United States District Court, W.D. North Carolina, Asheville Division
DEFAULT JUDGMENT OF FORFEITURE
Reidinger United States District Judge.
MATTER is before the Court on the Government's
Motion for Default Judgment of Forfeiture pursuant to
Fed.R.Civ.P. 55(b)(2). [Doc. 86].
Government requests that the Court enter a Default Judgment
of Forfeiture as to all persons and entities in the world,
excluding Zeta Capital Limited, with respect to the Defendant
Properties named in the Complaint.
November 4, 2016, the Government filed a verified Complaint
for Forfeiture In Rem [Doc. 1] against numerous
assets (“the Defendant Properties”)
seized in the Western District of North Carolina pursuant to
a federal Search and Seizure Warrant executed on or around
July 29, 2016. As set forth in detail in the Complaint and
other materials placed on the docket during summary judgment
proceedings in this case, the Properties constitute items
involved in one or more violations of 26 U.S.C. § 5861
and are therefore subject to forfeiture pursuant to 26 U.S.C.
§ 5872 of the National Firearms Act. The Clerk issued a
Warrant of Arrest In Rem on November 7, 2016. [Doc.
Government thereafter provided direct notice of this action
to all know potential claimants, as specified in the
Government's Motion for Default Judgment of Forfeiture.
[Doc. 86]. Additionally, the Government provided notice by
publication as to all persons with potential claims to the
Defendant Property by publishing notice via
www.forfeiture.gov from December 7, 2016 through January 15,
2017, as shown in the Declaration of Publication. [Doc. 22].
result, Zeta Capital Limited (“Zeta”), Sabre
Defence Industries, Inc. (“Sabre'), and Manroy USA,
LLC (“Manroy”) submitted claims and answers as to
the Defendant Properties.
Sabre and Manroy submitted pro se claims and
answers. [Docs. 7, 8]. On January 6, 2017, the Court struck
the pro se claims and answers submitted by Sabre and
Manroy, ruling that a corporation may not appear in federal
court pro se, and instead must appear through
licensed counsel. The Court gave the pro se
claimants ten days to obtain counsel and, when they failed to
do so, the Court issued an Order [Doc. 27] directing the
Clerk to remove Manroy and Sabre as claimants, and to proceed
with Zeta as the sole claimant. Then, the Government and Zeta
entered into a proposed Consent Order that the Court issued
[Doc. 73] settling Zeta's Claim [Doc. 5].
time for filing claims has now expired, and the Clerk of
Court has issued an Entry of Default. [Doc. 85].
than Sabre and Manroy, whose claims have been stricken, and
Zeta, whose Claim is settled, no other persons or entities
have filed a claim or answer within the time required by the
Complaint, the public notice, or the Supplemental Rules for
Certain Admiralty and Maritime claims. On June 11, 2019, the
Clerk entered Default as to all persons and entities in the
world, excluding Zeta Capital Limited. [Doc. 85]. Under such
circumstances, Rule 55(b)(2) provides for the entry of a
default judgment of forfeiture by the Court.
reviewed the Government's motion, the Court concludes
that the entry of a default judgment of forfeiture is
IT IS, THEREFORE, ORDERED, ADJUDGED, AND
DECREED that The Government's Motion for Default
Judgment of Forfeiture [Doc. 86] is GRANTED,
and judgment is entered in favor of the United States against
all persons and entities in the world, excluding Zeta Capital
Limited, with respect to the Defendant Properties.
IS FURTHER ORDERED, ADJUDGED, AND DECREED that any
right, title, and interest of all persons and entities in the
world, excluding Zeta Capital Limited, to the Defendant
Properties is FORFEITED to the United
States, subject to the stipulations and agreements in the
Consent Order for Third Party Claims [Doc. 73]. The United
States Marshal, or designated custodian, is respectfully
directed to dispose of the Defendant Properties as provided