Judgment — United States v. Shibley (Dkt. 142, W.D. Wash. No. 2:20-cr-00174)

Record facts

U.S. District Court for the Western District of Washington · No. 2:20-cr-00174-JCC · Doc. 142 · 2021-12-30 · Docket on CourtListener

Full text

Motion for Discharge 
Page 1 of 3 
VORTMAN & FEINSTEIN  
2033 6TH AVENUE, SUITE 251 
SEATTLE, WA 98121 
(206) 223-9595
(206) 386-5355 (fax)
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Motion:  December 31, 2021 
Judge John C Counourer 
IN THE UNITED STATES DISTRICT COURT 
FOR THE WESTERN DISTRICT OF WASHINGTON AT SEATTLE 
UNITED STATES OF AMERICA; 
         Plaintiff 
V 
ERIC SHIBLEY 
 Defendant 
No.  CR20-174-JCC 
LIMITED OBJECTION TO UNITED 
STATE’S MOTION FOR ENTRY OF 
ORDER OF FORFEITURE  
COMES NOW the ES1 LLC, by and through its attorney, Vortman & 
Feinstein, and moves the Court as follows: 
The United States has filed a motion under FRCP 32.2(b) for an Order of 
Forfeiture, seeking to forfeit to the United States “Defendants Eric Shibley’s 
interest” in certain bank accounts listed therein.  Item number 2 on the list of certain 
bank accounts, states:  
$100,000.00 in U.S. funds, seized on or about May 29, 2020 from Wells 
Fargo account #******2378, held in the name of ES1 LLC (“Subject 
Property 2”);  
ES1 LLC filed a petition for relief in the United States Bankruptcy Court for 
the Western District of Washington under Cause No. 21-12109.  See 
attached Exhibit A, Notice of Chapter 11 Bankruptcy Case.
Case 2:20-cr-00174-JCC     Document 142     Filed 12/30/21     Page 1 of 5

Motion for Discharge 
Page 2 of 3 
VORTMAN & FEINSTEIN  
2033 6TH AVENUE, SUITE 251 
SEATTLE, WA 98121 
(206) 223-9595
(206) 386-5355 (fax)
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Under 11 USC §362, there is a stay of all actions against the Debtor [ES1 
LLC] and against property of the estate, and that any actions to levy or seize funds 
of the estate are stayed.  Section 362 provides (and note the highlighted text 
below): 
Except as provided in subsection (b) of this section, a petition filed under 
section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) 
of the Securities Investor Protection Act of 1970, operates as a stay, applicable 
to all entities, of— 
(1) the commencement or continuation, including the issuance or employment of
process, of a judicial, administrative, or other action or proceeding against the
debtor that was or could have been commenced before the commencement of
the case under this title, or to recover a claim against the debtor that arose
before the commencement of the case under this title;
(2) the enforcement, against the debtor or against property of the estate, of a
judgment obtained before the commencement of the case under this title;
(3) any act to obtain possession of property of the estate or of property from the
estate or to exercise control over property of the estate;
(4) any act to create, perfect, or enforce any lien against property of the estate;
(5) any act to create, perfect, or enforce against property of the debtor any lien to
the extent that such lien secures a claim that arose before the commencement of
the case under this title;
(6) any act to collect, assess, or recover a claim against the debtor that arose
before the commencement of the case under this title;
(7) the setoff of any debt owing to the debtor that arose before the
commencement of the case under this title against any claim against the debtor;
and
(8) the commencement or continuation of a proceeding before the United States
Tax Court concerning a tax liability of a debtor that is a corporation for a taxable
period the bankruptcy court may determine or concerning the tax liability of a
debtor who is an individual for a taxable period ending before the date of the
order for relief under this title.
Property of the bankruptcy estate, under 11 USC Section §541 provides: 
(a)The commencement of a case under section 301, 302, or 303 of this title
creates an estate. Such estate is comprised of all the following property,
wherever located and by whomever held:
(1) Except as provided in subsections (b) and (c)(2) of this section, all legal or
equitable interests of the debtor in property as of the commencement of the case.
Case 2:20-cr-00174-JCC     Document 142     Filed 12/30/21     Page 2 of 5

 
 
 
Motion for Discharge 
 
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VORTMAN & FEINSTEIN  
2033 6TH AVENUE, SUITE 251 
SEATTLE, WA 98121 
(206) 223-9595 
(206) 386-5355 (fax)  
 
 
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As such, ES1 LLC, files this limited objection as to the United States’ 
request that the bank account in the name of the Chapter 11 Debtor ES1 LLC be  
forfeited to the United States on behalf of the Defendant in these proceedings, Eric 
Shibley.  The Court must order, instead, provide that Item #2 of the Motion, the 
stated bank account of ES1 LLC at Wells Fargo Ban, account #*******2378, must 
be released from the United States’ levy and seizure and ordered to be turned over 
and returned back to the debtor US1 LLC, to be accounted for in the aforesaid 
Chapter 11 bankruptcy proceedings.  
ES1 LLC requests relief accordingly.  
DATED this 29rd day of December, 2021. 
               
 
 
 
 
/s/ Larry B. Feinstein 
 
 
 
 
 
 
 
 
 
Larry B. Feinstein WSBA # 6074 
 
 
 
 
 
 
Kathryn Scordato, WSBA #41922 
 
 
 
 
 
 
Attorneys for Debtors ES1 LLC 
Case 2:20-cr-00174-JCC     Document 142     Filed 12/30/21     Page 3 of 5

Information to identify the case:
Debtor
ES1 LLC
Name
EIN:  46−1595849
United States Bankruptcy Court   Western District of Washington
Date case filed for chapter:
11
11/19/21
Case number:      21−12109−CMA
Official Form 309F2 (For Corporations or Partnerships under Subchapter V)
Notice of Chapter 11 Bankruptcy Case
08/21
For the debtor listed above, a case has been filed under chapter 11 of the Bankruptcy Code. An order for relief has
been entered.
This notice has important information about the case for creditors, debtors, and trustees, including information about
the meeting of creditors and deadlines. Read both pages carefully.
The filing of the case imposed an automatic stay against most collection activities. This means that creditors generally may not take action to collect debts
from the debtor or the debtor's property. For example, while the stay is in effect, creditors cannot sue, assert a deficiency, repossess property, or
otherwise try to collect from the debtor. Creditors cannot demand repayment from the debtor by mail, phone, or otherwise. Creditors who violate the stay
can be required to pay actual and punitive damages and attorney's fees.
Confirmation of a chapter 11 plan may result in a discharge of debt. A creditor who wants to have a particular debt excepted from discharge may be
required to file a complaint in the bankruptcy clerk's office within the deadline specified in this notice. (See line 12 below for more information.)
To protect your rights, consult an attorney. All documents filed in the case may be inspected at the bankruptcy clerk's office at the address listed below or
through PACER (Public Access to Court Electronic Records at https://pacer.uscourts.gov).
The staff of the bankruptcy clerk's office cannot give legal advice.
Do not file this notice with any proof of claim or other filing in the case.
1. Debtor's full name
ES1 LLC
2. All other names used in the
last 8 years
3. Address
c/o Eric Shibley, Reg. 50216−086
Federal Detention Center
PO Box 13900
Seattle, WA 98198
4. Debtor's attorney
 Name and address
Larry B. Feinstein
Larry B. Feinstein
2033 Sixth Avenue
Ste 251
Seattle, WA 98121
Contact phone  206−223−9595
Email:  1947feinstein@gmail.com
5. Bankruptcy trustee
Name and address
Michael DeLeo
Peterson Russell Kelly Livengood PLLC
10900 NE 4th Street
Suite 1850
Bellevue, WA 98004
Contact phone  425−990−4014
Email:  msdeleo−trustee@prklaw.com
6. Bankruptcy clerk's office
 Documents in this case may be filed
at this address.
You may inspect all records filed in
this case at this office or online at
https://pacer.uscourts.gov.
700 Stewart St, Room 6301
Seattle, WA 98101
Hours open:
8:30 am − 4:30 pm Monday − Friday
Contact phone  206−370−5200
Date: 11/23/21
For more information, see page 2 >
Official Form 309F2 (For Corporations or Partnerships under Subchapter V)
Notice of Chapter 11 Bankruptcy Case
page 1
Case 2:20-cr-00174-JCC     Document 142     Filed 12/30/21     Page 4 of 5

Debtor   ES1 LLC
Case number   21−12109−CMA
7. Meeting of creditors
 The debtor's representative must
attend the meeting to be questioned
under oath.
Creditors may attend, but are not
required to do so.
December 21, 2021 at 11:00 AM
The meeting may be continued or adjourned to a later
date. If so, the date will be on the court docket.
*** Valid photo identification and proof of social
security number required ***
Location:
Telephonic Creditors Meeting
Conference Line: 1−866−817−4564
Participant Code: 2679438
8. Proof of claim deadline
Deadline for filing proof of claim:
Not yet set. If a deadline is set, the court will
send you another notice.
A proof of claim is a signed statement describing a creditor's claim. A proof of claim form may be obtained
at www.uscourts.gov or any bankruptcy clerk's office.
Your claim will be allowed in the amount scheduled unless:
•   your claim is designated as disputed, contingent, or unliquidated;
•   you file a proof of claim in a different amount; or
•   you receive another notice.
If your claim is not scheduled or if your claim is designated as disputed, contingent, or unliquidated, you
must file a proof of claim or you might not be paid on your claim and you might be unable to vote on a
plan. You may file a proof of claim even if your claim is scheduled.
You may review the schedules at the bankruptcy clerk's office or online at https://pacer.uscourts.gov.
Secured creditors retain rights in their collateral regardless of whether they file a proof of claim. Filing a
proof of claim submits a creditor to the jurisdiction of the bankruptcy court, with consequences a lawyer
can explain. For example, a secured creditor who files a proof of claim may surrender important
nonmonetary rights, including the right to a jury trial.
9. Exception to discharge
deadline
 The bankruptcy clerk's office must
receive a complaint and any
required filing fee by the following
deadline.
If § 523(c) applies to your claim and you seek to have it
excepted from discharge, you must start a judicial
proceeding by filing a complaint by the deadline stated
below.
Deadline for filing the complaint:
2/22/22
10. Creditors with a foreign
address
If you are a creditor receiving notice mailed to a foreign address, you may file a motion asking the court to
extend the deadlines in this notice. Consult an attorney familiar with United States bankruptcy law if you
have any questions about your rights in this case.
11. Filing a Chapter 11
bankruptcy case
Chapter 11 allows debtors to reorganize or liquidate according to a plan. A plan is not effective unless the
court confirms it. You may receive a copy of the plan and a disclosure statement telling you about the plan,
and you may have the opportunity to vote on the plan. You will receive notice of the date of the confirmation
hearing, and you may object to confirmation of the plan and attend the confirmation hearing. The debtor will
generally remain in possession of the property and may continue to operate the debtor's business.
12. Discharge of debts
Confirmation of a chapter 11 plan may result in a discharge of debts, which may include all or part of your
debt. See 11 U.S.C. § 1141(d). A discharge means that creditors may never try to collect the debt from the
debtor except as provided in the plan. If you want to have a particular debt owed to you excepted from the
discharge and § 523(c) applies to your claim, you must start a judicial proceeding by filing a complaint and
paying the filing fee in the bankruptcy clerk's office by the deadline.
Notice of Potential Dismissal
If the debtor fails to file required schedules, statements or lists within 15 days from the date the petition is filed, or object to
dismissal of the case indicating why dismissal is not appropriate, the case may be dismissed without further notice. If the
Debtor(s) fails to appear at the meeting of creditors, the U.S. Trustee may apply for an order of dismissal without further
notice.
Anyone can register for the Electronic Bankruptcy Noticing program at ebn.uscourts.gov OR (2) Debtors can register for
DeBN by filing local form DeBN Request Form with the Clerk of Court. Both options are FREE and allow the clerk to quickly
send you court−issued notices and orders by email.
Official Form 309F2 (For Corporations or Partnerships under Subchapter V)
Notice of Chapter 11 Bankruptcy Case
page 2
Case 2:20-cr-00174-JCC     Document 142     Filed 12/30/21     Page 5 of 5

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