United States of America v. $2,700,000.00 IN UNITED STATES CURRENCY, No. 2:2010cv00129 - Document 14 (D. Nev. 2010)

Court Description: ORDER granting 13 DEFAULT JUDGMENT OF FORFEITURE Signed by Chief Judge Roger L. Hunt on 5/3/2010. (Copies have been distributed pursuant to the NEF - SD)
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United States of America v. $2,700,000.00 IN UNITED STATES CURRENCY 1 2 3 4 5 6 7 Doc. 14 DANIEL G. BOGDEN United States Attorney Nevada Bar No. 2137 DANIEL D. HOLLINGSWORTH Assistant United States Attorney Nevada Bar No.1925 Lloyd D. George United States Courthouse 333 Las Vegas Boulevard South, Suite 5000 Las Vegas, Nevada 89101 Telephone: (702) 388-6336 Facsimile: (702) 388-6787 E-mail: Daniel.Hollingsworth@usdoj.gov Counsel for the United States of America 8 9 UNITED STATES DISTRICT COURT 10 DISTRICT OF NEVADA 11 UNITED STATES OF AMERICA, Plaintiff, 12 v. 13 14 $2,700,000.00 IN UNITED STATES CURRENCY, 15 Defendant. ) ) ) ) ) ) ) ) ) ) 2:10-CV-129-RLH (GWF) 16 MOTION FOR DEFAULT JUDGMENT OF FORFEITURE 17 18 Pursuant to Fed. R. Civ. P. 55 and Fed. R. Civ. P. Supp. Rule G(4)(b) and (5), the United 19 States respectfully moves this Court for entry of a default judgment of forfeiture based on the 20 following: 21 1. 22 The United States filed a Verified Complaint for Forfeiture in Rem on January 29, 2010. Docket #1.1 The Complaint (#1) alleges the defendant property: a) 23 is involved in a transaction or attempted transaction in violations of 18 U.S.C. 24 § 1956(a)(1), or is property traceable to such property, and is subject to 25 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A); 26 1 The docket # will be to this case. Where the docket number cites to the criminal case, 2:09-CR-28-RLH (GWF), CR will be in front of the docket number. Dockets.Justia.com 1 b) is involved in a transaction or attempted transaction in violations of 18 U.S.C. 2 § 1956(a)(2), or is property traceable to such property, and is subject to 3 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A); 4 c) is involved in a transaction or attempted transaction in violations of 18 U.S.C. 5 § 1957, or is property traceable to such property, and is subject to forfeiture 6 pursuant to 18 U.S.C. § 981(a)(1)(A); 7 d) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 8 § 1084 and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 465.092, 9 and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 10 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 11 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 12 e) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 13 § 1341, a specified unlawful activity as defined in 18 U.S.C. §§ 1956(c)(7)(A) 14 and 1961(1)(B), or a conspiracy to commit such offense, and is subject to 15 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 16 f) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 17 § 1343, a specified unlawful activity as defined in 18 U.S.C. §§ 1956(c)(7)(A) 18 and 1961(1)(B), or a conspiracy to commit such offense, and is subject to 19 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 20 g) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 21 § 1952(a)(1) and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 22 465.092, and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 23 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 24 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 25 26 h) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. § 1952(a)(3) and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 2 1 465.092, and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 2 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 3 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 4 i) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 5 § 1955 and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 465.092, 6 and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 7 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 8 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 9 j) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 10 § 1956(a)(1), a specified unlawful activity as defined in 18 U.S.C. §§ 11 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 12 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 13 k) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 14 § 1956(a)(2), a specified unlawful activity as defined in 18 U.S.C. §§ 15 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 16 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 17 l) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 18 § 1957, a specified unlawful activity as defined in 18 U.S.C. §§ 1956(c)(7)(A) 19 and 1961(1)(B), or a conspiracy to commit such offense, and is subject to 20 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 21 m) is involved in violations of 31 U.S.C. § 5313, or a conspiracy to commit such 22 violations, or is traceable to any such violations or conspiracy, and is subject 23 to forfeiture pursuant to 31 U.S.C. § 5317(c)(2); and 24 n) is involved in violations of 31 U.S.C. § 5324, or a conspiracy to commit such 25 violations, or is traceable to any such violations or conspiracy, and is subject 26 to forfeiture pursuant to 31 U.S.C. § 5317(c)(2). 3 1 2. On February 18, 2010, this Court entered an Order for Summons and Warrant of Arrest 2 in Rem for the Property and Notice and issued the Summons and Warrant of Arrest in Rem for the 3 Property. #4 and #5. 4 3. Pursuant to the Order (#4), the Complaint (#1), the Order (#4), the Summons and 5 Warrant of Arrest in Rem for the Property (#5), and the Notice of Complaint for Forfeiture (#7, p. 3-4) 6 were served on the defendant property, and the Notice of Forfeiture Action was published according 7 to law (#6 and #8). All persons interested in the defendant property were required to file their claims 8 with the Clerk of the Court no later than 60 days after the first day of publication on the United 9 States’s official internet forfeiture site, www.forfeiture.gov, or within 35 days of actual notice of this 10 action, as applicable, followed by the filing of an answer to the Amended Complaint within 21 days 11 after the filing of their respective claims. #4, #1, #5, #7, p.3-4, #6, #8. 12 4. Public notice of the forfeiture action was given to all persons and entities on the official 13 government internet forfeiture site, www.forfeiture.gov, from February 19, 2010 through March 20, 14 2010. #6 and #8. 15 5. On March 9, 2010, the United States Customs and Border Protection served the 16 Complaint, the Order, the Summons and Warrant of Arrest in Rem for the Property, and the Notice 17 by executing them on the defendant property. #7. 18 19 6. On March 24, 2010 and on April 14, 2010, the Notices of Filing Proof of Publication were filed. #6 and #8. 20 7. On March 24, 2010, the Notice of Filing Service of Process was filed. #7. 21 8. On February 18, 2009, this Court entered a Plea Memorandum as to Jeffrey Jelinsky 22 in the District of Nevada Court Case 2:09-CR-28-RLH (GWF), where he agreed to the civil judicial 23 forfeiture or the criminal forfeiture and waived service of process of any documents filed in any action 24 or any proceedings concerning the $2,700,000.00 in United States Currency. This Court also entered 25 a Preliminary Order of Forfeiture as to Jeffery Jelinsky forfeiting the $2,700,000.00 in United States 26 Currency. CR #10 and CR #12. 4 9. 1 On February 18, 2009, this Court entered a Plea Memorandum as to Michael Jelinsky 2 in the District of Nevada Court Case 2:09-CR-28-RLH (GWF), where he agreed to the civil judicial 3 forfeiture or the criminal forfeiture and waived service of process of any documents filed in any action 4 or any proceedings concerning the $2,700,000.00 in United States Currency. This Court also entered 5 a Preliminary Order of Forfeiture as to Michael Jelinsky forfeiting the $2,700,000.00 in United States 6 Currency. CR #11 and CR #13. 10. 7 8 Stipulation for Entry of Judgment of Forfeiture as to Poker Palace Casino, and Order. #10. 11. 9 10 On April 15, 2010, this Court entered an Order Granting the Settlement Agreement, No other person or entity has filed a claim, answer, or responsive pleading within the time permitted by 18 U.S.C.§ 983(a)(4) and Fed. R. Civ. P. Supp. Rule G(4)(b) and (5). 12. 11 On April 27, 2010, the United States filed a Request for Entry of Default, Declaration 12 in Support of Request for Entry of Default, and Proposed Default against the defendant property and 13 all persons or entities who claim an interest in the defendant property in the above-entitled action. #11. 13. 14 On April 28, 2010, the Clerk of the Court entered a Default against the defendant 15 property and all persons or entities who claim an interest in the defendant property in the above- 16 entitled action. #12. 17 14. The allegations of the Complaint are sustained by the evidence and should be adopted 18 as findings of fact. The Court should conclude as a matter of law that the United States is entitled to 19 the relief requested in the Complaint. 20 15. The United States requests that a default judgment of forfeiture be entered against the 21 defendant property and all persons or entities who claim an interest in the defendant property in the 22 above-entitled action. A proposed Default Judgment of Forfeiture is submitted herewith. 23 ... 24 ... 25 ... 26 ... 5 1 2 3 16. The United States further requests this Court certify, pursuant to 28 U.S.C. § 2465(a)(2), that there was reasonable cause for the seizure or arrest of the defendant property. Respectfully submitted this 30th day of April, 2010. 4 5 DANIEL G. BOGDEN United States Attorney 6 7 /s/DanielDHollingsworth DANIEL D. HOLLINGSWORTH Assistant United States Attorney 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 6 1 2 3 4 5 6 7 DANIEL G. BOGDEN United States Attorney Nevada Bar No. 2137 DANIEL D. HOLLINGSWORTH Assistant United States Attorney Nevada Bar No.1925 Lloyd D. George United States Courthouse 333 Las Vegas Boulevard South, Suite 5000 Las Vegas, Nevada 89101 Telephone: (702) 388-6336 Facsimile: (702) 388-6787 E-mail: Daniel.Hollingsworth@usdoj.gov Counsel for the United States of America 8 9 UNITED STATES DISTRICT COURT 10 DISTRICT OF NEVADA 11 UNITED STATES OF AMERICA, Plaintiff, 12 v. 13 14 $2,700,000.00 IN UNITED STATES CURRENCY, 15 Defendant. ) ) ) ) ) ) ) ) ) ) 2:10-CV-129-RLH (GWF) 16 DEFAULT JUDGMENT OF FORFEITURE 17 The United States filed a Verified Complaint for Forfeiture in Rem on January 29, 2010. 18 19 Docket #1.1 The Complaint (#1) alleges the defendant property: 20 a) is involved in a transaction or attempted transaction in violations of 18 U.S.C. 21 § 1956(a)(1), or is property traceable to such property, and is subject to 22 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A); 23 b) is involved in a transaction or attempted transaction in violations of 18 U.S.C. 24 § 1956(a)(2), or is property traceable to such property, and is subject to 25 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A); 26 1 The docket # will be to this case. Where the docket number cites to the criminal case, 2:09-CR-28-RLH (GWF), CR will be in front of the docket number. 1 c) is involved in a transaction or attempted transaction in violations of 18 U.S.C. 2 § 1957, or is property traceable to such property, and is subject to forfeiture 3 pursuant to 18 U.S.C. § 981(a)(1)(A); 4 d) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 5 § 1084 and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 465.092, 6 and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 7 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 8 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 9 e) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 10 § 1341, a specified unlawful activity as defined in 18 U.S.C. §§ 1956(c)(7)(A) 11 and 1961(1)(B), or a conspiracy to commit such offense, and is subject to 12 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 13 f) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 14 § 1343, a specified unlawful activity as defined in 18 U.S.C. §§ 1956(c)(7)(A) 15 and 1961(1)(B), or a conspiracy to commit such offense, and is subject to 16 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 17 g) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 18 § 1952(a)(1) and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 19 465.092, and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 20 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 21 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 22 h) constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 23 § 1952(a)(3) and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 24 465.092, and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 25 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 26 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); 2 i) 1 constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 2 § 1955 and Nev. Rev. Stat. §§ 199.480, 463.160, 463.430, 464.010, 465.092, 3 and 465.093, specified unlawful activities as defined in 18 U.S.C. §§ 4 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 5 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); j) 6 constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 7 § 1956(a)(1), a specified unlawful activity as defined in 18 U.S.C. §§ 8 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 9 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); k) 10 constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 11 § 1956(a)(2), a specified unlawful activity as defined in 18 U.S.C. §§ 12 1956(c)(7)(A) and 1961(1)(B), or a conspiracy to commit such offense, and is 13 subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); l) 14 constitutes, or is derived from, proceeds traceable to violations of 18 U.S.C. 15 § 1957, a specified unlawful activity as defined in 18 U.S.C. §§ 1956(c)(7)(A) 16 and 1961(1)(B), or a conspiracy to commit such offense, and is subject to 17 forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C); m) 18 is involved in violations of 31 U.S.C. § 5313, or a conspiracy to commit such 19 violations, or is traceable to any such violations or conspiracy, and is subject 20 to forfeiture pursuant to 31 U.S.C. § 5317(c)(2); and 21 n) is involved in violations of 31 U.S.C. § 5324, or a conspiracy to commit such 22 violations, or is traceable to any such violations or conspiracy, and is subject 23 to forfeiture pursuant to 31 U.S.C. § 5317(c)(2). 24 It appearing that process was fully issued in this action and returned according to law; 25 ... 26 ... 3 1 On February 18, 2010, this Court entered an Order for Summons and Warrant of Arrest in 2 Rem for the Property and Notice and issued the Summons and Warrant of Arrest in Rem for the 3 Property. #4 and #5. 4 Pursuant to the Order (#4), the Complaint (#1), the Order (#4), the Summons and Warrant 5 of Arrest in Rem for the Property (#5), and the Notice of Complaint for Forfeiture (#7, p. 3-4) were 6 served on the defendant property, and the Notice of Forfeiture Action was published according to law 7 (#6 and #8). All persons interested in the defendant property were required to file their claims with 8 the Clerk of the Court no later than 60 days after the first day of publication on the United States’s 9 official internet forfeiture site, www.forfeiture.gov, or within 35 days of actual notice of this action, 10 as applicable, followed by the filing of an answer to the Amended Complaint within 21 days after the 11 filing of their respective claims. #4, #1, #5, #7, p.3-4, #6, #8. 12 Public notice of the forfeiture action was given to all persons and entities on the official 13 government internet forfeiture site, www.forfeiture.gov, from February 19, 2010 through March 20, 14 2010. #6 and #8. 15 On March 9, 2010, the United States Customs and Border Protection served the Complaint, 16 the Order, the Summons and Warrant of Arrest in Rem for the Property, and the Notice by executing 17 them on the defendant property. #7. 18 19 On March 24, 2010 and on April 14, 2010, the Notices of Filing Proof of Publication were filed. #6 and #8. 20 On March 24, 2010, the Notice of Filing Service of Process was filed. #7. 21 On February 18, 2009, this Court entered a Plea Memorandum as to Jeffrey Jelinsky in the 22 District of Nevada Court Case 2:09-CR-28-RLH (GWF), where he agreed to the civil judicial 23 forfeiture or the criminal forfeiture and waived service of process of any documents filed in any action 24 or any proceedings concerning the $2,700,000.00 in United States Currency. This Court also entered 25 a Preliminary Order of Forfeiture as to Jeffery Jelinsky forfeiting the $2,700,000.00 in United States 26 Currency. CR #10 and CR #12. 4 1 On February 18, 2009, this Court entered a Plea Memorandum as to Michael Jelinsky in the 2 District of Nevada Court Case 2:09-CR-28-RLH (GWF), where he agreed to the civil judicial 3 forfeiture or the criminal forfeiture and waived service of process of any documents filed in any action 4 or any proceedings concerning the $2,700,000.00 in United States Currency. This Court also entered 5 a Preliminary Order of Forfeiture as to Michael Jelinsky forfeiting the $2,700,000.00 in United States 6 Currency. CR #11 and CR #13. On April 15, 2010, this Court entered an Order Granting the Settlement Agreement, 7 8 Stipulation for Entry of Judgment of Forfeiture as to Poker Palace Casino, and Order. #10. No other person or entity has filed a claim, answer, or responsive pleading within the time 9 10 permitted by 18 U.S.C.§ 983(a)(4) and Fed. R. Civ. P. Supp. Rule G(4)(b) and (5). 11 On April 27, 2010, the United States filed a Request for Entry of Default, Declaration in 12 Support of Request for Entry of Default, and Proposed Default against the defendant property and all 13 persons or entities who claim an interest in the defendant property in the above-entitled action. #11. 14 On April 28, 2010, the Clerk of the Court entered a Default against the defendant property 15 and all persons or entities who claim an interest in the defendant property in the above-entitled action. 16 #12. 17 The allegations of the Complaint are sustained by the evidence and are adopted as findings 18 of fact. The Court concludes as a matter of law that the United States is entitled to the relief requested 19 in the Complaint. 20 NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that 21 Default Judgment of Forfeiture be entered against the defendant property and all persons or entities 22 who claim an interest in the defendant property in the above-entitled action. 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that said property be, and the 24 same is hereby forfeited to the United States of America, and no right, title, or interest in the property 25 shall exist in any other party. 26 ... 5 1 2 IT IS HEREBY CERTIFIED, pursuant to 28 U.S.C. § 2465(a)(2), that there was reasonable cause for the seizure or arrest of the defendant property. 3 ___________________________________ UNITED STATES DISTRICT JUDGE 4 5 May 3, 2010 DATED:___________________________ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 6