Securities and Exchange Commission v. Vassallo et al

Filing 270

ORDER Directing Strong McPherson & company to Provide Documents and Information permitting Receiver to Trace $423,320.80 received on or about 11/9/2007 signed by Senior Judge Lawrence K. Karlton on 4/27/2010 re #267 . (Duong, D)

Download PDF
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: (415) 399-3840 4 Facsimile: (415) 399-3838 5 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 STRONG MCPHERSON & COMPANY TO PROVIDE DOCUMENTS AND INFORMATION PERMITTING RECEIVER TO TRACE $423,320.80 RECEIVED ON OR ABOUT NOVEMBER 9, 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 PDF created with pdfFactory trial version [PROPOSED] ORDER DIRECTING STRONG MCPHERSON TO PROVIDE DOCUMENTS AND INFO. RE $423,320.80 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 Receiver's investigation has revealed that the balance of the Ferentz Account at the 4 beginning of November 2007 was $1,111.49 before the $2,900,000 was deposited on 5 November 7 and 8, 2007; at the end of November 2007, the balance was $96,476.49. In short, 6 the vast majority of the funds deposited in the Ferentz Account in November 2007 was 7 transferred out of that account shortly after deposit. 8 This Court previously issued orders authorizing banks and financial institutions to assist 9 Receiver in tracing the EIMT investor funds transferred to Ferentz including funds transferred 10 from Jeffrey Dennis Ferentz, Inc. to entities controlled by Mr. Ferentz, including "JD Centuries, 11 LLC" (Doc. Nos. 149 and 219), which remain in full force and effect. 12 Receiver has determined that on November 8, 2007, $800,000 of the Ferentz funds were 13 wired to the U.S. Bank client trust account of Nevada law firm Hale, Lane, Peek, Dennison and 14 Howard ("Hale Lane"). This Court previously issued an order directing Hale Lane to provide 15 information and documentation concerning the November 8, 2007 wire from JD Centuries, LLC 16 to the Hale Lane client trust account for $800,000, sufficient to permit Receiver to trace those 17 funds (Doc. No. 258), which remains in full force and effect. 18 On November 9, 2007, of the $800,000 of Ferentz funds wired to Hale Lane, $423,320.80 19 was transferred to the Nevada certified public accounting firm of Strong McPherson & Company 20 ("Strong McPherson") at the direction of Ron Laspina. These funds were transferred via two 21 separate checks issued from the Hale Lane client trust account in the amounts of $35,000.00 and 22 $388,320.80. 23 To further assist Receiver's investigation in tracing the EIMT funds transferred Ferentz, 24 the Court directs Strong McPherson to provide to Receiver information and documentation 25 concerning the November 9, 2007 transfer of $423,320.80 from Hale Lane, sufficient to permit 26 Receiver to trace those funds, including but not limited to account statements related to the 27 transfers and/or reflecting receipt and disbursement of the $35,000.00 and the $388,320.80, any 28 correspondence or other documentation concerning the disbursement of the transfers, the name FUTTERMAN DUPREE 2 DODD CROLEY MAIER LLP PDF created with pdfFactory trial version [PROPOSED] ORDER DIRECTING STRONG MCPHERSON TO PROVIDE DOCUMENTS AND INFO. RE $423,320.80 CASE NO. CV 09-000665 LKK-DAD 1 and contact information of any Strong McPherson client for whom it received the funds, and 2 information and other documentation facilitating Receiver's tracing of these funds. 3 Strong McPherson is further directed to cooperate fully with Receiver in Receiver's 4 activities, investigation and inquiries on behalf of this Court. 5 6 7 Dated: April 27, 2010 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. 3 [PROPOSED] ORDER DIRECTING STRONG MCPHERSON TO PROVIDE DOCUMENTS AND INFO. RE $423,320.80 CASE NO. CV 09-000665 LKK-DAD PDF created with pdfFactory trial version

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.

Why Is My Information Online?