Colgan Financial Group, Inc. v. First 100, LLC et al

Filing 83

ORDER granting, as modified, Plaintiff's 14 Motion for Preliminary Injunction. See attached Order. Signed by Judge Vanessa L. Bryant on 12/22/14. (De Palma, C)

UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
COLGAN FINANCIAL GROUP, INC.,
Plaintiff,
v.
FIRST 100, LLC; JAY BLOOM;
and MATTHEW FARKAS,
Defendants.

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CIVIL ACTION NO.
3:14-CV-01254 (VLB)

December 22, 2014

ORDER
GRANTING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION [Dkt. #14]

After due notice, the Court conducted an evidentiary hearing on a Motion for
Preliminary Injunction filed by Colgan Financial Group, Inc. (“Plaintiff”) against First
100, LLC, Jay Bloom, and Matthew Farkas (“Defendants”), at which the parties
appeared personally and through counsel and offered evidence. The Court has
considered the evidence introduced at the hearing, the pleadings, and the other
materials filed in support of and in opposition to Plaintiff’s Motion. Based on the
totality of the record in this case, the Court finds that there is a substantial
likelihood that Plaintiff will prevail on its claims against Defendants and that
Defendants are likely to dispose of and dissipate their assets and Plaintiff’s
collateral, thereby hindering, delaying and frustrating Plaintiff’s attempts to execute
on any eventual judgment in its favor, and resulting in immediate and irreparable
harm to Plaintiff. Accordingly, it is ordered, adjudged and decreed that a
Preliminary Injunction is hereby issued, ordering each Defendant and all persons
acting in concert with them, through the pendency of this action:

a. To immediately turn over to Plaintiff all of the respective financial statements
and reports, balance sheets, income statements, statements of cash flows, and all
other financial information as provided in the loan documents;
b. To immediately disclose to Plaintiff all payments or disbursements made by
First 100, LLC (“First 100”) since January 2014 by way of sworn affidavit;
c. To cease and desist from making or causing to be made any payments,
distributors or dividends on behalf of First 100 to any third party, including to any of
First 100’s members, First 100’s affiliates, and Leading Ventures Enterprise
Marketing, without Plaintiff’s prior written consent, absent further order of this
Court;
d. To provide to Plaintiff a weekly sworn affidavit listing all disbursements to be
made by First 100, and to cease and desist from making any disbursements on
behalf of First 100 without Plaintiff’s prior written consent, absent further order of
this Court;
e. To cease and desist from selling, exchanging, leasing, negotiating, pledging,
assigning or otherwise disposing of any Collateral, as defined in the Loan
Agreement, including all equipment, inventory, general intangibles, cash, accounts,
chattel, paper, instruments, securities, and all property or interests in any other
property now owned or hereafter acquired by First 100, without Plaintiff’s prior
written consent or order of this Court;
f. To cease and desist from opening any bank accounts on behalf of First 100
without Plaintiff’s prior written consent;
g. To immediately take all action necessary to provide mortgages in favor of
Plaintiff on all real property owned by each of the Defendants;

h. Within 14 days of the date of this Order, to tender to the Plaintiff the
irrevocable instructions required by the Equity Profit Sharing Agreement, as
amended, to each such law firm, collection agency or other third party providing
services relating to the assets of the Poinciana Portfolio that are owned by First 100
as of the date of this Action;
i. Within 14 days of the date of this Order, to provide a full accounting of the
Total Portfolio Income associated with the Poinciana Portfolio calculated in
accordance with the Equity Profit Sharing Agreement in the form of a sworn
affidavit;
j. To cause to be deposited and to deposit with the Clerk of the Court any and
all proceeds of any funding, including without limitation the proceeds of any and all
bridge, short-term, mezzanine, long-term or other debt or equity funding obtained by
any of the Defendants, not to exceed the then-outstanding balance under the loan
documents, as amended, including principal, interest and costs; and
k. To cease and desist from taking any action to impair the Collateral, including
the distribution or disposal of any proceeds of the collateral, including without
limitation any monies from any sale, mortgage, lease or funding thereof.

IT IS SO ORDERED.

________/s/______________
Hon. Vanessa L. Bryant
United States District Judge
Dated at Hartford, Connecticut: December 22, 2014