Securities and Exchange Commission v. Bivona et al

Filing 172

STIPULATION AND ORDER re 171 STIPULATION WITH PROPOSED ORDER Granting the Receiver's Request for a Further Extension of Time Within Which to File a Proposed Plan of Liquidation filed by Michael Maidy. Signed by Judge Edward M. Chen on 4/3/17. (bpf, COURT STAFF) (Filed on 4/3/2017)

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UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
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Plaintiff,
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v.
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JOHN B. BIVONA; SADDLE RIVER )
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ADVISERS, LLC; SRA
MANAGEMENT ASSOCIATES, LLC;)
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FRANK GREGORY MAZZOLA
)
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Defendants.
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SECURITIES AND EXCHANGE
COMMISSION,

Case No. 3:16-cv-1386
[PROPOSED] ORDER AND
STIPULATION GRANTING
THE RECEIVER’S REQUEST
FOR A FURTHER
EXTENSION OF TIME
WITHIN WHICH TO FILE A
PROPOSED PLAN OF
LIQUIDATION
Date: No Date
Time: No Time
Judge: Edward M. Chen

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The parties, U.S. Securities & Exchange Commission, counsel for

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defendants Saddle River Advisers, LLC (“Saddle River”) and SRA

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Management Associates, LLC (“SRA Management”), and counsel for the

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Receiver, hereby stipulate and agree to the entry of an order as follows:

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1.) The Receiver in this matter, Sherwood Partners, Inc. has been

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diligently working since the Court’s previous grant of an extension of time

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within which to file a Plan of Liquidation (“Plan”) in its Order granting an

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extension (“ Extension Order”) dated January 3, 2017. The Extension Order
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[PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF
THE ORDER APPOINTING RECEIVER

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amended the language of Section XIII of this Court’s Order Appointing

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Receiver (Docket No. 142) to permit the receiver to file a plan within 180 days

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of being appointed, or by April 11, 2017. (Counsel for the Receiver was to

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have subsequently e- filed a proposed amended Order for the Court’s approval,

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which through inadvertence by counsel, has not yet been filed. The grant of

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this proposed stipulation and order requesting additional time will in any event

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supersede the earlier grant of an extension, and counsel for the Receiver will
not fail again to file any proposed order encompassing the extension.)
2.) Through on-going settlement negotiations, the Receiver and the staff
of the plaintiff Securities and Exchange Commission have been working to
develop a comprehensive Plan which would treat investors and creditors fairly,
but would also incorporate and adhere to the apparent discrepancies that exist
between the available pre-IPO (and in the case of Square Inc., post IPO)
inventory of stock in the possession of the Receiver, and the expectations of the

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investors and creditors as to the assets to which they believed they were

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entitled.

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3.) The Receiver is currently examining these discrepancies, which

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suggest a possible shortfall in the available stock of both Square and Palantir

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sufficient to satisfy investor’s expectations, as well as investigating the extent

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of commingling of money and assets by the receivership entities. To the extent

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that there are shortfalls and commingling of investor money and holdings, then

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a consolidation of receivership assets and a pro rata distribution of those assets

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might be appropriate.

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4.) In light of the foregoing, the Receiver needs additional time within
which to complete its investigation and discovery in order to come to the Court
with a viable, and equitable Plan. It is the Receiver’s current expectation that
up to another two months, or until June 12, 2017, should be available for the
Receiver, with the support of the Securities and Exchange Commission, to file
a proposed Plan.
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[PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF
THE ORDER APPOINTING RECEIVER

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5.) The Plaintiff Securities & Exchange Commission and counsel for

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defendants Saddle River and SRA Management, on being informed of the

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above by the Receiver’s counsel have stated that they do not object to again

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amending the second sentence of Sec. XIII of this Court’s order Appointing

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Receiver (Docket No. 142) as follows:

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XIII. Recommendations and Reports
Within two hundred and forty (240) days of the entry date of
this Order, the Receiver shall file the Liquidation Plan in the a
above-captioned action, with service copies to counsel of record.
6.) Based on the parties agreement, the Court will amend the language of
Sec. XIII as agreed above and issue and amended Order concerning the filing
of the plan of liquidation contained in Docket No. 142.

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SO STIPULATED.
Pursuant to Civil L.R. 5.1, I hereby attest that I have on file all
holographic signatures corresponding to any signatures indicated by a
conformed signature (/S/) within this e-filed document.

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Dated: March 28, 2017

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GARTENBERG GELFAND HAYTON
LLP
By: /s/ John W. Cotton
JOHN W. COTTON
Special Counsel to the Monitor

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DATED: March 28, 2017

SECURITIES & EXCHANGE
COMMISSION

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By://s// By Permission (Civ. L.R. 5-1 (i)
JOHN YUN
Attorneys for Plaintiff
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[PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF
THE ORDER APPOINTING RECEIVER

DATED: March 28, 2017

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DEFENDANTS SADDLE RIVER AND
SRA MANAGEMENT
By://s// By Permission (Civ. L.R. 5-1 (i)
JAHAN P. RAISSI
SHARTSIS FRIESE LLP
Attorneys for Defendants Saddle River
and SRA Management

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ERED

S

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________________________

Judge Edward M. M. Chen
Chen
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Judge E

United States District Court

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ORD
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April 3 , 2017

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DATED:

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IT IS SO ORDERED.

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[PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF
THE ORDER APPOINTING RECEIVER