Free Motion for Forfeiture of Property - District Court of Connecticut - Connecticut

Case 3:00-cv-01910-EBB

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UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT UNITED STATES OF AMERICA, Plaintiff, v.
$ 140,000.00 IN UNITED STATES CURRENCY SEIZED FROM ACCOUNT : NUMBER 1215701749, HELD IN THE : NAME OF ARTHUR F. GRANT, AT BANK OF AMERICA, ROLLING HILLS, CALIFORNIA,

Civil No. 3:00CV1910 (EBB)

October 9, 2007

Defendant. 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, 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) 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 International Financial Services Life Insurance Company; (3) Leslie A. Newman, Conlmissioner of Commerce and Insurance for the State of 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.

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1. The RECEIVER-CLAIMANTS agree to the forfeiture of the defendant, $140,000 in United States currency seized from account number 1215701749, held in the name of Arthur F. Grant, at Bank of America, Rolling Hills, California ("Defendant Currency"), to be disposed of according to the agreement of the parties. 2. Pursuant to the RECEIVER-CLAIMANTS' Petition 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 Defendant Currency, less costs, as follows:

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%

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 assets seized by the Internal Revenue Service Criminal Investigation. The UNITED STATES agrees it will not to delay disbursement of the RECEIVER-CLAIMANTS' pro rata shares of the assets subject to forfeiture held by Internal Revenue Service Criminal Investigation,. notwithstanding any opposition by the Internal

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Revenue Service Criminal Investigation to entry of an Order directing payment of the accrued interest. Notwithstanding the provisions of Paragraph Four 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 RECEIVERCLAIMANTS' separate motion.
4.

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 Three herein, for purposes of enforcing the terms of this Stipulation andlor ruling on the above-described motion until the time such assets are distributed. 5. Subject to the Court entering a Decree of Forfeiture and their receipt of the net

proceeds and interest thereon in accordance with Paragraph Two of this Stipulation (and any order entered pursuant to Paragraph Three 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 Three and Four above. The RECEIVER-CLAIMANTS further consent to the entry of a Decree of

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Forfeiture with respect to the above-described assets filed hereafter, to effectuate the terms of this Stipulation.
6.

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

Paragraph Three and Four, the RECEIVER-CLAIMANTS hereby release and forever discharge the United States of America, and the Internal Revenue Service Criminal Investigation, 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, and/or 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 Internal Revenue Service Criminal Investigation of the abovedescribed assets. 7. 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.

8.

The LTNITED STATES and the RECEIVER-CLAIMANTS agree to bear their own

attorneys' fees, and to execute and/or consent to, any additional documents necessary to implement the terms of this stipulation.
9.

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

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the funds to the RECEIVER-CLAIMANTS in accordance with Paragraphs Two and Three herein, after which such dismissal shall be with prejudice.

PLAINTIFF, UNITED STATES OF AMERICA KEVIN J. O'CONNOR UNITED STATES ATTORNEY

DATE

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

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DATE

DOUGLAS J. SCHMIB"~;ES( TERRANCE M. SUMMERS, ESQ. BLACKWELL SANDERS PEPER MARTIN, LLP 4801 MAIN STREET, SUITE 1000 KANSAS CITY, MISSOURI 641 12 TEL. (8 16) 983-8000

DATE

DOUGLAS S. SKALKA, ESQ. NEUBERT, PEPE & MONTEITH, P.C. 195 CHURCH STREET, 13THFLOOR NEW HAVEN, CT 065 10-2026 TEL. (203) 82 1-2000 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 FINANCIAL SERVICES LIFE INSURANCE COMPANY

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DATE

DOUGLAS J. SCHMIDT, ESQ. TERRANCE M. SUMMERS, ESQ. BLACKWELL SANDERS PEPER MARTIN, LLP 4801 MAIN STREET, SUITE 1000 KANSAS CITY, MISSOURI 641 12 TEL. (816) 983-8000

DATE
& MONTEITH, P.C.

13TH FLOOR 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 FINANCIAL SERVICES LIFE INSURANCE COMPANY

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DATE 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 INSLIRANCE COMPANY, and FIRST NATIONAL LIFE INSURANCE COMPAIW OF AMERICA

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DATE

WILLIAM WARREN GIBSON, ESQ. ANDREW B. CAMPBELL, ESQ. GRAHAM MATHERNE, ESQ. WYATT, TARRANT & COMBS, LLP 2525 WEST END AVENUE, SUITE 1500 NASHVILLE, TENNESSEE 37203- 1423 TEL. (6 15) 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

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DATE

-

07
G AND DAVIES
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

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STEVE A. U H R Y N O W ~ , LIQUIDATION DIVISI N 1023 W. CAPITOL AVENUE, SUITE 2 LITTLE ROCK, ARKANSAS 72201

~~8.0

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

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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, on this 9thday of October, 2007, to:

J. Stanley Sanders, Esq. 20 15 Wellington Road Los Angeles, CA 90016-1 824
Susan B. Loving, Esq. Lester, Loving & Davies 1701 South Kelly Edmond, Oklahoma 73013-3018 Douglas J. Schmidt, Esq. Terrance Summers, Esq. Blackwell Sanders Peper Martin 4801 Main Street, Suite 1000 Kansas City, Missouri 64 112 Andrew B. Campbell, Esq. Wyatt, Tarrant & Combs 2525 West End Avenue, Suite 1500 Nashville, Tennessee 37203

Douglas S. Skalka, Esq. Neubert, Pepe & Monteith 195 Church Street, 13th Floor New Haven, Connecticut 065 10 Charles G. Copeland, Esq. Janet G. Arnold, Esq. Copeland, Cook, Taylor & Bush 1062 Highland Colony Parkway P.O. Box 6020 Ridgeland, Mississippi 39157 Steve A. Uhrynowycz, Esq. 1200 West Third Street, Room 340 Little Rock, Arkansas 7220 1-1904