United States v. Real Property Located at 13328 & 13324 State Highway 75 North, Blaine County

The Palm Desert Redevelopment Agency (“PDRA”) appeals the District Court’s decision to transfer the net proceeds from the sale of property located in Blaine County, Idaho to a fund administered by the Securities and Exchange Commission (“SEC”) to reimburse the victims of the fraud of Steven D. Wymer. The PDRA believes that it should be the sole recipient of the $1,042,-636.82 in net proceeds from the Idaho sale because the funds used by Wymer to purchase the property can be directly traced to the investment made by the PDRA. We deny the PDRA’s claim and affirm the opinion of the district court.

I

On May 24, 1989, the PDRA retained Stephen D. Wymer, and his company, Denman & Co., as an investment advisor in treasury bills and other securities. On that same day, the PDRA transferred $5,170,000 by wire to a Denman account at the Security Pacific National Trust Company (“SPNT”) in New York City. Before the PDRA’s money was added, the SPNT account had a balance of $115,945.30 which was comprised of funds of other clients to whom Wymer gave investment advice. On June 5, 1989, Wymer wired $1.7 million from SPNT to First Chiea-go/Greenwich Bank. On June 15,1989, Wymer deposited…