United States v. Approximately $3,801,034.94 in U.S. Currency Seized From Citibank Account Number 206054579 Held in the Name of Arthur Ave. Consulting, Inc. ( 2023 )

11 PHILLIP A. TALBERT United States Attorney 22 JEFFREY A. SPIVAK Assistant U.S. Attorney 33 2500 Tulare Street, Suite 4401 Fresno, CA 93721 44 (559) 497-4000 Telephone (559) 497-4099 Facsimile 55 Attorneys for the United States 66 77 88 IN THE UNITED STATES DISTRICT COURT 99 EASTERN DISTRICT OF CALIFORNIA 1100 1111 UNITED STATES OF AMERICA, CASE NO. 1:15-CV-00954-ADA-EPG 1122 Plaintiff, ORDER RE: STIPULATION TO STAY 1133 v. FURTHER PROCEEDINGS 1144 APPROXIMATELY $3,801,034.94 IN U.S. (ECF No. 73) CURRENCY SEIZED FROM CITIBANK 1155 ACCOUNT NUMBER 206054579 HELD IN THE NAME OF ARTHUR AVE. 1166 CONSULTING, INC., et al., 1177 Defendants. 1188 1199 INTRODUCTION 2200 The United States, claimant The Federal Republic of Nigeria (“Government of Nigeria”), and 2211 claimants Ara G. Dolarian, Arthur Ave. Consulting, Inc., Martel 3D LLC, and Dolarian Capital, Inc. (the 2222 “Dolarian Claimants” and together with Government of Nigeria, collectively, the “Claimants”), hereby 2233 stipulate that a stay of the instant action is necessary, and request that the Court enter an order staying all 2244 further civil forfeiture proceedings in this case in favor on ongoing criminal forfeiture proceedings 2255 ongoing in the related criminal case United States v. Ara G. Dolarian, 1:19-CR-00138-JLT-SKO. The 2266 seized assets in the related criminal case are the same assets that are the subject of this civil forfeiture 2277 case and, thus, resolution of the criminal forfeiture case will be dispositive of this civil asset forfeiture 11 FACTS 22 On March 8, 2023, Defendant Ara G. Dolarian was sentenced in his criminal case. As a matter of law, the amended preliminary order of forfeiture, filed on January 29, 2020, became final as to the 33 defendant at sentencing and, as a result, his interest in any of the seized assets is forfeited.1 44 The government now will be litigating any third party claims to the seized assets. See Rule 55 32.2(b)(6)(A) (“If the court orders the forfeiture of specific property, the government must publish 66 notice of the order and send notice to any person who reasonably appears to be a potential claimant with 77 standing to contest the forfeiture in the ancillary proceeding.) If necessary, and after conducting 88 discovery (which may take 6-12 months), the government may need to litigate any third party claims in 99 an ancillary proceeding before Dolarian’s sentencing judge, the Honorable Jennifer L. Thurston. See 1100 Rule 32.2(c)(A) (”If . . . third party files a petition asserting an interest in the property to be forfeited, the 1111 court must conduct an ancillary proceeding, but no ancillary proceeding is required to the extent that the 1122 forfeiture consists of a money judgment). 1133 Once all third-party interests are resolved, the government will obtain a final order of forfeiture, 1144 the forfeiture case will be concluded, and, at that time, the government intends to dismiss this case. 1155 LAW 1166 Title 18 U.S.C. § 981(g)(1) provides for a stay of civil asset forfeiture proceedings if government 1177 can show civil discovery will adversely affect criminal case. United States v. Approx. $6,658.92 in U.S. 1188 Currency, No. 1:13-cv-01674-AWI-SAB, 2015 WL 7750619 (E.D. Cal. Dec. 2, 2015), r. & r. adopted, 1199 No. 1:13-cv-01674-AWI-SAB (E.D. Cal. Dec. 23, 2015) (where government presented evidence that 2200 proceeding with civil discovery in forfeiture action will affect a related criminal case, stay of forfeiture action was appropriate); United States v. 2008 Audi R8 Coupe Quattro, 866 F. Supp. 2d 1180, 1184 2211 (C.D. Cal. 2011) (court granted stay based on showing potential interference with criminal case even 2222 though defendant pleaded guilty and was awaiting sentencing). 2233 // 2244 2255 2266 1 Pursuant to his plea agreement, Dolarian agreed to forgo any further claim to the seized assets. The government believes Dolarian will be filing a motion with withdraw his claim and answer in this 2277 case – personally, and on behalf of all Dolarian Claimants. But because that has not yet happened, the 11 STIPULATION 22 1. The government has represented that civil proceedings could interfere with the ongoing criminal case because it would create duplicable and potentially conflicting discovery and proceedings. 33 A stay would also result in substantial judicial economy because the criminal case will likely be 44 completely dispositive of this case. 55 2. Thus, the parties request that the Court continue the stay in this matter for approximately 66 six months, until September 24, 2023 (or a date convenient to the Court). 77 3. If the criminal case resolves this case sooner than September 2023, the parties will inform 88 the Court promptly. 99 Respectfully submitted, 1100 Dated: March 15, 2023 PHILLIP A. TALBERT 1111 United States Attorney 1122 By: /s/ Jeffrey A. Spivak 1133 JEFFREY A. SPIVAK Assistant U.S. Attorney 1144 1155 Dated: March 15, 2023 /s/ George B. Newhouse, Jr. 1166 GEORGE B. NEWHOUSE, JR. Attorney for Dolarian Claimants 1177 (approved by email 3/15/2023) 1188 Dated: March 15, 2023 /s/ Jovi Usude 1199 JOVI USUDE Attorney for Claimant 2200 The Federal Republic of Nigeria (approved by phone 3/15/2023) 2211 2222 2233 2244 2255 2266 2277 1 ORDER 2 Based on the parties’ stipulation (ECF No. 73), IT IS ORDERED that: 3 1. This matter is STAYED until September 24, 2023, pursuant to Title 18, United States Code, 4 Section 981(g)(1) and in accordance with the terms of this stipulation. 5 2. Accordingly, the scheduling conference currently set for March 23, 2023, is VACATED; 6 3. The parties shall file a joint status report by no later than September 18, 2023, advising the Court 5 whether a further stay is necessary or that this action may be dismissed. 8 || IT IS SO ORDERED. 9 Dated: _March 16, 2023 [Jee ey — UNITED STATES MAGISTRATE JUDGE 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28