UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK ------------------- X 

UNITED STATES OF AMERICA, 

: STIPULATION AND ORDER 

Plaintiff, 

: 07 Civ. 35'37 (MGC) 

- Ti, - 

ALL ASSETS OF ASA DRUGS, INCLUDING 

$207,644.00 IN UNITED STATES CURRENCY : 

ON DEPOSIT AT JP MORGAN CHASE, IN 

ACCOUNT NUMBER XXX XXX XXX 865; 

ALL ASSETS OF NASH PHARMACY, 

INCLUDING $1,492,892.00 IN UNITED 

STATES CURRENCY ON DEPOSIT AT LTP 

MORGAN CHASE, IN ACCOUNT NUMBER XXX 

XXX XXX 365; and 

ALL ASSETS OF STAY SLIM PHARMACY, 

INCLUDING $128,534.00 IN UNITED 

STATES CURRENCY ON DEPOSIT AT JP 

MORGAN CHASE, IN ACCOUNT NUMBER XXX 

XXX XXX 065, 

WHEREAS, on or about May 4, 2007, the United States 

filed a civil forfeiture complaint against the above-captioned 

defendant-in-rem assets (the "Defendant Assets"), in which it 

alieaed that the Defendant Assets are (a) property constituting 

and derived from the proceeds of a Federal health care offense 

and a conspiracy to commit a Federal health care offense, namely, 

a scheme to defraud Medicaid, in violation of 18 U.S.C. §§ 1347 

and 1349; ib! property constituting and derived from a conspiracy 

to commit a Federal health care offense, namely, a scheme to pay 

bribes or kickbacks to Medicaid patients to induce them to 

purchase medicine, in violation of 18 U.S.C. S 371 and 42 U.S.C. 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 1 of 8
5 1323a-7b(b)(2)(B), or property traceable to such property; and 

(c) property involved in actual or attempted money laundering 

transactions, or property traceable to such property, in 

violation of 18 U.S.C. 55 1956 and 1957, and as such, are subject 

to forfeiture to the United States pursuant to 18 U.S.C. 55 

981 (a) (1) (A) and (C); 

WHEREAS, on or about June 25, 2007, Dluharnmed Nawaz 

Rhmad filed a claim to the assets of ASA Drugs and Stay Slim 

Pharmacy; 

WHEREAS, on or about July 6, 2007, Sobia Shaheen filed 

a claim to the assets of Nash Pharmacy and Stay Slim Pharmacy 

(hereinafter, Muhammad Nawaz Ahmad and Sobia Shaheen are referred 

to as the "Claimants"); 

WHEREAS, on or about June 25, 2007, Muhammad Nawaz 

Ahmad filed a motion to stay this civil forfeiture actlon pending 

the outcome of a related criminal action, United States v. 

Muhammad Eiaz Ahmad, Muhammad Nawaz Ahmad, and Dlohammad Tanveer, 

06 Cr. 1135 (JGK), in whlch Muhammad Nawaz Ahmad is charged with 

(a) conspiring to pay illegal kickbacks to Medicaid recipients, 

in violation of 18 U.S.C. 5 371; (b) defrauding Medicaid, in 

violation of 18 U.S.C. § 1349; and (c) using the means of 

identiflcatlon of real persons in connection with the Federal 

health care fraud conspiracy, in -~iolation of 18 U.S.C. § 1028A; 

WHEREAS, on or about July 9, 2007, Sobia Shaheen joined 

In the motion of Muhammad Nawaz Ahmad to stay rhis civil 

forfeiture action, and the United States filed a response to the 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 2 of 8
joint motion to stay in which it consented to the entry of a 

stay; 

WHEREAS, on or about September 6, 2007, the Court 

granted the motion to stay and entered an order to that effect; 

WHEREAS, David E. Ruck., Esq., counsel for Muhammad 

Nawaz Ahmad, and J. Jeffrey Weisenfeld, Esq., counsel for Sobia 

Shaheen, have submitted applications and supporting documentation 

to the United States seeking the release of certain funds 

included in the Defendant Assets for the purpose of paying 

overdue tax liabilities owed by ASA Drugs, Nash Pharmacy, and 

Stay Slim Pharmacy; 

IT IS HEREBY STIPULATED AND AGREED, by and between 

Muhammad Nawaz Ahmad, by and through his attorney, David E. Ruck, 

Esq.; Sobia Shaheen, by and through her attorney, J. Jeffrey 

Weisenfeld, Esq.; and the United States of America, by and 

through its attorney Michael J. Garcia, United States Attorney, 

Assistant United States Attorney Christine Meding; as follows: 

1. The United States consents to the release of 

$49,213.90 (the "Relezsed Funds"), which shall be used to pay the 

following outstanding tax liabilities in the following amounts: 

a. For 4SA Drugs, a total of $26, 904.26 shall be 

released, for the following tax liabilities: 

i. $12,884.26 in taxes owed to the Mew York 

City Department of Finance for the tax 

year 2006; 

ii. $13,920.00 in taxes owed to the New York 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 3 of 8
City Department of Finance for the tax 

year 2007; and 

iii. $100.00 in taxes owed to the New York 

State Department of Taxation and Finance 

for the tax year 2007. 

b. For Stay Slim Pharmacy, a total of $8,714.15 

shall be released, for the following tax liabilities: 

i. $6,137.07 in taxes owed to the Internal 

Revenue Service for the third and fourth 

quarters of tax year 2006 and the first 

quarter of tax year 2007; 

ii. $2,277.08 in employment, corporation, 

and sales taxes owed to the New York 

State Department of Taxation and Finance 

for the tax years 2006 and 2007; and 

iii. $300.00 in corporation taxes owed to the 

New York City Department of Finance for 

the tax year 2006. 

c. For Nash Pharmacy, a total of $14,219.74 

shall be released, for the following tax liabilities: 

i. $10,687.99 in taxes owed to the Internal 

Revenue Service for the third and fourth 

quarters of tax year 2006; 

ii. $3,231.75 in employment and corporation 

taxes owed to the New York State 

Department of Taxatlon and Finance for 

4 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 4 of 8
the tax years 2006 and 2007 ($2,607.50; 

and the tax period ending June 30, 2006 

($624.25) ; 

iii. $300.00 in corporation taxes owed to the 

New York City Department of Finance for 

the tax year 2007. 

2. The Released Funds shall be used only for the 

purpose of paying the outstanding tax liabilities lisred in the 

previous paragraph and shall not be used for any other purpose. 

If the United States learns that the Released Funds have been 

used for any purpose other than to pay the outstanding tax 

liabilities listed above, the Claimants shall repay to the United 

States any funds that were not applied toward the outstanding tax 

liabilities. 

3. It is understood between the parties that the 

release of funds described herein represents an extraordinary 

circumstance. The Claimants agree that they shall not seek the 

release of any additional funds in connection with any existing 

or any furure tax liabilities whlle the stay is in effect. 

4. The signature pages of this stipulation may be 

executed in one or more counterparts, each of which will be 

deerned an original but all of which together will constitute one 

and the same instrument and facsimile signatures shall be 

acceptable in lieu of original signatures 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 5 of 8
5. Each party shall bear its own costs and attorney 

fees . 

Dated: New York, New York 

, 2007 

CONSENTED TO: 

MICHAEL J. GARCIA 

United States Attorney for the 

Southern gisirict of New York 

By: 

F.ssistant United Stafes Attorney 

One St. Andrew's Plaza 

New 'fork, New York 10007 

MUHAMMAD NAWAZ AHMAD 

Claimant 

By: -- -- Davla E. Ruck, Esq. 

270 Madison Avenue 

Suite 1500 

New York, NY 10015 

SOBIA SHAHEEN 

Claimant 

By: 

J. Jeff rev weisenfeld, Esq. 

PATE //,/~/o 

PATE -- 

401 ~roadwa~ 

Suite 306 

New York, NY 10013 

SO ORDERED: 

THE HONORABLE MIRIAM G. CEDARBAUM 

United States District Judge 

Southern District of Iiew York 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 6 of 8
5 E,ach party ;ha11 bear its our: cubls and attnrney 

fees. 

Dated: New Ynrk, New Ycrk 

October -, 9007 

CONSENTED TO: 

MICHAEL J. GARCIA 

United Sti~us RLturnpy fnr th~ 

~ttornev for the U!>iLblJ SCat~s 

Ey: 

ClJillil'llNti MLUINI; 

OATE 

Aa513tant Uniccd sr3~ea nccornov 

One 5. Hndrcw'3 Plaza 

New York, Ncw YorK 10007 

y ; :'. si~~d &(,7~,~p&- E. RU.~, 5($, 

DATE 

270 Madison Avrrh~w 

SuFre 1500 

New York, NY 10016 

SOBIA SHAHEEN 

Claimant 

By: 

J. Jctfrcy Wclscnfeld, Esq. 

4U1 Broadway 

Su~te 3U6 

DATE 

---- ~ ~ 

New Yock, NY 10013 

TllC IIONOT(P.DLE MIRIAM G. CEDhnBAUH 

United Statc~ Di~tr~ct Judge 

S~uthern Di~trict of Ncw York 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 7 of 8
5. Each. pafly shall bmar its 6wn costs and attorney 

msmm TO: 

MIQIABL J. GARCIA 

United Btatee Attorney for the 

GoUtbCm Dirtrict of New Yolk 

Attorney for the United statoa 

By: DATE 

rnXSTeW MEDm 

~~~i0taIlt Gnited 6trItrbI1 Attorney 

one st. AnBcawJe Plaea 

New Ymk, New York 10007 

w : DATE 

David 8. RUCk, Esq. 

270 Medis~ AveriuP 

Suite 1500 

raw YOZk, NY 1001s 

New York. NY 10013 

. - w. -. - THg HONO~ nIRm G. cl?mRBA'Jm 

United Btatee District Judge 

southern District of New XOrk 

Case 1:07-cv-03587-MGC Document 11 Filed 12/04/2007 Page 8 of 8