Securities And Exchange Commission v. Goldfarb et al

Filing 179

ORDER GRANTING 178 RECEIVER'S MISCELLANEOUS ADMINISTRATIVE APPLICATION FOR AN ORDER PURSUANT TO LOCAL RULE 7-11 FOR A SALE OF ASSETS AND SECOND DISTRIBUTION.(whalc2, COURT STAFF) (Filed on 1/28/2016)

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JOHN W. COTTON (SBN 54912)
Email: [e-mail]
GARTENBERG, GELFAND & HAYTON LLP
15260 Ventura Blvd.
Suite 1920
Sherman Oaks, CA 91403
[phone]
[phone] (Direct)
Receiver for Baystar Capital Management, LLC
and Lawrence Goldfarb

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,

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v.
LAWRENCE R. GOLDFARB and
BAYSTAR CAPITAL
MANAGEMENT, LLC,
Defendants.

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Case No.: C-11-0938 WHA
[PROPOSED] ORDER
GRANTING RECEIVER’S
MISCELLANEOUS
ADMINISTRATIVE
APPLICATION FOR AN
ORDER PURSUANT TO
LOCAL RULE 7-11 FOR A
SALE OF ASSETS AND
SECOND DISTRIBUTION

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ORDER AUTHORIZING SALE OF ASSETS AND DISTRIBUTION

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Pursuant to Local Rule 7-11 of the Northern District of California, the

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Receiver in the above matter has submitted to the Court a miscellaneous

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administrative application for an Order approving the sale of certain illiquid

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assets, and a distribution of assets to the Defendant’s defrauded investors. Along

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with the administrative application, the Receiver has presented the Court with a
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REQUEST FOR ADMINISTRATIVE ORDER

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declaration setting forth his efforts to value the illiquid investments, the

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involvement of the two largest and sophisticated investors in the valuation

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process and the reasons for his recommendation that the illiquid assets be sold for

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the amounts indicated. The Receiver has obtained the non-opposition of all other

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parties to this matter to his recommendation.

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GOOD CAUSE APPEARING, the Court hereby authorizes the

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Receiver to sell defendant Baystar’s interest in the Island Fund to its general

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partner for the amount of $150,000 and to sell Baystar’s interest in the Yacht

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Fund to its general partner for the amount of $235,630, both in cash at the time of

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closing.
GOOD CAUSE APPEARING, the Court also hereby authorizes the

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Receiver to further investigate the entitlement of the few Baystar investors who

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invested solely in the Yacht Fund side pocket, in order to determine their

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entitlement to a distribution solely from the Yacht Fund proceeds, and to make

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such pro rata distributions to them if appropriate and they can be located with

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reasonable effort.
GOOD CAUSE ALSO APPEARING, the Court hereby authorizes

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the Receiver to make such cash distributions, as he deems appropriate, in the

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approximate amount of $700,000, to the defrauded Baystar investors in the

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proportionate amounts previously approved by this Court.

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SO ORDERED.

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DATED:

January 28 2016
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__________________________

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Judge William Alsup

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United States District Court
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REQUEST FOR ADMINISTRATIVE ORDER