Kevin Campbell v. Charles Cathcart

Filing

Amending order/opinion filed [998831630] amending and superseding Unpublished per curiam Opinion [998597908-2]. Originating case numbers: 2:06-cv-03283-DCN,2:06-cv-01121-DCN,2:07-cv-00593-DCN,2:07-cv-00790-DCN,2:07-cv-02964-DCN,2:07-cv-02965-DCN,2:07-cv-02992-DCN. Copies to all parties. Mailed to: Charles Cathcart, Evelyn Cathcart, and Yuri Debevc. [10-1389]

Appeal: 10-1389

Document: 54

Date Filed: 04/12/2012

Page: 1 of 10

Filed:

April 12, 2012

UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT

No. 10-1389
(2:06-cv-03283-DCN; 2:06-cv-01121-DCN;
2:07-cv-00593-DCN; 2:07-cv-00790-DCN;
2:07-cv-02964-DCN; 2:07-cv-02965-DCN;
2:07-cv-02992-DCN)

KEVIN CAMPBELL, Chapter 7 Trustee; GENERAL HOLDINGS,
INCORPORATED, a California Corporation; ALAN M. GRAYSON;
AMG TRUST; ROBERT G. SABELHAUS; MELANIE R. SABELHAUS;
NEWTON FAMILY LLC; WCN-GAN PARTNERS LTD, a Colorado
partnership,
Plaintiffs – Appellees,
v.
CHARLES D. CATHCART; YURI DEBEVC; EVELYN CATHCART,
Defendants – Appellants,
and
DERIVIUM CAPITAL USA, INCORPORATED; VERIDIA SOLUTIONS, LLC;
BANCROFT VENTURES LIMITED; DERIVIUM CAPITAL LLC; SHENANDOAH
HOLDINGS LTD; SPENCER PARTNERS LTD; COLIN BOWEN; NIGEL
HARLEY WOOD; PAUL ANTHONY JARVIS; ALEXANDER JEEVES; BRYAN
JEEVES; THE JEEVES GROUP, a/k/a The Jeeves Company, Ltd,
a/k/a Jeeves Holdings Ltd; OPTECH LIMITED; WITCO; CHARLES
HSIN; PTS INTERTECH INCORPORATED; AQUILIUS INCORPORATED;
BANCROFT VENTURES UK LTD; ISLE OF MAN ASSURANCE LTD; DMITRY
BOURIAK; VISION INTERNATIONAL PEOPLE GROUP PL; TOTAL
ECLIPSE INTERNATIONAL LTD; KRISTINA PHELAN; JEEVES HOLDINGS
LTD; JAVELIN LTD; LEXADMIN TRUST REG; ST VINCENT TRUST
COMPANY LTD; ST VINCENT TRUST SERVICE LTD; WINDWARD ISLES
TRUST COMPANY LTD; SELBOURNE TRUST COMPANY LTD; PELICAN
TRUST COMPANY LTD; JEEVES GROUP ASIA LTD; WACHOVIA
SECURITIES INCORPORATED; JOHN DOE 1; JOHN DOE 2; JOHN DOE
3; JOHN DOE 4; JOHN DOE 5; JOHN DOE 6; JOHN DOE 7; JOHN DOE
8; JOHN DOE 9; JOHN DOE 10; JEEVES COMPANY LTD; ORANGEBURG
METAL TREATMENT CO LLC; METARIZON LLC, f/k/a Metarizon

Appeal: 10-1389

Document: 54

Date Filed: 04/12/2012

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Solutions
LLC;
RANDOLPH
ANDERSON;
JONATHAN
SANDIFER;
PATRICK KELLEY; ROBERT BRADENBURG; NIGEL THOMAS TEBAY;
JOANNA OVERFIELD BODELL; JEEVES GROUP OF COMPANIES, a
foreign
association;
DOES
1-20;
CHARLES
D.
CATHCART
CRUSADER
TRUST;
CATHCART
INVESTMENT
TRUST;
CATHLIT
INVESTMENT
TRUST;
DIVERSIFIED
DESIGN
ASSOCIATED
LTD;
CLIFFORD LLOYD; DAVID KEKICH; RED TREE INTERNATIONAL; FIRST
SECURITY
CAPITAL
OF
CANADA
INCORPORATED;
MARCO
TOY
INCORPORATED;
WITCO
SERVICES
UK
LTD;
MORIA
THOMPSON
MCHARRIE; DAVID ANTHONY KARRAN; NIGEL HAMPTON MCGOWAN;
FRANCIS GERRARD QUINN; PETER KEVIN PERRY; BRIAN BODELL;
ANDREW THOMAS; EDWARD J. BUDDEN; JOANNA OVERFIELD BODELL;
CONISTON MANAGEMENT LTD; ISLE OF MAN FINANCIAL TRUST LTD;
SPENCER VENTURE PARTNERS LLC; LINDSEY AG; JACK W. FLADER,
JR.; JAMES C. SUTHERLAND; ZETLAND FINANCIAL GROUP LTD;
FRANKLIN W. THOMASON; TSUEI CONSULTANTS INCORPORATED;
NOBLESTREET LTD; FINANCIAL RESOURCES GROUP LLC; STRUCTURED
SYSTEMS
AND
SOFTWARE
INCORPORATED;
EAST
BAY
CAPITAL
VENTURES LLC,
Defendants,
v.
RALPH C. MCCULLOUGH, II,
Movant,
CHARLESTON ALUMINUM LLC; WILLIAM NEWTON; PRIVATE CONSULTING
GROUP,
Third Party Defendants.

O R D E R

The Court amends its opinion filed May 25, 2011, as
follows:
On the cover sheet caption, the names of Defendants
“SCOTT CATHCART,” “VERISTEEL INCORPORATED,” “SCOTT AND WHITNEY

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CATHCART

FAMILY

Date Filed: 04/12/2012

TRUST,”

“WJC

Page: 3 of 10

FERNHILL

RESIDENTIAL

TRUST,”

“PERSEVERUS INCORPORATED” and “SDC FERN HILL RESIDENTIAL TRUST”
are deleted.
For the Court – By Direction
/s/ Patricia S. Connor
Clerk

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Date Filed: 04/12/2012

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UNPUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT

No. 10-1389

KEVIN CAMPBELL, Chapter 7 Trustee; GENERAL HOLDINGS,
INCORPORATED, a California Corporation; ALAN M. GRAYSON;
AMG TRUST; ROBERT G. SABELHAUS; MELANIE R. SABELHAUS;
NEWTON FAMILY LLC; WCN-GAN PARTNERS LTD, a Colorado
partnership,
Plaintiffs – Appellees,
v.
CHARLES D. CATHCART; YURI DEBEVC; EVELYN CATHCART,
Defendants – Appellants,
and
DERIVIUM CAPITAL USA, INCORPORATED; VERIDIA SOLUTIONS, LLC;
BANCROFT VENTURES LIMITED; DERIVIUM CAPITAL LLC; SHENANDOAH
HOLDINGS LTD; SPENCER PARTNERS LTD; COLIN BOWEN; NIGEL
HARLEY WOOD; PAUL ANTHONY JARVIS; ALEXANDER JEEVES; BRYAN
JEEVES; THE JEEVES GROUP, a/k/a The Jeeves Company, Ltd,
a/k/a Jeeves Holdings Ltd; OPTECH LIMITED; WITCO; CHARLES
HSIN; PTS INTERTECH INCORPORATED; AQUILIUS INCORPORATED;
BANCROFT VENTURES UK LTD; ISLE OF MAN ASSURANCE LTD; DMITRY
BOURIAK; VISION INTERNATIONAL PEOPLE GROUP PL; TOTAL
ECLIPSE INTERNATIONAL LTD; KRISTINA PHELAN; JEEVES HOLDINGS
LTD; JAVELIN LTD; LEXADMIN TRUST REG; ST VINCENT TRUST
COMPANY LTD; ST VINCENT TRUST SERVICE LTD; WINDWARD ISLES
TRUST COMPANY LTD; SELBOURNE TRUST COMPANY LTD; PELICAN
TRUST COMPANY LTD; JEEVES GROUP ASIA LTD; WACHOVIA
SECURITIES INCORPORATED; JOHN DOE 1; JOHN DOE 2; JOHN DOE
3; JOHN DOE 4; JOHN DOE 5; JOHN DOE 6; JOHN DOE 7; JOHN DOE
8; JOHN DOE 9; JOHN DOE 10; JEEVES COMPANY LTD; ORANGEBURG
METAL TREATMENT CO LLC; METARIZON LLC, f/k/a Metarizon
Solutions
LLC;
RANDOLPH
ANDERSON;
JONATHAN
SANDIFER;
PATRICK KELLEY; ROBERT BRADENBURG; NIGEL THOMAS TEBAY;
JOANNA OVERFIELD BODELL; JEEVES GROUP OF COMPANIES, a
foreign
association;
DOES
1-20;
CHARLES
D.
CATHCART

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Date Filed: 04/12/2012

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CRUSADER
TRUST;
CATHCART
INVESTMENT
TRUST;
CATHLIT
INVESTMENT
TRUST;
DIVERSIFIED
DESIGN
ASSOCIATED
LTD;
CLIFFORD LLOYD; DAVID KEKICH; RED TREE INTERNATIONAL; FIRST
SECURITY
CAPITAL
OF
CANADA
INCORPORATED;
MARCO
TOY
INCORPORATED;
WITCO
SERVICES
UK
LTD;
MORIA
THOMPSON
MCHARRIE; DAVID ANTHONY KARRAN; NIGEL HAMPTON MCGOWAN;
FRANCIS GERRARD QUINN; PETER KEVIN PERRY; BRIAN BODELL;
ANDREW THOMAS; EDWARD J. BUDDEN; JOANNA OVERFIELD BODELL;
CONISTON MANAGEMENT LTD; ISLE OF MAN FINANCIAL TRUST LTD;
SPENCER VENTURE PARTNERS LLC; LINDSEY AG; JACK W. FLADER,
JR.; JAMES C. SUTHERLAND; ZETLAND FINANCIAL GROUP LTD;
FRANKLIN W. THOMASON; TSUEI CONSULTANTS INCORPORATED;
NOBLESTREET LTD; FINANCIAL RESOURCES GROUP LLC; STRUCTURED
SYSTEMS
AND
SOFTWARE
INCORPORATED;
EAST
BAY
CAPITAL
VENTURES LLC,
Defendants,
v.
RALPH C. MCCULLOUGH, II,
Movant,
CHARLESTON ALUMINUM LLC; WILLIAM NEWTON; PRIVATE CONSULTING
GROUP,
Third Party Defendants.

Appeal from the United States District Court for the District of
South Carolina, at Charleston. David C. Norton, Chief District
Judge.
(2:06-cv-03283-DCN; 2:06-cv-01121-DCN; 2:07-cv-00593DCN; 2:07-cv-00790-DCN; 2:07-cv-02964-DCN; 2:07-cv-02965-DCN;
2:07-cv-02992-DCN)

Submitted:

April 26, 2011

Decided:

May 25, 2011

Before NIEMEYER, MOTZ, and KEENAN, Circuit Judges.

Affirmed in part; dismissed in part by unpublished per curiam
opinion.

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Charles D. Cathcart, Yuri Debevc, Evelyn Cathcart, Appellants
Pro Se.
Richard Ashby Farrier, Jr., NELSON MULLINS RILEY &
SCARBOROUGH, LLP, Charleston, South Carolina; Joseph Camden
Wilson, PIERCE, HERNS, SLOAN & MCLEOD, Charleston, South
Carolina; Alisa Joy Roberts, KUBLI & ASSOCIATES, P.C., Vienna,
Virginia; Neil Keith Emge, Jr., CARLOCK, COPELAND, SEMLER &
STAIR, LLP, Charleston, South Carolina; Hugh Wilcox Buyck, BUYCK
LAW FIRM, Charleston, South Carolina, for Appellees.

Unpublished opinions are not binding precedent in this circuit.

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PER CURIAM:
Charles

Cathcart

(“Cathcart”),

Evelyn

Cathcart

(“Evelyn”), and Yuri Debevc (“Debevc”) appeal from the judgments
entered by the district court following a jury trial and the
court’s

separate

findings

of

fact

and

conclusions

of

law

in

seven district court cases that were consolidated for trial.
The jury found in favor of the Trustee, Kevin Campbell, and in
favor of Alan Grayson and the AMG Trust on their claims to
recover a fraudulent transfer from Evelyn. 1

The jury found in

favor of the Plaintiffs and against Defendants Cathcart, Debevc,
Veridia Solutions, LLC, and Derivium Capital, LLC, 2 on the claims
for

actual

fiduciary

and

constructive

duty,

and

fraudulent

violations

of

conveyance,

the

Corrupt Organization Act, 18 U.S.C.A. §§
Supp.

2010)

(“RICO”).

The

judgments

Racketeer

breach

of

Influenced

1961-1968 (West 2006 &
provided

for

joint

and

several liability.
In the court’s findings of fact and conclusions of
law,

the

district

court

ruled

on

the

non-jury

claims

for

piercing the corporate veil and alter ego and determined that
1

District court cases No. 2:07-cv-02992 and No. 2:07-cv-

00593.
2

Derivium Capital was not named a Defendant in Nos. 2:07cv-02964 or 2:07-cv-02965, which were filed by Newton Family,
LLC, and WCN/GAN Partners, Ltd. against Cathcart, Debevc, and
Veridia.

4

Appeal: 10-1389

the

Document: 54

corporate

disregarded

Date Filed: 04/12/2012

forms

and

for

Page: 8 of 10

Derivium

Cathcart

and

and

Debevc

Veridia
be

held

responsible for the debts of the corporations.
Debevc

do

not

determination

challenge

appeal

disregard

to

on
the

corporate

should

the

personally
Cathcart and

district

form

be

and

court’s

hold

them

personally liable for the debts of Derivium and Veridia.

Any

challenge to this finding is therefore abandoned.

See 4th Cir.

Local Rule 34(b); Williams v. Giant Food Inc., 370 F.3d 423, 430
n.4 (4th Cir. 2004) (issues not argued in opining brief are
deemed abandoned).
Additionally, because the corporations are not parties
to

this

appeal,

abandoned

and

the

the

claims

district

against
court’s

the

corporations

judgments

finding

are
them

jointly and severally liable with Cathcart and Debevc are final.
“To

qualify

as

a

case

fit

for

federal-court

adjudication, an actual controversy must be extant at all stages
of

review,

Arizonans

not
for

merely

at

Official

the

time

English

v.

the

Arizona,

(1997) (internal quotation marks omitted).
this

requirement

possibly
matter.”

have

any

where

“resolution

practical

complaint

effect

520

is

U.S.

filed.”
43,

67

A case fails to meet

of

an

on

the

issue

could

outcome

of

not
the

Norfolk S. Ry. v. City of Alexandria, 608 F.3d 150,

161 (4th Cir. 2010).

In light of the fact that Cathcart and

Debevc remain personally liable for the judgments against the
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corporations by their failure to appeal the determination to
disregard the corporate form and by the corporations’ failure to
appeal the judgments against them, any resolution of the issues
asserted by Cathcart and Debevc would have no practical effect
on the outcome of the case.

See id.

Accordingly, the appeals

of Cathcart and Debevc are dismissed.
The
resolution

is

only

issue

Evelyn’s

properly

challenge

to

before
the

the

court

sufficiency

for

of

the

evidence to support the fraudulent conveyance judgments against
her.

“Recognizing that we may not substitute our judgment for

that of the jury or make credibility determinations, if there is
evidence on which a reasonable jury may return verdicts in favor
of Appellees, we must affirm.”

Price v. City of Charlotte,

North Carolina, 93 F.3d 1241, 1249-50 (4th Cir. 1996) (citations
omitted).

We have reviewed the evidence presented during the

four-week trial in these cases, and we find that the evidence
was sufficient to support the jury’s verdict.

Accordingly we

affirm the judgments against Evelyn.
While we grant the Appellants’ motion to exceed the
length limit on their informal brief, we deny Debevc’s motion
for

transcripts

at

government

expense,

affirm

the

judgments

against Evelyn and in favor of Kevin Campbell and Alan Grayson
and the AMG Trust, and dismiss the remainder of the appeal.
dispense

with

oral

argument

because
6

the

facts

and

We

legal

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contentions are adequately presented in the materials before the
court and argument would not aid the decisional process.

AFFIRMED IN PART;
DISMISSED IN PART

7