Securities and Exchange Commission v. Vassallo et al

Filing 395

ORDER signed by Senior Judge Lawrence K. Karlton on 12/14/10 DIRECTING Wells Fargo Bank and Far West Bank to Produce Documents and Information to Receiver Concerning VIP Accounts. (Owen, K)

-DAD Securities and Exchange Commission v. Vassallo et al

Doc. 395

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 BANK AND FAR WEST BANK TO PRODUCE DOCUMENTS AND INFORMATION TO RECEIVER CONCERNING VIP ACCOUNTS 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: EIMT transferred investor funds to various subfunds and various subfunds transferred

25 funds to EIMT. To date, Receiver has identified in excess of thirty subfunds, one of which is 26 Vastmann Investment Partners, LLC ("VIP"). Receiver's investigation has revealed that in or 27 around July 2004, defendant Anthony Vassallo, Jarom L. Dastrup and Jaren Ahlmann formed the 28 Strategic Investment Group ("SIG") and in or around September 2005, Vassallo, Dastrup and FUTTERMAN DUPREE 1
DODD CROLEY MAIER LLP

[PROPOSED] ORDER DIRECTING WELLS FARGO AND FAR WEST BANK TO PRODUCE DOCUMENTS AND INFORMATION CASE NO. CV 09-000665 LKK-DAD Dockets.Justia.com

1 Ahlmann formed VIP. Vassallo and/or Dastrup and/or Ahlmann were signatories on one or 2 more Washington Mutual bank account(s), possibly held in the name(s) of VIP, SIG, VDA 3 Management, Dastrup Vassallo Investments, Links Lending, Links Capital Lending, Dastrup 4 Assets Strategies, Crossroad Equity, LLC, JD Mann, LLC and JD One, LLC (the "VIP 5 Washington Mutual Accounts"), all of which Receiver believes are related to VIP and/or SIG. 6 Receiver believes that EIMT money was comingled with VIP money and was used to

7 redeem investments made by SIG and VIP investors. Receiver's investigation has determined 8 that in excess of $18 million was contributed to EIMT by VIP. In return, VIP, its principals 9 and/or SIG/VIP investors received in excess of $29 million in EIMT investor funds, representing 10 at least $10.7 million more than was originally deposited with EIMT. Receiver's investigation 11 has revealed that the $10.7 million in EIMT investor funds were transferred to the VIP and/or 12 SIG investors to pay principal and/or profit on their investments. 13 The Court previously issued an order authorizing Washington Mutual Bank to provide

14 information and documentation to Receiver concerning any and all VIP Washington Mutual 15 Accounts and/or any accounts on which Jarom L. Dastrup, Jaren Ahlmann and/or Anthony 16 Vassallo had signing authority (Doc. No. 327), which remains in full force and effect. 17 Receiver's investigation has revealed that VIP and/or SIG sent their own investors'

18 money to other entities, but were able to repay those investors principal and/or profit solely 19 because they received a large influx of capital from EIMT; and VIP and/or SIG had relationships 20 with financial institutions in addition to Washington Mutual, including, but not limited to Wells 21 Fargo Bank and Far West Bank. Receiver believes that prior to March 2006, significant funds 22 were transferred from the VIP Washington Mutual Account to Wells Fargo and Far West Bank 23 accounts held in the name of Links Lending and SIG. Receiver is endeavoring to track the 24 money transferred to/from the VIP Washington Mutual Accounts and to create an accounting 25 record for the EIMT investor funds transferred to/from EIMT to/from VIP and/or SIG. 26 To further assist Receiver's investigation, the Court directs Wells Fargo Bank and Far

27 West Bank to provide information and documentation concerning any and all accounts held in 28 the name(s) of Links Lending, Links Capital Lending, VIP, SIG, VDA Management, Dastrup FUTTERMAN DUPREE 2
DODD CROLEY MAIER LLP

[PROPOSED] ORDER DIRECTING WELLS FARGO AND FAR WEST BANK TO PRODUCE DOCUMENTS AND INFORMATION CASE NO. CV 09-000665 LKK-DAD

1 Vassallo Investments, Dastrup Assets Strategies, Crossroad Equity, LLC, JD Mann, LLC and JD 2 One, LLC, and/or any accounts on which Jarom L. Dastrup, Jaren Ahlmann and/or Anthony 3 Vassallo had signing authority from July 2004 through December 2008, including, but not 4 limited to Wells Fargo Bank account numbers XXX-XXX3606, XXX-XXX4265 and Far West 5 Bank account number XXXXX3326. Such documentation shall include, but is not limited to 6 statements and other documentation reflecting receipts by and disbursements from such 7 accounts, account numbers and account holder information. 8 Wells Fargo Bank and Far West Bank are hereby prohibited from notifying account

9 holder(s), including, but not limited to Jarom L. Dastrup and/or Jaren Ahlmann, of this Order and 10 are directed to cooperate fully with Receiver in his investigation and inquiries on behalf of this 11 Court. 12 13 14 Dated: December 14, 2010 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 AND FAR WEST BANK TO PRODUCE DOCUMENTS AND INFORMATION CASE NO. CV 09-000665 LKK-DAD