Securities and Exchange Commission v. Vassallo et al

Filing 304

ORDER signed by Senior Judge Lawrence K. Karlton on 6/21/10 directing Premier Title Company, GT Title Services, Atlas Title and First American Title to produce documents and information to receiver concerning wire tranfers from Vastmann Investment Partners. (Zignago, 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 19 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 PREMIER TITLE COMPANY, GT TITLE SERVICES, ATLAS TITLE AND FIRST AMERICAN TITLE TO PRODUCE DOCUMENTS AND INFORMATION TO RECEIVER CONCERNING WIRE TRANSFERS FROM VASTMANN INVESTMENT PARTNERS Judge Lawrence K. Karlton

20 Investment Management and Trading, Inc. ("EIMT") and Order to Show Cause for Appointment 21 of Permanent Receiver ("OAR") and on July 31, 2009, the Court filed an Order permanently 22 appointing Receiver. Pursuant to the OAR, for good cause shown, and in order to empower and 23 authorize the Receiver to carry out his duties and obligations, 24 25 THE COURT HEREBY FINDS AND ORDERS AS FOLLOWS: EIMT transferred investor funds to various subfunds and various subfunds transferred

26 funds to EIMT. Vastmann Investment Partners, LLC ("VIP") was identified as an EIMT 27 subfund in this Court's August 10, 2009 Order Compelling Subfund Managers To Produce 28 Documents and Information (Doc. No. 110), which remains in full force and effect. Receiver FUTTERMAN DUPREE 1
DODD CROLEY MAIER LLP

[PROPOSED] ORDER DIRECTING TITLE COMPANIES TO PRODUCE DOCUMENTS AND INFORMATION TO RECEIVER CASE NO. CV 09-000665 LKK-DAD

1 believes that EIMT money was comingled with VIP money and was used to redeem investments 2 made by VIP investors. Receiver's investigation has determined that in excess of $18 million 3 was contributed to EIMT by VIP. In return, VIP, its principals and/or SIG/VIP investors 4 received in excess of $29 million, representing at least $11 million in phony profits. Receiver is 5 endeavoring to track the investor money transferred to/from EIMT to/from VIP in order to 6 recover these EIMT investor funds. 7 Receiver's investigation has further revealed that on July 20, 2006, VIP wired

8 $1,070,000.00 from Wells Fargo Bank Account No. XXX-XXX3414 to a Zions First National 9 Bank account held in the name of Premier Title Company. On July 21, 2006, July 24, 2006 and 10 July 28, 2006, VIP wired three separate payments of $261,896.58 each, from the same Wells 11 Fargo Bank account to a Zions First National Bank account held in the name of GT Title. On 12 September 28, 2006, VIP wired $370,000.00 to a Central Bank account held in the name of Atlas 13 Title. Finally, on January 26, 2007, VIP wired $50,000.00 to a First American Trust account 14 held in the name of First American Title. 15 To further assist Receiver's investigation in tracing the EIMT funds transferred to VIP,

16 the Court directs Premier Title Company, GT Title Services, Atlas Title and First American Title 17 to provide information and documentation to Receiver concerning the above-detailed wires from 18 VIP, including, but not limited to any escrow file(s), statements and/or other documentation and 19 information concerning any transaction related to the relevant wire transfer(s), receipts by, 20 disbursements from, and transfers to/from any and all account(s) related to the relevant 21 transfer(s), account(s), account holder identification and details of any related transactions. 22 Premier Title Company, GT Title Services, Atlas Title and First American Title are

23 further directed to cooperate fully with Receiver in Receiver's activities, investigation and 24 inquiries on behalf of this Court. 25 26 27 Dated: June 21, 2010 28
FUTTERMAN DUPREE DODD CROLEY MAIER LLP

IT IS SO ORDERED.

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[PROPOSED] ORDER DIRECTING TITLE COMPANIES TO PRODUCE DOCUMENTS AND INFORMATION TO RECEIVER CASE NO. CV 09-000665 LKK-DAD