers are currently due on January 15, 2020.

Furthermore, several potential tax equity investor-victims and those associated with the Dc Solar 

tax equity deals have requested extensions of time to file claims in this case. For similar reasons 

underlying the agreement to extend the time to file answers, the United States granted each request for 

an extension and those entities currently have until January 15, 2020 to file a claim.

To allow the above individuals, entities, investors, and trustees sufficient time to file a claim and 

research the issues raised by the facts alleged in the Complaint and recently filed criminal pleadings, the 

United States seeks to continue the deadline to file a Joint Status Report from January 9, 2020 to March 

11, 2020 (or to another date the Court deems appropriate).

 3 Dish Network, a provider of cable and television services, initially filed a claim concerning its tenancy at one of the In Rem

Defendants, but has since withdrawn that claim. See Dkt. 58. 

Case 2:19-cv-00636-DAD-DB Document 60 Filed 01/09/20 Page 3 of 5
4

United States’ Request to Extend the Deadline to 

Submit a Joint Status Report

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

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

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

from January 9, 2020 to March 11, 2020, or to a date the Court deems appropriate.

U.S. Marshals’ Efforts to Manage and Sell In Rem Defendants

2750 Maxwell Way and 4021 Pike Lane

As explained in the United States’ application for a restraining order, 2750 Maxwell Way and 

4021 Pike Lane were purchased using a combination of alleged fraud proceeds and millions of dollars in 

bank loans, the latter which went into default status some months ago. To preserve the availability 

equity, the United States requested and this Court ordered, the U.S. Marshals to maintain and sell each 

property, and the U.S. Marshals started those efforts in following the entry of the May 2019 order.

Particularly, the U.S. Marshals have secured each property, changed the locks and alarm codes, 

entered occupancy agreements with existing tenants, and taken other actions to ensure the properties are 

safe and properly monitored by professional custodians. The U.S. Marshals have also obtained 

appraisals and title reports for each property, designated a point person for any property issues that arise 

from tenants and/or other interested parties, and engaged an experienced commercial broker to market 

and sell the properties. As to 4021 Pike Lane, several offers were submitted and the strongest offer was 

accepted after a subsequent “best and final” round. The property recently sold for approximately 

$6,980,000. As to 2750 Maxwell Way, an offer was accepted in July 2019, but that buyer pulled out of 

escrow prior to waiving due diligence. The property returned to the market in September 2019 and 

recently went into contract with a local owner-user buyer. Escrow is anticipated to close in late January 

2020.

Dated: 1/8/2020 McGREGOR W. SCOTT

United States Attorney

/s/ Kevin C. Khasigian

ANDRE M. ESPINOZA

KEVIN C. KHASIGIAN

Assistant U.S. Attorney

Case 2:19-cv-00636-DAD-DB Document 60 Filed 01/09/20 Page 4 of 5
5

United States’ Request to Extend the Deadline to 

Submit a Joint Status Report

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

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

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 is extended from January 9, 2020 to March 11, 2020. 

IT IS SO ORDERED.

Dated: 1/8/2020 /s/ John A. Mendez_____________

JOHN A. MENDEZ

United States District Court Judge

Case 2:19-cv-00636-DAD-DB Document 60 Filed 01/09/20 Page 5 of 5