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Home Court filings USA v. Gaines Andre Lee Gaines PPP fraud case — N.D. Ga., Atlanta Division Brief — USA v. Gaines (Dkt. 28.1)

Court filing

Brief — USA v. Gaines (Dkt. 28.1)

Filed August 24, 2023 in USA v. Gaines; one of 23 filings from this case.

Record facts

CourtU.S. District Court for the Northern District of Georgia
Filed2023-08-24

U.S. District Court for the Northern District of Georgia · No. 1:21-cr-00206-JPB · Doc. 28-1 · 2023-08-24 · Docket on CourtListener

Full text

IN THE UNITED STATES DISTRICT COURT 
FOR THE NORTHERN DISTRICT OF GEORGIA 
ATLANTA DIVISION 
 
UNITED STATES OF AMERICA, 
:  
 
: CRIMINAL ACTION 
 
 
v. 
: 
: 
NO: 1:21-CR-206-01-JPB 
ANDRE LEE GAINES, 
:  
 
Defendant, 
:  
 
 
and 
: 
: 
 
MORGAN & MORGAN, 
:  
 
Garnishee. 
:  
 
BRIEF IN SUPPORT OF MOTION FOR ENTRY OF FINAL DISPOSITION 
ORDER ON GARNISHMENT AS TO DEFENDANT ROBERT ELLIOTT  
SHEPPARD AND GARNISHEE MORGAN & MORGAN 
 
This matter involves a garnishment proceeding initiated by the United 
States to recover a debt owed by Defendant Andre Lee Gaines (“Defendant”) 
pursuant to the Court’s judgment in Criminal Action No. 1:21-CR-206-01-JPB.  
I. FACTS OF THE CASE 
 
The United States initiated this garnishment proceeding on June 22, 2023, by 
filing of an Application for Writ of Continuing Garnishment, regarding property 
of Defendant held by Garnishee Morgan & Morgan including settlement funds.  
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The writ of garnishment was based upon this Court’s entry of judgment in the 
original amount of $806,810.00 against Defendant on August 26, 2022.  
The United States demanded payment of the debt from Defendant more 
than 30 days before the application for the writ of garnishment was filed.  As of 
August 24, 2023, the sum of  $762,385.03 remains owing on the judgment. 
The Clerk of Court, through one of his deputies, issued the Writ of 
Continuing Garnishment on June 22, 2023.  The Application, the Writ, and all 
related documents (collectively referred to hereafter as the garnishment package) 
were served upon the Garnishee, as reflected on the Court’s docket by the notice 
of service filed on August 4, 2023.  [Doc. 23.] The garnishment package was also 
served on the Defendant, as reflected on the Court’s docket by the return of service 
filed on August 4, 2023.  [Doc. 24.] 
 
The Defendant has not requested a hearing or objected to the garnishment.  
Therefore, all prerequisites to entry of a disposition order have been satisfied. 
 
 
 
 
Case 1:21-cr-00206-JPB     Document 28-1     Filed 08/24/23     Page 2 of 8

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II. STATEMENT OF APPLICABLE LAW 
The provisions of the Federal Debt Collection Procedures Act, 28 U.S.C. §§ 
3001 - 3307 (“the FDCPA”), govern this garnishment action.  The FDCPA provides 
the “exclusive civil procedure for the United States to recover a judgment on a 
debt[.]” 28 U.S.C. § 3001(a)(1).  Post-judgment remedies to collect a debt owed to 
the United States are enforced pursuant to Subchapter C of the FDCPA.  The two 
sections which set forth the requirements for garnishment proceedings are found 
at 28 U.S.C. §§ 3202 and 3205.   
 
A. 
Procedures Generally Applicable Under 28 U.S.C. § 3202 
Applicable to all post-judgment collection actions brought by the United 
States under the FDCPA, 28 U.S.C. § 3202 requires the United States to prepare 
and the Clerk of Court to issue a notice to the defendant which contains 
information about the defendant’s rights under the FDCPA.  The notice, as 
outlined in 28 U.S.C. § 3202(b), informs the Defendant of the action, provides 
information for the Defendant regarding property which may be exempt from the 
collection activity, and advises the Defendant that the underlying judgment debt 
itself may be attacked only if the judgment was entered by default (the “§ 3202 
Notice”).   
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If upon receipt of the § 3202 Notice, the Defendant objects or claims an 
objection, and seeks a hearing, the FDCPA limits the issues to be addressed at a 
hearing to the following: 
1. 
the probable validity of the Defendant’s claimed exemptions; 
2. 
compliance with the statutory requirements for the issuance of 
the post-judgment remedy; and 
3. 
if the judgment being enforced was a default judgment, the 
validity of the underlying debt or whether good cause exists 
to set aside the default. 28 U.S.C. § 3202(d).  
 
 
B. 
Procedures Applicable to Garnishments under 28 U.S.C. § 3205 
The more specific FDCPA procedures applicable to a garnishment action are 
found at 28 U.S.C. § 3205.  This section requires that the application for the writ 
include certain personal identifiers of the defendant.  28 U.S.C. §§ 3204(b)(1)(A), 
3205(b)(1)(A).  Section 3205 also requires that the application provide information 
to the garnishee about the debt and its current balance and establish that the 
garnishee is believed to have possession of property in which the Defendant has 
an interest.  28 U.S.C. § 3205(b)(1)(c). 
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Under § 3205(c), the Clerk of Court is to issue the writ if the requirements of 
the section have been satisfied. 1  28 U.S.C. § 3205(c)(1).  The United States is 
required to serve the writ on the garnishee and the Defendant, along with (1) 
instructions explaining the requirement that the garnishee must file an answer and 
(2) instructions to the Defendant for objecting to the garnishee’s answer and for 
requesting a hearing on that objection.2  28 U.S.C. § 3205(c)(3).  An objection to the 
garnishee’s answer may be filed by either the United States or the Defendant 
within 20 days after receipt of the garnishee's answer.  28 U.S.C. § 3205(c)(5). 
 
In this case, all of these items were properly prepared, filed with the court, 
and served on Defendant and Garnishee.  Garnishee and Defendant have stated 
no objection to the form of the garnishment, the issuance of the writ, service of 
process or notice of this proceeding.   
 
 
 
1 28 U.S.C. § 1691 provides that “All writs and process issuing from a court of the 
United States shall be under the seal of the court signed by the clerk thereof.” 
Therefore, the proper court official to issue and sign the Writ of Continuing 
Garnishment is the clerk of court, whose duties may be assigned to a deputy.  
 
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Under 28 U.S.C. §3205(c)(7), a disposition order shall be entered as follows: 
After the garnishee files an answer and if no hearing is 
requested within the required time period, the court shall 
promptly enter an order directing the garnishee as to the 
disposition of the judgment debtor's non-exempt interest in 
such property.  If a hearing is timely requested, the order 
shall be entered within 5 days after the hearing, or as soon 
thereafter as is practicable. 
 
In this case, the Defendant has not requested a hearing, or claimed any 
exemptions.   No other party raised an objection or requested a hearing. All 
prerequisites for entry of a final disposition order under 28 U.S.C. § 3205(c)(7) have 
therefore been met. 
 
C. 
Entry of Final Disposition Order is Warranted 
 
Under the FDCPA, 28 U.S.C. § 3205(c)(7), the court may enter an order 
directing the garnishee as to the disposition of the Defendant’s interest in the 
garnished property.  For the reasons set forth above it is appropriate for the Court 
to enter the Final Disposition Order in the Garnishment action as to Garnishee and 
Defendant.  Furthermore, the government indicates that a continuing garnishment 
is not necessary under the facts of this case.  Accordingly, the United States 
requests that the court issue a Final Disposition Order in Garnishment.   
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The United States requests that the Court instruct payment of $12,812.14 by 
certified check or money order made payable to Clerk of Court for the Northern 
District of Georgia, 2211 U.S. Courthouse, 75 Ted Turner Drive S.W., Atlanta, GA 
30303 with reference made on the negotiable instrument to the case number, 1:21-
CR-206-01-JPB. 
III. CONCLUSION 
 
 
For the reasons stated herein, the United States respectfully requests that the 
Court issue a Final Disposition Order in Garnishment, pursuant to 28 U.S.C. § 
3205(c)(7), that orders the Garnishee to turn over Defendant’s interest in the 
property it holds in accordance with the Court’s instructions.  A proposed order 
is attached for the Court’s convenience.  The United States also requests that the 
Court grant such further relief as may be just and proper. 
 
 
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Respectfully submitted, 
 
RYAN K. BUCHANAN 
UNITED STATES ATTORNEY 
 
/s/Vivieon K. Jones  
 
 
VIVIEON K. JONES 
Assistant United States Attorney 
Georgia Bar No. 143033 
75 Ted Turner Drive, S.W., Ste 600 
Atlanta, GA 30303 
Phone: (404) 581-6350 
Fax: (404) 581-6167  
vivieon.jones@usdoj.gov 
 
 
CERTIFICATE OF COMPLIANCE 
 
 
I hereby certify, pursuant to Local Rules 5.1B and 7.1D, that the foregoing 
brief has been typed using 13-point Book Antiqua font. 
 
/s/Vivieon K. Jones   
 
 
 
 
VIVIEON K. JONES 
ASSISTANT UNITED STATES ATTORNEY 
Vivieon.jones@usdoj.gov 
 
 
  
 
Case 1:21-cr-00206-JPB     Document 28-1     Filed 08/24/23     Page 8 of 8

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