Securities and Exchange Commission v. Vassallo et al

Filing 259

ORDER signed by Senior Judge Lawrence K. Karlton on 4/20/10 DIRECTING Wells Fargo to freeze USR site acquisition, LLC savings account pending further court order. (Owen, 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 WELLS FARGO TO FREEZE USR SITE ACQUISITION, LLC SAVINGS ACCOUNT PENDING FURTHER COURT ORDER 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"). The unsigned joint venture agreement located by Receiver for this FUTTERMAN DUPREE 1
DODD CROLEY MAIER LLP

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[PROPOSED] ORDER DIRECTING WELLS FARGO TO FREEZE USR SITE ACQUISITION , LLC SAVINGS ACCOUNT CASE NO. CV 09-000665 LKK-DAD

1 investment lists the parties as Defendant Anthony Vassallo as the investor and Jon Fragosa, Jeff 2 Dennis Ferentz, and Charles Jarvis as the "Facilitator." Receiver's investigation has revealed that 3 another investor "invested" $900,000 with Ferentz in connection with the same transaction on 4 November 7, 2007, the same time as EIMT transferred its $2,000,000 to Ferentz. 5 This Court previously issued orders authorizing banks and financial institutions to assist

6 Receiver in tracing the EIMT investor funds transferred to Ferentz including funds transferred 7 from Jeffrey Dennis Ferentz, Inc. to entities controlled by Mr. Ferentz, including "USR Site 8 Acquisition, LLC." (Doc. Nos. 149 and 219), which remain in full force and effect. 9 Receiver's investigation has revealed that the balance of the Ferentz Account at the

10 beginning of November 2007 was $1,111.49 before the $2,900,000 was deposited on 11 November 7 and 8, 2007; at the end of November 2007, the balance was $96,476.49. In short, 12 the vast majority of the funds deposited in the Ferentz Account in November 2007 was 13 transferred out of that account shortly after deposit. 14 Receiver has determined that $700,000 was transferred from the Ferentz Account to a

15 Wells Fargo savings account in the name of "USR Site Acquisition" on November 26, 2007. 16 The primary signatory and "Owner/Key Individual" on the account is Charlie Jarvis and the 17 secondary "Owner/Key Individual" on the account is Jeff D. Ferentz ("USR Site Acquisition 18 Account"). 19 The only money deposited into the USR Site Acquisition Account was the $700,000 from

20 the Ferentz Account on November 26, 2007. Since that time, there have been interest payments 21 made on the account and regular withdrawals but no other deposits. As of March 31, 2010, the 22 USR Site Acquisition Account had a balance of $168,055.45. 23 To assist Receiver in preventing the further transfer of and/or dissipation of EIMT assets,

24 Wells Fargo is hereby directed to freeze the Wells Fargo savings account in the name of "USR 25 Site Acquisition," Account No. ###-####703 (the full number of which will be provided to Wells 26 Fargo from Receiver) until further order of this Court. 27 28
FUTTERMAN DUPREE DODD CROLEY MAIER LLP

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[PROPOSED] ORDER DIRECTING WELLS FARGO TO FREEZE USR SITE ACQUISITION , LLC SAVINGS ACCOUNT CASE NO. CV 09-000665 LKK-DAD

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Wells Fargo 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 WELLS FARGO TO FREEZE USR SITE ACQUISITION , LLC SAVINGS ACCOUNT CASE NO. CV 09-000665 LKK-DAD

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