Free Stipulation - District Court of Connecticut - Connecticut

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 1 of 12

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT UNITED STATES OF AMERICA, Plaintiff, Civil No. 3:01CV1515 (EBB) $29,035,500.00 SEIZED FROM THE U.S. CUSTOMS SUSPENSE ACCOUNT AT THE FEDERAL RESERVE BANK OF NEW YORK, WHICH REPRESENTS A WIRE TRANSFER FROM ACCOUNT NCTMBER 70026, AT BANQUE SCS ALLIANCE, GENEVA, SWITZERLAND, HELD IN THE NAME OF BLOOMFIELD INVESTNIENTS, LTD.,

: : : :

: :

$3,24 1,500.00 SEIZED FROM THE SEIZED ASSET DEPOSIT FUND AT THE : FEDERAL RESERVE BANK, WHICH : REPRESENTS A WIRE TRANSFER FROM BANQUE SCS ALLIANCE, GENEVA, SWITZERLAND, HELD I THE NAME OF BLOOMFIELD N INVESTMENTS, LTD. Defendants.

October 18,2007

STIPULATION BETWEEN THE UNITED STATES OF AMERICA AND THE RECEIVER-CLAIMANTS
In full and final satisfaction of any and all claims, demands, and liens from which PLAINTIFF, UNITED STATES OF AMERICA ("UNITED STATES"), now has against the above-described property, the PLAINTIFF and the RECEIVER-CLAIMANTS,' and their agents, '(1) Kim Holland, Commissioner of Insurance for the State of Oklahoma, in her capacity as Receiver of Farmers and Ranchers Life Insurance Company; (2) Douglas M. Ommen, Director of the Missouri Department of Insurance, in his capacity as Receiver of hternational Financial Services Life Insurance Company; (3) Leslie A. Newman, Commissioner of Commerce and Insurance for the State of

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 2 of 12

subrogees, successors, and assigns, by and through their respective counsel, hereby stipulate and agree to the compromise settlement of the above-styled seizure upon the terms and conditions set forth below: 1. The RECEIVER-CLAIMANTS agree to the forfeiture of the following assets, to be disposed of according to the agreement of the parties: (1) $29,035,500.00 Seized from the U.S. Customs Suspense Account, at the Federal Reserve Bank of New York, which represents a wire transfer from account number 70026, at Banque SCS Alliance, Geneva, Switzerland, held in the Name of Bloomfield Investments, Ltd., and (2) $3,241,500.00 seized from the Seized Asset Deposit Fund, at the Federal Reserve Bank, which represents a wire transfer from Banque SCS Alliance, Geneva, Switzerland, held in the name of Bloomfield Investments, Ltd. ("Currency Defendants").
2.

Pursuant to the RECEIVER-CLAIMANTS7Petition for Remission which was

granted by the Department of Justice on April 18,2007, upon the entry of a Decree of Forfeiture, the UNITED STATES agrees to distribute to the RECEIVER-CLAIMANTS the following pro rata shares of the net proceeds of the above-referenced assets, less costs, as follows:

Tennessee, in her capacity as Receiver of Franklin American Life Insurance Company; (4) Julie Benafield Bowman, Commissioner of Insurance for the State of Arkansas, in her capacity as Receiver of Old Southwest Life Insurance Company; and (5) George Dale, Commissioner of Insurance for the State of Mississippi, in his capacity as Liquidator of Family Guaranty Life Insurance Company, Franklin Protective Life Insurance Company, and First National Life Insurance Company of America.

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 3 of 12

Franklin Protective Life Insurance Company Family Guaranty Life Insurance Company Farmers and Ranchers Life Insurance Company First National Life Insurance Company of America Franklin American Life Insurance Company Old Southwest Life Insurance Company International Financial Services Life Insurance Company 3.

4.10% 6.99% 2.30% 54.78% 8.00% 1.75% 22.08%

The LTNITED STATES further agrees to disburse to the RECEIVER-CLAIMANTS

the accrued interest on the $3,241,500.00 seized from the Seized Asset Deposit Fund, at the Federal Reserve Bank, which represents a wire transfer from Banque SCS Alliance, Geneva, Switzerland, held in the name of Bloomfield Investments, Ltd., by the Federal Bureau of Investigation (FBI), on the same pro rata basis set forth in Paragraph Two above. 4. By separate motion, the RECEIVER-CLAIMANTS will seek an Order from the

Court directing the Department of Treasury to remit to the RECEIVER-CLAIMANTS (according to the above pro rata shares) the accrued interest on the $29,035,500.00 seized from the U.S. Customs Suspense Account, at the Federal Reserve Bank of New York, which represents a wire transfer from account number 70026, at Banque SCS Alliance, Geneva, Switzerland, held in the name of Bloomfield Investments, Ltd., seized by the Intemal Revenue Service Criminal Investigation. The UNITED STATES agrees it will not to delay disbursement of the RECEIVER-CLAIMANTS' pro rata shares of the asset subject to forfeiture held by Intemal Revenue Service Criminal Investigation, notwithstanding any opposition by the Intemal Revenue

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 4 of 12

Service Criminal Investigation to entry of an Order directing payment of the accrued interest. Notwithstanding the provisions of Paragraph Five herein, the timing of any distribution of accrued interest on the net proceeds held by the Internal Revenue Service Criminal Investigation shall be governed by the order of the Court addressing the RECEIVER-CLAIMANTS' separate motion.
5.

The RECEIVER-CLAIMANTS reserve the right to move to reopen the Decree of

Forfeiture, re-file their motions for summary judgment, and assert any and all claims, objections and defenses available in law or in equity, in the event that the UNITED STATES fails to distribute the assets to the RECEIVER-CLAIMANTS within sixty (60) days from the date of the entry of a Decree of Forfeiture. The parties further stipulate and agree that this Court shall retain jurisdiction over the assets that are the subject of this proceeding, including the motion described in Paragraph Four herein, for purposes of enforcing the terms of this Stipulation and/or ruling on the above-described motion until the time such assets are distributed. 6. Subject to the Court entering a Decree of Forfeiture and their receipt of the net

proceeds and interest thereon in accordance with Paragraphs Two and Three of this Stipulation (and any order entered pursuant to Paragraph Four herein), the RECEIVER-CLAIMANTS further agree that neither they nor any current or future officers, agents, representatives, subrogees, assigns, heirs, or successors of RECEIVER-CLAIMANTS, shall appear in or pursue any action or proceeding at law or in equity to contest the forfeiture of the above-described assets to the UNITED STATES as provided in Paragraph One above, except as provided in Paragraphs Four and Five above. The RECEIVER-CLAIMANTS further consent to the entry of a Decree of

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 5 of 12

Forfeiture with respect to the above-described assets filed hereafter, to effectuate the terms of this Stipulation.

7.

Subject to satisfaction of the foregoing conditions, and subject to the provisions of

Paragraph Four and Five, the RECEIVER-CLAIMANTS hereby release and forever discharge the United States of America, Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and United States Marshals Service, their officers, agents, servants, and employees, their heirs, successors, or assigns, from any and all actions, causes of action, suits, proceedings, debts, dues, contracts, judgments, damages, claims, andlor demands whatsoever in law or equity which RECEIVER-CLAIMANTS, their heirs, successors, or assigns ever had, now have, or may have in the future with respect to the seizure, detention, and forfeiture by the htemal Revenue Service Criminal Investigation and Federal Bureau of Investigation of the above-described assets.

8.

This Stipulation for Compromise Settlement shall not constitute an admission of

liability or fault on the part of the UNITED STATES, its officers, agents, servants, or employees, or on the part of the RECEIVER-CLAIMANTS, their officers, agents, servants, or employees, and is entered into by all parties for the purpose of compromising disputed claims and avoiding the expenses and risks of litigation. 9. The UNITED STATES and the RECEIVER-CLAIMANTS agree to bear their own

attorneys' fees, and to execute andlor consent to, any additional documents necessary to implement the terms of this stipulation.
10.

The UNITED STATES and the RECEIVER-CLAIMANTS agree that the claims of

the victim insurance companies are hereby dismissed without prejudice, subject to distribution of

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 6 of 12

the funds to the RECEIVER-CLAIMANTS in accordance with Paragraphs Two, Three, and Four herein, after which such dismissal shall be with prejudice. PLAINTIFF, UNITED STATES OF AMERICA KEVIN J. O'CONNOR UNITED STATES ATTORNEY

:n//
d

f G. TURBERT ~

-

A!~ISTANTU.S. ATTORNEY ATTORNEY BAR # ct23398 157 CHURCH STREET NEW HAVEN, CT 065 10 TEL. (203) 82 1-3700 FAX (203) 773-5373 Email: [email protected]

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 7 of 12

DATE

DOUGLAS J. SCHMID~, ESQ. TERRANCE M. SUMMERS, ESQ. BLACKWELL SANDERS 480 1 MAIN STREET, SUITE 1000 KANSAS CITY, MISSOURI 641 12 TEL. (8 16) 983-8000

WLU -

m m

DATE 195 d H d H STREET, 13TH FLOOR NEW HAVEN, CT 065 10-2026 TEL. (203) 821-2000 FEDERAL BAR # ct006 16

COUNSEL FOR DOUGLAS M. OMMEN Director of the Department Of Insurance for the State Of Missouri, in His Official Capacity as Receiver of INTERNATIONAL FrNANCIAL SERVICES LIFE INSURANCE COMPANY

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 8 of 12

%I _C___-

DATE

CHARLES G. COPELAND, ESQ. REBECCA JORDAN, ESQ. COPELAND, COOK, TAYLOR & BUSH, P.A. P.O. BOX 6020 RIDGELAND, MISSISSIPPI 391 58 (601) 856-7200 COUNSEL FOR GEORGE DALE, Commissioner of Insurance for the State of Mississippi, in his official capacity as Receiver of FRANKLIN PROTECTIVE LIFE INSURANCE COMPANY, FAMILY GUARANTY LIFE INSURANCE COMPANY, and FIRST NATIONAL LIFE INSURANCE COMPANY OF AMERICA

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 9 of 12

DATE ANDREW B. CAMPBELL, ESQ. GRAHAM MATHERNE, ESQ. WYATT, TARRANT & COMBS, LLP 2525 WEST END AVENUE, SUITE 1500 NASHVILLE, TENNESSEE 37203- 1423 TEL. (61 5) 244-0020 COUNSEL FOR LESLIE A. NEWMAN, Commissioner of Commerce and Insurance for the State of Tennessee, in her official capacity as Receiver of FRANKLIN AMERICAN LIFE INSURANCE COMPANY

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 10 of 12

!o-/>o?
DATE LESTER, LOVING AND DAVIES' 1701 SOUTH KELLY EDMOND, OKLAHOMA 730 13 TEL. (405) 844-9900 COUNSEL FOR KIM HOLLAND, Insurance Commissioner for the State of Oklahoma, in her official capacity as Receiver of FARMERS AND RANCHERS LIFE INSURANCE COMPANY

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 11 of 12

DATE

STEVE A. U H R Y N O ~ C Z ES@./) , ARKANSAS INSURANCE DEFT LIQUIDATION DIVISION 1023 W. CAPITOL AVENUE, SUITE 2 LITTLE ROCK, ARKANSAS 77220 1- 1904

"

COUNSEL FOR JULIE BENAFIELD BOWMAN,Insurance Commissioner for the State of Arkansas, in her official capacity as Receiver of OLD SOUTHWEST LIFE INSURANCE COMPANY

Case 3:01-cv-01515-EBB

Document 72

Filed 10/15/2007

Page 12 of 12

CERTIFICATE OF SERVICE This is to certify that a copy of the within and foregoing Stipulation Between the United States and the Receiver-Claimants has been mailed, postage prepaid, this 1gthday of October, 2007, to: Douglas J. Schmidt, Esq. Terrance Summers, Esq. Blackwell Sanders Peper Martin, LLP 4801 Main Street, Suite 1000 Kansas City, MO 64 112 Douglas S. Skalka, Esq. Neubert, Pepe & Monteith 195 Church Street New Haven, CT 065 10 Graham Matherne, Esq. Wyatt Tarrant & Combs 2525 West End Avenue, Suite 1500 Nashville, Tennessee 37203 Charles G. Copeland, Esq. Copeland, Cook, Taylor & Bush, P.A. 1062 Highland Colony Parkway P.O. Box 6020 Ridgeland, Mississippi 39157 Andrew B. Campbell Wyatt, Tarrant & Combs 2525 West End Avenue, Suite 1500 Nashville, TN 37203 Susan Loving, Esq. Lester, Loving and Davies 1701 South Kelly Edmund, Oklahoma 730 13 Steve A. Uhrynowycz, Esq. Arkansas Insurance Department 1200 W. Third Street Room 340 Little Rock, AR 72201-0104 James A. Lenes, Esq. 9 Grove Street Ridgefield, CT 06877 Forrest B. Lammiman, Esq. Brian I. Hays, Esq. Randall Allan Hack, Esq. Lord Bissell & Brook 115 South Lasalle Street Suites 2600-3600 Chicago, IL 60603 David N. Rosen, Esq. 400 Orange Street New Haven, CT 065 11

A SISTANT U.S. ATTORNEY G. TLmERT

yfE