USA v. Development Capital Ventures, L.P.
Filing
1
Consent ORDER and Judgment, by Judge Anthony J. Trenga on 7/21/10. (Attachments: # 1 Complaint, # 2 Civil Cover Sheet)(jak, )
USA v. Development Capital Ventures, L.P.
Doc. 1
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 1 of 7
IN THE UNITED STATICS DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
UNITED STATES OF AMERICA, Plaintiff, ) )
v.
DEVELOPMENT CAPITAL VENTURES, L.P. Defendant.
)
) ) )
Civil CascNo.
I: f P
)
CONSENT ORDER AND JUDGMENT
IT IS HEREBY ORDERED, ADJUDGED AND DECREED:
1.
Pursuant to the provisions of 15 U.S.C. §687c, and based upon the consent
of all parties, this Court lakes exclusive jurisdiction of Development Capital Ventures.
]..!'. ("DCV" or "Defendant") and all of its assets and properly, of whatever kind and wherever located, and the United States Small Business Administration ("SBA") is
hereby appointed Receiver of DCV ("Receiver") lo serve without bond until further order
of this Court. The Receiver is appointed for the purpose of marshalling and liquidating in
an orderly manner all of DCV's assets and satisfying the claims of creditors therefrom in
ihe order of priority as determined by this Court.
2.
The Receiver shall have all powers, authorities, rights and privileges
heretofore possessed by the officers, directors, trustees, managers, investment advisors
and other agents of DCV under applicable slale and federal law, by the Certificate of Partnership, Limited Partnership Agreement and all other governing partnership documents, in addition lo all powers and authority of a receiver at equity, and all powers
and authority eonferred upon the Receiver by ihe provisions of 15 U.S.C. § 687c and 28
Dockets.Justia.com
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 2 of 7
U.S.C. § 754. The trustees, directors, officers, employees, managers, investment advisors and agents of DCV are hereby dismissed. Such persons shall have no authority with respect to DCV's operations or assets, except to the extent as may hereafter be expressly
granted by the Receiver. The Receiver shall assume and control the operation of DCV
and shall pursue and preserve all of its claims.
3.
The past and/or present officers, directors, managers, investment advisors,
agents, trustees, attorneys, and accountants of DCV, as well as all those acting in their
place, are hereby ordered and directed to turn over to the Receiver forthwith all books, records, documents, accounts and all other instruments and papers of and relating to DCV and its assets and all other assets and property of the Limited Partnership, whether real or
personal. The Receiver will provide reasonable access to all participants with regard to any investment in the DCV portfolio. The General Partner of DCV shall furnish a written
statement within five (5) days after the entry of this Order, listing the identity, location and estimated value of all assets of DCV as well as the names, addresses and amounts of claims of all known creditors of DCV. Within thirty (30) days following the entry of this
Order, such person shall also furnish a written report describing all assets. All persons having control, custody or possession of any assets or property of DCV are hereby directed to turn such assets and property over to the Receiver. 4. The Receiver shall promptly give notice of its appointment to all known
officers, directors, employees, partners, trustees, managers, investment advisors, agents,
shareholders, creditors and debtors of DCV, as the Receiver deems necessary or
advisable to effectuate the operation of the receivership. All persons and entities owing
any obligation or debt to DCV, until further ordered by this Court shall pay all such
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 3 of 7
obligations in accordance with the terms thereof to the Receiver and its receipt for such
payments shall have the same force and effect as if DCV had received such payments. 5. The Receiver is hereby authorized to open such Receiver's accounts at
banking or other financial institutions to extend credit on behalf of DCV, to utilize SBA
personnel, and to employ such other personnel as it may deem necessary to effectuate the
operation of the receivership including, but not limited to, attorneys, accountants, and
appraisers, and is further authorized to expend receivership funds to compensate such personnel in such amounts and upon such terms as the Receiver shall deem reasonable in
light of the usual fees and billing practices and procedures of such personnel. The
Receiver is not required to obtain Court approval prior to the disbursement of
receivership funds for payments to personnel employed by the Receiver or for expenses
that the Receiver deems advantageous to the orderly administration and operation of the
receivership. In addition, the Receiver is authorized to reimburse the SBA for travel
expenses incurred by SBA personnel in the establishment and administration of the
receivership. The Receiver may, without further order of this Court, transfer, compromise, or otherwise dispose of any asset (including without limitation any claim),
other than real estate.
6.
DCV's past and/or present partners, officers, directors, agents,
accountants, managers, shareholders, employees, investment advisors, debtors, and
creditors of DCV and other appropriate persons (including without limitation, the
defendant's portfolio of small business concerns and financial institutions doing business with defendant and/or defendant's portfolio of small business concerns) shall answer
under oath to the Receiver all questions which the Receiver may put to them in
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 4 of 7
compliance with the Federal Rules of Civil Procedure, and pursuant thereto shall produce
any documents as required by the Receiver regarding the business of said Limited
Partnership, or any other matter relevant to the operation or administration of the receivership or the collection of funds due to DCV. In the event that the Receiver deems
it necessary to require the appearance of the aforementioned persons, the production of documents, information, or any other discovery concerning the assets, property or
business operations of DCV, or any other matter relevant to the operation or
administration of the Receivership or the collection of funds due to DCV, the Receiver
shall make its discovery request(s) in compliance with the Federal Rules of Civil
Procedure.
7.
The parties to any and all civil legal proceedings of any nature, including,
but not limited to, bankruptcy proceedings, arbitration proceedings, foreclosure actions,
default proceedings, or other actions of any nature involving the Receiver for DCV, or any assets of DCV, including subsidiaries and partnerships, wherever located, and excluding the instant proceeding, or involving any of DCV's past or present general
partners, managers, management companies, officers, directors, agents, or limited
partners sued for, or in connection with, any action taken by them while acting in such
capacity, whether sued as plaintiff, defendant, third-party plaintiff, third-party defendant,
or otherwise, are enjoined from commencing or continuing any such legal proceeding or from taking any action in connection with any such proceeding or any such asset. 8. All civil legal proceedings of any nature, including but not limited to
bankruptcy proceedings, arbitration proceedings, foreclosure actions, default
proceedings, or other action of any nature involving the Receiver for DCV, or any assets
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 5 of 7
of DCV, including subsidiaries and partnerships, wherever located, and excluding the instant proceeding, or any of DCV's past or present general partners, managers,
management companies, officers, directors, agents, or limited partners sued for, or in
connection with, any action taken by them while acting in such capacity, whether as
plaintiff, defendant, third-party plaintiff, third-party defendant, or otherwise, are stayed in
their entirety, and all Courts having any jurisdiction thereof are enjoined from taking or
permitting any action until further Order of this Court.
9.
Further, as to a cause of action accrued or accruing in favor of DCV
against a third person or party, any applicable statute of limitation is tolled during the
period in which this injunction against the commencement of legal proceedings is in
effect as to that cause of action.
10.
DCV and its past and/or present directors, officers, managers, general or
limited partners, agents, investment advisors, employees and other persons acting in concert or participating therewith be, and they hereby are, enjoined from either directly or indirectly taking any actions or causing any such action to be taken which would
dissipate the assets and/or property of DCV to the detriment of the Receiver appointed in this cause, including but not limited to destruction of corporate records, or which would
violate the Small Business Investment Act of 1958, as amended, 15 U.S.C. 661 et. seq.. or the regulations promulgated thereunder ("Regulations"), 13 C.F.R. Part 107.
11.
The Receiver is authorized to borrow on behalf of DCV, from the SB A, up
to $ 1,000,000 and is authorized to cause DCV to issue Receiver's Certificates of
Indebtedness in the principal amounts of the sums borrowed, which certificates will bear
interest at or about 10 percent per annum and will have a maturity date no later than 18
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 6 of 7
months after the date of issue. Said Receiver's Certificates of Indebtedness shall be
deemed to be administrative expenses of the Receivership.
12.
Judgment is hereby entered in favor of Plaintiff, United States of America,
on behalf of its agency, the U.S. Small Business Administration ("SBA"), against Defendant, Development Capital Ventures, L.P. in the principal sum of $2,845,000.00 as of April I, 2009, plus accrued interest up to the dale of entry of this Judgment, (but
reduced by previous principal and interest payments received by SBA after April 1, 2009)
together with post-judgment interest pursuant to 2S U.S.C. §1961 as of the date of entry
of this Order. ACKNOWLEDGED AND AGREED TO BY DEVELOPMENT CAPITAL
VENTURES,
L.P.
AND
THE
SMALL
BUSINESS
ADMINISTRATION.
THROUGH THEIR DULY AUTHORIZED REPRESENTATIVES:
DEVELOPMENT CAPITAL VENTURES, L.P
By: Its:
Development Capital Ventures. L.P. General Partner By: DCXIQpeialing, Inc.
Its: /^Tientdirfl Partner
N a me:
Title:
Wayfj^S.
P6ren/
U.S. SMALL BUSINESS ADMINISTRATION
By:
Thomas G. Moms, Director
Office of SBIC Liquidation
Case 1:10-cv-00763-AJT -TCB Document 7
Filed 07/21/10 Page 7 of 7
It is so ordered this a?/
day of ^TwA_> 2010
"UnileiTStates District Jurfgt
United Slates District Court Judge
Anthony J.
gv _
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?