Free Settlement Agreement - District Court of Connecticut - Connecticut

Case 3:01-cv-01881-JBA

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UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

UNITED STATES OF AMERICA, Plaintiff, v.

: : : : CIVIL NO. 3:01CV1881(JBA)

LORNA SMITH a/k/a LORNA WOOLCOCK a/k/a PATRICIA SMITH, d/b/a MATHER'S : DELI, : Defendant. SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release ("Agreement") is entered into by and between the United States of America, acting through its Department of Justice, and on behalf of the Office of Inspector General of the United States Department of Agriculture, and Lorna Smith, a/k/a Lorna Woolcock, a/k/a Patricia Smith, d/b/a Mather's Deli (hereinafter "Lorna Smith" or the "Defendant"). The United States and Lorna Smith are hereinafter jointly referred to as "the Parties." I. Preamble

As a preamble to this Agreement, the Parties agree to the following: A. B. Lorna Smith is a resident of Hartford, Connecticut. The United States contends that Lorna Smith engaged in federal Food Stamp benefits

trafficking in violation of the Food Stamp Act of 1977, 7 U.S.C. §§ 2011-2029, as amended, at Mather's Deli, 206 ½ Mather Street, Hartford, Connecticut, a retail food store owned by the Defendant. -1-

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C.

The United States contends that it has civil claims against Lorna Smith under the

False Claims Act, 31 U.S.C. §§ 3729 to 3733, other federal statutes and/or common law, for engaging in the conduct described in the preceding paragraph during the period from December 2000 to June 2001, during which time the Defendant was authorized to participate in the federal Food Stamp program as the owner of Mather's Deli. D. Lorna Smith admits the contentions of the United States as set forth above in Section

I, Paragraphs A, B, and C. E. In order to avoid the delay, uncertainty, inconvenience, and expense of protracted

litigation of these claims, the Parties reach a full and final settlement as set forth below. II. Terms and Conditions

Now, therefore, in consideration of the mutual promises, covenants, and obligations set forth below, and for good and valuable consideration as stated herein, the Parties agree as follows: A. Lorna Smith agrees to pay the United States Twenty Thousand Dollars ($20,000.00)

in full settlement of this matter. This sum is the "Settlement Amount." Lorna Smith agrees to pay the Settlement Amount pursuant to the following schedule: a. The sum of $10,000.00 will be paid by certified check or money order made

payable to the "United States Department of Justice" by January 10, 2005. The certified check or money order shall be mailed or delivered to the United States Attorney's Office, 157 Church Street (23rd Floor), New Haven, CT 06510 (Attention: Financial Litigation Unit); and b. The remaining $10,000.00 will be paid by certified checks or money orders

made payable to the "United States Department of Justice" in ten (10) installments as follows:

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Installment Amount $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00

Due Date February 28, 2005 March 31, 2005 April 30, 2005 May 31, 2005 June 30, 2005 July 31, 2005 August 31, 2005 September 30, 2005 October 31, 2005 November 30, 2005

The certified checks or money orders shall be mailed or delivered to the United States Attorney's Office, 157 Church Street (23rd Floor), New Haven, CT 06510 (Attention: Financial Litigation Unit). 2. If the initial payment of $10,000.00 is not paid within five (5) business days of

January 10, 2005, then the Defendant will be deemed to be in default, and the sum of $20,000.00 will immediately become due and payable upon demand. Likewise, if any of the installment payments is not made within ten (10) days of the date on which it is due, then the Defendant will be deemed to be in default, and any balance outstanding will immediately become due and payable upon demand. III. A. Commitments and Releases Upon receipt in full of the amount described above in Section II, the United States

will be deemed to have released Lorna Smith from any and all civil or administrative monetary -3-

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claims that the United States has under the False Claims Act, and other federal statutes and/or common law for the conduct described above in Section I, Paragraphs B and C. B. The United States does not release Lorna Smith from (1) any criminal liability which

may arise from the conduct described in Section I, Paragraphs B and C; (2) any criminal, civil, or administrative claims arising under Title 26, United States Code (Internal Revenue Code); and (3) any claims based upon such obligations as are created by this Agreement. C. Lorna Smith, for herself, her heirs, and her assigns, releases and is deemed to have

released and forever discharged the United States, its agencies, departments, officials, and employees, from any claims arising from or relating to the conduct described above in Section I, Paragraphs B and C. IV. A. General Terms This Agreement is intended to be for the benefit of the Parties to this Agreement only,

and by this instrument the Parties do not release any claims against any other person or entity. B. The Parties believe that the amount and terms of the settlement reached by the United

States and Lorna Smith are fair, adequate, and reasonable under all of the circumstances. C. D. This Agreement shall be binding upon the Parties, their successors, assigns, and heirs. Nothing in this paragraph or any other provision of this Agreement constitutes an

agreement by the United States concerning the characterization of the Settlement Amount for purposes of the Internal Revenue Laws, Title 26 of the United States Code. E. The undersigned signatories represent and warrant that they are fully authorized and

empowered to execute this Agreement. F. Each Party to the Agreement will bear its own legal and other costs incurred in -4-

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connection with this matter, including the preparation and performance of this Agreement. G. The Parties represent that this Agreement is freely and voluntarily entered into

without any degree of duress or compulsion whatsoever. H. This Agreement is governed by the laws of the United States. The parties agree that

the exclusive jurisdiction and venue for any dispute arising between and among the Parties under this Agreement will be the United States District Court for the District of Connecticut. I. This Agreement shall become final and binding only upon signing by each respective

party hereto, and it may not be changed or modified except in writing signed by the Parties. J. The Parties hereby agree to the disclosure of this Agreement.

DEFENDANT LORNA SMITH ___________________________________________ Lorna Smith (Appearing Pro Se) Date: ___________________________

PLAINTIFF UNITED STATES OF AMERICA ____________________________________ William A. Collier, AUSA United States Attorney's Office District of Connecticut Date: _________________________

SO ORDERED in New Haven, Connecticut, on this _____ day of ____________, 2005.

____________________________________ HONORABLE JANET BOND ARTERTON UNITED STATES DISTRICT JUDGE

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