Securities and Exchange Commission v. Vassallo et al

Filing 258

ORDER signed by Senior Judge Lawrence K. Karlton on 4/20/2010 DIRECTING Hale, Lane, Peek, Dennison and Howard to provide documents and information permitting receiver to trace $800,000 from JD Centuries, LLC account on or about 11/8/2007. (Engbretson, K.)

1 FUTTERMAN DUPREE DODD CROLEY MAIER LLP JAMIE L. DUPREE (158105) 2 JAIME G. TOUCHSTONE (233187) 180 Sansome Street, 17th Floor 3 San Francisco, CA 94104 Telephone: [phone] Facsimile: [phone] [e-mail] 5 [e-mail] 6 Attorneys for Receiver Stephen E. Anderson 7 8 9 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Plaintiff 13 v. 14 ANTHONY VASSALLO, et al, 15 Defendants. 16 17 18 On April 30, 2009, this Court filed the Order Appointing Temporary Receiver for Equity UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA SACRAMENTO Case No. CV 09-000665 LKK-DAD ORDER DIRECTING HALE, LANE, PEEK, DENNISON AND HOWARD TO PROVIDE DOCUMENTS AND INFORMATION PERMITTING RECEIVER TO TRACE $800,000 FROM JD CENTURIES, LLC ACCOUNT ON OR ABOUT NOVEMBER 8, 2007 Judge Lawrence K. Karlton

19 Investment Management and Trading, Inc. ("EIMT") and Order to Show Cause for Appointment 20 of Permanent Receiver ("OAR") and on July 31, 2009, the Court filed an Order permanently 21 appointing Receiver. Pursuant to the OAR, for good cause shown, and in order to empower and 22 authorize the Receiver to carry out his duties and obligations, 23 24 THE COURT HEREBY FINDS AND ORDERS AS FOLLOWS: On November 7, 2007, and November 8, 2007, $2,000,000 of EIMT investor funds were

25 transferred to Jeff Dennis Ferentz (a California attorney) and/or Jeff Dennis Ferentz, Inc. 26 (collectively "Ferentz"), in connection with a "bank sanctioned high yield project funding 27 program." The funds were deposited into the Jeff Dennis Ferentz, Inc. Client Trust Account (the 28 "Ferentz Account"). Receiver's investigation has revealed that another investor "invested" FUTTERMAN DUPREE 1
DODD CROLEY MAIER LLP

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[PROPOSED] ORDER DIRECTING HALE LANE TO PROVIDE DOCUMENTS AND INFO. RE DISPOSITION OF $800,000 CASE NO. CV 09-000665 LKK-DAD

1 $900,000 with Ferentz in connection with the same transaction on November 7, 2007, the same 2 time as EIMT transferred its $2,000,000 to Ferentz. 3 This Court previously issued orders authorizing banks and financial institutions to assist

4 Receiver in tracing the EIMT investor funds transferred to Ferentz including funds transferred 5 from Jeffrey Dennis Ferentz, Inc. to entities controlled by Mr. Ferentz, including "Centuries 6 Worldwide, LLC" and "JD Centuries, LLC." (Doc. Nos. 149 and 219 ), which remain in full force 7 and effect. 8 Receiver's investigation has revealed that the balance of the Ferentz Account at the

9 beginning of November 2007 was $1,111.49 before the $2,900,000 was deposited on 10 November 7 and 8, 2007; at the end of November 2007, the balance was $96,476.49. In short, 11 the vast majority of the funds deposited in the Ferentz Account in November 2007 was 12 transferred out of that account shortly after deposit. 13 Receiver has determined that $1,830,000 was transferred from the Ferentz Account to a

14 Wells Fargo checking account in the name of "Centuries Worldwide, LLC" on November 7, 15 2007. The same day, $1,650,000 of those funds was transferred from "Centuries Worldwide, 16 LLC" to a Wells Fargo checking account in the name of "JD Centuries, LLC." On November 8, 17 2007, $800,000 of the funds transferred to "JD Centuries, LLC" was wired to the U.S. Bank 18 client trust account of Nevada law firm Hale, Lane, Peek, Dennison and Howard ("Hale Lane"). 19 To further assist Receiver's investigation in tracing the EIMT funds transferred Ferentz,

20 the Court directs Hale Lane to provide information and documentation concerning the November 21 8, 2007 wire from JD Centuries, LLC to the Hale Lane client trust account for $800,000, 22 sufficient to permit Receiver to trace those funds, including but not limited to account statements 23 related to that wire transfer and/or reflecting receipt and disbursement of the $800,000, any 24 correspondence or other documentation concerning the disbursement of the $800,000, the name 25 and contact information of any Hale Lane client for whom Hale Lane received the $800,000, and 26 other information and documentation facilitating Receiver's tracing of these funds 27 28
FUTTERMAN DUPREE DODD CROLEY MAIER LLP

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[PROPOSED] ORDER DIRECTING HALE LANE TO PROVIDE DOCUMENTS AND INFO. RE DISPOSITION OF $800,000 CASE NO. CV 09-000665 LKK-DAD

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Hale Lane is further directed to cooperate fully with Receiver in Receiver's activities,

2 investigation and inquiries on behalf of this Court. 3 4 5 Dated: April 20, 2010 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
FUTTERMAN DUPREE DODD CROLEY MAIER LLP

IT IS SO ORDERED.

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[PROPOSED] ORDER DIRECTING HALE LANE TO PROVIDE DOCUMENTS AND INFO. RE DISPOSITION OF $800,000 CASE NO. CV 09-000665 LKK-DAD

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