Securities and Exchange Commission v. Bivona et al

Filing 320

ORDER by Judge Edward M. Chen denying 317 Motion Approval of Proposed Distribution Plan Without Prejudice and Vacating April 5, 2018 Hearing and Case Management Conference. Motion shall be re-filed after completion of claims process. Further Case Management Conference set for 5/3/2018 10:30 AM in San Francisco, Courtroom 06, 17th Floor. (emclc1, COURT STAFF) (Filed on 3/21/2018)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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v.
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United States District Court
Northern District of California

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SRA MANAGEMENT ASSOCIATES,
LLC, et al.,

Case No. 16-cv-01386-EMC
ORDER RE: PROPOSED
DISTRIBUTION PLAN AND CLAIMS
PROCESS
Docket No. 317, 319

Defendants.

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Pending before the Court is the SEC’s revised proposed distribution plan, set to be heard

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on April 5, 2018. See Docket No. 317. However, the claims process must be completed before

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the Court can pass on a distribution plan because clarity is needed about the existence and extent

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of any shortfalls. The Receiver previously estimated that the process would be complete within

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four weeks of February 8, 2018. See Docket No. 309. Its report, filed today, indicates that only

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41% of submitted claims have thus far been validated and that additional time and follow-up with

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claimants is needed to process the remaining claims. See Docket No. 319. In light of the

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unanticipated delays, the April 5, 2018 hearing is VACATED and the SEC’s motion is DENIED

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without prejudice to re-filing after completion of the claims process.

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The Receiver should act expeditiously to have the claims administrator follow-up with

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prospective claimants as proposed in its report. See Docket No. 319, Ex. A at 7. The Court sets a

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Case Management Conference on May 3, 2018 at 10:30 a.m. to discuss the status of the claims

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process, assuming it has not yet been completed. If the process is complete before that date, the

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Receiver shall notify the Court with a complete report. If not, then the Receiver shall file a

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progress report with the Court 7 days prior to the case management conference.

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Once the Receiver notifies the Court that the claims process is complete, the SEC shall

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renew its motion on a normal 35-day calendar under the Local Rules. The SRA Investor Group

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and any other interested parties should file objections or oppositions, if any, in compliance with

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the local rules.

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This order disposes of Docket No. 317.

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IT IS SO ORDERED.

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Dated: March 21, 2018

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______________________________________
EDWARD M. CHEN
United States District Judge

United States District Court
Northern District of California

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