United States v. All Assets Held in Account Number 80020796, in the Name of Doraville Properties Corporation, at Deutsche Bank International, Limited in Jersey, Channel Islands, and All Interest, Benefits or Assets Tr

CourtDistrict Court, District of Columbia
DecidedJanuary 3, 2019
DocketCivil Action No. 2013-1832
StatusPublished

This text of United States v. All Assets Held in Account Number 80020796, in the Name of Doraville Properties Corporation, at Deutsche Bank International, Limited in Jersey, Channel Islands, and All Interest, Benefits or Assets Tr (United States v. All Assets Held in Account Number 80020796, in the Name of Doraville Properties Corporation, at Deutsche Bank International, Limited in Jersey, Channel Islands, and All Interest, Benefits or Assets Tr) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States v. All Assets Held in Account Number 80020796, in the Name of Doraville Properties Corporation, at Deutsche Bank International, Limited in Jersey, Channel Islands, and All Interest, Benefits or Assets Tr, (D.D.C. 2019).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA,

Plaintiff,

v. Civil Action No. 13-1832 (JDB) ALL ASSETS HELD IN ACCOUNT NUMBER 80020796, IN THE NAME OF DORAVILLE PROPERTIES CORP., AT DEUTSCHE BANK INTERNATIONAL, LTD. IN JERSEY, CHANNEL ISLANDS, AND ALL INTEREST, BENEFITS OR ASSETS TRACEABLE THERETO, et al.,

Defendants.

MEMORANDUM OPINION

After years of litigation in this in rem action, the government and the only remaining

claimant, Ibrahim Bagudu, are proceeding in discovery. Bagudu has asserted a claim to assets that

were allegedly stolen from Nigeria and laundered through U.S. banks by Nigeria’s former de facto

president Sani Abacha and Bagudu’s brother, Abubakar Bagudu (“Abubakar”). Ibrahim Bagudu

now has provided notice that he intends to depose Daniel Claman, the government’s supervisory

trial counsel. Bagudu claims that Claman, who was the lead attorney responsible for the

investigation of the Abacha matter prior to the filing of this case, has information essential to

Bagudu’s defenses to the forfeiture action. See Mem. of P. & A. in Opp’n to Pl.’s Mot. for

Protective Order to Preclude Dep. of Pl.’s Trial Counsel Daniel H. Claman (“Cl.’s Opp’n”) [ECF

No. 260] at 2–3. In response to the deposition notice, the government moves for a protective order

to preclude the deposition of Claman. See Pl.’s Mot. for Protective Order to Preclude Dep. of Pl.’s

1 Trial Counsel Daniel H. Claman (“Gov’t’s Mot.”) [ECF No. 258]. For the reasons that follow, the

Court will grant the government’s motion.

BACKGROUND

As alleged and as described more fully in this Court’s March 19, 2015, Memorandum

Opinion, see United States v. All Assets, 83 F. Supp. 3d 360, 364–366 (D.D.C. 2015), the

defendant assets in this in rem proceeding were “involved in an international conspiracy to launder

proceeds of corruption in Nigeria” that allegedly began in 1994 “during the military regime of

General Sani Abacha,” Compl. [ECF No. 1] ¶¶ 1, 25. Abacha died in 1998, id. ¶ 8, and in 1999

the United States received a Mutual Legal Assistance Treaty (“MLAT”) request from Nigeria

seeking assistance with the investigation and recovery of the allegedly laundered funds, see Ex. 2

to Gov’t’s Mot. (“Touhy Letter”) [ECF No. 258-3] at 2. According to the government, the

Department of Justice’s (“DOJ”) Office of Internal Affairs (“OIA”) and the U.S. Attorney’s Office

in the Southern District of New York (“SDNY”) were responsible for responding to the MLAT

request. See Pamela J. Hicks 30(b)(6) Dep., Ex. 1 to Cl.’s Opp’n (“Hicks 30(b)(6) Dep.”) [ECF

No. 260-2] at 81:12–15. Another unit, the DOJ’s Money Laundering and Asset Recovery Section

(“AFMLS”),1 “provided consultations on asset forfeiture and money laundering prosecutions and

legal issues” in connection with the MLAT and served as a liaison between the U.S. Attorney’s

Office and its foreign counterparts. Id. at 74:11–16, 78:12–17; 81:16–19. Claman worked at

AFMLS and assisted OIA in its investigation, including by meeting with foreign law enforcement

officials who were also investigating the Abacha matter. Id. at 74:11–77:17, 79:5–18, 332:11–20.

1 The DOJ’s Money Laundering and Asset Recovery Section was formerly known as the Asset Forfeiture and Money Laundering Section. Both parties use the acronym “AFMLS” to refer to the unit, and this Court will do the same.

2 According to the U.S. government, its investigation into the Abacha funds “lost steam”

between 2004 and 2007 as European countries were litigating the potential forfeiture of assets and

criminal actions against Abacha’s alleged accomplices. Id. at 412:3–413:14, 415:15–416:12.2 In

2007, the investigation apparently picked up again, and AFMLS drafted an affidavit in support of

a request for a seizure warrant. See Email from Daniel Claman to David O’Mahoney, Ex. 13 to

Cl.’s Opp’n [ECF No. 262-13] at 3–25; Cl.’s Opp’n at 11–12. Shortly thereafter, in 2008, AFMLS

drafted a forfeiture complaint. See Debra LaPrevotte Griffith Dep., Ex. 15 to Cl.’s Opp’n [260-

16] at 399:6–15.

Five years later, on November 18, 2013, the United States filed a verified complaint for

civil forfeiture of the defendant assets. Purported claims to various assets were subsequently filed

by third parties, nearly all of which ultimately were struck. See United States v. All Assets, 330

F. Supp. 3d 150, 153–54 (D.D.C. 2018). The only remaining third-party claim in this litigation is

Bagudu’s asserted claim to certain defendant assets, which is based on an annuity he receives from

investment portfolios in which the defendant assets are held. Id. at 154.

The government and Bagudu are now conducting discovery. Bagudu provided notice to

the government that he intends to depose Claman, the current Deputy Chief of the International

Unit of AFMLS and the government’s supervisory trial counsel in this case. Bagudu claims that

Claman has unique, nonprivileged factual evidence that supports two of Bagudu’s defenses.

First, Bagudu asserts that the United States is bound to a settlement agreement between

Abubakar, the Federal Republic of Nigeria, and the Bailiwick of Jersey, which Bagudu claims

precludes this forfeiture proceeding. In 2003, Abubakar was arrested in Texas for extradition to

the Bailiwick of Jersey for his involvement in the Abacha matter. See Compl. ¶ 77. Abubakar

2 Portions of Bagudu’s opposition brief and its attachments have been filed under seal and are cited in this Memorandum Opinion with the government’s and Bagudu’s consent.

3 subsequently agreed to a settlement with Nigeria and Jersey by which he would return more than

$163 million of the allegedly laundered assets to Nigeria in exchange for Jersey’s withdrawal of

the extradition request and Ababukar’s return to Nigeria. Id. The U.S. government then released

Abubakar from detention on bond at the request of the United Kingdom on behalf of Jersey.3

Gov’t’s Mot. at 5. Although Bagudu admits that the U.S. government is not a signatory to the

2003 settlement agreement, he asserts that it nevertheless is bound to the agreement because either

it acted as the agent of Nigeria by attempting to recover the funds on behalf of Nigeria or it

facilitated the agreement by dismissing the extradition proceeding against Abubakar. See Cl.

Ibrahim Bagudu’s Resps. & Objs. to the United States’ 2d Set of Interrogs., Ex. 1 to Gov’t’s Mot.

(“Cl.’s Resps. to Interrogs.”) [ECF No. 258-2] at 14, 28–30.

Second, Bagudu asserts that the government delayed bringing this in rem proceeding until

2013 for tactical reasons, resulting in prejudice to his claim. See Cl.’s Opp’n at 3. Specifically,

Bagudu claims that the U.S. government has known about the underlying criminal conduct alleged

in the complaint since November 1999 and had identified funds traceable to the claimed defendant

property in 2002. Cl.’s Resps. to Interrogs. at 7–8. Because the government intentionally did not

bring this action until 2013, Bagudu asserts, relevant documents and witnesses are no longer

available and his due process rights under the Fifth Amendment have been violated. Id. at 7, 11–

14.

Bagudu claims that, as lead AFMLS investigator, Claman has information that is essential

to both of his defenses. Specifically, Bagudu seeks testimony from Claman relating to (1)

Claman’s role in the U.S.

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