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SOUTHERN DISTRICT OF OHIO

EASTERN DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

V.

IN THE UNITED STATES DISTRICT COURT FOR

J.1K 25 10 27 AH '88

SOUTHLilH OHiO

EAST. DIV. COLUMBUS

CIVIL NO

JUDGE

®«-88-OlOo

JU08E GRAHAM

ERNEST E. POUND, DOLORES POUND,

ROBERT LEE POUND, and ROBERT L.

POUND, JR.,

Defendants.

COMPLAINT

The plaintiff, the United States of America, by its attorney,

D. Michael Crites, United States Attorney for the Southern District

of Ohio, for its complaint against the defendants alleges as

follows:

COUNT I

1. This is an action to reduce to judgment certain federal

tax assessments made against the defendants, Ernest E. Pound,

Robert Lee Pound and Robert L. Pound, Jr., to set aside a fraudulent'

conveyance of real property and to foreclose federal tax liens

against said real property.

2. This action is brought pursuant to Sections 7401 and

7403 of the Internal Revenue Code (26 U.S.C.), at the direction

of the Attorney General of the United States and with the authori

zation of the Chief Counsel of the Internal Revenue Service, a

delegate of the Secretary of the Treasury.

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3. Jurisdiction exists pursuant to 26 U.S.C., Section 7402

and 28 U.S.C., Section 1340 and 1345.

4. The defendants, Ernest E. Pound and Dolores Pound,

reside at 350 Pierson Boulevard, Newark, Ohio 43055, within the

jurisdiction of this Court. Dolores Pound is named as a defendant

to this action as she may claim an interest in the subject real

property.

5. The defendant, Robert Lee Pound, resides at 743 Gratton

Road, Newark, Ohio 43055, within the jurisdiction of this Court.

6. The defendant, Robert L. Pound, Jr., resides at 168

North Bay Street, Newark, Ohio 43055, within the jurisdiction of

this Court.

7. On the dates and in the amounts set forth below, a

delegate of the Secretary of the Treasury made assessments in

accordance with law against Ernest E. Pound for one hundred

percent penalties, pursuant to the provisions of Section 6672 of

the Internal Revenue Code (26 U.S.C.), by reason of his willful

failure to collect,, truthfully account for and pay over withheld

income and Federal Insurance Contributions Act (PICA) taxes due

and owing from Pound's Florists, Inc., as follows:

Tax Period

2nd Qtr. 1980

3rd Qtr. 1980

4th Qtr. 1980

1st Qtr. 1981

2nd Qtr. 1981

3rd Qtr. 1981

4th Qtr. 1981

1st Qtr. 1982

2nd Qtr. 1982

3rd Qtr. 1982

Date of Assessment/

Notice and Demand

03/04/83

03/04/83

03/04/83

03/04/83

03/04/83

03/04/83

03/04/83

03/04/83

03/04/83

08/06/84

Amount of

Assessment

$"3,098.98

4,463.58

5,056.54

1,445.80

5,612.34

3,132.50

4,409.63

1,965.93

2,870.60

3,053.17

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8. On the same dates as the making of each assessment

described in paragraph 7, above, notices of the assessments and

demands for payment were made upon Ernest E. Pound.

9. In accordance with 26 U.S.C., Sections 6321 and 6322,

the assessments set forth in paragraph 7, above, plus interest

and statutory additions, are liens, as of the dates of the

assessments, on all property and rights to property of the

defendant, Ernest E. Pound.

10. Despite the notices of the assessment and demands for

payment, and except for a credit of withheld income from 1983 in

the amount of $2,224.00, Ernest E. Pound has failed and/or refused

to pay fully the assessments listed in paragraph 7, above, and as

a result, Ernest E. Pound remains indebted to the United States in

the amount of $32,885.07, plus statutory additions from the dates

of the assessments.

11. On the dates and in the amounts set forth below, a

delegate of the Secretary of the Treasury made assessments in

accordance with law against Robert Lee Pound for one hundred

percent penalties, pursuant to the provisions of Section 6672 of

the Internal Revenue Code (26 U.S.C.), by reason of his willful

failure to collect, tiruthfully account for and pay over withheld

income and Federal Insurance Contributions Act (FICA) taxes due

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and owing from Pound's Florists, Inc., as follows:

Tax Period

2nd Qtr. 1980

3rd Qtr. 1980

4th Qtr. 1980

1st Qtr. 1981

2nd Qtr. 1981

3rd Qtr. 1981

4th Qtr. 1981

1st Qtr. 1982

2nd Qtr. 1982

3rd Qtr. 1982

12. On the same dates as the making of each assessment

described in paragraph 11, above, notices of the assessments and

demands for payment were made upon Robert Lee Pound.

13. In accordance with 26 U.S.C., Section 6321 and 6322,

the assessments set forth in paragraph 11, above, plus statutory

additions from the dates of the assessments, are liens, as of the

dates of the assessments, on all property and rights to property

of the defendant, Robert Lee Pound.

14. Despite the notices of the assessments and demands for

payment, Robert Lee Pound has failed and/or refused to pay fully

the assessments listed in paragraph 11, above,- and as a result,

Robert Lee Pound remains indebted to the United States in the

amount of $35,109.07, plus statutory additions from the dates of

the assessments.

15. On the date and in the amounts set forth below, a

delegate of the Secretary of the Treasury made assessments in

accordance with law against Robert L. Pound, Jr. for one hundred

Date of Assessment/

Notice and Demand

Amount of

Assessment

03/04/83 $ 3,098.98

03/04/83 4,463.58

03/04/83 5,056.54

03/04/83 1,445.80

03/04/83 5,612.34

03/04/83 3,132.50

03/04/83 4,409.63

03/04/83 1,965.93

03/04/83 2,870.60

08/06/84 3,053.17

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percent penalties, pursuant to the provisions of Section 6672 of

the Internal Revenue Code (26 U.S.C.)/ by reason of his willful

failure to collect, truthfully account for and pay over withheld

income and Federal Insurance Contributions Act (FICA) taxes due

and owing from Pound's Florists, Inc., as follows:

Date of Assessment/ Amount of

Tax Period Notice and Demand Assessment

2nd Qtr. 1980 03/04/83 $ 3 098 98

3rd Otr. 1980 03/04/83 4^463 58

4th Otr. 1980 03/04/83 5 056 54

1st Qtr. 1981 03/04/83 l'445*80

2nd Qtr. 1981 03/04/83 5'612 34

3rd Qtr. 1981 03/04/83 3!132.50

4th Qtr. 1981 03/04/83 4 409 53

1st Qtr. 1982 03/04/83 l'965 93

2nd Qtr. 1982 03/04/83 2'870.60

3rd Qtr. 1982 08/06/84 3,053.17

16. On the same dates as the making of each assessment

described in paragraph 15, above, notices of the assessments and

demands for payment were made upon Robert L. Pound, Jr.

17. In accordance with 26 U.S.C., Sections 6321 and 6322,

the assessments set forth in paragraph 15, above, plus statutory

additions from the.dates of the assessments, are liens, as of the

dates of the assessments, on all property and rights to property

of the defendant, Robert L. Pound, Jr.

18. Despite the notices of the assessments and demands for

payment, and except for a credit of withheld income from 1983 in

the amount of $1,487.10 and from 1984 in the amount of $819.00,

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Robert L. Pound, JR., has failed and/or refused to pay fully the

assessments listed in paragraph 15, above, and as a result,

Robert L. Pound, Jr. remains indebted to the United States in the

amount of $32,802.97, plus statutory additions from the dates of

the assessments.

COUNT II

19. The United States hereby incorporates the allegations

set forth in paragraphs 1 through 18, above, as if specifically

rewritten herein.

20. On April 28, 1965, the defendant, Ernest E. Pound,

acquired title, by virtue of a Certificate of Transfer of Real

Property, to certain real property, having the following legal

description:

Situated in the County of Licking in the

State of Ohio and in the City of Newark and

bounded and described as follows;

Being Lot Number 8605 in Crawfords East

Meadows Addition to the said City of Newark, as shown on the Plat of said Addition

recorded in Volume 6, at Pages 69 and 70, of

the Plat.Records in the Office of the Recorder

of Licking County, Ohio.

Subject to all valid and existing building

and other restrictions and conditions of

record, to all valid and existing zoning

laws, ordinances, and regulations and to all

valid and existing easements of record.

21. On December 7, 1982, Ernest E. Pound transferred, by

Warranty Deed, an undivided one-half interest in the real property

described in paragraph 20, above, to his wife, Dolores Pound.

Ernest E. Pound received no consideration for this transfer.

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22. The transfer referred to in paragraph 21, above, was

made without fair consideration when the defendant, Ernest E.

Pound, intended or believed that he would incur debts beyond his

ability to pay as they matured, and as such, the transfer was

fraudulent as to both present and future creditors, including the

United States of America.

23. The transfer referred to in paragraph 21, above, was

made without consideration and impaired the rights of the creditors

of the defendant, Ernest E. Pound, including the United States of

America, and thus was a fraudulent conveyance.

24. The transfer referred to in paragraph 21, above, was

made with the intent to defraud or hinder the creditors of Ernest E,

Pound, including the United States of America.

WHEREFORE, the plaintiff, the United States of America prays;

1. That this Court enter judgment in favor of the United

States and against the defendant, Ernest E. Pound, for the unpaid

assessed tax liabilities described in paragraph 7, above, in the

amount of $32,885.07, plus statutory additions from the dates of

the assessments; against the defendant, Robert Lee Pound, for the

unpaid assessment tax liabilities described in paragraph 11,

above, in the amount of $35,109.07, plus statutory additions from

the dates of the assessments; and against the defendant, Robert L.

Pound, Jr., for the unpaid assessed tax liabilities described in

paragraph 15, above, in the amount of $32,802.97, plus statutory

additions from the dates of the assessments;

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2. That this Court determine that the United States has

valid and subsisting liens in the amount of $32,885.07, plus

statutory additions, on all property and rights to property of

the defendant, Ernest E. Pound;

3. That this Court determine that the transfer referred to

in paragraph 21 of the complaint was fraudulent as to the United

States of America and that said transfer be set aside;

4. That this Court determine that the liens of the United

States have attached to the real property described in paragraph

20 of the complaint, and that the liens be foreclosed and the

property be sold according to law, free and clear of any rights,

title, liens, claims, or interest of the parties herein, and that

the sale proceeds be distributed to such parties as determined by

this Court; and,

5. That this Court award the United States such other and

further relief, including the costs of this action, as it deems

proper and just.

D. MICHAEL CRITES

United States Attorney

Assistant United States Attorney

^SAN M.' POSWISTILO

Crial Attorney, Tax Division

U.S. Department of Justice

Post Office Box 55

Ben Franklin Station

Washington, D.C. 20044

Telephone: (202) 724-6560

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