Order Granting United States of America’s Motion for an Interlocutory Order of Sale of 1924 Coralino Drive, Henderson, Nevada 89074 — United States v. Casutt (Dkt. 247, D. Nev.)

Summary

An order granting the United States of America's Motion for an Interlocutory Order of Sale of real property in Henderson, Nevada, in United States of America v. Brandon Casutt, No. 2:20-CR-231-APG-NJK, in the U.S. District Court for the District of Nevada. The government's motion, dated December 8, 2023, asks the Court to authorize the Internal Revenue Service to sell the forfeited property through one of its approved methods. It states that Casutt purchased the property through Skyler's C.F. Foundation, Inc. with illegal proceeds, and it lists neutral appraisal estimates as of December 6, 2023 of $546,700, $562,938 and $557,909. District Judge Andrew P. Gordon signed the order on January 11, 2024.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 1 of 13



 1 JASON M. FRIERSON
   United States Attorney
 2 Nevada Bar No. 7709
   DANIEL D. HOLLINGSWORTH
 3 Assistant United States Attorney
   Nevada State Bar No. 1925
 4 501 Las Vegas Boulevard South, Suite 1100
   Las Vegas, Nevada 89101
 5 (702) 388-6336
   Daniel.Hollingsworth@usdoj.gov
 6 Attorneys for the United States

 7

 8

 9
                               UNITED STATES DISTRICT COURT
10                                  DISTRICT OF NEVADA
11 UNITED STATES OF AMERICA,                        2:20-CR-231-APG-NJK
12                Plaintiff,                       ORDER GRANTING
13         v.                                      United States of America’s Motion for an
                                                   Interlocutory Order of Sale of 1924
14 BRANDON CASUTT,                                 Coralino Drive, Henderson, Nevada 89074
15                Defendant.
16         The United States moves this Court to issue an Order for an Interlocutory Sale
17 for 1924 Coralino Drive, Henderson, Nevada 89074 1 (Coralino or the property),

18 authorizing the Internal Revenue Service (IRS) to sell Coralino through one of its

19 approved methods. Brandon Casutt (Casutt) purchased Coralino through Skyler’s C.F.

20 Foundation, Inc., with illegal proceeds and this Court ordered the forfeiture of the

21

22
     1
      1924 Coralino Drive, Henderson, Nevada 89074, more particularly described as:
     PARCEL I:
23   LOT TWO (2) IN BLOCK TWO (2) OF SILVER MILL – PHASE 1, AS SHOWN BY
     MAP THEREOF ON FILE IN BOOK 47 OF PLATS, PAGE 8, IN THE OFFICE OF
24   THE COUNTY RECORDER OF CLARK COUNTY, NEVADA.
     PARCEL II:
25   NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, AND SUCH
     OTHER PURPOSES AS ARE REASONABLY NECESSARY FOR THE USE AND
26   ENJOYMENT OF SAID LAND, AS THE SAME ARE SET FORTH IN THAT
     CERTAIN DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
27   RECORDED NOVEMBER 25, 1987 IN BOOK 871125 OF OFFICIAL RECORDS AS
     DOCUMENT NO. 00480 AND AS THE SAME ARE SUBSEQUENTLY AMENDED
28   FROM TIME TO TIME, AND ALL IMPROVEMENTS AND APPURTENANCES
     THEREON, APN: 178-17-514-002.

          Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 2 of 13



 1   property as it is listed in the Forfeiture Allegations of the Criminal Indictment, the

 2   Preliminary Order of Forfeiture, and the Amended Final Order of Forfeiture. 2

 3          The grounds for granting the Order for an Interlocutory Sale of 1924 Coralino Drive

 4   are as follows: First, this Court is authorized to approve interlocutory sales. Second, the

 5   HOA and Clark County Treasurer are accumulating losses because they are unable to

 6   collect their taxes and fees while their interests in Coralino are extinguished. Selling the

 7   property would allow both entities to begin collecting fees again instead of losing revenue

 8   through the time of the appeal. Third, granting an interlocutory sale will avoid accidents

 9   and liability accruing against Coralino while it is in the custody and control of the IRS.

10   Fourth, the sooner Coralino is sold the more proceeds will be available to pay toward

11   Casutt’s money judgment and possibly to pay victims through the restoration process, an

12   exclusive Executive Branch decision delegated only to the Chief of MLARS.

13          Through the Interlocutory Order of Sale, the United States requests this Court to

14   authorize the United States Treasury to direct its contractor to designate a real estate broker

15   or agent to sell 1924 Coralino Drive through one of the Court’s approved methods.

16          This Motion is made and is based on the papers and pleadings on file herein, the

17   attached Exhibits, and the attached Memorandum of Points and Authorities.

18                     MEMORANDUM OF POINTS AND AUTHORITIES

19   I. STATEMENT OF THE CASE

20          A. Procedural History

21          On September 2, 2020, the Grand Jury returned an Indictment, charging Brandon

22   Casutt in Counts One and Two with wire fraud in violation of 18 U.S.C. § 1343; in Counts

23   Three and Four with bank fraud in violation of 18 U.S.C. § 1344(2); in Count Five with

24   false statement to a financial institution in violation of 18 U.S.C. § 1014; in Counts Six and

25   Seven with concealment money laundering in violation of 18 U.S.C. § 1956(a)(1)(B)(i) and

26

27
     2
      Criminal Indictment (Indictment), ECF No. 12; Preliminary Order of Forfeiture (POOF),
28
     ECF No. 156; Amended Final Order of Forfeiture (FOOF), ECF No. 223.
                                                     2

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 1   (2); and in Count Eight with engaging in transactions in unlawful proceeds in violation of

 2   18 U.S.C. § 1957.3

 3          On October 14, 2022, Casutt pled guilty to Counts One and Six. 4 Casutt agreed to,

 4   and this Court ordered, the forfeiture of the real property located at 1924 Coralino Drive,

 5   seized cash, and criminal forfeiture money judgements of $509,675 for wire fraud and

 6   $359,900 for concealment money laundering with the total collected money judgment

 7   amount not to exceed $509,675 under the forfeiture statutes, and the net sale proceeds of

 8   Coralino and the cash will be applied toward the payment of the money judgments. 5

 9          On October 25, 2022, the government filed its Motion to Prevent Foreclosure under

10   21 U.S.C. § 853(k) by Village of Silver Springs Community Association (HOA). 6 On

11   November 29, 2022, this Court signed the Order Granting the Motion. 7

12          On October 26, 2022, the Internal Revenue Service-CI personally served The Village

13   of Silver Springs Community Association with copies of the Preliminary Order of Forfeiture

14   and the Notice. Service was accepted by Brandon Wood, Chief Legal Officer. 8

15          On October 27, 2022, the Internal Revenue Service-CI personally served The Village

16   of Silver Springs Community Association, c/o Jon Copeland, President, with copies of the

17   Preliminary Order of Forfeiture and the Notice. Service was accepted by Isabella Ruff,

18   Supervising Community Manager. 9

19          On October 27, 2022, the Internal Revenue Service-CI personally served The Village

20   of Silver Springs Community Association, c/o Jonathan Jorgenson, with copies of the

21   Preliminary Order of Forfeiture and the Notice. Service was accepted by Isabella Ruff,

22   Supervising Community Manager. 10

23
     3
       Indictment, ECF No. 12.
24   4
       Indictment, ECF No. 12; Change of Plea, ECF No. 151; Plea Agreement, ECF No. 154.
25
     5
       POOF, ECF No. 156.
     6
       Motion to Prevent Foreclosure, ECF No. 157.
26   7
       Order, EFC No. 167.
     8
       Notice of Filing Service of Process – Personal Service (NOFSOP-PS), ECF No. 174-1, p. 3,
27   39-49.
     9
       NOFSOP-PS, ECF No. 174-1, p. 4, 39-49.
28   10
        NOFSOP-PS, ECF No. 174-1, p. 5, 39-49.
                                                   3

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 1          On October 27, 2022, the Internal Revenue Service-CI personally served The Village

 2   of Silver Springs Community Association, c/o Scott Wilcox, Treasurer, with copies of the

 3   Preliminary Order of Forfeiture and the Notice. Service was accepted by Isabella Ruff,

 4   Supervising Community Manager. 11

 5          On October 27, 2022, the Internal Revenue Service-CI personally served The Village

 6   of Silver Springs Association, c/o Taylor Association Management, Registered Agent, with

 7   copies of the Preliminary Order of Forfeiture and the Notice. Service was accepted by

 8   Joseph Venture, Office Manager. 12

 9          On November 4, 2022, the Internal Revenue Service-CI personally served Steve B.

10   Wolfson, Clark County District Attorney, with copies of the Preliminary Order of

11   Forfeiture and the Notice. Service was accepted by Bailey Brighthill, Office Specialist. 13

12          On November 8, 2022, the Internal Revenue Service-CI personally served Laura B.

13   Fitzpatrick, Clark County Treasurer, with copies of the Preliminary Order of Forfeiture and

14   the Notice. Service was accepted by Birtha Gariano, Public Services Specialist. 14

15          On April 27, 2023, the United States filed a motion to prevent Clark County from

16   transferring the deed of Coralino to the county for unpaid taxes. 15 On behalf of Clark

17   County, the Clark County District Attorney’s Office filed a non-opposition to the motion. 16

18   On May 18, 2023, the Court granted the Motion. 17

19          On January 11, 2023, Casutt filed a pro se Motion to Withdraw Plea. 18 On January

20   18, 2023, the Court held a motion hearing, appointed new counsel for Casutt, and set a

21   briefing schedule. 19 On March 1, 2023, the Court held a Scheduling Conference, withdrew

22   the pro se motion, and gave the defendant until June 30, 2023, to file a new motion to

23
     11
        NOFSOP-PS, ECF No. 174-1, p. 6, 39-49.
24   12
        NOFSOP-PS, ECF No. 174-1, p. 7, 39-49.
25
     13
        NOFSOP-PS, ECF No. 174-1, p. 8, 39-49.
     14
        NOFSOP-PS, ECF No. 174-1, p. 11, 39-49.
26   15
        Motion to Prevent, ECF No. 185.
     16
        Notice of Non-Opposition, ECF No. 187.
27   17
        Order Granting Motion to Prevent Transfer of Deed, ECF No. 188.
     18
        Motion to Withdraw the Plea Deal, ECF No. 170.
28   19
        Minutes, ECF No. 175.
                                                    4

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 1   withdraw. 20 On June 29, 2023, Casutt filed a Motion to Withdraw Plea. 21 The government

 2   filed its response July 13, 2023. 22 Casutt filed his reply July 20, 2023. 23 On August 16, 2023,

 3   the Court denied the Motion to Withdraw Plea. 24

 4          On October 12, 2023, the Court held Casutt’s sentencing hearing and entered the

 5   Final Order of Forfeiture, including the forfeiture of Coralino. 25 On October 13, 2023,

 6   Casutt filed a Notice of Appeal, which automatically stayed the finality of the forfeiture. 26

 7   On October 30, 2023, the Court entered an Amended Final Order of Forfeiture to clarify

 8   that any potential third-party interests are extinguished and the United States of America

 9   has clear title of the property under 21 U.S.C. § 853(n)(7) and may warrant good title to any

10   subsequent purchaser or transferee.

11          B. Statement of Facts

12          The government references the facts set forth in the Indictment and the Plea

13   Agreement, and hereby incorporates them as if fully set forth herein. 27

14          On May 15, 2020, Financial Institution A wire transferred $349,775 of the

15   fraudulently obtained PPP loan proceeds into the WF 4506 account. 28 From then, Casutt

16   implemented a scheme to launder the funds by disguising withdrawals as “back pay” or

17   “pandemic pay” for friends and family members who were posing as Casutt’s employees.

18   On May 18, 2020, a balance of $6,621.18 minus $143.99, totaling a net of $6,477.19 cannot

19   be shown as illegal proceeds under the accounting method of the Lowest Intermediate

20   Balance Rule (LIBR). Between on or about May 18, 2020, and June 18, 2020, Casutt issued

21   approximately 38 checks and cashier’s checks to himself, family members, and other

22
     20
        Minutes, ECF No. 182.
23   21
        Motion to Withdraw Plea, ECF No. 191.
     22
        Response to Motion to Withdraw, ECF No. 192.
24   23
        Reply to Response, ECF No. 193.
25
     24
        Minutes or Motion Hearing, ECF No. 201.
     25
        Minutes of Sentencing Hearing, ECF No. 212; Final Order of Forfeiture, ECF No. 210.
26   26
        Notice of Appeal, ECF No. 214.
     27
        LR IA 10-3(a) (citation to court documents are permitted); Indictment, ECF No. 12; Plea
27   Agreement, ECF Nos. 152, 154.
     28
        Exhibit (Ex.) 1, excerpt of WFB 4506 statements, p. 54; Plea Agreement, ECF No. 154, p.
28
     11.
                                                     5

             Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 6 of 13



 1   individuals. 29 The checks’ total amount was approximately $359,900, the source of which

 2   was PPP loan proceeds. On some of the checks, Casutt wrote the memo “pandemic pay” or

 3   “back pay.” The following chart summarizes the transfers out of the WF 4506 account:

 4   Check #          Memo                   Date Processed   Amount       Payee
 5   645105755        None                   5/18/20          $8,330       Family Member A
     0001             None                   5/19/20          $8,330       Family Member A
 6   0002             None                   5/19/20          $8,330       Brandon Casutt
     0003             None                   5/19/20          $8,330       Brandon Casutt
 7   102              Back pay               6/02/20          $8,330       Family Member C
     103              Back pay               6/02/20          $8,330       Family Member C
 8   105              Pandemic pay           6/02/20          $8,330       Family Member C
     106              Pandemic pay           6/02/20          $8,330       Family Member A
 9   107              Pandemic pay           6/02/20          $8,330       Brandon Casutt
     101              Back pay               6/05/20          $8,330       Family Member B
10   104              Pandemic pay           6/05/20          $8,330       Family Member B
     109              Pandemic pay           6/05/20          $8,330       B.A.
11   108              Pandemic pay           6/08/20          $8,330       J.M.
     110              Pandemic pay           6/08/20          $8,330       K.S.
12   645102733        none                   6/10/20          $60,000      Casutt
     645105827        none                   6/10/20          $10,000      Casutt
13   645105828        none                   6/10/20          $10,000      Casutt
     645105829        none                   6/10/20          $10,000      Casutt
14   645105830        none                   6/10/20          $10,000      Casutt
     645105831        none                   6/10/20          $10,000      Casutt
15   120              Pandemic pay           6/11/20          $8,330       T.T.
     112              Pandemic pay           6/15/20          $8,330       Family Member D
16   113              Pandemic pay           6/15/20          $8,330       Family Member E
     01               none                   6/16/20          $8,330       H.D.H.
17   02               none                   6/16/20          $8,330       Sit.H.
     03               none                   6/16/20          $8,330       Y.D.H.
18   04               none                   6/16/20          $8,330       Sis.H.
     05               none                   6/16/20          $8,330       H.G.H.
19   06               none                   6/16/20          $8,330       T.H.
     111              Pandemic pay           6/16/20          $8,330       M.B.
20   121              Pandemic pay           6/16/20          $8,330       T.L.
     122              Pandemic pay           6/16/20          $8,330       J.K.
21   114              Pandemic pay           6/18/20          $8,330       S.S.
     115              Pandemic pay           6/18/20          $8,330       G.S.
22   116              Pandemic pay           6/18/20          $8,330       T.S.
     119              Pandemic pay           6/18/20          $8,330       A.S.
23
               Each check of $8,330 is the maximum monthly payroll amount allowed under PPP
24
     rules. The PPP loan allows a maximum annual salary of $100,000 per year for an
25
     employee, or $8,330 per month. Casutt made payments to many members of several
26
     ///
27

28   29
          Ex. 1, p. 54, 58-59, 64; see chart below.
                                                       6

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 1   different families: Family H’s, Family S’s, and the Casutts. Participants then diverted most

 2   of the proceeds back to the Foundation’s WF 1455 account, under Casutt’s control. 30

 3          Prior to receiving any PPP loan proceeds via the transactions described above, the

 4   balance on the Foundation’s WF 1455 bank account Casutt controlled was about

 5   $14,152.20. On or about April 27, 2020, SBA advanced $10,000 of the fraudulently

 6   obtained SBA EID loan. Of the $14,152.30, $4,152.50 cannot be shown as illegal proceeds,

 7   and $10,000 was illegal proceeds under LIBR. On May 18 and 19, 2020, Casutt spent

 8   $564.91, leaving $3,587.59 that cannot be shown as illegal proceeds under LIBR. On May

 9   21, 2020, a $1,600 check was deposited into the Foundation’s WF 1455 account from the

10   JPMC 3553 account that cannot be shown as illegal proceeds under LIBR. On May 21,

11   2020, the WF 1455 account had $5,187.59 that cannot be shown as illegal proceeds, and

12   illegal proceeds of $10,000 under LIBR. As a result of the transactions described above and

13   receiving the proceeds of the EID loan, by June 17, 2020, the balance of the Foundation’s

14   WF 1455 account was $430,943. Of the $430,943, $5,171.40 cannot be shown as illegal

15   proceeds, and $425,771.60 was illegal proceeds under LIBR.

16          On or about May 31, 2020, Casutt through the Foundation, submitted a Residential

17   Purchase Agreement to purchase the property located at 1924 Coralino Drive, Henderson,

18   Nevada 89074 for $399,000. 31

19          On or about June 2, 2020, Title Company A received a check, signed by Casutt, in

20   the amount of $10,000 for the purpose of “earnest money for new house.” Casutt wrote the

21   check on the Foundation’s WF 1455 bank account. The funds were for the purchase of the

22   1924 Coralino Drive property. Of the $10,000, $5,101.41 cannot be shown as illegal

23   proceeds, and $4,898.59 was illegal proceeds under LIBR on June 3, 2020. 32

24          Between June 4, 2020, and June 17, 2020, 19 deposits were made into Foundation’s

25   WF 1455 account, including the EID loan of $149,900, totaling approximately $425,890 of

26

27   30
        Ex. 2, WFB 1455 June 30, 2020, statement.
     31
        Ex. 3, Residential Purchase Agreement.
28   32
        Ex. 4, Copy of earnest money check.
                                                   7

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 1   mostly illegal proceeds. 33 Of the $425,890, $5,197.33 cannot be shown as illegal proceeds,

 2   and $420,692.67 was illegal proceeds under LIBR.

 3          On June 23, 2020, Casutt wire transferred $388,859.03 from the Foundation’s WF

 4   1455 account to Title Company A. 34 Of the $388,859.03, $5,110.94 cannot be shown as

 5   illegal proceeds, and $383,748.09 was illegal proceeds under LIBR. The funds were for the

 6   purchase of the 1924 Coralino Drive property. As outlined above, the sources of these funds

 7   were the proceeds of the fraudulent PPP and EID loans, and Casutt laundered most of the

 8   funds through sham payroll checks to Casutt’s friends, family, and associates.

 9          On September 2, 2020, the grand jury returned the Indictment. 35 This Court entered

10   Lis Pendens on September 22, 2020,36 securing the real property known as 1924 Coralino

11   Drive, Henderson, Nevada 89074, for judicial forfeiture in accordance with an indictment of

12   the United States of America. The government recorded the Lis Pendens on September 22,

13   2020. The Court entered the Preliminary Order of Forfeiture on October 14, 2022.37 The

14   government recorded the Order with Clark County on October 17, 2022. On October 25,

15   2022, the government filed a Motion to Prevent Foreclosure under 21 U.S.C. § 853(k), to

16   prevent the HOA from foreclosing due to unpaid HOA fees.38 On October 26 and 27, 2022,

17   the government personally served the HOA.39 The HOA failed to file a response to the

18   motion. On November 25, 2022, the government filed a Reply to Non-Response to

19   Government’s Motion to Prevent Foreclosure under 21 U.S.C. § 853(k). 40 On November 28,

20   2022, the government served the reply and filed the certificate of service with the court. 41

21   This Court granted the government’s motion on November 29, 2022. 42

22

23   33
        Ex. 2.
     34
        Ex. 5, WFB 1455 Wire Transfer.
24   35
        Indictment, ECF No. 12.
25
     36
        Notice of Lis Pendens, ECF No. 27.
     37
        POOF, ECF No. 156.
26   38
        Motion to Prevent Foreclosure, ECF No. 157.
     39
        Certificate of Service, ECF No. 158.
27   40
        Reply to Non-Response, ECF No. 163.
     41
        Certificate of Service, ECF No 166.
28   42
        Order Granting Motion to Prevent Foreclosure, ECF No. 167.
                                                    8

            Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 9 of 13



 1            Casutt stopped paying the HOA fees and taxes on Coralino. As of October 13, 2022,

 2   Casutt was delinquent $2,447.68. 43 According to a Notice of Intent to Deed the property

 3   received April 7, 2023, as of March 16, 2023, Casutt owed $8,267.91 in unpaid property

 4   taxes and fees. 44 Both the HOA’s and Clark County’s interests in Coralino were

 5   extinguished and they are unable to collect their fees while the property is owned by the

 6   United States.

 7   II. ARGUMENT

 8            The United States now requests this Court to authorize the United States Treasury to

 9   direct its contractor to designate a real estate broker or agent to sell the real property located

10   at 1924 Coralino Drive, Henderson, Nevada 89074.

11            The grounds for granting the Order for an Interlocutory Sale of 1924 Coralino Drive

12   are as follows: First, this Court is authorized to approve interlocutory sales. Second, the

13   HOA and Clark County Treasurer are accumulating losses because they are unable to

14   collect their taxes and fees while their interests in Coralino are extinguished. Sale would

15   allow both entities to begin collecting fees again instead of losing revenue through the time

16   of the appeal. Third, granting an interlocutory sale will avoid accidents and liability

17   accruing against Coralino while it is in the custody and control of the IRS. Fourth, the

18   sooner Coralino is sold the more proceeds will be available to pay toward Casutt’s money

19   judgment and possibly to pay victims through the restoration process, an exclusive

20   Executive Branch decision delegated only to the Chief of MLARS.

21            This Court has authority to issue an Interlocutory Order of Sale “[a]t any time before

22   entry of a final forfeiture order… in accordance with Supplemental Rule G(7) of the Federal

23   Rules of Civil Procedure[.]” 45The Final Order of Forfeiture is entered, but forfeiture is not

24   final until the appeal is completed.

25        On motion by a party or a person having custody of the property, the court may order
          all or part of the property sold if: (A) the property is perishable or at risk of
26

27   43
        See Motion to Prevent Foreclosure, ECF No. 157-1, p. 3.
     44
        See Motion to Prevent Transfer, ECF No. 185-1, p. 9.
28   45
        Fed. R. Crim. P. 32.2(b)(7) (ellipsis and brackets added).
                                                     9

           Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 10 of 13



 1        deterioration, decay, or injury by being detained in custody pending the action; (B) the
          expense of keeping the property is excessive or is disproportionate to its fair market
 2        value; (C) the property is subject to a mortgage or to taxes on which the owner is in
          default; or (D) the court finds other good cause.46
 3

 4            Only one of the grounds for interlocutory sale is required since Supplemental Rule

 5   G(7)(b) is disjunctive.47

 6            Two reasons for the interlocutory sale apply in this case regarding Coralino: (1) the

 7   property is perishable or at risk of deterioration, decay, or injury by being detained in

 8   custody pending the appeal and (2) the court finds other good cause, (a) preserving the value

 9   of Coralino and avoiding accidents or liability accruing against the property; (b) reducing

10   losses to the HOA and Clark County Treasurer because they are unable to collect their taxes

11   and fees while their interests in Coralino are extinguished; and (c) the sooner Coralino is

12   sold, more proceeds will be available to pay toward Casutt’s money judgment and possibly

13   to pay victims through the restoration process, an exclusive Executive Branch decision

14   delegated only to the Chief of MLARS. 48

15            Under Rule 32.2(b)(3), “[t]he court may include in the order of forfeiture conditions

16   reasonably necessary to preserve the property’s value pending any appeal.” 49 The IRS has

17   assumed control of the property and has started accumulating maintenance costs, fees, and

18   other expenses to maintain the property. If an accident occurred on the property, that would

19   rapidly decrease the property’s equity. The government seeks to preserve as much of the

20   equity as possible for the forfeiture proceedings. 50

21

22
     46
        Supp. R. G(7)(b)(i).
     47
        See Shelter Cove Marina, Ltd. V. M/Y ISABELLA, No. 3:17-cv-01578-GPC-BLM, 2017 WL
23   5906673, 2 (S.D. Cal. Nov. 30, 2017) (explaining that another Supplemental Rule for
     interlocutory sale with similar language is disjunctive); Cal. Yacht Marina-Chula Vista, LLC v.
24   S/V OPILY, No. 14-cv-1215-BAS-BGS, 2015 WL 1197540, 2 (S.D. Cal. Mar. 16, 2015)
25   (explaining the same).
     48
        Supp. R. G(7)(b)(i); Fed. R. Crim. P. 32.2(b)(7); See United States v. One Parcel of Real Prop.
26   Described as Lot 41, Berryhill Farm Estates, 128 F.3d 1386, 1389–90 (10th Cir. 1997).
     49
        Fed. R. Crim. P. 32.2(b)(3) (brackets added).
27   50
        United States v. Haley, No. 11–CR–0540–WDQ, 2011 WL 6202787, 1 (D. Md. Dec. 8, 2011)
     (granting the interlocutory sale to avoid liability for accidents and to “avoid falling in arrears
28
     on the payment of applicable property taxes.”).
                                                     10

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 1          In United States v. 479 Tamarind Drive, Hallendale, the court granted the interlocutory

 2   sale because the property had “[m]ore than $40,437.55 in taxes… currently due… raising

 3   the risk that the County may move to impose a lien and thereby diminish the property’s

 4   value[.]” 51 Clark County did impose a lien against Coralino and moved for a tax sale. The

 5   County did not move forward with a tax sale only because the United States moved to

 6   prevent the sale to protect its forfeiture interests.

 7          When the United States served the HOA and the Clark County Treasurer, they had

 8   30 days to file a petition to assert their interest in the property under 21 U.S.C. § 853(n). 52

 9   Both the Clark County Treasurer and the HOA failed to assert a claim to the property and

10   their interests are extinguished. 53 While their interests are extinguished, they are unable to

11   collect their fees. Selling Coralino would renew their interests in the property with the new

12   owner so they can begin collecting their fees again.

13          On November 20, 2023, the Clark County Treasurer again sent a Notice of Intent to

14   Sell Real Property for unpaid property taxes. 54 Both the County and the HOA are accruing

15   losses while their interests in Coralino are extinguished.

16          The sale proceeds of the forfeited property will be the “substitute res… in place of the

17   property that was sold, [and] the United States must maintain them in an interest-bearing

18   account” pending the appeal. 55 Selling the property is in the best interests of all involved.

19
     51
        United States v. All Right, Title & Interest in Prop., Appurtenances, & Improvements Known as 479
20   Tamarind Drive, Hallendale, Fla., 98 CIV. 2279 DLC, 2012 WL 3886698, 2 (S.D.N.Y. Sept. 7,
     2012) (brackets and ellipses added); See also United States v. Fisch, No. H-11-722, 2016 WL
21
     4702588 (S.D. Tex. Sept. 8, 2016).
22
     52
        See Motion to Prevent, ECF No. 185 for full arguments.
     53
        21 U.S.C. § 853(n)(6) and (n)(7); Advisory committee’s note-2000, subdivision (b); Fed.
23   R. Crim. P. 32.2(c)(2); United States v. Marion, 562 F.3d 1330, 1336-37 (11th Cir. 2009)
     (brackets added) (“Under the statute, if no third-party petitions are filed, the United States
24   obtains clear title to the property ‘following the expiration of the period provided in
25   paragraph (2) for the filing of such petitions.’ 21 U.S.C. § 853(n)(7). Likewise, Rule
     32.2(c)(2) provides that a third party who fails to file a timely petition may not object when
26   the preliminary order of forfeiture becomes the final order of forfeiture.”); See Order
     Granting Motion to Prevent Transfer of Deed, ECF No. 188.
27   54
        Ex. 6, Notice of Intent to Sell dated November 20, 2023.
     55
        Supp. R. G(7)(b)(iv) (brackets and ellipsis added); United States v. King, No. 10 CR. 122
28
     (JGK), 2010 WL 4739791, 4 (S.D.N.Y. Nov. 12, 2010).
                                                      11

             Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 12 of 13



 1   Casutt’s interests are protected by providing maximum return to be paid toward his money

 2   judgment; the United States’ interests are protected by removing the financial obligations

 3   and possible liabilities for maintaining the property; and the HOA and Clark County can

 4   begin collecting their fees and mitigating their losses.

 5             “A sale must be made by a United States agency that has authority to sell the

 6   property, by the agency’s contractor, or by any person the court designates.” 56 The

 7   government recommends this Court authorize the United States Treasury to direct its

 8   contractor to designate a real estate broker or agent to sell the property under “28 U.S.C.

 9   §§ 2001, 2002, and 2004.” 57

10   III. JUDICIAL SALES PROCEDURE

11             If a court orders the sale of property, the sale must comply with 28 U.S.C. §§ 2001

12   and 2002. These statutes provide procedural safeguards to ensure that court-ordered sales

13   are made on terms that best preserve the parties’ interests. Section 2001(a) authorizes public

14   sales of property and sales by court-appointed receivers. Section 2001(b) permits private

15   sales of property for cash or other consideration after a hearing of which notice to all

16   interested parties shall be given by publication, or as otherwise directed by the court, and

17   after the court finds that the best interests of the estate will be conserved thereby.

18             By this Motion, the United States requests authorization to proceed with a private

19   sale of the above-listed property. Based upon the reasons set forth herein, the United States

20   believes that a prompt sale of the property by the United States, followed promptly by

21   releasing the proceeds to the United States affords the best protection to all interested

22   parties. The United States believes that a private sale versus a public sale will allow the

23   United States the discretion to sell the property in the most commercially feasible manner

24   and maintain the most value.

25             As required by section 2001(b), notice of the Government’s Motion must be given

26   by publication or otherwise as this Court directs. The government takes the position that

27
     56
          Supp. R. G(7)(b)(ii).
28   57
          Supp. R. G(7)(b)(iii).
                                                     12

         Case 2:20-cr-00231-APG-NJK Document 247 Filed 01/11/24 Page 13 of 13



 1   placing the real property in a multiple listing service and other major internet websites for

 2   real property through a local real estate broker or agent, will meet this requirement.

 3          Under section 2001(b), three disinterested persons must appraise the property. To

 4   meet that requirement, the United States has obtained the following neutral appraisal

 5   estimates as of December 6, 2023:

 6               1. Zillow.com for $546,700,

 7               2. Realtor.com for $562,938; and

 8               3. Redfin.com for $557,909.

 9   IV. CONCLUSION

10          Based on the foregoing reasons, this Court should order the interlocutory sale of the

11   1924 Coralino Drive, Henderson, Nevada 89074.

12          Dated: December 8, 2023.
                                                        Respectfully submitted,
13
                                                        JASON M. FRIERSON
14                                                      United States Attorney
15                                                      /s/ Daniel D. Hollingsworth_________
                                                        DANIEL D. HOLLINGSWORTH
16                                                      Assistant United States Attorney
17
                                                        IT IS SO ORDERED:
18

19

20                                                      ANDREW P. GORDON
                                                        UNITED STATES DISTRICT JUDGE
21

22                                                      DATED:       January 11, 2024

23

24

25

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