Order — United States v. Meelad Dezfooli (District of Nevada, Document 116, filed January 24, 2024)

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An Order in United States v. Meelad Dezfooli, Case No. 22-cr-00142-RFB-DJA, in the U.S. District Court for the District of Nevada, Document 116, filed January 24, 2024, on the United States' Motion to Prevent Pearl Creek Homeowners Association's Default Foreclosure Sale (ECF No. 93) and Motion to Prevent Foreclosure Sale (ECF No. 95). The Court grants the motions, reasoning that the criminal indictment identified the properties as forfeitable before the scheduled foreclosure sales, so under § 853(k)(2) the HOA and MTC Financial Inc. are prevented from foreclosing. It states that the HOA and MTC have not filed responses, which it interprets as consent to the granting of the motions under LR 7-2. No foreclosure sale of the properties may occur without explicit approval of the Court.

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     Case 2:22-cr-00142-RFB-DJA Document 116 Filed 01/24/24 Page 1 of 3



 1
 2
 3
 4                                UNITED STATES DISTRICT COURT
 5                                      DISTRICT OF NEVADA
 6                                                  ***
 7    UNITED STATES OF AMERICA,                                 Case No. 22-cr-00142-RFB-DJA
 8                       Plaintiff,                                          ORDER
 9           v.
10    MEELAD DEZFOOLI,
11                     Defendants.
12
13            I.    INTRODUCTION
14           Before the Court are: Plaintiff United States of America’s Motion to Prevent Pearl Creek
15   Homeowners Association’s Default Foreclosure Sale [ECF No. 93] and Motion to Prevent
16   Foreclosure Sale [ECF No. 95]. For the following reasons, Plaintiff’s Motions are granted.
17
18           II.    PROCEDURAL BACKGROUND
19           On June 22, 2022, the Government issued a criminal indictment against Defendant
20   Meelad Dezfooli. ECF No. 1.
21          On July 12, 2022, the Government issued five Notices of Lis Pendens, including notices
22   related to the properties at issue in the present motions. ECF Nos. 8-12.
23          On December 8, the Government submitted the present motion to prevent the sale of the
24   property located at 890 Harbor Avenue, Henderson, Nevada 89002 by the Pearl Creek
25   Homeowners Association (“HOA”). ECF No. 93.
26          On December 9, 2023, the Government submitted the present motion to prevent the sale of
27   the property located at 6033 Watermelon Street, North Las Vegas, 89081 by MTC Financial Inc.
28   (“MTC”). ECF No. 95.
     Case 2:22-cr-00142-RFB-DJA Document 116 Filed 01/24/24 Page 2 of 3



 1           III.   LEGAL STANDARD
 2          Under 21 U.S.C. § 853(3)(1)(A), this Court may take action to preserve the availability of
 3   property subject to criminal foreclosure upon the filing of an indictment. Additionally, 18 U.S.C.
 4   § 981(a)(1)(C) authorizes civil forfeiture of “any property, real or personal, which constitutes or is
 5   derived from proceeds traceable to a violation” of any of the offenses designated as “specified
 6   unlawful activity” under 18 U.S.C. § 1956(c)(7). “Proceeds” as used in § 981(a)(1)(C) include
 7   “property of any kind obtained directly or indirectly, as the result of the commission of the offense
 8   giving rise to forfeiture, and any property traceable thereto, and is not limited to the net gain or
 9   profit realized from the offense.” See 18 U.S.C. § 981(a)(2)(A).
10          Third parties are prohibited from commencing actions against the interest of the United
11   States in forfeitable property after an indictment has been filed. See 21 U.S.C. § 853(k)(2). A
12   foreclsoure sale is an action at law or equity against the United States in contravention of § 853(k).
13   United States v. MacInnes, 223 F. App’x 549, 553-54 (9th Cir. 2007).
14           IV.    DISCUSSION
15                      a. Foreclosure Sale of 890 Harbor Avenue
16          The criminal indictment identified the property located at 890 Harbor Avenue as forfeitable
17   property prior to the scheduled HOA foreclosure sale. Accordingly, under § 853(k)(2), the Pearl
18   Creek HOA is prevented from foreclosing on this property.
19          Moreover, the Local Rules of Practice for the United States District Court for the District
20   of Nevada provide that “the failure of an opposing party to file points and authorities in response
21   to any motion shall constitute a consent to the granting of the motion.” LR 7-2. The HOA has not
22   filed a response to the Government’s motion. Consequently, the Court interprets this as consent to
23   the granting of the motion. The HOA maintains the right to assert a third-party interest subject to
24   21 U.S.C. § 853(n).
25                      b. Foreclosure Sale of 6033 Watermelon Street
26          The criminal indictment identified the property located at 6033 Watermelon Street as
27   forfeitable property prior to the scheduled foreclosure sale. Accordingly, under § 853(k)(2), MTC
28   is prevented from foreclosing on this property.



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     Case 2:22-cr-00142-RFB-DJA Document 116 Filed 01/24/24 Page 3 of 3



 1          Moreover, the Local Rules of Practice for the United States District Court for the District
 2   of Nevada provide that “the failure of an opposing party to file points and authorities in response
 3   to any motion shall constitute a consent to the granting of the motion.” LR 7-2. MTC has not filed
 4   a response to the Government’s motion. Consequently, the Court interprets this as consent to the
 5   granting of the motion. The company maintains the right to assert a third-party interest subject to
 6   21 U.S.C. § 853(n).
 7
 8           V.     CONCLUSION
 9          IT IS THEREFORE ORDERED that Plaintiff’s Motions to Prevent Foreclosure Sale
10   (ECF Nos. 93, 95) are GRANTED.
11          IT IS FURTHER ORDERED that no foreclosure sale of the properties located at (a) 890
12   Harbor Avenue, Henderson, Nevada 89002 and (b) 6033 Watermelon Street, North Las Vegas,
13   89081 shall occur without explicit approval of this Court.
14
15          DATED: January 24, 2024
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                                                          __________________________________
19                                                        RICHARD F. BOULWARE, II
20                                                        UNITED STATES DISTRICT JUDGE

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