Motion for Interlocutory Sale — United States v. Bath

Record facts

U.S. District Court, Eastern District of California · No. 1:24-cr-00198-JLT-SKO · Doc. 16 · 2025-03-26 · Docket on CourtListener

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Motion for Interlocutory Sale of Real Property 
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IN THE UNITED STATES DISTRICT COURT 
EASTERN DISTRICT OF CALIFORNIA 
 
 
UNITED STATES OF AMERICA, 
 
 
 
 
 
Plaintiff, 
 
 
 
 
v. 
 
GURJEET BATH, 
 
 
 
 
 
Defendant. 
 
 
 
1:24-CR-00198-JLT-SKO 
 
 
UNITED STATES’ MOTION FOR 
INTERLOCUTORY SALE OF  
18670 S. ELM AVENUE, LATON, 
CALIFORNIA 
 
 
 
MOTION FOR INTERLOCUTORY SALE 
The United States moves pursuant to Rule 32.2(b)(7) of the Federal Rules of Criminal Procedure, 
for an order authorizing the immediate interlocutory sale of agricultural land forfeited by the defendant 
in this criminal case.  The basis for this motion is that the property owner, Defendant Gurjeet Bath, 
pleaded guilty to federal crimes and agreed to forfeit 18670 S. Elm Avenue, Laton, California.  Despite 
the forfeiture acknowledgement and motive to maintain its value to repay victims, Defendant Bath has 
allowed the property to fall into default with its lender and racked up additional debt by failing to pay 
property taxes.  In the absence of a responsible owner, the property’s debt grows each day and lacks a 
steward to manage a vast piece of rural property.  Accordingly, the United States seeks to preserve the 
status quo and avoid deterioration of the property’s condition and equity position, which can be 
accomplished through this interlocutory sale and converting the property to cash. 
 
MICHELE BECKWITH 
Acting United States Attorney 
JEFFREY A. SPIVAK 
KEVIN C. KHASIGIAN 
Assistant U.S. Attorney 
2500 Tulare Street, Suite 4401 
Fresno, CA 93721 
Telephone: (559) 497-4000 
 
Attorneys for Plaintiff 
United States of America 
 
Case 1:24-cr-00198-JLT-SKO     Document 16     Filed 03/26/25     Page 1 of 9

 
 
 
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Motion for Interlocutory Sale of Real Property 
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FACTUAL BACKGROUND 
Defendant Gurjeet Bath waived indictment and agreed to proceed on a Criminal Information 
charging him with one count of violating 18 U.S.C. § 641, theft of government property.  See Dkt. 1. 
The Information alleged the defendant falsified records and misrepresented employee numbers to 
obtain hundreds of thousands of dollars in Paycheck Protection Program (“PPP”) loans from the United 
States Small Business Administration (“SBA”).  Id.  In August 2024, the defendant signed a written 
plea agreement with the government, acknowledging his guilt on the Information’s sole count and 
agreeing to forfeit two agricultural properties he purchased with proceeds of crime.  See Dkt. 2.  One of 
the forfeited properties, 18670 S. Elm Avenue in Laton, California, is now in default and must be sold 
to salvage any equity for victims.1 
The S. Elm Avenue property is a 32-acre parcel of rural land purchased by the defendant for 
$1.8 million in mid-summer 2020.2  The purchase of S. Elm Avenue was mostly seller-financed, with 
the defendant investing $300,000 and the sellers holding a $1.5 million promissory note.  In 2024, the 
holders of the note, Terra Dos Sonhos LLC, filed a notice of default in Fresno County.  In the default 
notice, Terra Dos Sonhos represented that its loan has been in default since October 2023 and its debt 
increased to $1,676,236.61 as of August 27, 2024.  See Exhibit A.  Further, a recent title report for the 
S. Elm Avenue property showed property taxes are several years in arrears—totaling at least 
$36,384.91.  See Exhibit B.   
Accordingly, the United States is seeking the approval of the court to convert the S. Elm Avenue 
property to cash by way of interlocutory sale. 
ARGUMENT 
Rule 32.2(b)(7) provides as follows: 
At any time before entry of a final forfeiture order, the court, in accordance 
with Supplemental Rule G(7) of the Federal Rules of Civil Procedure, may 
order the interlocutory sale of property alleged to be forfeitable. 
Pursuant to Supplemental Rule G(7)(b), the Court may order the interlocutory sale of forfeited 
 
1 The second property subject to forfeiture, 2745 S. Peach Ave, Fresno, California, APN: 316-040-34, was recently sold.  The 
United States has deposited the net equity from that sale in a government suspense account until this case concludes. 
2 18670 S. Elm Avenue consists of two contingent parcels: APNs: 055-310-15 and 055-021-18.  The plea agreement’s 
forfeiture provision and this motion cover both APNs.  
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Motion for Interlocutory Sale of Real Property 
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property subject to if the property is “at risk of deterioration,” the “expenses … [are] excessive or 
disproportionate to its fair market value,” if the mortgage or taxes are in default, or for “other good 
cause.”  Rule G(7)(b)(i)(A)-(D).   The sale must be made by a United States agency that has authority to 
sell the property, by the agency’s contractor, or by any person that the court designates.  Id. at G(7)(b)(ii).   
Upon a successful interlocutory sale, the proceeds will be considered a “substitute res” subject to 
forfeiture in place of the property that was sold.  The proceeds are held in an interest-bearing account 
maintained by the United States pending the conclusion of the forfeiture action.  See Rule G(7)(b)(iv).  If 
the court subsequently orders the forfeiture of the sale proceeds, the sales proceeds will be disposed of as 
provided by law.  Rule G(7)(c). 
In this case, the S. Elm Avenue property is in payment default—i.e., the defendant borrowed 
money to purchase the soon-to-be-forfeited property but is not currently paying the debt.  Nor is the 
defendant keeping up with property taxes.  The interlocutory sale will permit the United States to sell the 
property and preserve as much equity as possible for ultimate forfeiture.  See United States v. Real 
Property located at 4816 Chaffey Lane, 699 F.3d 956, 961-62 (6th Cir. 2012) (Rule G(7)(b) authorizes 
interlocutory sale of yacht on which claimant has stopped paying mortgage); United States v. Real 
Property Located at 272 Old Montauk Highway, 2014 WL 726772, *8-10 (E.D.N.Y. Feb. 22, 2014) 
(interlocutory sale is necessary to protect the equity in real property). 
Additionally, the interlocutory sale will allow the United States to maintain the property to avoid 
any potential accidents on the vast agricultural land, enable the United States to confirm the property is 
insured, market the property for sale, and avoid falling even more in arrears on the payment of the 
applicable property taxes. 
CONCLUSION 
For the above reasons, the motion to sell the S. Elm Avenue property owned by Defendant Gurjeet 
Bath should be granted. 
Dated: March 26, 2025 
 
 
 
MICHELE BECKWITH 
 
 
 
 
 
 
 
Acting United States Attorney 
 
 
 
 
 
 
 
 
 /s/ Kevin C. Khasigian 
 
 
 
 
 
 
 
KEVIN C. KHASIGIAN 
 
 
 
 
 
 
 
Assistant U.S. Attorney 
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EXHIBIT A
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EXHIBIT B
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055-310-15 BLANK PURSUANT TO CA
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