David A. Gill v. Elizabeth Versten et al

Filing 53

ORDER FINDING ELIZABETH VERSTEN AND LIZZI'S HEAVENLY STUFF, INC. IN CONTEMPT by Judge Manuel L. Real. IT IS HEREBY ORDERED that: 1. Defendants Elizabeth Versten and Lizzi's Heavenly Stuff, Inc. are held in contempt. 2. Within 10 days from the date of this order, Defendants shall complete the transfer to the Receiver of 50% of the stock in Defendant Lizzi's Heavenly Stuff, Inc., in accordance with the Court's orders dated March 21, 2011, and April 25, 2011. Should they fail to do so, Defendant Elizabeth Versten shall surrender forthwith and be held in custody until such time as she complies with the Court's order. (pj)

1 GEORGE E. SCHULMAN (State Bar No. 064572)
[e-mail]
2 MICHAEL G. D'ALBA (State Bar No. 264403)
[e-mail]
3 DANNING, GILL, DIAMOND & KOLLITZ, LLP
2029 Century Park East, Third Floor
4 Los Angeles, California 90067-2904
Telephone: [phone]
5 Facsimile: [phone]
6 Attorneys for Defendant
David A. Gill, Receiver
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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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WESTERN DIVISION

11 DAVID A. GILL, solely in his capacity as
Permanent Receiver in the matter of
12 Securities and Exchange Commission vs.
Diversified Lending Group, Inc.,; Applied
13 Equities, Inc.; Bruce Friedman and Tina
Placourakis, U.S.D.C. Case No. CV 0914 01533-R-SS,
Plaintiff,

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vs.

17 ELIZABETH VERSTEN, an individual,
and LIZZI'S HEAVENLY STUFF, INC.,
18 a California corporation,,
Defendants.

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Case No. CV 10-01500-R-SS
ORDER FINDING ELIZABETH
VERSTEN AND LIZZI'S
HEAVENLY STUFF, INC., IN
CONTEMPT
Date: June 27, 2011
Time: 11:00 a.m.
Place: Courtroom "8" - 2nd Floor
312 N. Spring Street
Los Angeles, CA 90012

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The Court entered an order on June 1, 2011, directing defendants Elizabeth

22 Versten ("Versten") and Lizzi's Heavenly Stuff, Inc., to show cause at the above23 referenced time and place why they should not be held in contempt of court for their
24 failure to comply with the Court's Order dated March 21, 2011, that they transfer
25 50% of the stock of Lizzi's Heavenly Stuff, Inc., to the Receiver. George E.
26 Schulman, Danning, Gill, Diamond & Kollitz, LLP, appeared for the Receiver, who
27 was also present pursuant to subpoena. Joseph Markowitz appeared for the
28 Defendants. Also present was the Defendant Elizabeth Versten.
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Having considered the arguments of counsel, heard testimony from the

2 Receiver at the request of the Defendants, and noted that its prior order had directed
3 that 50% of the stock in Defendant Lizzi's Heavenly Stuff, Inc., be transferred to the
4 Receiver but that this transfer had not occurred, and good cause appearing:
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IT IS HEREBY ORDERED that:

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1.

Defendants Elizabeth Versten and Lizzi's Heavenly Stuff, Inc.

7 ("Defendants"), are held in contempt of court pursuant to Rule 70(e) of the Federal
8 Rules of Civil Procedure.
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2.

Within 10 days from the date of this order, Defendants shall complete

10 the transfer to the Receiver of 50% of the stock in Defendant Lizzi's Heavenly Stuff,
11 Inc., in accordance with the Court's orders dated March 21, 2011, and April 25, 2011.
12 Should they fail to do so, Defendant Elizabeth Versten shall surrender forthwith and
13 be held in custody until such time as she complies with the Court's order.
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16 Dated: July 1, 2011
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_____________________________
MANUEL L. REAL
United States District Judge

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PROOF OF SERVICE
I, Cheryl Caldwell, declare:

I am employed by the law firm of DANNING, GILL, DIAMOND &
KOLLITZ, LLP, in the County of Los Angeles, State of California. I am employed
4 in the office of a member of the bar of this court at whose direction the service was
made. I am over the age of 18 years and am not a party to the within action. My
5 business address is 2029 Century Park East, Third Floor, Los Angeles, California
90067-2904.
6
On July 1, 2011, I served the following document(s):
7 PLAINTIFF'S OBJECTION TO SUBPOENA TO APPEAR AND TESTIFY
AT A HEARING OR TRIAL IN A CIVIL ACTION on the interested parties
8 addressed as follows:
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9 Served By U.S. Mail and Email
10 Counsel for Defendants Elizabeth
11 Versten and Lizzi's Heavenly Stuff,
Inc.
12 Joseph C. Markowitz, Esq.
Law Offices of Joseph C. Markowitz
13 444 S. Flower Street, Suite 1750
Los Angeles, CA 90071
14 E-mail: [e-mail]

Courtesy Copy – Served By Email only
Counsel for SEC Action Plaintiff
John M. McCoy, III, Esq.
Securities and Exchange Commission
5670 Wilshire Boulevard, 11th Floor
Los Angeles, CA 90036
E-mail: [e-mail]

15 (By Mail) I placed the document for collection and deposit in the mail. I am familiar
with this firm's practice for the collection and processing of correspondence for
16 mailing. Under that practice, the document would be placed in a sealed envelope and
deposited with the U.S. Postal Service on that same day with postage thereon fully
17 prepaid at 2029 Century Park East, Third Floor, Los Angeles, California 900672904, in the ordinary course of business. The documents served were placed in
18 sealed envelopes and placed for collection and mailing following ordinary business
practices.
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(E-mail)
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I declare under penalty of perjury under the laws of the State of California and
21 of the United States of America that the foregoing is true and correct.
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Executed on July 1, 2011, at Los Angeles, California.

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Cheryl Caldwell
(Type or print name)

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/s/ Cheryl Caldwell
(Signature)

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