The opinion of the court was delivered by: John F. Walter, United States District Judge
Date: July 12, 2010 Time: 1:30 p.m.
Judge: Hon. John F. Walter
Disc. Cut-Off: July 5, 2010
Pretrial Conf. Date: August 13, 2010
Trial Date: August 24, 2010
Having reviewed the pleadings and papers on file, the Court hereby finds that there is no genuine issue of material fact and the Plaintiff is entitled to judgment against the Defendant as a matter of law.
The court finds that the following facts are undisputed:
1. Plaintiff, FDIC, is a federal corporation originally created as a part of the Federal Reserve Act. Act June 16, 1933, c. 89, § 8, 48 Stat. 168 which added § 12B to the Federal Reserve Act. 12 U.S.C. § 1811(a). On November 7, 2008, the Commissioner of Financial Institutions of the State of California took possession of Security Pacific Bank (SPB"), a California bank based in Los Angeles and appointed the FDIC as Receiver of SPB. 12 U.S.C. § 1821(c)(3)(A); Declaration of Peggy Carollo ("Carollo Decl."), ¶ 4.
2. On or before December 17, 2007, Yacoobian, a customer of SPB with several existing loans, requested SPB to issue a letter of credit in the amount of $1,580,000 for the account of Yacoobian to Credit Suisse Premium Finance LLC ("CSPF") as beneficiary. Carollo Decl., ¶ 5, 7 and Exhibit A thereto; Defendant's Response to FDIC's Request for Admissions, Set One, ("Response RFA"), Response to Request No. 13.
3. Yacoobian requested the letter of credit because: 1) his family, through a family trust (the "MCY III 2007 Trust") had purchased life insurance policies with death benefits totaling $22,000,000 insuring the life of his mother, who was in her eighties, for estate planning purposes; 2) the premiums for the policies were being financed by CSPF; and 3) CSPF required the letter of credit from Yacoobian in conjunction with the financing to secure payment of its loan to the MCY III 2007 Trust of $1,612,853. The MCY III 2007 Trust was formed as part of the overall Yacoobian family estate and tax planning structure. The estate plan called for procuring insurance policies on Yacoobian's mother's life to offset estate taxes of between $20 million and $25 million on the estate of Yacoobian's parents, for the benefit of Yacoobian and his family upon the death of the surviving parent, and to put millions of dollars in the pockets of the Yacoobian family. Carollo Decl., ¶ 6 and Exhibits A, I and K thereto; Defendant's Responses to FDIC's Interrogatories, Set One ("Response Introgs"), Response to Interrogatory No. 1; Amended Answer of Defendant Martin C. Yacoobian, Jr to Complaint("Amended Answer") ¶ 7; Complaint, Martin C. Yacoobian, Sr., et al. v. Bruce Givner, et al., Los Angeles Superior No. ...