UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA SOUTHERN DIVISION
April 19, 2010
UNITED STATES OF AMERICA, PLAINTIFF,
$278,170.00 IN U.S. CURRENCY ET AL., DEFENDANTS. ADNAN KADER, CONNIE KADER, AND ELITE GROUP DISTRIBUTION, INC., CLAIMANTS.
The opinion of the court was delivered by: The Honorable James V. Selna Chief United States District Judge
[NOTICE OF LODGING LODGED CONCURRENTLY HEREWITH]
[This document is not dispositive of the entire action]
On December 29, 2005, plaintiff United States of America ("plaintiff" or the "government") filed a Complaint for Forfeiture against the defendant properties as follows: $278,170.00 in United States Currency (the "defendant currency"); $861,226.38 in Bank Account Funds (the "defendant funds"); and 156 Negotiable Business Checks Valued at $1,308,987.60 (the "defendant checks") (collectively the "defendant assets"). The government alleged that the defendant assets were subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A) and (C).
Claimants Adnan Kader, Connie Kader, and Elite Group Distribution, Inc. (collectively "claimants") filed Statements of Interest on February 1, 2006. No other claims, statements of interest, or answers have been filed, and the time for filing claims, statements, and answers has expired.
The Court having been duly advised of and having considered the matter, and based upon the consent of plaintiff and claimants,
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED:
1. This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355.
2. The Complaint for Forfeiture states a claim for relief pursuant to 18 U.S.C. § 981(a)(1)(A) and (C).
3. Notice of this action has been given as required by law. Claimants filed the only statement of interests or claims. Claimants are relieved of their duty to file answers in this action. The Court deems that all other potential claimants admit the allegations of the Complaint for Forfeiture to be true.
4. The California State tax liability of Adnan Kader and Connie Kader for 2004 and 2005 is estimated to be $405,611.33, and of Elite Group is estimated to be $38,888.12.
5. The parties agree that the defendant assets in the amount of $444,499.45 may be released to claimants to be applied to claimants' outstanding tax liability to the State of California as described in the preceding paragraph. Upon proof to the satisfaction to the United States that the released funds have been properly remitted to and accepted by the State of California, the parties intend to submit another consent judgment (in the form attached hereto as Exhibit "A") to dispose of the remaining assets (which until then shall remain in government custody).
6. Claimants hereby release the United States of America, its agencies, officers, and employees, including employees of the Federal Bureau of Investigations, and local law enforcement agencies, their agents, officers, and employees, from any and all claims, actions, or liabilities arising out of or related to this action, including, without limitation, any claim for attorneys' fees or costs on behalf of claimants, whether pursuant to 28 U.S.C. § 2465 or otherwise.
7. The Court finds that there was reasonable cause for the institution of these proceedings against the defendant assets. This judgment shall be construed as a certificate of reasonable cause pursuant to 28 U.S.C. § 2465.
8. The Court further finds that claimants did not substantially prevail in this action, and the parties shall bear their own attorneys' fees and other costs of litigation.
9. Notwithstanding any other provision in this consent judgment, the parties agree that Kader shall be entitled to a final distribution that will consist of: (1) The balance of the seized funds plus the interest from the date of seizure on that balance, remaining after the payment of Kader's 2004 and 2005 individual federal tax liabilities and 2004 and 2005 individual and corporate state tax liabilities; and (2) Interest from the date of seizure, on the amount distributed to Kader to pay the $444,499.45 of state taxes referred to above in Paragraph 5.
The government and claimants consent to judgment and waive any right to appeal.
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