Case 2:23-cv-10957-MFL-EAS ECF No. 1, PageID.

1 Filed 04/24/23 Page 1 of 26

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

UNITED STATES OF AMERICA, ) Civil Action No. 2:23-CV-10957

)
Plaintiff, )
)
v. )
)
KEVIN R. ADELL, individually; )
KEVIN R. ADELL as the Personal )
Representative of the ESTATE OF )
FRANKLIN Z. ADELL; )
RALPH G. LAMETI as Trustee of )
the ORCHARD LAKE PROPERTY )
TRUST; and )
OAKLAND COUNTY )
TREASURER, STATE OF )
MICHIGAN )
)
Defendants. )
________________________________ )

COMPLAINT

Plaintiff United States of America, pursuant to 26 U.S.C. §§ 7401,

7402(a), 7403(c), 7404, and the Federal Debt Collection Procedure Act

(28 U.S.C. § 3001, et seq.) (“FDCPA”), at the direction and request of a

delegate of the Attorney General of the United States and with the

authorization of a delegate of the Secretary of the Treasury, brings this

civil action to collect the unpaid federal estate and gift tax liabilities of
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the Estate of Franklin Z. Adell (the “Adell Estate”) by: (1) reducing to

judgment the unpaid estate and gift tax liabilities against the Adell

Estate; (2) establishing that Kevin R. Adell is personally liable for the

Adell Estate’s unpaid estate and gift taxes under 26 U.S.C. § 6324 and

31 U.S.C. § 3713; and (3) obtaining an order to enforce federal tax liens

against and to sell real property located at 459 Martell Drive,

Bloomfield Hills, Michigan (the “Subject Property”). For its complaint,

the United States alleges as follows:

JURISDICTION & VENUE

1. The Court has jurisdiction over this action under 26 U.S.C.

§§ 7402, 7403, and 7404 and 28 U.S.C. §§ 1340 and 1345.

2. Venue is proper under 28 U.S.C. § 1396 because the tax

liabilities at issue accrued in this district and the tax returns giving rise

to the liabilities were filed in this district. Venue is also proper in this

district under 28 U.S.C. § 1391(b)(2) because a substantial part of the

events giving rise to the United States’ claims occurred in this district

and the Subject Property is located within this district.

THE PARTIES

3. Plaintiff is the United States of America.

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4. Defendant Kevin R. Adell is the son of Franklin Z. Adell

(deceased). Kevin Adell distributed and received property from the

Adell Estate and transferred property of the Adell Estate before paying

estate and gift taxes that the Adell Estate owed to the United States.

Kevin Adell is sued in his capacity as the Personal Representative of

the Adell Estate, as appointed by Franklin Z. Adell’s Last Will and

Testament and by the Oakland County Probate Court in the State of

Michigan. He is sued individually based on his role as fiduciary to the

Adell Estate under 31 U.S.C. § 3713 for actions taken in favor of himself

and with disregard to the claims of the United States.

5. Defendant Ralph G. Lameti is named in this suit in his

representative capacity as trustee to the Orchard Lake Property Trust,

which holds title to Subject Property against which the United States

seeks to enforce its federal tax liens.

6. The Oakland County Treasurer in the State of Michigan is

named as a party to this action pursuant to 26 U.S.C. § 7403(b) because

it may claim an interest in the property upon which the United States

seeks to enforce its liens. Public records indicate that Kevin Adell has

failed to make required property tax payments to Oakland County for

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the Subject Properties. By this suit, the Oakland County Treasurer is

on notice of this Court’s jurisdiction over the property such that any

local tax liens that have priority over federal tax liens under 26 U.S.C.

§ 6323(b)(6) will be satisfied in a judicial sale under this Court’s

authority and that the property may not be sold under other procedures

during this action.

ADELL ESTATE & FAMILY TRUST

7. Franklin Z. Adell owned several businesses, including a 100

percent interest in STN.Com, Inc. (“STN.Com”), a cable satellite

company responsible for broadcasting a religious programing channel

called “The Word Network.”

8. In July 2002, Franklin Adell created the Franklin Z. Adell

Trust (the “Adell Trust”) and named his three children as the

beneficiaries.

9. During his lifetime, Franklin Adell transferred many of his

assets to the Adell Trust, including his 100 percent interest in

STN.Com.

10. Franklin Adell died testate on August 13, 2006, leaving a

gross estate valued at $32,930,891.

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11. Kevin Adell was appointed trustee of the Adell Trust and

Personal Representative of the Adell Estate. The Adell Estate was

probated in Oakland County, Michigan.

THE SUBJECT PROPERTY

12. The Subject Property that the United States seeks an order

for judicial sale is located at 459 Martell Drive, Bloomfield Hills,

Michigan 48304 (Parcel ID 19-22-401-023), and is legally described as:

Lot 2, ASSESSOR'S PLAT NO. 7, according to

the recorded plat thereof, as recorded in Liber 83
of Plats, Page 10 of Oakland County Records.

13. Franklin Adell established the Orchard Lake Property Trust

in June 2005 and was the settlor of the trust when he died in 2006.

14. The Orchard Lake Property Trust purchased the Subject

Property on August 15, 2005 for $3,775,000.

15. The Orchard Lake Property Trust is owned by the Adell

Estate.

16. Ralph G. Lameti is the trustee of the Orchard Lake Property

Trust.

17. Kevin Adell resides at the Subject Property for at least part

of each year.

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18. On information and belief, there are no mortgages on the

property.

ADELL ESTATE’S FORM 706, ESTATE TAX RETURN

19. On November 13, 2007, after receiving an extension of time

to file, Kevin Adell executed and filed an estate tax return on behalf of

the Adell Estate on IRS Form 706 that reported $15,288,517.00 in tax

owed.

20. On December 17, 2007, a delegate of the Secretary of the

Treasury assessed tax against the Adell Estate in the amount of

$15,288,517.00 (the amount reported on the Form 706), plus penalties

and interest.

21. The Adell Estate paid nondeferred estate tax of $8,094,557

and elected to defer payment of the remaining $7,193,960 for five years

and then pay the deferred estate tax in 10 annual installments under

26 U.S.C. § 6166.

22. The Adell Estate submitted interest-only payments of

$240,087.77 in May 2008 and $170,094.85 in May 2009 as required by

26 U.S.C. § 6166(f) toward the balance owed but has made no further

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payments. The Adell Estate defaulted on its deferred estate tax

payments on February 7, 2014.

23. The IRS audited the Adell Estate’s Form 706 estate tax

return and sent Kevin Adell a Notice of Deficiency reporting that the

IRS determined that the Adell Estate owed more estate taxes.

24. On January 14, 2011, the Adell Estate petitioned the IRS’s

Notice of Deficiency in the U.S. Tax Court, Estate of Franklin Z. Adell v.

Commissioner, Dkt. No. 1188-11. Kevin Adell was named as the

Estate’s Personal Representative.

25. On April 24, 2018, upon stipulation of the parties, the Tax

Court determined that: (1) the Adell Estate owed a total $12,403,288

estate tax liability; (2) the Adell Estate had paid $8,094,524 of the

estate tax owed; and (3) the unpaid balance of the estate tax owed was

$4,308,704, without interest and penalties.

26. The Adell Estate has submitted no voluntary payments

toward its unpaid estate tax liabilities since May 2009, and an unpaid

balance remains.

27. At the time of Franklin Adell’s death, the Adell Estate had

sufficient assets to fully pay the estate tax it owed but failed to do so.

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28. Kevin Adell dissipated the Adell Estate’s assets and

knowingly and willfully failed to pay the estate tax liabilities the Adell

Estate owed to the United States.

29. As of April 23, 2023, the unpaid balance of the estate tax

assessments against the Adell Estate, including interest and penalties,

was $9,775,326.65, plus further interest and statutory additions which

may continue to accrue on that amount.

ADELL ESTATE’S FORM 709, GIFT TAX RETURN

30. On November 17, 2008, Kevin Adell executed and filed a Gift

Tax Return on behalf of the Adell Estate on IRS Form 709 that reported

$2,889,108 in gift tax owed.

31. The Adell Estate’s Form 709 reported that Franklin Adell

gifted Kevin Adell $6,655,018 to pay a court-ordered legal judgment

that was entered against Kevin Adell.

32. The IRS audited the Adell Estate’s Form 709 gift tax return

and sent Kevin Adell a Notice of Deficiency reporting that the IRS

determined that the Adell Estate owed additional gift tax of $71,562.00.

33. The Adelle Estate did not appeal the IRS’s determination

that it owed additional gift tax.

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34. On June 13, 2011, a delegate of the Secretary of the

Treasury assessed additional gift tax of $71,562.00 against the Adell

Estate, plus penalties and interest.

35. The Adell Estate has never submitted any voluntary

payments toward its unpaid gift tax liabilities.

36. At the time of Franklin Adell’s death, the Adell Estate had

sufficient assets to fully pay the gift tax it owed but failed to do so.

37. Kevin Adell dissipated the Adell Estate’s assets and

knowingly and willfully failed to pay the gift tax liabilities the Adell

Estate owed to the United States.

38. As of April 23, 2023, the unpaid balance of the gift tax

assessments against the Adell Estate, including interest and penalties,

was $8,178,714.47, plus further interest and statutory additions which

may continue to accrue on that amount.

COUNT ONE
Judgment Against Kevin R. Adell as Personal Representative of
the Estate of Franklin Z. Adell for Unpaid Federal Estate Taxes

39. The United States incorporates by reference all preceding

paragraphs as if wholly realleged herein.

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40. Kevin Adell executed and filed an estate tax return on behalf

of the Adell Estate as its Personal Representative on November 13,

2007.

41. On December 17, 2007, a delegate of the Secretary of the

Treasury assessed estate tax against the Adell Estate in the amount of

$15,288,517, plus interest and penalties.

42. The Adell Estate litigated its estate tax liability in U.S. Tax

Court.

43. By stipulated judgment on April 24, 2018, the Court

determined that the Adell Estate owed estate tax of $12,403,228, and

that an unpaid balance of $4,308,704 remained, plus interest and

penalties.

44. On October 15, 2018, a delegate of the Secretary of the

Treasury amended the estate tax assessment against the Adell Estate.

45. Despite proper notice of the assessment and demand for

payment, the Adell Estate has not paid the full amount of the estate

taxes, penalties, and interest owed to the United States.

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46. Based on the Adell Estate’s failure to pay the full amount of

the estate tax assessments due, interest and statutory additions to tax

have accrued pursuant to statute.

47. Under 26 U.S.C. § 7402, the United States is entitled to a

monetary judgment against Kevin R. Adell, in his capacity as the

appointed Personal Representative of the Adell Estate, holding him

liable to the United States for the unpaid balance of the Adell Estate’s

Form 706 estate taxes in the amount of $9,775,326.65, as of April 23,

2023, plus all penalties and pre- and post-judgment interest under 26

U.S.C. §§ 6601, 6621, 6622, and 28 U.S.C. § 1961(c).

48. The United States generally has ten years from the date of

an assessment to bring a proceeding in court to collect unpaid tax

liabilities. 26 U.S.C. § 6502(a). Although the IRS assessed the estate tax

against the Adell Estate more than ten years ago, the Adell Estate’s

election to defer payment of the estate tax liability under Section 6166

suspended the collection statute of limitations from the assessment date

until the Adell Estate defaulted on its deferred estate tax payments. 26

U.S.C. § 6503(d). The collection statute was also extended 132 days

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while the Adell Estate’s Collection Due Process hearing was pending. 26

U.S.C. § 6330(e)(1); see also 26 C.F.R. § 301.6330–1(g)(1).

COUNT TWO
Impose Section 6324(a)(2) Liability Against Kevin R. Adell
Individually for Unpaid Federal Estate Taxes Owed By the
Estate of Franklin Z. Adell

49. The United States incorporates by reference all preceding

paragraphs as if fully realleged herein.

50. The Adell Estate has not fully paid its estate tax liability.

51. At the time of Franklin Adell’s death, the Adell Estate had

sufficient assets to fully pay the amount of estate tax reported owed on

its Form 706 estate tax return.

52. Since 2006, Kevin Adell held or received property that was

required to be included in the gross estate under 26 U.S.C. §§ 2034

through 2042.

53. Kevin Adell, as Personal Representative of the Adell Estate,

knew or reasonably should have known that the Adell Estate owed

federal estate taxes to the United States.

54. Despite having such notice, Kevin Adell dissipated all assets

owned by the Adell Estate, other than the Orchard Lake Property

Trust, which holds title to the Subject Property. The distributions of

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assets of the Adell Estate, and the administration of all assets of the

Estate, rendered the Estate unable to pay its unpaid estate tax liability.

55. If an estate tax liability is not paid when due, then a

transferee, trustee, or “person in possession of the property by reason of

the exercise, nonexercise, or release of a power of appointment, or

beneficiary, who receives, or has on the date of the decedent’s death,

property included in the gross estate” is personally liable for the estate

tax liability to the extent of the value of that property. 26 U.S.C.

§ 6324(a)(2).

56. Under 26 U.S.C. § 6324(a)(2), Kevin Adell automatically

became liable to the United States for the lesser of (i) the Adell Estate’s

unpaid estate tax plus applicable penalties and interest; or (ii) the value

of the property included in the gross estate plus interest on such

amount under 26 U.S.C. § 6601 from the date such property was

received until paid.

57. Kevin Adell’s liability under 26 U.S.C. § 6324(a)(2) is equal

to the Adell Estate’s liability for unpaid estate taxes, penalties, and

interest.

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58. The United States is entitled to a judgment that Kevin Adell

is personally liable to the United States for the full unpaid balance of

estate taxes that the Adell Estate owes to the United States in the

amount of $9,775,326.65, as of April 23, 2023, plus all penalties and

pre- and post-judgment interest under 26 U.S.C. §§ 6601, 6621, 6622,

and 28 U.S.C. § 1961(c).

COUNT THREE
Impose Liability Against Kevin R. Adell Individually Under 31
U.S.C. § 3713(b) for Unpaid Federal Estate Taxes Owed By the
Estate of Franklin Z. Adell

59. The United States incorporates by reference all preceding

paragraphs as if fully realleged herein.

60. The Adell Estate has not fully paid its estate tax liability.

61. At the time of Franklin Adell’s death, the Adell Estate had

sufficient assets to fully pay the amount of estate tax reported owed on

its Form 706 estate tax return.

62. Since 2006, Kevin Adell dissipated the Adell Estate’s assets

and knowingly and willfully failed to pay the estate tax liabilities that

he knew the Adell Estate owed to the United States.

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63. Despite having notice of the estate tax liabilities owed, Kevin

Adell dissipated all assets owned by the Adell Estate other than the

Orchard Lake Property Trust, which holds title to the Subject Property.

64. Kevin Adell’s distributions of assets and the administration

of all assets of the Estate rendered the Adell Estate insolvent.

65. 31 U.S.C. § 3713(a) provides that a claim of the United

States must be paid first when the estate of a deceased debtor, in the

custody of the executor, is not enough to pay all debts of the debtor.

Under 31 U.S.C. § 3713(b), an executor who pays any part of the debt of

an estate before paying a claim of the United States is personally liable

for the United States’ unpaid claims to the extent of the payment.

66. Kevin Adell, in his capacity as Personal Representative of

the Adell Estate, distributed estate property before paying the

outstanding federal estate tax claim owed to the United States and is

personally liable to the extent of the distributions for unpaid estate tax

owed by the Adell Estate pursuant to 31 U.S.C. § 3713(b).

67. The United States is entitled to a judgment that Kevin Adell

is personally liable to the United States under 31 U.S.C. § 3713(b) for

the value of all assets Kevin Adell transferred from the Adell Estate,

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not more than the unpaid balance of estate taxes owed to the United

States the amount of $9,775,326.65, as of April 23, 2023, plus all

penalties and pre- and post-judgment interest under 26 U.S.C. §§ 6601,

6621, 6622, and 28 U.S.C. § 1961(c).

COUNT FOUR
Judgment Against Kevin R. Adell as Personal Representative of
the Estate of Franklin Z. Adell for Unpaid Federal Gift Taxes

68. The United States incorporates by reference all preceding

paragraphs as if fully realleged herein.

69. In November 2008, more than two years after Franklin

Adell’s death, Kevin Adell executed and filed a Form 709 federal gift tax

return reporting gift tax liability in the amount of $2,889,108.

70. On October 11, 2010, a delegate of the Secretary of the

Treasury assessed gift tax against the Adell Estate in the amount of

$2,889,108, plus interest and penalties.

71. The IRS audited the Adell Estate’s Form 709 gift tax return.

72. Following the deficiency procedures of 26 U.S.C. § 6211 et

seq., a delegate of the Secretary of the Treasury issued a notice of tax

deficiency to Kevin Adell, as Personal Representative of the Adell

Estate, informing him of the additional amount of gift tax due and

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providing the Adell Estate with the opportunity to contest the notice of

deficiency in U.S. Tax Court.

73. The Adelle Estate did not challenge in Tax Court the

additional tax proposed by the IRS.

74. On June 13, 2011, the IRS assessed additional gift tax

against the Adell Estate in the amount of $71,562.00, plus additional

interest and penalties.

75. Despite proper notice of the assessment and demand for

payment, the Adell Estate has not paid the full amount of the gift taxes,

penalties, and interest owed to the United States.

76. Under 26 U.S.C. § 7402, the United States is entitled to a

monetary judgment against Kevin R. Adell, in his capacity as the

appointed Personal Representative of the Adell Estate, holding him

liable to the United States for the unpaid balance of the Adell Estate’s

Form 709 gift taxes in the amount of $8,178,714.47, as of April 23, 2023,

plus all penalties and pre- and post-judgment interest under 26 U.S.C.

§§ 6601, 6621, 6622, and 28 U.S.C. § 1961(c).

77. The United States generally has ten years from the date of

an assessment to bring a proceeding in court to collect unpaid tax

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liabilities. 26 U.S.C. § 6502(a). Although the IRS made the gift tax

assessments against the Adell Estate more than ten years ago, the

collection statute of limitations was suspended for 925 days while the

Adell Estate’s Collection Due Process hearing was pending. 26 U.S.C.

§ 6330(e)(1); see also 26 C.F.R. § 301.6330–1(g)(1).

COUNT FIVE
Impose Section 6324(b) Liability Against Kevin R. Adell
Individually for Unpaid Federal Gift Taxes Owed By the Estate
of Franklin Z. Adell

78. The Adell Estate has not fully paid its gift tax liability

related to Franklin Adell’s gift to Kevin Adell.

79. The Adell Estate’s Form 709 gift tax return reported that

Franklin Adell gifted Kevin Adell $6,655,018 to pay a court-ordered

legal judgment entered against Kevin Adell.

80. Under 26 U.S.C. § 6324(b), if gift taxes are not paid when

due, the donee of any gift is liable and indebted to the United States for

the lesser of: (a) the unpaid gift tax liability owed by the Adell Estate;

or (b) the value of their share of gift they received from the donor.

81. A delegate of the Secretary of the Treasury properly notified

Kevin Adell, as Personal Representative of the Adell Estate, of the gift

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tax assessments the IRS made against it and made demands for

payment as provided by law.

82. Despite having such notice, Kevin Adell dissipated all assets

owned by the Adell Estate, other than the Orchard Lake Property

Trust, which holds title to the Subject Property. The distributions of

assets of the Adell Estate, and the administration of all assets of the

Estate, rendered the Estate unable to pay its unpaid estate tax liability.

83. Despite proper notice and demand for payment, Kevin Adell,

as Personal Representative of the Adell Estate, failed to pay the

assessed gift taxes, penalties, and interest owed by the Adell Estate.

84. Kevin Adell is indebted to the United States under 26 U.S.C.

§ 6324(b) in the amount of $6,655,018 based on the value of the gift that

he received from Franklin Adell.

COUNT SIX
Impose Liability Against Kevin R. Adell Individually Under 31
U.S.C. § 3713(b) for Unpaid Federal Gift Taxes of the Estate of
Franklin Z. Adell

85. The United States incorporates by reference all preceding

paragraphs as if fully realleged herein.

86. The Adell Estate has not fully paid its gift tax liability

related to Franklin Adell’s gift to Kevin Adell.

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87. At the time of Franklin Adell’s death, the Adell Estate had

sufficient assets to fully pay the amount of gift tax reported owed on its

Form 709 gift tax return.

88. Since 2006, Kevin Adell dissipated the Adell Estate’s assets

and knowingly and willfully failed to pay gift tax liabilities that he

knew the Adell Estate owed to the United States.

89. Despite having such notice, Kevin Adell dissipated all assets

owned by the Adell Estate other than the Orchard Lake Property Trust,

which holds title to the Subject Property.

90. Kevin Adell’s distributions of assets and the administration

of all assets of the Estate rendered the Adell Estate insolvent.

91. 31 U.S.C. § 3713(a) provides that a claim of the United

States must be paid first when the estate of a deceased debtor, in the

custody of the executor, is not enough to pay all debts of the debtor.

Under 31 U.S.C. § 3713(b), an executor who pays any part of the debt of

an estate before paying a claim of the United States is personally liable

for the United States’ unpaid claims to the extent of the payment.

92. Kevin Adell, in his capacity as Personal Representative of

the Adell Estate, distributed estate property before paying the

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outstanding federal gift tax claim owed to the United States and is thus

personally liable to the extent of the distributions for unpaid gift tax

owed by the Adell Estate pursuant to 31 U.S.C. § 3713(b).

93. The United States is entitled to a judgment that Kevin Adell

is personally liable to the United States under 31 U.S.C. § 3713(b) for

the value of all assets Kevin Adell transferred from the Adell Estate,

not more than the unpaid balance of gift taxes owed to the United

States, in the amount of $8,178,714.47, as of April 23, 2023, plus all

penalties and pre- and post-judgment interest under 26 U.S.C. §§ 6601,

6621, 6622, and 28 U.S.C. § 1961(c).

COUNT SEVEN
Enforce Federal Tax Liens Against the Subject Property

94. The United States incorporates by reference all preceding

paragraphs as if fully realleged herein.

95. Pursuant to 26 U.S.C. §§ 6321 and 6322, federal tax liens

arose and attached to all property interests of the Adell Estate on the

dates the IRS made estate and gift tax assessments against it.

96. The United States has a right to enforce the federal tax liens

against the Subject Property pursuant to 26 U.S.C. § 7403 and to have

the Subject Properties sold in a judicial sale (including by a receiver if

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requested by the United States), free and clear of all claims, liens, or

interests of the parties, including any rights of redemption, with the

proceeds of the sale distributed: first, to pay the costs of sale, including

any expenses incurred to secure and maintain the Subject Property;

second, to Defendant Oakland County Treasurer, to pay any real estate

taxes due that are entitled to priority under 26 U.S.C. § 6323(b)(6); and

third, to the United States to pay the Adell Estate’s unpaid estate and

gift tax liabilities described above unless the Court determines that

another party has a superior right, title, or interest.

COUNT EIGHT
10% Surcharge for Costs of Collection Under the Federal Debt
Collection Procedure Act (28 U.S.C. §§ 3001, et seq.)

97. The United States incorporates by reference all preceding

paragraphs as if fully realleged herein.

98. If the United States needs to avail itself of pre- or

post-judgment relief under Subchapter B or C of the FDCPA, 28 U.S.C.

§§ 3001, et seq., the United States has the right to recover a surcharge

of 10% of the amount of the debt at issue under 28 U.S.C. § 3011, to

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cover the cost of processing and handling the litigation and enforcement

of the claim for the debt under the FDCPA.

REQUEST FOR RELIEF

WHEREFORE, the United States requests that the Court Order,

Adjudge, and Decree that:

A. Kevin R. Adell, in his capacity as Personal Representative of

the Adell Estate, is indebted to the United States for the

unpaid balance of the Adell Estate’s Form 706 estate taxes

in the amount of $9,775,326.65, as of April 23, 2023, plus all

penalties and pre- and post-judgment interest under 26

U.S.C. §§ 6601, 6621, 6622, and 28 U.S.C. § 1961(c);

B. Kevin R. Adell is personally liable to the United States

under 26 U.S.C. § 6324(a)(2) for the unpaid balance of the

Adell Estate’s Form 706 estate taxes in the amount of

$9,775,326.65, as of April 23, 2023, plus all penalties and

pre- and post-judgment interest under 26 U.S.C. §§ 6601,

6621, 6622, and 28 U.S.C. § 1961(c);

C. Kevin R. Adell is personally liable to the United States

under 31 U.S.C. § 3713(b) for the unpaid balance of the Adell

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Estate’s Form 706 estate taxes in the amount of

$9,775,326.65, as of April 23, 2023, plus all penalties and

pre- and post-judgment interest under 26 U.S.C. §§ 6601,

6621, 6622, and 28 U.S.C. § 1961(c);

D. Kevin R. Adell, in his capacity as Personal Representative of

the Adell Estate, is indebted to the United States for the

unpaid balance of the Adell Estate’s Form 709 gift taxes in

the amount of $8,178,714.47, as of April 23, 2023, plus all

penalties and pre- and post-judgment interest 26 U.S.C.

§§ 6601, 6621, 6622, and 28 U.S.C. § 1961(c);

E. Kevin R. Adell is personally liable to the United States

under 26 U.S.C. § 6324(b) for $6,655,018, the amount of the

gift he received from Franklin Adell, as reported on the Adell

Estate’s Form 709;

F. Kevin R. Adell is personally liable to the United States

under 31 U.S.C. § 3713(b) for the unpaid balance of the Adell

Estate’s Form 709 gift taxes in the amount of $8,178,714.47,

as of April 23, 2023, plus all penalties and pre- and

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post-judgment interest under 26 U.S.C. §§ 6601, 6621, 6622,

and 28 U.S.C. § 1961(c);

G. The United States may enforce the federal tax liens securing

the Adell Estate’s estate and gift tax liabilities, pursuant to

26 U.S.C. § 7403, against the Subject Property by ordering

the sale of the Subject Property in a judicial sale (including

by a receiver if requested by the United States), free and

clear of all rights, titles, or interests of the parties, including

any rights of redemption, with the proceeds of the sale

distributed: first, to pay the costs of sale, including any

expenses incurred to secure and maintain the Subject

Property; second, to Defendant Oakland County Treasurer,

to pay any real estate taxes due that are entitled to priority

under 26 U.S.C. § 6323(b)(6); and third, to the United States

to pay the estate and gift tax liabilities owed by the Adell

Estate, unless the Court determines that another party has

a superior right, title, or interest.

H. The United States shall be entitled to a surcharge of an

additional 10% on any of the judgment debts if any

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prejudgment or post-judgment remedy set forth in the

Federal Debt Collection Procedures Act (28 U.S.C. §§ 3001,

et seq.) is used to collect such debts;

I. The United States shall recover its costs and be awarded

such further relief as the Court determines is just and

proper.

Dated: April 24, 2023 Respectfully submitted,

DAVID A. HUBBERT
Deputy Assistant Attorney General

By: /s/ Daniel M. Caves

DANIEL M. CAVES
FORREST T. YOUNG
Trial Attorneys, Tax Division
U.S. Department of Justice
P.O. Box 55
Washington, D.C. 20044
Telephone: (202) 514-6058
Facsimile: (202) 514-5238
Email: Daniel.M.Caves@usdoj.gov
Local Counsel:
DAWN N. ISON
United States Attorney
Eastern District of Michigan

KEVIN ERSKINE (P69120)

Assistant U.S. Attorney
211 W. Fort Street, Ste. 2001
Detroit, MI 48226
Telephone: (313) 226-9610
Email: Kevin.Erskine@usdoj.gov

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