United States v. Stoll

District Court, W.D. Washington·Decided May 2, 2025·No. 2:22-cv-01130·Unknown

Opinion

1 2 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 3 AT SEATTLE 4 UNITED STATES OF AMERICA, 5 Plaintiff, 6 v. 7 GLEN A. STOLL; STOLL FAMILY TRUST; C22-1130 TSZ 8 DIRECTOR OF THE FAMILY DEFENSE LEAGUE a/k/a FAMILY DEFENSE ORDER 9 LEAGUE a/k/a FAMILY DEFENSE NETWORK a/k/a FAMILY DEFENSE 10 FUND; and SNOHOMISH COUNTY, Defendants. 11

12 THIS MATTER comes before the Court on defendant Glen A. Stoll’s motion for 13 reconsideration, docket no. 96, as well as on motions brought by plaintiff United States of 14 America (the “Government”) for entry of judgment, docket no. 93, and for an order of 15 foreclosure, judicial sale, and appointment of a receiver, docket no. 94. Having reviewed 16 all papers filed in support of, and in opposition to, the motions, the Court enters the 17 following Order. 18 Background 19 By Order entered March 5, 2025, docket no. 92, the Court granted the 20 Government’s motion for default judgment as to defendant Director of the Family 21 Defense League (a.k.a. Family Defense League, a.k.a. Family Defense Network, a.k.a. 22 Family Defense Fund), and granted summary judgment in favor of the Government and 1 against defendants Stoll Family Trust and Glen A. Stoll. The Government was directed 2 to file and serve a proposed form of judgment, any proposed order to appoint a receiver,

3 and any proposed decree of sale of the real property located at 7311 Grove Street in 4 Marysville, Washington (the “Subject Property” or “Marysville House”).1 On March 26, 5 2025, the Government submitted a proposed form of judgment, as well as a proposed 6 order of foreclosure, judicial sale, and appointment of a receiver. Stoll has not objected 7 to either the proposed form of judgment or the Government’s proposed order of 8 foreclosure, judicial sale, and appointment of a receiver; instead, he has moved for

9 reconsideration of the Court’s prior Order. Stoll Family Trust has objected to both the 10 form of judgment and the proposed order. See Def.’s Resp. (docket no. 95). 11 Discussion 12 A. Motion for Reconsideration 13 “Motions for reconsideration are disfavored.” Local Civil Rule 7(h)(1). Such

14 motions are ordinarily denied absent a showing of either (i) “new facts or legal authority 15 which could not have been brought to [the Court’s] attention earlier with reasonable 16 diligence,” or (ii) “manifest error in the prior ruling.” Id. In his motion, Stoll contends 17 that he has “recently discovered” a witness who mistakenly received the Notice of 18 Deficiency sent to him by the Internal Revenue Service. Stoll, however, has failed to

19 identify this witness or explain why he could not have found this witness earlier through 20 21 1 The legal description for the Subject Property is as follows: “LOT(S) 7, MUNSON CREEK ESTATES DIVISION III, ACCORDING TO THE PLAT THEREOF RECORDED IN 22 VOLUME 49 OF PLATS, PAGE(S) 180 AND 181, RECORDS OF SNOHOMISH COUNTY, WASHINGTON.” Statutory Warranty Deed, Ex. 103 (docket no. 80-43). 1 the exercise of reasonable diligence. Stoll also relies on Washington’s statutory 2 provisions governing unincorporated nonprofit associations and corporations sole, but he

3 fails to indicate why he did not bring them to the Court’s attention when his response to 4 the Government’s motion for summary judgment was due or how such laws relate to or 5 demonstrate any error in the Court’s previous rulings. 6 In his motion for reconsideration, Stoll makes contradictory arguments, on the one 7 hand denying that he received taxable income during the years 2001–2008, and on the 8 other hand admitting that he has been receiving “basic life sustenance” from the Director

9 of the Family Defense League, i.e., taxable income. Def. Stoll’s Mot. for Recons. 10 (docket no. 96 at 2 & 6). Stoll indicates that he can “easily” prove his lack of income, id. 11 (docket no. 96 at 2), but he has not, to date, proffered any affirmative evidence, which he 12 was required to do to survive the Government’s motion for summary judgment. See 13 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255–57 (1986). Moreover, Stoll offers no

14 reason why his concessions, which arose from his failure to timely respond to the 15 Government’s discovery requests, see Order at 16 (docket no. 92) (citing Fed. R. Civ. 16 P. 36(a)(3)), concerning his annual gross incomes for the years 2001–2008 and his related 17 tax liability, including interest, penalties, and statutory accruals, are not sufficient to 18 support summary judgment in favor of the Government.

19 Without any support, Stoll asserts that the Court has, in the past,2 allowed him to 20 represent other litigants, thereby suggesting that the Court has ruled inconsistently by not 21 22 2 Stoll also alleges, without any evidence or explanation, that the undersigned judge “personally owe[s him] a substantial amount of money.” See Def. Stoll’s Mot. for Recons. (docket no. 96 at 1 permitting him to appear in this case on behalf of the Director of the Family Defense 2 League. Regardless of what might or might not have occurred in other matters or before

3 different judges, the rules of this District and the doctrines against the unauthorized 4 practice of law prohibit Stoll from acting for the Director of the Family Defense League, 5 which is allegedly a corporation sole. See Local Civil Rule 83.2(b)(4). 6 Stoll devotes much of his motion for reconsideration to the subject of whether the 7 Director of the Family Defense League is his “nominee” or “alter ego,” but the Court’s 8 decision that the Director of the Family Defense League has no legitimate claim of

9 ownership or interest in the Marysville House was based on the facts that the Director of 10 the Family Defense League did not itself purchase the Subject Property and no deed 11 granting the Director of the Family Defense League title to the Subject Property was ever 12 recorded. See Order at 7 (docket no. 92). Thus, Stoll’s assertions concerning his 13 relationship with the Director of the Family Defense League do not, in any way,

14 undermine the appropriateness and validity of the Court’s previous Order, and Stoll’s 15 motion for reconsideration is DENIED. 16 B. Form of Judgment 17 The form of judgment proposed by the Government is substantially consistent 18 with the Court’s Order dated March 5, 2025. Stoll Family Trust, however, objects to two

19 provisions in the proposed judgment: (i) use of the phrase “sham entity” to describe Stoll 20 21 22 4). Such statement, which the undersigned judge knows to be false, constitutes yet another attempt to deceive the Court. See Order at 11 n.6 (docket no. 92). 1 Family Trust; and (ii) language indicating that the “tax liens on the Subject Property are 2 valid and enforceable.” Stoll Family Trust’s arguments lack merit. In its Order dated

3 March 5, 2025, docket no. 92, the Court directed that judgment “shall be entered in favor 4 of the Government and against the Stoll Family Trust and Glen A. Stoll, as follows: 5 (i) the Stoll Family Trust is a sham and holds the Subject Property in constructive trust 6 for Stoll; [and] (ii) the Government’s tax liens on the Subject Property are valid and 7 enforceable.” Order at 17, ¶ 3 (docket no. 92). 8 As explained in the prior Order, although Stoll Family Trust might have begun as

9 a legitimate estate-planning vehicle for Stoll’s parents, it currently serves no purpose 10 other than to try to shield Stoll from the Government’s efforts to collect long-delinquent 11 taxes. See id. at 15–16. Thus, regardless of its status at the time of its creation, Stoll 12 Family Trust is now a sham entity and holds the Subject Property in constructive trust for 13 Stoll. By virtue of Stoll’s admissions, the Government has proven the correctness of its

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