Securities and Exchange Commission v. Champion-Cain et al

Filing 456

ORDER: (1) Resetting Hearing on Motion to Amend Order Granting Receiver's Motion for Approval of Sale of 737 Windermere Court Property; and (2) Modifying Hearing to be Via Videoconference. Due to a conflict on the Courts calendar, the September 18, 2020 hearing on the Motion to Amend is VACATED and RESET for September 21, 2020 at 4:00 p.m. Counsel for the Receiver is ORDERED to give notice of this Order to counsel for Mr. Riharb no later than September 15, 2020. Signed by Magistrate Judge Allison H. Goddard on 9/14/2020.(mme)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,

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ORDER:

Plaintiff,

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Case No.: 3:19-cv-1628-LAB-AHG

v.

(1) RESETTING HEARING ON
MOTION TO AMEND ORDER
GRANTING RECEIVER’S MOTION
FOR APPROVAL OF SALE OF 737
WINDEMERE COURT PROPERTY;
AND

GINA CHAMPION-CAIN AND ANI
DEVELOPMENT, LLC,
Defendants, and

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(2) MODIFYING HEARING TO BE
VIA VIDEOCONFERENCE

AMERICAN NATIONAL
INVESTMENTS, INC.,
Relief Defendant.

[ECF NO. 440]

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On August 28, 2020, Receiver Krista L. Freitag (the “Receiver”) filed a Motion to

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Amend Order Granting Receiver’s Motion for Approval of Sale of 737 Windemere Court

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Property (the “Motion to Amend”). ECF No. 440. In particular, the Receiver requests that

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the Court’s Order Granting Receiver’s Motion for Approval of Sale of 737 Windemere

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Court Property (ECF No. 434) be amended to provide that the sale of the property is free

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and clear of a disputed Deed of Trust recorded against the property by third-party creditor

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Charles Riharb, and to approve the Receiver’s proposal to set aside $1,105,000 in
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receivership funds pending resolution of the dispute. ECF No. 440 at 8-9. The Court set

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the Motion to Amend for hearing on the previously set hearing date and time of September

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18, 2020 at 2:00 p.m., and set a deadline of September 11, 2020 for oppositions to be filed

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and a deadline of September 17, 2020 for the reply. ECF No. 441.

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On September 11, 2020, Mr. Riharb filed a limited opposition to the Motion to

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Amend, disputing some of the background facts stated by the Receiver in the Motion to

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Amend, and requesting that his lien on the Windemere Court Property attach in the same

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validity and priority to the net sale proceeds as it had with respect to the property. ECF No.

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452. Mr. Riharb also separately filed an evidentiary objection to a portion of the Receiver’s

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declaration. ECF No. 453. The Court anticipates the Receiver will file a reply by the

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September 17, 2020 deadline.

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On September 14, 2020, the Court took the three other property sale motions

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scheduled to be heard at the September 18, 2020 hearing (ECF Nos. 406, 408, 421) under

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submission, finding them suitable for determination on the papers without oral argument.

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ECF No. 455. However, in light of the dispute regarding the Motion to Amend, the Court

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has determined a hearing on that motion remains necessary.

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Due to a conflict on the Court’s calendar, the September 18, 2020 hearing on the

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Motion to Amend is VACATED and RESET for September 21, 2020 at 4:00 p.m.

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Further, due to the current COVID-19 public emergency, 1 the Court MODIFIES the

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On March 23, 2020, Chief Judge Larry A. Burns amended his original Order in response
to the COVID-19 public emergency, which, among other things, excuses personal
appearance of counsel and parties at civil court proceedings and notes that judges retain
discretion to hold civil proceedings telephonically. See CJO #18-A at ¶ 4B. His original
order, CJO #18, is available on the Court website at
https://www.casd.uscourts.gov/_assets/pdf/rules/Order%20of%20the%20Chief%20Judge
%2018.pdf. His amended order, CJO #18-A, which amends paragraph four of CJO #18, is
available on the Court website at
https://www.casd.uscourts.gov/_assets/pdf/rules/Order%20of%20the%20Chief%20Judge
%2018-a.pdf. These orders were extended until mid-September by CJO #34, which is
available on the Court website at
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motion hearing to be via videoconference for the parties to the disputed Motion to Amend.

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The Court will use its courtroom technology to ensure the motion hearing will still

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take place on the record. To facilitate this modification, the Court hereby ORDERS as

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follows:

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1.

The Court will use its official Zoom videoconferencing account to hold the

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motion hearing on the Motion to Amend. If you are unfamiliar with Zoom: Zoom is

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available

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(https://zoom.us/meetings) or on mobile devices through the installation of a free app.2

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Joining a Zoom conference does not require creating a Zoom account, but it does require

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downloading the .exe file (if using a computer) or the app (if using a mobile device).

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Participants are encouraged to create an account, install Zoom and familiarize themselves

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with Zoom in advance of the hearing.3 There is a free option for creating a Zoom account.

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2.

on

computers

through

a

download

on

the

Zoom

website

On September 17, 2020, the Court will send the Zoom invitation to counsel

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for the Receiver, Edward Fates, and Mr. Riharb’s counsel, Mark Cramer and Russel Allyn,

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at their email addresses of record. No later than September 18, 2020, counsel for the

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Receiver

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[e-mail] identifying any additional participants they expect to

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join. Counsel may forward the invitation to additional participants as they see fit, but must

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inform the Court that they have done so. Counsel for any other party may also request the

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Zoom invitation from the Court at the email address above, and must identify the expected

and

Mr.

Riharb

shall

send

an

email

to

the

Court

at

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https://www.casd.uscourts.gov/_assets/pdf/rules/Order%20of%20the%20Chief%20Judge
%2034.pdf.
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If possible, participants are encouraged to use laptops or desktop computers for the
video conference, rather than mobile devices.
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For help getting started with Zoom, visit: https://support.zoom.us/hc/enus/categories/200101697-Getting-Started
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participants for that party.
3.

Because Zoom may quickly deplete the battery of a participant’s device, each

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participant should ensure that their device is plugged in or that a charging cable is readily

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available during the videoconference. Again, if possible, participants are encouraged to use

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laptops or desktop computers for the videoconference, as mobile devices often offer

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inferior performance. Participants shall attend the hearing by following the ZoomGov

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Meeting hyperlink in the invitation. Participants who do not have Zoom already

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installed on their device when they click on the ZoomGov Meeting hyperlink will be

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prompted to download and install Zoom before proceeding. Zoom may then prompt

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participants to enter the password included in the invitation.
4.

Each participant should plan to join the Zoom videoconference at least five

minutes before the start of the hearing to ensure that the hearing begins promptly.
5.

The Court will publish teleconference line information on the docket and on

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its public calendar for all non-parties and members of the public to use to listen to the

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hearing. Counsel for any non-party (other than Mr. Riharb) who wish to be heard

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telephonically

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[e-mail] no later than September 18, 2020 at noon.

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6.

must

make

a

request

to

that

effect

to

the

Court

at

Counsel for the Receiver is ORDERED to give notice of this Order to counsel

for Mr. Riharb no later than September 15, 2020.
IT IS SO ORDERED.

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Dated: September 14, 2020

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3:19-cv-1628-LAB-AHG