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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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA ) ) ) ) Plaintiff, ) ) v. ) JOHN B. BIVONA; SADDLE RIVER ) ) ADVISERS, LLC; SRA MANAGEMENT ASSOCIATES, LLC;) ) FRANK GREGORY MAZZOLA ) ) Defendants. ) ) 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 19 20 21 The parties, U.S. Securities & Exchange Commission, counsel for 22 defendants Saddle River Advisers, LLC (“Saddle River”) and SRA 23 Management Associates, LLC (“SRA Management”), and counsel for the 24 Receiver, hereby stipulate and agree to the entry of an order as follows: 25 1.) The Receiver in this matter, Sherwood Partners, Inc. has been 26 diligently working since the Court’s previous grant of an extension of time 27 within which to file a Plan of Liquidation (“Plan”) in its Order granting an 28 extension (“ Extension Order”) dated January 3, 2017. The Extension Order 1 [PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF THE ORDER APPOINTING RECEIVER 1 amended the language of Section XIII of this Court’s Order Appointing 2 Receiver (Docket No. 142) to permit the receiver to file a plan within 180 days 3 of being appointed, or by April 11, 2017. (Counsel for the Receiver was to 4 have subsequently e- filed a proposed amended Order for the Court’s approval, 5 which through inadvertence by counsel, has not yet been filed. The grant of 6 this proposed stipulation and order requesting additional time will in any event 7 8 9 10 11 12 13 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 14 investors and creditors as to the assets to which they believed they were 15 entitled. 16 3.) The Receiver is currently examining these discrepancies, which 17 suggest a possible shortfall in the available stock of both Square and Palantir 18 sufficient to satisfy investor’s expectations, as well as investigating the extent 19 of commingling of money and assets by the receivership entities. To the extent 20 that there are shortfalls and commingling of investor money and holdings, then 21 a consolidation of receivership assets and a pro rata distribution of those assets 22 might be appropriate. 23 24 25 26 27 28 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. 2 [PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF THE ORDER APPOINTING RECEIVER 1 5.) The Plaintiff Securities & Exchange Commission and counsel for 2 defendants Saddle River and SRA Management, on being informed of the 3 above by the Receiver’s counsel have stated that they do not object to again 4 amending the second sentence of Sec. XIII of this Court’s order Appointing 5 Receiver (Docket No. 142) as follows: 6 7 8 9 10 11 12 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. 13 14 15 16 17 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. 18 19 Dated: March 28, 2017 20 21 GARTENBERG GELFAND HAYTON LLP By: /s/ John W. Cotton JOHN W. COTTON Special Counsel to the Monitor 22 23 24 25 DATED: March 28, 2017 SECURITIES & EXCHANGE COMMISSION 26 27 28 By://s// By Permission (Civ. L.R. 5-1 (i) JOHN YUN Attorneys for Plaintiff 3 [PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF THE ORDER APPOINTING RECEIVER DATED: March 28, 2017 2 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 4 5 6 7 ERED S I ________________________ Judge Edward M. M. Chen Chen rd dwa Judge E United States District Court RT ER H 13 ORD T IS SO NO 12 April 3 , 2017 FO 11 DATED: LI 10 IT IS SO ORDERED. UNIT ED 9 RT U O 8 S DISTRICT TE C TA R NIA 3 14 A 1 N F D IS T IC T O R C 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 [PROPOSED] STIPULATION AND ORDER APPROVING FURTHER AMENDMENT TO SEC. XIII OF THE ORDER APPOINTING RECEIVER

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