ANDRÉ BIROTTE JR., United States Attorney, ROBERT E. DUGDALE, Assistant United States Attorney Chief, Criminal Division, STEVEN R. WELK, Assistant United States Attorney Chief, Asset Forfeiture Section, California Bar Number 149883, P. GREG PARHAM, Assistant United States Attorney, California Bar Number 140310 Los Angeles, California, Attorneys for Plaintiff United States of America.
FINAL CONSENT JUDGMENT OF FORFEITURE
S. JAMES OTERO, District Judge.
Plaintiff commenced three civil in rem forfeiture actions now pending in the United States District Court for the Central District of California: (1) United States of America v. $1, 573, 099.93, Case No. CV 06-1971 SJO (AJWx); (2) United States of America v. $35, 000 in U.S. Funds, et al., Case No. CV 07-0107 SJO (AJWx) (these two actions are collectively referred to as the "Monetary Actions"); and (3) United States of America v. Real Property Located in Diamond Bar, California (Tringham), Case No. CV 06-0609 SJO (AJWx) ("Diamond Bar Action"). (The Monetary Actions and the Diamond Bar Action are collectively referred to as the "In Rem Actions.")
This instant action was filed on March 31, 2006. Plaintiff seeks forfeiture of $1, 573, 099.93 in bank account funds and $52, 269.09 as a substitute res for a 2006 Land Rover Ranger (the "defendant assets"). Notice was given and published in accordance with law. On May 23, 2006, a First Amended Complaint was filed. Docket Number ("DN") 8. On July 5, 2006, Hui Cindy Wang ("Wang")[pro se] filed a claim to the defendant $52, 269.09 as a substitute res for a 2006 Land Rover Range Rover. Robert Tringham ("Tringham"), who was formerly the president and owner of First National Ban Corp. ("FNBC") and First Asset Management Corp. ("FAMC"), also filed a claim to all the defendant assets on July 5, 2006. DN 11. Plaintiff filed a Second Amended Complaint on November 8, 2007. DN 41. On April 18, 2008, Tringham, FNBC and FAMC, through counsel, filed claims and an answer to the Second Amended Complaint. DN 47-50. On or about January 13, 2012, Robb Evans & Associates LLC ("Robb Evans"), the receiver of Finbar Securities Corp. ("Finbar") filed a claim and answer to the Second Amended Complaint because FNBC and FAMC were believed to be subsidiaries or affiliates of Finbar. DN 86-87. On September 19, 2012, a Consent Judgment of Forfeiture as to Tringham was entered, resolving the claims of Tringham. DN 113. No other claims or answers have been filed, and the time for filing claims and answers has expired. Plaintiff and Receiver have reached an agreement that is dispositive of the remaining claims in this action, and have requested that the Court enter this Consent Judgment of Forfeiture.
The government has alleged that Tringham conducted fraudulent schemes in the names of FNBC. Tringham also used entities named First Asset Management Corporation ("FAMC"), Colony Mortgage Banc ("CMB") and Capital Ban Corp ("CBC"). Victims of Tringham's fraudulent schemes perpetrated in the names of or through FNBC, FAMC, CMB and CBC are collectively referred to as the "Non-Finbar Victims." Victims of Tringham's fraudulent schemes perpetrated in the name of Finbar are referred to as the "Finbar Victims."
Tringham was arrested, convicted and sentenced to prison in connection with one or more of the fraudulent schemes perpetuated in the names of or through Finbar, FNBC, FAMC, CMB and CBC.
Plaintiff and the Receiver have engaged in extensive and lengthy negotiations in an effort to resolve their disputes and differences. These negotiations have, from time to time, included the Asset Forfeiture and Money Laundering Section of the Department of Justice in Washington, D.C ("AFMLS") and the Securities and Exchange Commission ("SEC"). AFMLS agreed to undertake a non-binding victim remission and restoration process ("Claims Process") whereby, among other things, AFMLS reviewed and approved the proposed allowed claims for all Finbar Victims and Non-Finbar Victims to be paid from the Defendant Assets, as more particularly set forth herein. The proposed allowed claims for Finbar Victims were submitted to AFMLS by the Receiver. The proposed allowed claims for Non-Finbar Victims were submitted to AFMLS by such victims. AFMLS has made proposed allowed claims determinations in connection with the distribution of the Defendant Assets, based on the claims that were submitted and other relevant information. Plaintiff and the Receiver agree with the proposed allowed claims as determined by AFMLS in its Claims Process and seek to have the AFMLS claims determinations made final and binding.
WHEREFORE, IT IS ORDERED, ADJUDGED AND DECREED:
1. Forfeiture of Defendant Assets
All of the Defendant Assets in the In Rem Actions shall be forfeited, less a sum not exceeding $125, 000 which will be withheld from the defendant assets in the instant case to pay the fees and expenses of the Receiver and its counsel as may be allowed by the Court in the SEC Action and to the extent that the receivership estate has insufficient assets to pay such fees and expenses otherwise ("Withheld Assets"). (The Defendant Assets less the Withheld Assets are referred to as the "Forfeited Assets." The Forfeited Assets, less a minor amount of costs attributable to the Claims Process, and the costs to be incurred and liens to be paid in connection with the sale of the Diamond Bar Property, are referred to as the "Net Forfeited Assets.")
2. Finbar Victims Allowed Claims
The claims of Finbar Victims shall be allowed in the aggregate amount of $8, 787, 656.25 as follows:
Name Allowed Claim Amount (a) Juergen Votteler $2, 273, 810.47 (b) Werner Weber $1, 287, 880.00 (c) Mattias Baumeler $1, 000, 100.00 (d) Peter Wuergatsch $1, 100, 070.00 (e) Jeri Tulipan $762, 788.05 (f) Manfred ...