Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-02176/USCOURTS-caed-2_05-cv-02176-10/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7401 IRS: Tax Liability

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28 STIPULATION -1- 2300483.1 

McGREGOR W. SCOTT

United States Attorney

PAUL S. HAM

Trial Attorney, Tax Division

United States Department of Justice

P.O. Box 683, Ben Franklin Station

Washington, DC 20044-0683

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

Attorneys for the United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA

Plaintiff,

v.

MICHAEL CAREY, et al.,

Defendants.

 

Civil No. 2:05-cv-2176-MCE-CMK 

STIPULATION BETWEEN THE

UNITED STATES AND PATRICIA

WELCH (aka PATRICIA KOERNER),

and ORDER

Plaintiff United States of America and defendant Patricia Welch (aka Patricia Koerner), through

their respective attorneys, hereby agree and stipulate as follows:

1. The United States has made assessments against defendants Michael and Leone Carey for

their outstanding federal income (Form 1040), plus penalties and interest, for 1995 through 2000 (“tax

years at issue”). The United States has recorded Notices of Federal Tax Lien with the County Recorder’s

Office for Shasta County, California (“County Recorder”) to secure Michael and Leone Careys’ unpaid

tax debts, plus penalties and interest, for the tax years at issue.

2. Patricia Welch entered into a Deed of Trust, recorded with the County Recorder on

August 13, 1996 with Michael Bloomquist (as trustee of the Hidden Meadows Holding Trust), regarding

the Bella Vista Property. The United States has moved for summary judgment, seeking the Court to

adjudicate that Michael and Leone Carey are the true and beneficial owners of the Bella Vista Property

despite any purported interest held by the Hidden Meadows Holding Trust. See Dkt., No. 84. 

Case 2:05-cv-02176-MCE-CMK Document 103 Filed 04/05/07 Page 1 of 3
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28 STIPULATION -2- 2300483.1 

Patrica Welch does not oppose the United States’ summary judgment motion. See Dkt., No. 92. 

Therefore, the United States and Patricia Welch agree that the United States’ tax liens securing Michael

and Leone Careys’ unpaid tax debts for the tax years at issue and Patricia Welch’s interest as the

beneficiary on the Deed of Trust attach to the Bella Vista Property, located at 23658 Highway 299E,

Bella Vista, California 96008, which is particularly described as follows:

All that portion of the North one-half of the Southwest one-quarter of Section 35,

Township 33 North, Range 3 West, M.D.B. & M., lying North of the California State

Highway No. 299E.

Excepting therefrom all that portion conveyed in the deed to Kenneth E. Spencer and Ruth

Melba Spencer, husband and wife, recorded March 16, 1970 in Book 1022 of Official

Records, Page 270, Shasta County Records.

Also excepting therefrom “All mineral lands except coal or iron lands” as excepted in the

patent from the United States of America, recorded April 7, 1896 in Book 5 of patents,

page 275, Shasta County Records.

Also excepting therefrom one-third of all minerals or other hydrocarbon substances in said

above described property with the right to enter upon said land and remove the same as

reserved in the deed recorded April 28, 1960 in book 633 official records at page 292,

Shasta County Records.

3. The United States and the Patricia Welch agree that Patricia Welch’s claim, through Deed

of Trust, is senior to the United States’ claim, through its tax liens, against the Bella Vista Property. 

Therefore, the United States and Patricia Welch agree that the proceeds generated from any judicial or

voluntary sale of the Bella Vista Property as related to this action, shall be distributed in such a way to

satisfy Patricia Welch’s claim prior to satisfaction of the United States’ claim against the Bella Vista

Property.

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Case 2:05-cv-02176-MCE-CMK Document 103 Filed 04/05/07 Page 2 of 3
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28 STIPULATION -3- 2300483.1 

4. The United States and Patricia Welch are to bear their respective costs, including any

possible attorney's fees or other expenses of this litigation. Patricia Welch is hereby dismissed from this

action. 

Dated this 30 day of March, 2007. th

MCGREGOR W. SCOTT

United States Attorney

 /s/ - Paul Ham 

PAUL S. HAM

Trial Attorney, Tax Division

U.S. Department of Justice

Post Office Box 683, Ben Franklin Station

Washington, D.C. 20044

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

(Attorneys for the United States)

Dated this 23 day of March, 2007. rd

 /s/ - Scott Putnam 

SCOTT PUTNAM

Wells, Small, & Selke

292 Hemsted Drive

Redding, CA 96002

Telephone: (530) 223-1800 

Facsimile: (530) 223-1809 

(Attorney for Patricia Welch)

IT IS SO ORDERED.

Dated: April 5, 2007

________________________________

MORRISON C. ENGLAND, JR.

UNITED STATES DISTRICT JUDGE

Case 2:05-cv-02176-MCE-CMK Document 103 Filed 04/05/07 Page 3 of 3