Securities & Exchange Commission v. Lane et al

Filing 232

ORDER adopting 229 REPORT AND RECOMMENDATION. 227 Motion for Clarification of Final Judgments Relating to Tax Refunds is granted insofar as it seeks clarification of the final judgments appearing at Doc. Nos. 186 and 187 as regards the release of the tax refunds. Signed by Chief Judge Anne C. Conway on 1/26/2012. (LAK)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
-vs-

Case No. 6:07-cv-1920-Orl-22DAB

ROBERT E. LANE,
WEALTH POOLS INTERNATIONAL, INC.,
and RECRUIT FOR WEALTH, INC.,
Defendants,
T-N-T EDUCATION COMPANY, INC.,
RICHARD H. LANE, MUNDO TRADE, INC.,
RENEE BECKER, JULIA LANE and
FIRST FIDUCIARY BUSINESS TRUST
Relief Defendants.
_______________________________________

ORDER
This cause comes before the Court for consideration of Receiver Michael I. Goldberg’s Motion
for Clarification of Final Judgments Relating to Tax Refunds (Doc. No. 227), filed on October 26,
2011, and Relief Defendants Richard Lane and T-N-T Education Company, Inc.’s Response (Doc.
No. 228) to that motion.
The United States Magistrate Judge has submitted a Report and Recommendation (Doc. No.
229) which recommends that the motion be granted in part, i.e., insofar as it seeks clarification of the
two final judgments entered as to these two Relief Defendants (Doc. Nos. 186 & 187) regarding the

release of federal and state tax refunds. These Relief Defendants have filed an Objection (Doc. No.
230) to the Report and Recommendation.
After an independent de novo review of the record in this matter, including the objections filed
by these particular Relief Defendants, the Court agrees entirely with the findings of fact and
conclusions of law in the Report and Recommendation. Although the Receiver did suggest in prior
filings that it could not disburse the tax refunds until the risk of audits had passed, it appears that
representation was erroneous and, in any event, the final judgments (which control) contain no such
limitation. Accordingly, the Receiver need not retain the refunds until expiration of the time period
for the United States and the State of Alabama to audit the tax returns at issue (approximately three
years).
Therefore, it is ORDERED as follows:
1.

The Report and Recommendation filed November 9, 2011 (Doc. No. 229), is
ADOPTED and CONFIRMED and made a part of this Order.

2.

The Receiver’s Motion for Clarification of Final Judgments Relating to Tax Refunds
(Doc. No. 227) filed on October 26, 2011, is GRANTED insofar as it seeks
clarification of the final judgments appearing at Doc. Nos. 186 and 187 as regards the
release of the tax refunds. The Receiver need not wait until the applicable audit
periods have expired to disburse the tax refunds.

3.

The Receiver shall immediately give the federal and state taxing authorities 45 days
written notice that the Receiver is authorized to disburse these funds and will do so
upon the expiration of the 45-day period, after which the receivership will be closed.

-2-

The written notice shall provide notification that this may affect the tax authority’s
ability to seek repayment.
DONE and ORDERED in Chambers, in Orlando, Florida on January 26, 2012.

Copies furnished to:
United States Magistrate Judge
Counsel of Record
Unrepresented Party
Receiver

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