Stipulation and Joint Motion for Interlocutory Sale of Porsche and Return of Audi — United States v. Bhakta

Summary

Stipulation and Joint Motion for Interlocutory Sale of Porsche and Return of Audi, filed March 8, 2022, in United States of America v. Denny Bhakta, Case No. 21cr3352-JLS, by the United States and Defendant with the advice and consent of Sandra Resnick, counsel for defendant. The parties agree to the interlocutory sale of a 2017 Porsche seized from Defendant, which is subject to a criminal forfeiture allegation. It states that the principal balance on the promissory note secured by the Porsche, subject to Bank of America's security interest, totaled $96,674.23 as of February 2022. The net sales proceeds are to be kept as a substitute res, and the parties agree to the release of a 2016 Audi S8 to Defendant.

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“Stipulation and Joint Motion for Interlocutory Sale of Porsche and Return of Audi — United States v. Bhakta.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-s-d-cal-no-3-21-cr-03352-dkt-22-s-d-cal-835f56ff5b/, SHA-256 0e926a38f69ea2d14e6392061ae03964f84a1f37fe0ec48ced6d04ff273a1573.

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Case 3:21-cr-03352-JLS Document 22 Filed 03/08/22 PageID.83 Page 1 of 4

1 RANDY S. GROSSMAN
United States Attorney
2 ANDREW J. GALVIN
Assistant United States Attorney
3 California Bar No. 261925
Federal Office Building
4 880 Front Street, Room 6293
San Diego, California 92101-8893
5 Telephone: (619) 546-9721
Email: andrew.galvin@usdoj.gov
6
Attorneys for Plaintiff
7 United States of America
8 UNITED STATES DISTRICT COURT
9 SOUTHERN DISTRICT OF CALIFORNIA
10 UNITED STATES OF AMERICA, Case No. 21cr3352-JLS
11 Plaintiff, STIPULATION AND
JOINT MOTION FOR
12 v. INTERLOCUTORY SALE
OF PORSCHE AND
13 DENNY BHAKTA, RETURN OF AUDI
14 Defendant.
15
16 Plaintiff, the UNITED STATES OF AMERICA, by and through its counsel,
17 Randy S. Grossman, United States Attorney, and Andrew J. Galvin, Assistant
18 United States Attorney, and Defendant DENNY BHAKTA (“Defendant”), with the
19 advice and consent of Sandra Resnick, counsel for defendant (collectively, the
20 “Parties”), hereby stipulate and agree to the interlocutory sale of One 2017 Porsche
21 991, 911 Coupe, CA License No. MB17TCB, VIN: WP0AD2A98HS167515
22 (the “Porsche”), seized from Defendant which vehicle is subject to a criminal
23 forfeiture allegation in this case.
24 1. Based upon the violations of 15 U.S.C. § 78j(b), 78ff, and 17 C.F.R.
25 § 240.10b-5, as alleged in Count 1 of the Indictment, and the violations of 18 U.S.C.
26 § 1957, as alleged in Count 2 of the Indictment, the United States seeks forfeiture of
27 the Porsche, pursuant to 18 U.S.C. §§ 981(a)(1)(C), 982(a)(1), and 982(b), and
28 28 U.S.C. § 2461(c).
Case 3:21-cr-03352-JLS Document 22 Filed 03/08/22 PageID.84 Page 2 of 4

1 2. Default interest and penalties continue to accrue on the promissory note
2 secured by the Porsche which is subject to Bank of America’s properly perfected
3 security interest. As of February 2022, the principal balance totaled $96,674.23, with
4 an approximate value of $172,550.
5 3. This Court is authorized to “take any . . . action to preserve the
6 availability of property” subject to forfeiture. 21 U.S.C. § 853(e)(1). Rule 32.2.(b)(7)
7 of the Federal Rules of Criminal Procedure provides that “[a]t any time before entry
8 of a final order of forfeiture, the court, in accordance with Supplemental Rule G(7) of
9 the Federal Rules of Civil Procedure, may order the interlocutory sale of property
10 alleged to be forfeitable.”
11 4. Supplemental Admiralty and Maritime Claims Rule G(7)(b) of the
12 Federal Rules of Civil Procedure (“Rule G(7)”) provides that, on motion by a party or
13 person having custody of the property, a court may order the interlocutory sale of all
14 or part of the property subject to a pending asset forfeiture action if certain conditions
15 are met. Specifically, an interlocutory sale may be ordered if (1) the property is
16 perishable or at risk of deterioration, decay, or injury by being detained in custody
17 pending action; (2) the expenses of keeping the property is excessive or is
18 disproportionate to its fair market value; (3) the property is subject to a mortgage or
19 to taxes on which the owner is in default; or (4) the court finds other good cause.
20 Rule G(7)(b)(i). The sale must be made by a United States agency that has authority
21 to sell the property, by the agency’s contractor, or by any person that the court
22 designates. Rule G(7)(b)(ii).
23 5. When the sale is made, the net sales proceeds will be a substitute res
24 subject to forfeiture in place of the property that was sold. The net sales amount will
25 be held by the United States Marshals Service in an interest bearing account
26 maintained by the United States pending the conclusion of the forfeiture action.
27 See Fed. R. Civ. Pro. G(7)(c).
28 //
2
21cr3352
Case 3:21-cr-03352-JLS Document 22 Filed 03/08/22 PageID.85 Page 3 of 4

1 6. The sales price for the Porsche shall be equal to or greater than the total
2 of the amount owed to Bank of America as of the date of sale. The United States
3 Marshals Service shall proceed to sell the Porsche on an expedited basis.
4 The United States Marshals Service shall pay all costs of sale, amounts owed to Bank
5 of America, and costs of expenses from the gross proceeds of sale. The net proceeds
6 will thereafter be deposited as described below.
7 7. Plaintiff and Defendant hereby agree to substitute any net proceeds
8 realized from the sale of the Porsche as the property subject to the forfeiture
9 allegations of the indictment regarding the Porsche in this criminal case. The net
10 proceeds shall be held in the custody of the Department of Justice Seized Asset
11 Deposit Fund pending further order of the United States District Court.
12 8. The validity and priority of any other claims to the Porsche or any net
13 proceeds realized from the sale of the Porsche made pursuant to 21 U.S.C. § 853(n)
14 will be determined at an ancillary proceeding, contingent upon and following a
15 judgment in the criminal case and the Court’s entry of a final order of forfeiture to the
16 United States.
17 9. Plaintiff and Defendant reserve their rights against the net proceeds from
18 the sale of the Porsche as if they were the vehicle subject to forfeiture.
19 //
20 //
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21cr3352
Case 3:21-cr-03352-JLS Document 22 Filed 03/08/22 PageID.86 Page 4 of 4

1 10. The Parties further agree to the release of One 2016 Audi S8,
2 VIN: WUAJ5AFDXGN900295 (the “Audi”), which was also seized from Defendant
3 and is subject to a criminal forfeiture allegation in this case. The Audi shall be
4 returned to Defendant by the United States Marshals Service, either directly or to
5 someone so designated by attorney Sandra Resnick.
6 I hereby certify that the content of this document is acceptable to all persons
7 required to sign and I have been authorized to e-file this document with the electronic
8 signature of Sandra Resnick, attorney for Defendant DENNY BHAKTA.
9 DATED: March 8, 2022.
10 RANDY S. GROSSMAN
United States Attorney
11
s/ Andrew J. Galvin
12 ANDREW J. GALVIN
Assistant U.S. Attorney
13 Attorney for Plaintiff
United States of America
14
15 s/ Sandra Resnick
SANDRA RESNICK
16 Attorney for Defendant Denny Bhakta
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21cr3352

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