Order Approving Stipulation of Third-Party Petitioner U.S. Bank — U.S. v. Dezfooli (2:22-cr-00142), Dkt. 328

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An Order Approving Stipulation of Third-Party Petitioner U.S. Bank National Association, as Trustee, Case 2:22-cr-00142, Document 328, filed 02/18/25, District of Nevada. The United States, U.S. Bank and Select Portfolio Servicing, Inc. (SPS) agree that U.S. Bank filed a Verified Notice of Claim on October 1, 2024, in support of its mortgage interest in a forfeited North Las Vegas property. After the property is sold by the Internal Revenue Service-Criminal Investigation and expenses are paid, U.S. Bank is to receive payment from the net sale proceeds, including unpaid principal of $213,842.61. Payment is conditioned upon the United States prevailing against the defendant and any other competing claims. SPS and U.S. Bank agree to the forfeiture and waive the third-party ancillary hearing.

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Case 2:22-cr-00142-CDS-DJA Document 328 Filed 02/18/25 Page 1of7

SUE FAHAMI
Acting United States Attorney

Nevada Bar No. 5634
DANIEL D. HOLLINGSWORTH
Assistant United States Attorney
Nevada Bar No. 1925
501 Las Vegas Boulevard South, Suite 1100
Las Vegas, Nevada 89101
(702) 388-6336
Daniel.Hollingsworth@usdoj.gov
Attorneys for the United States
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
UNITED STATES OF AMERICA, 2:22-CR-142-CDS-DJA
. Order Approving ..
Plaintiff Stipulation of Third-Party Petitioner,
U.S. Bank National Association, as
Vv. Trustee for MASTR Asset Backed
Securities Trust 2006-WMC4, Mortgage
MEELAD DEZFOOLIT, Pass-Through Certificates, Series 2006-
WMC4, ECF No. 272, and Order
Defendant
U.S. BANK NATIONAL ASSOCIATION,
AS TRUSTEE FOR MASTR ASSET [ECF No. 327]
BACKED SECURITIES TRUST 2006-
WMC4, MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2006-WMC4,
Third-Party Petitioner

The United States of America; U.S. Bank National Association, as Trustee for
MASTR Asset Backed Securities Trust 2006-WMC4, Mortgage Pass-Through Certificates,
Series 2006-WMC4 (U.S. Bank); Select Portfolio Servicing, Inc. (SPS), the servicer and
attorney-in-fact for U.S. Bank, through their counsel, Robert A. Riether, Wright, Finlay &
Zak, LLP, agree as follows:

1. The Grand Jury sitting in Las Vegas, Nevada, returned a Ten-Count Superseding
Criminal Indictment against Meelad Dezfooli charging him in Counts One through Three
with bank fraud in violation of 18 U.S.C. § 1344(2); in Counts Four through Six with
concealment money laundering in violation of 18 U.S.C. § 1956(a)(1)(B)@; and in Counts
Seven through Ten with monetary transactions in criminally derived property in violation of

18 U.S.C. § 1957. Superseding Criminal Indictment, ECF No. 97.
oOo CO SI DW A Be CD He

2. The jury found Meelad Dezfooli guilty of Counts One through Ten of a Ten-
Count Superseding Criminal Indictment, and the jury found, and the Court ordered,
forfeiture of property set forth in the Forfeiture Allegations of the Superseding Criminal
Indictment, including 6033 Watermelon Street, North Las Vegas, Nevada 89081."
Superseding Criminal Indictment, ECF No. 97; Minutes of Jury Trial Day 7, ECF No. 239;
Minutes of Jury Trial Day 8, ECF No. 240; Jury Verdict, ECF No. 243; Forfeiture Jury
Instructions and Special Verdict Forms, ECF No. 246; Preliminary Order of Forfeiture,
ECF No. 251.

3. On October 1, 2024, U.S. Bank filed a Verified Notice of Claim in Support of its
mortgage interest in 6033 Watermelon Street, ECF No. 272.

4. Patrick Pittman, Document Control Officer for SPS on behalf of U.S. Bank,
declares, under penalty of perjury under 21 U.S.C. § 853(n)(3) and 28 U.S.C. § 1746, U.S.
Bank has an interest in the deed of trust and the promissory note on 6033 Watermelon
Street.

5. SPS and U.S. Bank affirms no insurer or third party has compensated U.S. Bank
for the value of 6033 Watermelon Street.

6. SPS and U.S. Bank affirms that it has not assigned, sold, or otherwise alienated its
interest in 6033 Watermelon Street since the time it was assigned the deed of trust for 6033
Watermelon Street.

7. SPS and U.S. Bank provided the necessary documents to the United States
pursuant to Rules 803(6) and (15) (hearsay exceptions) and 901-903 (authentication) of the
Federal Rules of Evidence to support the owed principal and interest and the daily accruing
balance.

8. After the United States District Court has signed and entered this Stipulation of

Third-Party Petitioner, U.S. Bank and Order (Stipulation); the Final Order of Forfeiture;

‘ More particularly described as: LOT TWENTY-SIX (26) OF FINAL MAP OF
TROPICAL / WALNUT — UNIT 1 (A COMMON INTEREST COMMUNITY) AS
SHOWN BY MAP THEREOF ON FILE IN BOOK 121 OF PLATS, PAGE 53, IN THE
OFFICE or THE COUNTY RECORDER, CLARK COUNTY, NEVADA. (APN: 123-
30-610-026);
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and the Amended Final Order of Forfeiture; after the Internal Revenue Service-Criminal
Investigation sells 6033 Watermelon Street, and after all expenses and costs are paid,
including, but not limited to, any outstanding monthly maintenance charges, all of the
principal, per diem interest charges, outstanding taxes, expenses of custody, maintenance,
repairs, sale costs, escrow advance, and casualty insurance, incurred by Internal Revenue
Service, within a practicable time thereafter for the United States, the United States
knowingly and voluntarily agrees the United States agrees U.S. Bank will receive payment
from the net sale proceeds of 6033 Watermelon Street. When the conditions in this
paragraph are met and the property is sold, the United States will transfer to U.S. Bank and
SPS through Robert A. Riether:

a. Unpaid principal: $213,842.61;

b. Escrow Impound Advance Balance: $ 16,551.36;

c. Loan Level Advance Balance: $ 2,335.53;

d. As of January 29, 2025, Interest: $ 68,162.55; and

e. As of January 29, 2025, per diem interest: $33.32 until paid.

9. SPS and U.S. Bank knowingly and voluntarily agrees to fill out the United States
Department of the Treasury Automated Clearing House (ACH) form accurately and
correctly and submit it to the United States Attorney’s Office so the payment will be
disbursed by electronic fund transfer to Counsel’s IOLTA account for payment to SPS and
U.S. Bank.

10. If an offer is made on 6033 Watermelon Street, if the sale proceeds will not cover
all expenses and costs, including, but not limited to, any outstanding monthly maintenance
charges, all of the principal, per diem interest charges, outstanding taxes, custodial
expenses, maintenance, repairs, sale costs, escrow advance, and casualty insurance, and if
SPS and U.S. Bank agrees in writing to the sale price within one week of the government
giving notice in writing of its intent to declare this Stipulation null and void and to reverse
forfeiture of 6033 Watermelon Street, the United States will sell the property and will not be

held accountable for the remaining amount owed, and SPS and U.S. Bank will be satisfied
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without being made whole. The payment to SPS and U.S. Bank shall be in full settlement
and satisfaction of all claims by SPS and U.S. Bank arising from and relating to the
detention and forfeiture of 6033 Watermelon Street. Otherwise, this Stipulation shall be null
and void, and SPS and U.S. Bank may foreclose on 6033 Watermelon Street.

11. In addition to paragraph 10, the United States also reserves the right, in its
discretion, to release and to terminate the forfeiture of 6033 Watermelon Street at any time.
In either event, the Government shall promptly notify SPS and U.S. Bank of such action. A
discretionary termination of release and forfeiture shall not be a basis for any award of
attorney’s fees, expenses, interest, and costs.

12. Payment to SPS and U.S. Bank is conditioned upon the United States prevailing
against the defendant and any other competing claims.

13. United States Treasury has a national contractor, CWS Marketing Group Inc,
that has insured 6033 Watermelon Street through Great American Ins. Co-E&S. If 6033
Watermelon Street is sufficiently damaged for one of the reasons insured under Great
American Ins. Co-E&S to prevent the timely sale of 6033 Watermelon Street, as a minimum
the insurance will pay off the mortgage debt owed to U.S. Bank under this stipulation.

14. Upon payment, SPS and U.S. Bank agrees to execute further documents, to the
extent necessary, to convey clear title to 6033 Watermelon Street and to implement further
the terms of this Stipulation.

15. SPS and U.S. Bank agrees to the forfeiture of 6033 Watermelon Street to the
United States, subject to paragraphs 8-12.

16. SPS and U.S. Bank agrees to relinquish all rights, titles, and interests in 6033
Watermelon Street, subject to paragraphs 8-12.

17. SPS and U.S. Bank agrees to waive its rights to the criminal forfeiture third-party
ancillary hearing (proceeding) of 6033 Watermelon Street in United States v. Meelad Dezfooli,
2:22-CR-142-CDS-DJA.

18. SPS and U.S. Bank agrees to waive service of process in this proceeding but will

receive service of process of any filed document through CM/ECF.
Case 2:22-cr-00142-CDS-DJA Document 328 Filed 02/18/25 Page5of7

19. SPS and U.S. Bank agrees to waive any further notice to it, its agents, or its
attorney regarding the forfeiture and disposition of 6033 Watermelon Street, subject to
paragraphs 8-12.

20. SPS and U.S. Bank agrees not to file any other documents in this proceeding
concerning 6033 Watermelon Street in this case except as may be required by the United
States Attorney’s Office or this Court. Notwithstanding the above provision, if any party,
person, or entity, who is not a signatory of this stipulation, files a petition, SPS and U.S.
Bank retains the right to file any documents to defend their rights concerning their interest
in 6033 Watermelon Street.

21. SPS and U.S. Bank agrees to withdraw any petitions or other documents,
including, but not limited to, the Verified Notice of Claim in Support of its mortgage interest
in 6033 Watermelon Street, ECF No. 272., it filed in this proceeding concerning 6033
Watermelon Street when this Court grants this Stipulation.

22. SPS and U.S. Bank waives the statute of limitations, the CAFRA requirements,
Fed. R. Crim. P. 32.2 and 21 U.S.C. § 853, including, but not limited to, the filing of a third-
party ancillary petition, the court having a third-party ancillary hearing, the court making
factual findings regarding the forfeiture of defendant’s assets, and any and all constitutional,
statutory, legal, equitable rights, defenses, and claims regarding the in personam criminal
forfeiture money judgment in any proceedings regarding 6033 Watermelon Street,
including, but not limited to, double jeopardy and due process under the Fifth Amendment
to the United States Constitution.

23. SPS and U.S. Bank waives any and all constitutional, statutory, legal, equitable
rights, defenses, and claims regarding the in personam criminal forfeiture money judgment
in any proceedings regarding 6033 Watermelon Street, including, but not limited to, a jury
trial under the Sixth Amendment to the United States Constitution.

24. SPS and U.S. Bank waives any and all constitutional, statutory, legal, equitable
rights, defenses, and claims regarding the in personam criminal forfeiture money judgment

and the substitution and forfeiture of defendant’s assets in any proceedings, regarding 6033
Watermelon Street in this case, including, but not limited to, excessive fines and cruel and
unusual punishments under the Eighth Amendment to the United States Constitution.

25. SPS and U.S. Bank agrees to the conditions in this Stipulation and the entry of
the Final Order of Forfeiture incorporating by reference this Stipulation.

26. SPS and U.S. Bank agrees to hold harmless the United States, the United States
Department of Justice, the United States Attorney’s Office for the District of Nevada, the
United States Department of the Treasury, the Internal Revenue Service, the Internal
Revenue Service-Criminal Investigation, their agencies, their agents, and their employees
from any claim made by it or any third party arising from the facts and circumstances of this
case regarding ownership of the deed of trust and the promissory note.

27. SPS and U.S. Bank releases and forever discharges the United States, the United
States Department of Justice, the United States Attorney’s Office for the District of Nevada,
the United States Department of the Treasury, the Internal Revenue Service, the Internal
Revenue Service-Criminal Investigation, their agencies, their agents, and their employees
from any and all claims, rights, or causes of action of any kind that SPS and U.S. Bank now
has or may hereafter have on account of, or in any way growing out of the forfeiture and the
taking of 6033 Watermelon Street in the criminal forfeiture.

28. This Stipulation contains the entire agreement between the parties.

29. Except as expressly stated in this Stipulation, no party, officer, agent, employee,
representative, or attorney has made any statement or representation to any other party,
person, or entity regarding any fact relied upon in entering into this Stipulation, and no
party, officer, agent, employee, representative, or attorney relies on such statement or
representation in executing this Stipulation.

30. Each party acknowledges and warrants that its execution of this Stipulation is
free and is voluntary.

31. The persons signing this Stipulation warrant and represent that they have full
authority to execute this Stipulation and to bind the entity on whose behalf they are signing

to the terms of this Stipulation.
32. This Stipulation shall be construed and interpreted according to federal forfeiture
law and federal common law. The jurisdiction and the venue for any dispute related to,
and/or arising from, this Stipulation is the unofficial Southern Division of the United States
District Court for the District of Nevada, located in Las Vegas, Nevada.

33. Each party shall bear its own attorneys’ fees, expenses, interest, and costs, except
for paragraph 8. A discretionary termination of forfeiture shall not be a basis for an award of
attorneys’ fees, expenses, interest, and costs.

34. This Stipulation shall not be construed more strictly against one party than
against the other merely by virtue of the fact that it may have been prepared primarily by
counsel for one of the parties; it being recognized that both parties have contributed
substantially and materially to the preparation of this Stipulation.

IT IS HEREBY CERTIFIED, pursuant to 28 U.S.C. § 2465(a)(2), that there was

reasonable cause for the forfeiture of 6033 Watermelon Street.

Dated: {br Won 3, P| C2 ¢ Dated: _ February 13, 2025
a & Zak, LLP SUE FAHAMI
Acting United States Attorney
Z LD /s/ Daniel D. Hollingsworth
Robert A. Riether,“Attorney for SPS DANIEL D. HOLLINGSWORTH
and U.S. Bank, Third-Party Petitioner Assistant United States Attorney

Dated: Februar jo, 2025

tee! Portfolio Servicing, Inc., the
fs. Ba and ad attomey-in- fact for

helle Simon

ITS:__ Document Control Officer

IT IS SO ORDERED:

Cristina ( 64. —
CHRIS D. A
UNITED STA DISTRICT JUDGE

DATED: February 18, 2025


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