Golden ADA, Inc. v. United States

MEMORANDUM AND ORDER

INTRODUCTION

On December 22,1995, the court heard the petition of plaintiffs Golden ADA, Inc. and its subsidiaries 1 (“Golden ADA”) for a determination of the reasonableness of a jeopardy assessment levied against it by the Internal Revenue Service (“IRS”) on November 7, 1995. The IRS based its jeopardy assessment on information it gathered as a result of an ongoing investigation into plaintiffs’ import/export of rough and polished diamonds as well as gold and other precious gemstones from the former Soviet Republic. The IRS relied in large part on pleadings filed with this court in a related action, The Committee of the Russian Federation of Precious Metals and Gems v. Golden ADA, Inc., et al., No. C-95-3449 MMC. Golden ADA contended that the jeopardy assessment was not reasonable because (1) it had stipulated to refrain from transferring, encumbering, or otherwise disposing of its assets until such time as the Honorable Maxine M. Chesney had ruled on the plaintiff’s request for a preliminary injunction in No. C-95-3449 MMC, and (2) the IRS was aware of the stipulation and order thereon. Golden ADA further argued that the amount of the jeopardy assessment…