780 F.Supp. 705 (D.Hawai'I 1992), Civ. 91-00068, United States v. Vellalos

Docket Nº:Civ. 91-00068
Citation:780 F.Supp. 705
Party Name:United States v. Vellalos
Case Date:January 10, 1992
Court:United States District Courts, 9th Circuit
 
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Page 705

780 F.Supp. 705 (D.Hawai'I 1992)

UNITED STATES of America, Plaintiff,

v.

Gloria VELLALOS, Matio Vellalos, Vernon Raymond Vellalos, Countrywide Funding Corp., McCabe Paving Co., Defendants.

COUNTRYWIDE FUNDING CORP., Third Party Plaintiff,

v.

AKAMAI ELECTRICAL SERVICES, INC., Third Party Defendant.

Civ. No. 91-00068 HMF.

United States District Court, D. Hawai'i.

Jan. 10, 1992

Daniel Bent, Michael Chun, Thomas Moore, Trial Atty., Tax Div., U.S. Dept. of Justice, Washington, D.C., for U.S.

Page 706

Cades Schutte Fleming & Wright, Edward Delappe Boyle, Ernest H. Nomura, Honolulu, Hawaii, for Countrywide Funding Corp.

Gerson Grekin & Wynhoff, William J. Wynhoff, Honolulu, Hawaii, for Gloria and Matio Vellalos.

Hall & Crumpton, David W. Hall, Honolulu, Hawaii, for Vernon Raymond Vellalos.

Torkildson Katz Jossem Fonseca, Jaffe & Moore, Ronald I. Heller, Honolulu, Hawaii, for Akamai Elec. Services, Inc.

ORDER GRANTING DEFENDANT VERNON RAYMOND VELLALOS' MOTION TO DISMISS CLAIM BASED ON HAWAII UNIFORM FRAUDULENT TRANSFER ACT

FONG, District Judge.

INTRODUCTION

On Monday, December 2, 1991, the court held a hearing on a motion to dismiss filed by defendant Vernon Raymond Vellalos ("Vernon") on October 17, 1991. Third party defendant Akamai Electrical Services, Inc. filed a joinder in this motion on November 6, 1991. On November 13, 1991, plaintiff United States of America filed a memorandum in opposition. Defendants Gloria and Matio Vellalos filed a statement of no opposition to Vernon's motion to dismiss on November 27, 1991.

BACKGROUND

This case is a civil action brought by the United States to reduce to judgment outstanding federal tax assessments made against defendants Gloria Vellalos and Matio Vellalos and to foreclose the federal tax liens on one parcel of real property. These taxes and penalties were assessed on June 26, 1986 for taxes which should have been paid during the years 1982 through 1985. The amounts are as follows:

1982 $ 220,139.11
1983 197,385.43
1984 71,174.87
1985 289,469.64

Defendants Gloria and Matio have not paid these assessments. Pursuant to 26 U.S.C. § 6321, tax liens arose in favor of the United States against all property and rights to property of Gloria and Matio as of the assessment date of June 26, 1986. A notice of tax lien was filed with the Bureau of Conveyances, Registrar, State of Hawaii ("Registrar") on June 26, 1986. On September 26, 1989, a notice of tax lien was filed against Gloria and Matio, and on January 19, 1990, the IRS filed a notice of federal tax lien relative to each assessment against Gloria and Matio in which it designated Vernon as the nominee and/or agent of Gloria and Matio. Vernon is the son of Gloria and Matio. By deed dated February 26, 1986, and recorded March 20, 1986 (before the government filed notice of the assessments), defendant Vernon acquired record title to certain real property in Honolulu, Hawaii (the "Mililani property"). The government now seeks to foreclose on this property, notwithstanding that it is held in Vernon's name. In support of foreclosure, the government first contends that Vernon was the nominee or agent of Gloria and Matio when the Mililani property was...

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