A federal judge has ruled that the government cannot proceed with efforts to make a couple forfeit assets that prosecutors allege were obtained with stolen funds, because the couple is facing criminal charges.
John and Susan Ross in February were indicted on charges of embezzling $4.3 million in federal education funds from the Davis County School District. Prosecutors contend the couple stole money from the Title I program, intended to help low-income and academically at-risk youngsters, to bankroll a luxurious lifestyle.
Their criminal case is pending.
However, U.S. District Judge Ted Stewart on Tuesday granted a stay of civil forfeiture of properties, vehicles, bank accounts and trusts that are connected to the Rosses, either held in their names or the names of others.
Under the law, individuals can fend off civil forfeitures while a criminal case is ongoing, and they also can protect themselves against the possibility of self-incrimination.
U.S. prosecutors had no objection to the forfeiture stay in the civil matter, but they do intend to seize assets if the Rosses are convicted in the criminal case, which is a separate proceeding before U.S. District Judge Dee Benson. The federal government has put a formal notice on the property so if anyone tries to sell it, the buyer would know there is a government interest in that property.
Prosecutors plan to revive the civil case once the criminal case involving the Rosses is finished.
A trial involving the criminal charges that was previously set to begin Sept. 24 has been rescheduled to start Dec. 10.
Among the items listed in Stewart's order were properties with undisclosed addresses in Layton, South Weber and Mountain Green; 10 accounts with banks or other financial organizations; a 2001 Jeep Cherokee; and a 2006 Acura.
Susan Ross was the director of the school district's Title I program. John Ross was in charge of federal grants for the district.
The couple has been accused by prosecutors of bilking the district of federal funds over a period of years by selling pirated copies of textbooks and materials, often of inferior quality, for vastly inflated prices through an arrangement involving two shell companies the Rosses created.
The pair has been charged with 47 counts of mail fraud, money laundering, copyright infringement and theft of stolen funds.
E-mail: lindat@desnews.com