Securities and Exchange Commission v. Nadel et al
Filing
105
MOTION to Approve Settlement by Burton W. Wiand. (Attachments: #1 Exhibit A)(Nelson, Carl)
Securities and Exchange Commission v. Nadel et al
Doc. 105
UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA
TAMP A DIVISION
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.
Case No. 8:09-cv-87-T-26TBM
ARTHUR NADEL, SCOOP CAPITAL, LLC, SCOOP MANAGEMENT, INC.
Defendants,
SCOOP REAL ESTATE, L.P. VALHALLA INVESTMENT PARTNERS, L.P., VALHALLA MANAGEMENT, INC. VICTORY IRA FUND, LTD, VICTORY FUND, LTD, VIKING IRA FUND, LLC, VIKING FUND, LLC, AND VIKING MANAGEMENT,
Relief Defendants.
/
RECEIVER'S MOTION TO APPROVE SETTLEMENT
Burton W. Wiand, as Receiver, moves the Court for an order approving settlement of
a claim against David Monte for recovery of "false profits" transferred from Receivership
Entities on the basis of the Settlement Agreement attached as Exhibit A.
MEMORADUM IN SUPPORT
The Securities and Exchange Commission (the "Commission") instituted this action
to "halt (an) ongoing fraud, maintain the status quo, and preserve investor assets. . . ." (Dkt.
i, CompI., ii 7.) Burton W. Wiand was appointed by this Court as the Receiver for
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Defendants Scoop Capital, LLC and Scoop Management, Inc. and all relief Defendants by
Order Appointing Receiver (Dkt. 8) entered January 21,2009.1
Pursuant to the Order Appointing Receiver (Dkt. 8), the Receiver has the duty and
authority to:
2. Investigate the manner in which the affairs of the Defendants
and Relief Defendants were conduct and institute such actions and legal
proceedings, for the benefit and on behalf of the Defendants and Relief Defendants and their investors and other creditors as the Receiver deems
necessary . . . against any transfers of money or other proceeds directly or
indirectly traceable from investors in the Defendants or Relief Defendants;
provided such actions may include, but not be limited to, seeking imposition
of constructive trusts, disgorgement or profits, recovery and/or avoidance of
fraudulent transfers under Florida Statute § 726.101, et. seq. or otherwise,
rescission and restitution, the collection of debts, and such order from this
Court as may be necessary to enforce this Order.
Dkt. at ii 2.
The Receiver's investigation has revealed a number of investors who received "false
profits" (returns greater than their investments) ("profiteers") to the detriment of those
investors who lost money as a result of their investment. The Receiver began recovery
efforts by mailing letters to 81 domestic and three foreign profiteers, inquiring whether they
agreed with the Receiver's calculated amount of false profits and whether they would return
the transfers voluntarily to expedite the process and to avoid litigation. The Receiver, with
the approval of the Securities and Exchange Commission ("SEC"), believes it is appropriate
1 The Receivership was expanded to include Venice Jet Center, LLC; Tradewind, LLC;
Laurel Mountain Preserve, LLC; Laurel Preserve, LLC; the Marguerite J. Nadel Revocable Trust UAD 8/2/07 and the Laurel Mountain Preserve Homeowners Association, Inc.; The Guy-Nadel Foundation; Lime Avenue Enterprises, LLC; and A Victorian Garden Florist,
LLC by orders (Dkts. 17,44, 68, and 79) entered January 27,2009, February 11, 2009,
March 9,2009, and March 17,2009 respectively.
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to accept 90% of the amount claimed in consideration of payment before the commencement
of litigation to recover the false profits.
One of the letters was send to David Monte, seeking recovery of $l 0,908. 18 in false
profits, and, as shown by the attached Settlement Agreement, Mr. Monte, subject to approval
of
this Court, agreed to pay 90% ($9,817.36) within 14 days of approvaL. By this motion, the
Receiver seeks approval of
this settlement.2
The settlement reflected by the Settlement Agreement is in the best interests of the
Receivership, the investors in the Receivership Entities, and Mr. Monte, because resolution
of the claim avoids protracted litigation, conserving Receivership assets and judicial
resources, and avoids the cost of litigation to Mr. Monte.
WHEREFORE, the Receiver moves the Court to approve the settement reflected by
the attached Settlement Agreement.
LOCAL RULE 3.0l(g) CERTIFICATE OF COUNSEL
The undersigned counsel for the Receiver is authorized to represent to the Court that
the SEC has no objection to the Court's granting this motion. The undersigned counsel is
unable to contact Arthur Nadel, who is incarcerated in New York and is not represented by
counsel in this action.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on April 16, 2009, I electronically fied the foregoing with the Clerk of the Court by using the CM/ECF system. I further certify that I mailed the
2 The undersigned counsel is in communication with several recipients of the letters and
expects to file similar motions in the near future.
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foregoing document and the notice of electronic filing by first-class mail to the following
non-CM/ECF participants:
Arhur G. Nadel
Register No. 50690-018 New York MCC Metropolitan Correctional Center 150 Park Row New York, NY 10007
s/ Carl R. Nelson Carl R. Nelson, FBN 0280186
Email: cne1sonc£fowlerwhite.com
Gianluca Morello, FBN 034997 Email: gianluca.morelloC£fowlerwhite.com
Maya M. Lockwood, FBN 0175481 Email: mlockwoodc£fowlerwhite.com
Ashley Bruce Trehan, FBN 004341 1
Email: atrehan(ifowlerwhite.com
FOWLER WHITE BOGGS P.A. P.O. Box 1438
Tampa, FL 33601
(813) 228-7411 Fax No: (813) 229-8313
Attorneys for the Receiver Burton W. Wiand
40680403v!
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