Free Motion to Alter Judgment - District Court of California - California

Case 3:07-cv-02187-IEG-NLS

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KAREN P. HEWITT United States Attorney JOHN R. MONROE IA Bar No. 0008881 Trial Attorney, Tax Division U.S. Department of Justice P.O. Box 7238 Washington, DC 20044 Telephone: 202-307-0638 Facsimile: 202-514-6770 [email protected] IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) ) ROOSEVELT KYLE, individually or ) d/b/a CENTURY ONE RESORTS, LTD ) or CENTURY ONE ASSOCIATES; ) REBECCA TYREE a/k/a/ RUBEE TYREE ) or RUBY TYREE; ) COA FINANCIAL GROUP, LLC d/b/a COA ) FINANCIAL NETWORK TRUST c/o T&N ) FASHION; ) and ) EAGLE FINANCIAL SERVICES, LLC ) ) Defendants. ) _______________________________________ ) ) ROOSEVELT KYLE, ) ) Third-Party Plaintiff, ) ) v. ) ) JOHN R. MONROE; ) DOES 1 THROUGH 1000, ) ) Third-Party Defendants. )

Case No. 07-cv-2187-IEG-NLS MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF UNITED STATES' MOTION TO ALTER OR AMENT JUDGMENT AGAINST ROOSEVELT KYLE

On July 11, 2008, this Court granted the United States' motion for default judgment as a sanction against Roosevelt Kyle. (Order, Doc. No. 42). The United States' moves to alter or amend the Court's Order (Doc. No. 42) to make the terms of the permanent injunction (as Case No. 07-cv-2187
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outlined in the United States' complaint and this Court's preliminary injunction) clear to Kyle. Federal Rule of Civil Procedure 65(d) requires that an injunction "state its terms specifically" and "describe in reasonable detail the act or acts restrained or required." Fed. R. Civ. P. 65(d)(1)(B) and (C). The language of injunctions, therefore, must be "reasonably clear so that ordinary persons will know precisely what action is proscribed."1 The policy behind the rule is "to prevent uncertainty and confusion on the part of those faced with injunctive orders, and to avoid the possible founding of a contempt citation too vague to be understood."2 Injunctions must also be specific about what is prohibited or restrained because "all ambiguities are resolved in favor of the person subject to the injunction."3 For the reasons set forth above, this Court's Order Granting Plaintiff's Motion for Default Judgment against Roosevelt Kyle (Doc. No. 42) should be amended to explicitly prohibit Kyle, both individually and doing business as Century One Resorts, Ltd. or Century One Associates: A. From acting as an income tax return preparer and from preparing or filing federal tax returns for others, and from representing others before the IRS; B. From directly or indirectly: (1) Preparing or filing, or assisting in, or directing the preparation or filing of any federal tax return or amended return or other related documents or forms for any other person or entity; (2) (3) Engaging in any activity subject to penalty under I.R.C. §§ 6694 or 6695; Engaging in other conduct that substantially interferes with the proper administration and enforcement of the internal revenue laws; (4) (5) Engaging in any other activity subject to penalty under the I.R.C.; and Representing persons before the Internal Revenue Service.

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United States v. Holtzman, 762 F.2d 720, 726 (9th Cir. 1985). Schmidt v. Lessard, 414 U.S. 473, 476 (1974). United States v. Holtzman, 762 F.2d at 726. 2 Case No. 07-cv-2187
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C. Order Roosevelt Kyle to contact all persons from whom he prepared or assisted in preparing a federal income tax return after January 1, 2004, and inform those persons of the entry of the Court's findings, the possibility of the imposition of penalties against him, the possibility that the United States may seek to assess and collect any federal income taxes, interest, and penalties against customers that customers may owe, and the entry of a permanent injunction against Roosevelt Kyle; D. Order Roosevelt Kyle to serve upon the government a complete list of persons (including names, address, phone numbers, and social security numbers) for whom he prepared or assisted in the preparation of a federal income tax return after January 1, 2004; and E. Order that the United States is permitted to engage in post-judgment discovery to ensure compliance with the permanent injunction. A proposed order reflecting the proposed changes will be submitted to the Court in according with ECF Administrative Policies and Procedures § 2.h.

Respectfully submitted this 18th day of July 2008.

Respectfully submitted, KAREN P. HEWITT United States Attorney /s/ John Monroe JOHN R. MONROE IA Bar No. 0008881 Trial Attorney, Tax Division U.S. Department of Justice P.O. Box 7238 Washington, D.C. 20044 Telephone: 202-307-0638 Fax: 202-514-6770 E-mail: [email protected] Attorneys for Plaintiff

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Certificate of Service I hereby certify that on July 18, 2008, service of the foregoing Memorandum of Points

3 and Authorities in Support of United States' Motion to Alter or Amend Judgment Against 4 Roosevelt Kyle, was made by way of the Court's ECF filing system on the following: 5 6 7 I hereby certify that on July 18, 2008, I served the foregoing Memorandum of Points and 8 Authorities in Support of United States' Motion to Alter or Amend Judgment Against Roosevelt 9 Kyle, by first class mail postage prepaid to each entity or person named below at the address 10 stated below for each entity or person: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 Case No. 07-cv-2187
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Stephen Feldman Attorney for Defendant Rebecca Tyree

Roosevelt Kyle P.O. Box 1503 National City, CA 91951 Eagle Financial Services, LLC c/o Roosevelt Kyle, Registered Agent P.O. Box 1503 National City, CA 91951 COA Financial Group, LLC c/o Roosevelt Kyle, Registered Agent P.O. Box 1503 National City, CA 91951 /s/ John Monroe U.S. Department of Justice - Tax Division Trial Attorney, Tax Division U.S. Department of Justice Post Office Box 7238 Ben Franklin Station Washington, D.C. 20044 Telephone: (202) 307-0638 Facsimile: (202) 514-6770 E-mail: [email protected]