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UNITED STATES v. WEATHERLEY

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA


August 15, 1998

UNITED STATES OF AMERICA, Plaintiff,
v.
CHARLES A. WEATHERLEY, et al., Defendants.

The opinion of the court was delivered by: KATZ

MEMORANDUM AND ORDER

 Katz, J.

 August 15, 1998

 This is an action to enforce tax liens of $ 766,301.48 against Mr. Weatherly and a corporation owning his home.

 Mr. Weatherly paid for the property, has resided there since 1979 and maintains the water and electric services in his name.

 Mr. Weatherly does not file tax returns. *fn1" The liens at issue go back to 1976 to 1983. He says, "... I have no business with the Federal government and the IRS, and they have none with me." See Order of July 20, 1998 filing communications. He claims, "(y)ou lack jurisdiction as your authority does not go beyond the District of Columbia. Your orders do not apply to me." See Order of July 6, 1998 filing communication.

 Mr. Weatherly filed a bankruptcy petition which the Bankruptcy Court dismissed with prejudice. See Status Report filed June 15, 1998. This court the lifted the stay of these proceedings entered October 14, 1997.

 The government is entitled to reduce its tax liens to judgment against both defendants and to issue execution on the real estate at issue. The defendant corporation holds the property as the straw party for Mr. Weatherly, who is its true owner.

 Since the government claims that Mr. Weatherly "... has been known to threaten Internal Revenue Service employees," a copy of this Memorandum shall be forwarded by the Clerk to the United States Marshal. *fn2" An appropriate Order follows.

 ORDER

 AND NOW, this 15th day of August, 1998, upon consideration of the government's Motion for Summary Judgment, it is hereby ORDERED that said motion is GRANTED. The claim against Springfield Township is DISMISSED without prejudice.

 BY THE COURT:

 MARVIN KATZ, J.

 ATTACHMENT I

 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

 UNITED STATES OF AMERICA, Plaintiff v. CHARLES A. WEATHERLY, et al.

 Defendants.

 Civil Action No. 97-3003

 STATUS REPORT - FILED JUN 15 1998

 The United States of America, by and through its undersigned attorney, hereby submits this Status Report in accordance with the Court's Order of May 22, 1998. That Order requires the parties to advise the Court of their respective positions no later than June 22, 1998. In response to the Order, defendant Charles A. Weatherly submitted a hand-written letter dated June 8, 1998 to United States District Judge Marvin Katz, wherein Mr. Weatherly sets forth his position with respect to this litigation. A copy of that letter is attached hereto so as to comply with the Court's request for a joint submission.

 At present, this case is stayed pursuant to the Court's Order of October 14, 1998. That Order was entered after defendant Charles A. Weatherly filed a petition under Chapter 13 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The Bankruptcy Court dismissed that case (Bankruptcy No. 97-31599), with prejudice, pursuant to an Order entered on April 15, 1998. As a result of that dismissal, the United States filed a Motion to Lift Stay in this case on or about June 9, 1998. That motion is pending.

 It is the position of the United States that defendant Charles A. Weatherly owes the United States approximately $ 1,000,000.00 on account of federal income tax liabilities for the years 1976 through 1983.1a The United States further asserts that it is entitled to foreclose the federal tax liens that arose as a result of those liabilities against the real property located at 606 W. Woodland Avenue in Springfield, Pennsylvania. The United States intends to file a dispositive motion addressing these issues once the stay in this case is lifted.

 Date: June 12, 1998

 Respectfully submitted,

 MICHAEL M. BAYLSON

 United States Attorney

 By:

 ANGELO A. FRATTARELLI

 Trial Attorney, Tax Division

 U.S. Department of Justice

 P.O. Box 227

 Ben Franklin Station

 Washington, D.C. 20044

 Telephone: (202) 307-6612

 ATTACHMENT II

 Frattarelli 6114

 6/8/98

 Honorable Judge Marvin Katz:

 Room 13613

 U.S. Courthouse

 Phila, Penna. 19106

 RE: 97-3003

 Dear Sir:

 I want to point out some errors in your letter which was supposedly addressed to me.

 Number one is that I am not the individual as the name is spelled out in all capitals. My Christian name is Charles Augustus: Weatherley. Only three letters are authorized to be in capitals.

 Number two it says "United States of America." This seems to be a serious error because you have nothing to do with the "United States of America as you are just the "United States."

 I do not understand why the "United States" is trying to interfere with my life. Where is your authority to do this? Please supply me with the statute(s) and the implementing regulations that you think gives you authority to molest me.

 I am an American, a citizen of the united states of America and of the Pennsylvania State Republic and I have no business with the United States and you have none with me.

 You call me a "Defendant." What is the charge against me? Ofcourse there is none as I have broken no law, I have committed no crime, in fact I have done nothing wrong.

 I have requested documents supporting your claim against me and evidence, but as yet I have received none. Without any proof it is impossible for you to prove I owe even one dime to the IRS and you therefore cannot proceed further.

 Please dismiss this case ? with prejudice.

 You have no authority or jurisdiction at all and therefore I will not respond and I will not be a party to this unconstitutional, illegal, and criminal action.

 Sincerely

 Charles Augustuss Weatherley

 Copy to Angelo Fratarelli, trial attorney

 Dept of Justice

 Wash. D.C. 20044

 JUDGMENT AND ORDER

 Upon consideration of the Motion for Summary Judgment filed by the United States in this matter, along with the accompanying memorandum and exhibits, it is hereby determined that the motion should be GRANTED. As such,

 IT IS HEREBY ORDERED that:

 Judgment is hereby entered in favor of the United States and against Charles A. Weatherley for income taxes, penalties, and interest owed by Weatherley for the years 1976 through 1983 in the amount of $ 766,301.48, plus additional statutory interest from July 10, 1998.

 IT IS FURTHER ORDERED:

 1. That full title to the property located at 606 W. Woodland Avenue, Springfield, Pennsylvania ("the property"), which has been held by 606 West Woodland Corporation as Charles A. Weatherley's nominee and alter ego since March 30, 1979, is hereby declared to have been vested in Charles A. Weatherley, as the true and equitable owner of same, from that date to the present time.

 2. That the United States has valid and subsisting tax liens against all property and rights to property of Charles A. Weatherley.

 3. That the United States is entitled to satisfy the tax liabilities of Charles A. Weatherley the foreclosure of this judgment and its filed tax liens, as described in the complaint filed in this matter, against the real property at issue in this matter, more particularly described as follows:

 

ALL THOSE TWO CERTAIN contiguous lots or places of ground with the buildings and improvements thereon erected, SITUATE in the Township of Springfield, County of Delaware and State of Pennsylvania, described according to a certain Plan thereof made by Reeder, Magarity and Bryant, Professional Engineers, June 24, 1951, as follows, to wit:

 

BEGINNING at a point in the center line of West Woodland Avenue (50 feet wide) at the distance of 49.29 feet measured South 54 degrees 57 minutes East from a point of tangent which point of tangent is at the arc distance of 105.44 feet measured on the arc of a circle curving to the left having a radius of 1432.69 feet measured on the curve, which point of curve is at the distance of 103.85 feet measured South 50 degrees 44 minutes 30 seconds East from a point of tangent, which point on tangent is at the arc distance of 181.47 feet measured on the arc of a circle curving to the right from a point of curve, which point of curve is at the arc distance of 106.77 feet measured South 61 degrees 37 minutes 30 seconds East from the intersection of the center line of the said West Woodland Avenue and the center line of Sproul Road (70 feet wide); then from the said point of beginning continuing along the center line of West Woodland Avenue South 54 degrees 57 minutes East 120 feet to a point; then extending South 35 degrees 03 minutes West 184.02 feet to a point; thence extending South 59 degrees 20 minutes West 44.95 feet to a point; thence extending Northwestwardly 101.51 feet to a point; then extending North 35 degrees 03 minutes East 225 feet to the first mentioned point and place of beginning.

 

BEING Lots 7 and 8 on the said Plan.

 

BEING the same premises which Jesse J. Grant and Hazel R. Grant, his wife by Deed dated September 6, 1952 and recorded in Delaware County in Deed Book 1614 page 312 conveyed unto Daniel A Patrizio and Mae Patrizio, his wife, in fee.

 IT IS FURTHER ORDERED:

 1. That the United States Marshal in and for the Eastern District of Pennsylvania or his representative, be and hereby is authorized pursuant to 28 U.S.C. Sections 2001 and 2002 to offer for sale at public auction, the real property situated at 606 W. Woodland Avenue, Springfield, Pennsylvania 19064, more particularly described in paragraph 3 above.

 2. That the said real property be sold by public auction at a time and place situated in Delaware County, Pennsylvania, either on the premises themselves or at any other place in accordance with the provisions of 28 U.S.C. Sections 2001 and 2002, to be announced by the United States Marshal after first being advertised once each week for four (4) consecutive weeks preceding the time fixed for such sale in a daily newspaper of general circulation in Delaware County, Pennsylvania and by any other notice that the United States Marshal or his representatives in his discretion may deem appropriate. The notice of sale shall contain a description of the realty and shall contain the terms and conditions of sale in this judgment and decree.

 3. That said real property shall be sold to the highest bidder subject to unpaid ad valorem property taxes with plaintiff having the right to withdraw the property from bidding at any time prior to the acceptance of a bid, if in plaintiff's opinion, the bids are inadequate.

 4. The sale shall be subject to building lines if established, all laws, ordinances, and governmental regulations (including building and zoning ordinances), affecting the premises, and easements and restrictions of record, if any.

 5. That said real property shall be sold free and clear of the federal tax liens identified below in paragraph 13.

 6. That no bids (except as to the United States) shall be accepted unless the same is accompanied by a certified check or a cash deposit of at least ten percent (10%) of the amount of the bid. Before being permitted to bid at the sale, bidders shall display to the United States Marshal, or his representative, proof that they are able to comply with this requirement. No bids will be received from any person who has not presented proof that, if they are the successful bidder, they can make the deposit required by this order.

 7. That the balance of the purchase price shall be paid to the United States Marshal within sixty (60) days after the date the bid is accepted by a certified or cashier's check payable to the United States Marshal for the Eastern District of Pennsylvania. If the bidder fails to fulfill this requirement, the deposit shall be forfeited and shall be applied to cover the expenses of the sale, with any amount remaining to be returned to the bidder, and the realty shall be again offered for sale under the terms and conditions of the judgment and decree.

 8. The sale of the realty shall be subject to confirmation by this Court. On confirmation of the sale, the United States Marshal shall execute and deliver a deed of judicial sale conveying the realty to the purchaser. On confirmation of the sale, all interests in, liens against, or claims to, the realty that are held or asserted by plaintiff, any of the defendants in this action, or any other party, are discharged and extinguished.

 9. No later than twenty (20) days after receipt of the balance of the purchase price, the United States Marshal shall file a report of sale with the court, together with a proposed order of confirmation of sale and a proposed deed.

 10. The Prothonotary of Delaware County, Pennsylvania, shall proceed to recording of the deed in favor of the purchaser(s).

 11. Pending the sale of the above-described real property as ordered herein, and for the purposes of preserving the said property and placing it in a proper condition for sale, the United States Marshal is authorized to take possession and custody of the real property, to have free access to the premises and to take all action necessary to preserve said property between the date of this order and date of confirmation of sale by this court.

 12. Until the realty is sold, Charles A. Weatherley may remain on the premises and shall take all reasonable steps necessary to preserve the realty (including all buildings, improvements, fixtures and appurtenances on the realty) in its current condition including, without limitation, maintaining fire and casualty insurance on the realty. Charles A. Weatherley shall not commit waste against the realty, nor shall they cause or permit anyone else to do so. They shall not do anything that tends to reduce the value or marketability of the realty, nor shall they cause or permit anyone else to do so. They shall take no action which may tend to deter or discourage potential bidders from participating in the public auction.

 13. The proceeds from the sale of the above-described real property shall be distributed in the following order:

 A. The expenses of the sale;

 B. The federal tax liens of the United States described in its complaint.

 14. No later than twenty days after distributing the Proceeds, if any, the United States Marshal shall file a final report of distribution with the Court after which the Court shall close the case.

 DATED: 8/15/98

 Marvin Katz

 United States District Judge


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