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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

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UNITED STATES OF AMERICA, !

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I~USDS SDNY DOCUMENT ELECTRONICALLY $LED

DOC#: i

DATE FILED: 4 J~/IID

I STIPULATION AND ORDER i OF INTERLOCUTORY SALE! (Additional Vehicles)

FRANK DIPASCALI JR,

09 Cr. 764 (RJS)

Defendant.

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WHEREAS, the Information filed in the above-captioned case, to which the defendant has pleaded guilty, seeks imposition of a criminal forfeiture money judgment in the amount of $170.25 billion and forfeiture of the defendant's interest in all property, real and personal~ constituting or derived from proceeds traceable to the commission of the conspiracy, sec~rities

! fraud, mail fraud and wire fraud offenses, and all property involved in the money laundering

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offense, as charged in the Information, and all property traceable to such property; I

WHEREAS, all right, title and interest of the defendant in the following property ~s

subject to forfeiture as property constituting or derived from proceeds traceable to the I

commission of the conspiracy, securities fraud, mail fraud and wire fraud offenses, and/o as

property involved in the money laundering offense, as charged in the Information, and pr perty

traceable to such property: I

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A. One 2007 Dodge Ram 1500 pickup truck, VIN ID7HUI8237J612~98,

New Jersey registration number VXF 95U; I

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B. One 2004 Nissan Pathfinder LE Platinum Edition, I VIN JN8DR09Y34W915819;

C. One 2006 Load Rite Trailer (for jetski), Model No. WVI003W, VIN 5A4JVSJ1462019837;

D. One white 2005 Yamaha Raptor 350 four-wheel ATV, Series YFM350RTW, VIN JY4AH12Y95C012304;

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E. One white 2005 Yamaha Raptor 660 four-wheel ATV, Series YFM660RTW, VIN N4AMOIY15C071791;

F. One 2001 blue Yamaha IT -R 125 off-road motorcycle, Series E809E-012618, VIN JYACEOY314017442;

G. One 2008 Honda CRF250R8 motocross off-road motorcycle, VIN JH2ME 1 0398M400640;

H. One Go-Ped motorized scooter, Serial No. BF-28851;

I. One Red Lil Indian mini bike, Model No. HH60;

J. One Razor Punk 360 mini bike, Serial No. K02IO00119; and

K. One Ariens Snow Blower, Model No.1 128, Serial No. 018395,

together with all their appurtenances, improvements, and fixtures (including electronics and

navigation equipment, accessories and supplies) (hereinafter referred to collectively as the

"Subject Property");

WHEREAS, FRANK DIPASCALI, the defendant (the defendant or "DIPASCALI"),

and/or Joanne T. DiPascali, his wife, are the owners of the Subject Property;

WHEREAS, the Subject Property is subject to depreciation and damage and the cost of

maintaining the Subject Property until entry of a final order of forfeiture will diminish the value

of the property available for forfeiture;

WHEREAS, the Office of the United States Attorney for the Southern District of New

York (the "Office"), FRANK DIPASCALI and Joanne T. DiPascali agree that the Subject

Property should be surrendered to the United States Marshals Service ("USMS") and sold to

preserve its value pending entry of Preliminary and Final Orders of Forfeiture in the above-

captioned case;

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WHEREAS, in the event the United States obtains a final order of forfeiture as to the Subject Property, the Department of Justice will authorize the distribution of the net sale proceeds to the victims of the fraud charged in the instant case and in United States v. Bernard L. Madoff, 09 Cr. 213 (DC), and United States v. Frank Dil'ascali Jr., 09 Cr. 764 (RJS), consistent with applicable Department of Justice regulations, pursuant to 21 U .S.C. § 853(i)( I) and 28 C.F.R. Part 9;

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and between the United States of America, by and through its attorney, Preet Bharara, United States Attorney for the Southern District of New York, Barbara A. Ward and Matthew L. Schwartz, Assistant United States Attorneys, of counsel; FRANK DIPASCALI JR., the defendant, and Joanne T. DiPascali, by and through their attorneys, Bracewell & Giuliani LLP, Marc L. Mukasey, Esq., of counsel, as follows:

I. The Subject Property will be sold by the United States Marshals Service

("USMS") in a commercially feasible manner.

2. The purchase price of the Subject Property will be a cash price.

3. Pending a sale of the Subject Property, the USMS, in its sole discretion, may maintain or renew existing insurance policies that the USMS, in its sole discretion, determines to be necessary to preserve the value of the Subject Property.

4. To facilitate the expeditious disposition of the Subject Property, the USMS, in its

sole discretion, may solicit from among a limited number of vendors services needed to assist in the disposal of the Subject Property.

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5. The Government, in its sole discretion, may reject any offer to purchase the

Subject Property where it determines that the offer is being made by, or on behalf of, a person involved in the criminal offenses underlying the forfeiture or who contributed to or benefitted from the offenses underlying the forfeiture.

6. The net proceeds of the sale of the Subject Property (the "Net Sale Proceeds")

will consist of the sale price, after payment of any outstanding taxes, valid prior liens, commissions, insurance costs, escrow fees, document recording fees not paid by the buyer, title fees, and transfer fees, and expenses incurred by the USMS, its agent, or its designee in connection with its custody and sale of the Subject Property.

7. The Net Sale Proceeds shall be paid to the "United States Marshals Service,"

deposited in the USMS's Seized Assets Deposit Account, and serve as a substitute res for the Subject Property (the "Substitute Res") in the above-captioned action and in any other action brought by the Office for forfeiture of the Subject Property. All claims and defenses applicable to the Subject Property will apply to the Substitute Res.

8. Notwithstanding the provisions of paragraph 7 of this Stipulation and Order, the

defendant and Joanne T. DiPascali knowingly and voluntarily waive the requirements of 18 U.S.C. § 983(a) concerning notice and the time frames for the commencement of a forfeiture action with respect to the Subject Property or the Substitute Res, and will not argue in any proceeding that the Government is required to take additional steps to maintain custody of the Subject Property or the Substitute Res.

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9. FRANK DIPASCALI and Joanne T. DiPascali each agree to take all necessary

steps to effect the interlocutory sale of the Subject Property, including the execution of documents necessary to convey clear title to the property.

10. FRANK DIPASCALI and Joanne T. DiPascali each agree to notify the Office

promptly if either of them learns of any condition that might affect the sale of the Subject Property, and to join in any motion by the United States to effect the sale of the Subject Property.

11. FRANK DIPASCALI and Joanne T. DiPascali are each hereby barred from

asserting any claim against the United States or any of its agents and employees, including the USMS, the Federal Bureau of Investigation and the Office, in connection with, or arising out of, the United States' seizure, custody and interlocutory sale of the Subject Property.

12. The undersigned individuals represent and warrant that they are authorized to

execute this Stipulation and Order. The undersigned United States signatories represent that they are signing this Stipulation and Order in their official capacities and that they are authorized to execute this Stipulation and Order.

13. The undersigned individuals further represent that each of them has obtained all

consents, approvals or other acts of any kind required to be obtained or done in order to enable it lawfully to enter into this Stipulation.

14. The signature pages of this Stipulation and Order may be executed in one or more

counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.

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15. This Stipulation and Order constitutes the complete agreement between the Office

and FRANK DIPASCALI and Joanne T. DiPascali with respect to the Subject Property and may

not be amended except by written consent of the same.

16. The Court retains jurisdiction in this matter to take additional action and enter

further orders as necessary to implement and enforce this Stipulation and Order.

17. The Clerk of the Court shall forward four certified copies of this Stipulation and

Order to the United States Marshals Service, Southern District of New York; and to Assistant

U.S. Attorney Barbara A. Ward, One St. Andrews Plaza, New York, New York, 10007.

Dated: New York, New York April _k_, 2010

Consented and agreed to:

PREET BHARARA United States Attorney

By: ~d

arbara A. ward

Matthew L. Schwartz

Assistant United States Attorneys One St. Andrew's Plaza

New York, New York 10007

Tel. (212) 637-1048 11945

BRACEWELL & GIULIANI, LLP Counsel for Frank DiPascali Jr. and Joanne T. DiPascali

~~c:::...._..-.:::=:=--

By:

Marc L. Mukasey, Esq.

Craig S. Warkol, Esq. c,.....-'" 1177 Avenue of the Americas New York, NY 10036-2714 Tel. (212) 508-6104/6150

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Having reviewed the foregoing Stipulation of Interlocutory Sale, and good cause appearing,

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that:

The Stipulation is So Ordered.

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