United States of America v. Berthel SBIC, LLC

Filing 2

CONSENT ORDER and JUDGMENT of Receivership appointing U.S. Small Business Administration as Receiver for Berthel re 1 Complaint filed by United States of America. Signed by Judge Linda R. Reade on January 7, 2009, Northern District of Iowa, case no. 08-CV-151-LRR. (lw)

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D 5 Case1:08-cv-00151-LRR o c u m e n l Filed01/07/2009 t?e rHfr"d A ir,r|ltri I rlittAR s crert F S #pqs'n,?u{sorr, -++5&. IEPI'IYfl.$K JirJ2tJ 2009 STATES DISTRICT COURT IN THE IJ-I'{ITGD FORTHENORTHERN DISTRICT IOWA OIT C , x l aRnoids r Division U N I l ' E DS'TA1'ES AMERICA, OI Plaintifl t_. civitcasc Qfuljj$ft.o, 0rder LRR SBIC,LLC BERTHEL Dcftndnrrt. CONSENT ORDIIIT AI*iDJTJDGMENT I T IS HEREIJY ORDEITED. ADJUDCED AND DECREED: I. Punuant thcpmr,isiorrs l5 U.S.Cto of this lrrkcs cxclusir',.: $68?c, C<rurt j u r i s d i c t i o n BcrthclSBIC,LLC ("Bcnhel")andsll of its nsrcts propany, of and of r v h o l c v ckind andwhcrsvsrlosstcd, thc UnitcdStatcs r !n(l SrnallBusincss ("SBA'') is hereby Adnrinistsation appinlcd Receiver Bcnhel('Reccircf') to scrvc of w i l h o u tbord until funhcrorderol'thisCoun. Thr Rcccivff is uppointcd thupurpose for ' . r lnrurshalling liquirlating nnordcrlyrnannuarll rrnd in ofBcnhcl's asscts satisfuing and t h c cluims ofcrcditorstherefrom thc ordcrofprioriry rs dcttrruincd thisCourt. in bI 2. Thc Receiyer shallhalc all pr.rwcrs, authoritics. riS,hts privilugar snd posscsscd thc ofliccrs,dircctors, by managers, invcstment and hrrctoforc Bdvi$ors othef, rpplicablestrti:llnd lcdcd law, by tlrc Articlc$of lr|corporation, a8cnrr 0fBcfl}cl rrrrdr:r a n dBy-Lawsol saidcorporation, ddition to allporvvrsa$dduthority rcccirfi at ifl ofa L a j u i t yafldall p'Jrrcls , andaulhoritJ' Lurf'crcduponthERl-.ccilcr thc provisions l5 by of directors, cmployees, I J , S , C$ 687cand?8 U.$.C.$ ?54. ThcIni.clces, . offiu:rs, and r n i u r a g c rinvrstmcnt s, adr.isors agcnts ofEcrthcl arc hcrcbydismisscd. Suchpefinns 5 Case1:08-cv-001 51-LRR Document Filed 01/07/2009 Page2 ot / dxcaptto thc crlclrt lo sbull hnveno nuthoritywith reepcdt Bcnhel's opet8tioosor EssEtt, sEmey h?rcf,flerbc arpresslygrantcdby thc Rcc+ivcr' The Roccivcrrhdl essuneetd coutol the operationofBcnhol ad thall purruc andp't+erve dl of its Elaimg. 3. invcstrncntfidvltomr Thc pasland/or prcsentofficcrt, dirtctoru, managcru, agcobrtruste, altollleyE,qccoufltrllts,andemployetr ofBcrthcl, rs wcll asall those rcting in thoir place.arc lrertby ordcrcdEnddircctcdto h,rrnovcr lo lhe Rcccivtr sccountsrnd Ell olher inrtrumtrllc urd pup*t of forthwith all bookt, re+ordt,do+umortsr andrclnting to Berlhcl urd its sssctsrnd all othcr ssets rnd pruprty of tbc coryoration, acccss all patlicipants to w h c t h r rcalor prsonal- Tht Recdvcrwill pmvidcrcasoneble wilh regardto any invi|mcnt in thc BErlhcl portfolio. Thc formd PrcaidEnl, DirEctor urd/or orhcr agert of Bathel, shall filrlliEh r wittHr dtatiincni within fivc (5) dryF dfrer t h c ctrrryofthfu Ordff, Iistinglhe idcntity,location G3timErcd Nrd v6lucof6ll aiEcts of B e r t h e luswcll nsthc nbrneg. uddresgEg utfiountr cluimsofnll hrown crcdltors md of of person B a t h e l . Withinthiny (10)daysfolloying thecntryof thir Ordcr.sutth shrll rko furnish a wdtten rdpon describingall artcts. All pcrtons hdving tonrol, custodyot or possrsrionofony arscLr prupertyof Berthelarc herubydircctrd to hrm Euchdssr:ts snd propcrty ovcr to lbc REccivcr. 4. prumptlygivc noticeof it6 appointmatlo all known The Rcsiver slra.ll oIficers,dircclors, rgcnl.a, crnployucs, sharcholderg, crcditott lnd debton of Be.rthcl, us thc Rcceiverdrms necessury advisablcto effccrualelhe opcrationof lbe rccivsrrhip. or by A l l psrsonr cntiticsowing anyobligstionor dcbtto Berthcl,until ftrthcr ordcrcd ud with t h i s Courl,payrll suchobligationtin accordEncc ihc tctmE lhcrcofto theRcccivcr Case1:08-cv,001 -LRR 51 Document 5 Filed 01/07/2009 P a g e3 of 7 a l l dits Eciptfor suchprymcniE thsll hevethasamo forccondolfoctar ifBcrthcl had pEyflcnts. TtcivcdEuch J. Thc Rcccivcr is hcrcbyauthorlrrd ro opet ch RErivcir accounts at b a l r k i l gor otherfinsDcisl in$itutionsto Erttud srEditon bhalfofBcnhel,to utilizr 3BA pcrsonncl, to Enploy suchothcr perronnclusit may deemnecosslryro and c f f c c , t u a lthc operstion a of0rr receivcnhip including. not limirddro,enom6ys, but acmuntrnB, rnd apprd*rt, urd is funhcr authorizcdto cxpEid rcc*ivffship fi$ft to olnparErtcEucllpcrsonnclin such amountrud uponruch tcfins as the Receivcrshsll d c e mreasonable light ofthe usuor in feestnd biling paeticts urd Fmcedurss ofruch personncl.Thc Rcceivff is uot nquirud to obtain Coun dpprovrl pridr ro rhe disburscmcnofruceivcrship fundr for pry'nrnts to persdnner t cmployar by rhe Reccivcr o r for rxpfiEesthatthc RetcivcrdcunsrdvantEgeouJ thc orderlyadmlnistsation to and o p c r a d o o thc rcccivenhip.In udditionthe Rcccivcr authdrizcd rcimbulte&E of is ro SBA for travcl crpenscsincurtd by SBA peronnel in lhc cstablichmcnt and a d r h i n i b u a r i oof thc rccciverubip. Reccive' n The may,wirhoutfunhcr0d* of lhiscotrrl l r a n $ f u rc$mpromisd, othtrwiscdispose sny dsst , or of (i$cluding withoutlimilaiionsny clqirh), othcr lhEnrlal e3tdtE. 6. Bcrlhcl'spastand/or prcscnt of6c{ns, dirclotB, dgcflls, scEounnnG, m u n a g e t tshardholdcrs, , cmployees, dcbtom creditors and ofB.flhcl 6ndotbcr per$on6 (includingwithoutlimitatiotr, defendrDih appropriEtr th ponfouoofrmall b u ; i n e s reonccrnr finaneialinslilutiohd and doing, busin*Ewith d'fnalant snd-/ot d c f e n d a n t 'porlfolioofsmall busincss .r concrms)shallannverutrdcrodthro thc Rdcciver a l l qucstioru whichthc Rcccivcrmayput io ftctt in cootplinncE theFederar witb Ruls$ - . 5 Document Case1:08-cv-00151-LRR F i l e d01/07/2009 Page4 of 7 rg otGivil Prcccdure, pursuantthervtoshsll producdaoy docrmrents rc{uird by thc ahd to Rccaivcrtcgrrdhg thc butinisi ofsrid corpor|tiorl ot Enyolh"r sfllter rclGvaut lbE otlrstior dr rdministrrtion of rhe rctcivcrrhip or the mll*tior of fi$ds dut ro Eefihsl. to oflbc In thEcycnl thst lhc Rccuivcrdccmsil flcccasary rcquirs thEgppcalsocE pcrtonE, ptuduclion thc ofdof,rrtrEntrr atbrcmarliootd itrfotrretion, nny othcr or thc discoveryconcerning stscts, ptspsrty or busin$ oplfnfions of Btrtrd, or flty othcr or mrltcr rclsv0nt to thc opctdtion or adminbtradonoftho Recelverstrip thc collcction of f u l d i ductd Bcrlhcl,theRcc6iver shullmakr its dircovcryrcquesl(E] conplirnc+with i[ t h c Fcdcrul Rultr of Civil Prrcdurc. ?. Thc pttier, or any prmpcctiveprnict, o rny andrll civil lcgrl pro+eedings proceer,ling, including ofany nsturc,cxchdingtheinstant withdut but limittlion bankruplcypmccedings,arfoitsatio4 pruccrdinE3, forcclosurcmtionr, dcfault proccedin84or olhef rctionBef rny D0t}reinvolving Bcrthcl or a.oy amcri of Bftlel, including putncrships otberbuslncss subrldiuric6, urd ofEcrthol,whcruver combinations l o c a l e dor involvingBenhel,thr Reccivcr, anyof Bcthrl's pdEt prcd|lt , or or ofilcrs, or dirEctor+[lEr|tr8fis, sgcnt+ or ECrLTsl limitc.l FarrnEffBuedfOr,or in cOonection with, octionttrken rbernwbilc actingin suchcaprcityofany r|aturc, EDy whethcr plaintifl by ar dcfendu't, plaintif[, lhird-party dcfrndqnt. olhcrwird, crhined frotn third-pdfty or drr colnmcncingor rDntiDuinB suchlEgll proceeding, from taking nny rchon, in EDy or c o n n E c l i owilh Enysuchprocccding any ruchasrct. All civil lcgolpruo:edings o of or proccdlng, inaluding r+ithout lifiritfliidnharkmFtcy ercludingthc ifl$tdnt but o n y naturo, protEcdLrB$, or stiustion proccrdings,forecloturcaclions,.lcfault procEtdings, other involvingBcrthclor ffiy asits BEriIcl,i.ucluding of rubridltics, s c r i o nofrny nalure 5 51-LRR Document Case'1 :08-cv-001 Filed 01/07/2009 Page5 of 7 parucruhiprand o0rcrbusincrscnmbinttioneofBenhel, whtrsrrct locatcd,rnd cxcltrding thc inBtint procecdlDgor involving Bcrttrel,lhg Rcccivcr,or any ofBcdhcl'J pttl or or presenl ofhceH, dillclorr, m ragBr3, dgdr q or EencrEl limitcd ptrtnrrt sllcd for' or in conncction with, trly rction t*en by thsm whilc tctint in ruch capacitycfrny nrtruc, whctbtr rs plaintiff dcffidant, third'pafiy plrintifr, third-party dcfardant,or otherwi*, in ErE Etdycd thcir cntircty, rnd Ell Courtshdving adyjuntdictiou tbcrmf areenjoined f i o m trking or pffflrittinBdny dctionuntil fu'tbu ftdcr ofthis Cou . 8. Fur$er, 6t to a cnuBrof f,clion rccrucd or accruingin favor of Bgtlrcl rgsinEtr rhird pEr8otr pffiyr any dpplicsblcst8tutcof limitation ic tollod drfing the or pcriod in which rhtr ldjunction Egrinstthc corDtEcncstenlof tegelprrcacdingsir in clltct rc ta that csuseof action. 9, dircctoGr Bdthcl dndit5 po8tand/orpresetrt omccl6,md$rgrf, ldnerrl dr panfltrs,f,glnts,invcstment rcting in linrited sdvisOb, cmplOytttt5d Othrrpcrsons coflcartor psrticipatingtherewithbe, and thry hcrtby arc, cnjoind frora citbcr dlrccdy or or indirectly tukingany Bclions cqusirgrny suchactionto be token whichu,ould dissipate *relr aod/or lrspfity of Beflbcl ro the dcfimcnl of the Rccelvff appointcd he but i n thisclrsc, includiog not limitcd to dcstruction ofcorporatc rtrordq or wtich l5 661 w o u l d violttc thc $mall Busincss Invcstrnent of 1958, amendcd, U.S.C. sL Act ar ("Rc8ulstions"), C.F.R.Put 107. proruulgatcd 13 lhcrcundel f l E l , or thr resulElions 10, ThcRrcrivm is aulhorized bortowoo behalfof Bcrttrrl,fiom thc SB,\ lo of and Rceivcy's Ccrllficates u p to $ 100,000 is tuthotizcdto causc Benhclto issue will I n d e b t e d n u s thc principrl amounts ofthc sumsbortolcd, whirh ccrtilicatcs bcar in intertt ot or uboutl0 pcrEd|t psr sl|Jl|u snd will hsvc ! Dlturity dal [o ]atcf lhln l8 Document 5 Case1:08-cv-00151-LRR F i l e d01/07/2009 Page6 of 7 mo,n $ afrerthe datc ofissuc. $sid Rcclv#g Ccttificatet oflnddtcdnE$s shsll be deernod bc administrativcexpEnicsof the Rccnivcrship, to I l. Judgment hcrcbyenttrcdin favor of Fltintlff, UnitcdState of Amcrica, is o n bchalfofits agency, U.S.SmallButinessAdministfitidn (*SBA'')' sgli$61 thc plus in Defcodant, EerthelSBIC, LLC C'Bc|rhcl*), theprincipalsuu of$1,773,841.50 of dccrucd intcrcst of$!7J98.79 throughNovembff l?,2008 plus accruidittt6rcst pcr $ 5 6 6 . 1 5 day up to the dstoofertry of this Judgment, tog,ether post-judgment with ldtercdlNtth6 fitc a.llowcdby law. 12. SBA shall be ap'poi cd Rcreivcr shall be appointedRetcivc ofBsthel b s s e d Berlhel'sconscnt. on Document 5 Case1:08-cv-00151-LRR Filed 01/07/2009 Page7 of7 IJY THE SMALL BUSINE$S IJEEN ANDAGREEI) IIERTHEL SBIC,LLC .ln*D T'TIIOUGH THEIR DULYAUTHORIZED ADTIINISTRATION. REPRESENTATIVES; BERTIIEL SBIC, AUSINESS ADiVIINIS'I-R ATION U . S .ST,IALL tsranch C h i c l :Account Rcsolution DATEI)* * / * , , S OORDEITED. STATES D JUD6E COI.JRT 4 Document Case1:08-cv-00151-LRR Filed 01/07/2009 Page1 of 1 IN THE UNITED STATESDISTRICT COURT FOR THE NORTHERNI}ISTRICT OF IOWA CEDARRAPIDSDIVISION U N I T E D STATESOF AMERICA, PlaintilT, vs. B E R I ' H H L SBIC,LLC, Del'endant. N o .08-Cv-151-LRR ORDER O copy of the Consent r d e r and Judgment. The court receiveda corrected is a for there no longer need a hcarirg. Accordingly, I T IS ORDERED: L 2. at set 9, Thehearing for January 2009 l:00 p.m. is C A N C E L L E D . administratively thisc a s e . close ThcClerkof Courtshall IT IS SO ORDERED. 2009. day D A T E Dthis7'r' of January, L I } D A R, READE COURT C H I E FJUDGE, U.S.DISTRfCT OF IOWA NORTHERN D]STRICT

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