Securities and Exchange Commission v. Nadel et al
Unopposed MOTION for Settlement re: Wiand, as Receiver v. Donald Rowe, et al. (8:10-cv-245), specifically, settlement with Marianne Bollaci Siegal, as trustee of the Hardin Family Irrevocable Trust u/a/d January 21, 2013 by Burton W. Wiand. (Attachments: # 1 Exhibit A - Executed Settlement Agreement)(Morello, Gianluca)
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
SECURITIES AND EXCHANGE
Case No. 8:09-cv-87-T-26TBM
SCOOP CAPITAL, LLC,
SCOOP MANAGEMENT, INC.
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
RECEIVER’S MOTION TO APPROVE SETTLEMENT
Burton W. Wiand, as Receiver, moves the Court for an order approving settlement of
some specific disputes that have arisen from the Receiver’s garnishment and other collection
efforts relating to a judgment entered in the Receiver’s favor in Burton W. Wiand, as
Receiver v. Donald Rowe et al., Case No.: 8:10-cv-245-T-17MAP (M.D. Fla.) (the “Rowe
Action”), on the basis of the Settlement Agreement attached as Exhibit A.
MEMORANDUM IN SUPPORT
The Securities and Exchange Commission (the “Commission” or “SEC”) instituted
this action to “halt [an] ongoing fraud, maintain the status quo, and preserve investor assets . .
. .” (Dkt. 1, Compl., ¶ 7.) Burton W. Wiand was appointed by this Court as the Receiver for
Defendants other than Arthur Nadel and for Relief Defendants. (See Order Reappointing
Receiver (Dkt. 140).) Additionally, the Receivership was expanded to include Venice Jet
Center, LLC and Tradewind, LLC (Dkt. 17); 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. (Dkt. 44); The Guy-Nadel Foundation,
Inc. (Dkt. 68); Lime Avenue Enterprises, LLC, and A Victorian Garden Florist, LLC (Dkt.
81); Viking Oil & Gas, LLC (Dkt. 153); Home Front Homes, LLC (Dkt. 172); Traders
Investment Club (Dkt. 454); Summer Place Development Corp. (Dkt. 911); Respiro, Inc.
(Dkt. 916); and Quest Energy Management Group, Inc. (Dkt. 1024). All of the entities in
receivership are collectively identified herein as the Receivership Entities.
Pursuant to the Order Reappointing Receiver (Doc. 493), the Receiver has the duty
and authority to:
Investigate the manner in which the affairs of the Receivership
Entities were conducted and institute such actions and legal proceedings, for
the benefit and on behalf of the Receivership Entities 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
Receivership Entities; 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
orders from this Court as may be necessary to enforce this Order.
Further, the Order Reappointing Receiver (at paragraph 6) authorizes the Receiver to
“[d]efend, compromise or settle legal actions ... in which the Receivership Entities or the
Receiver is a party ... with authorization of this Court ....”
The Receiver sued Donald Rowe, individually (“D. Rowe”) and as Trustee of The
Wall Street Digest Defined Benefit Pension Plan (the “Plan”); Joyce Rowe (“J. Rowe,” and
collectively with D. Rowe, the “Rowes”); and one of the Rowes’ entities, Carnegie Asset
Management, Inc. (“CAM”), to recover sums received from the Receivership Entities with a
view to marshaling assets for an eventual distribution to investors with verifiable claims in an
equitable and appropriate manner (the Rowes, the Plan, and CAM are collectively referred to
as “Defendants” or “Judgment Debtors”). The Receiver and the Defendants entered into a
settlement agreement, which was approved by the Court on February 5, 2013 (Doc. 963). As
part of that settlement, the Defendants consented to the entry of a joint and several judgment
in the Rowe Action in the amount of $4,028,385.00 (the “Judgment”), which was entered by
the Court on February 25, 2013. See Rowe Action (Doc. 124).
The Receiver then conducted discovery in aid of execution wherein he learned, inter
alia, that the Judgment Debtors transferred some of their assets to third parties, including
Marianne Bollaci Siegal, as trustee of the Hardin Family Irrevocable Trust u/a/d January 21,
2013 (“Transferee” or “Hardin Trust”).1 Transferee received the following transfers of
The Hardin Trust was formed on January 21, 2013 – just days before Judgment Debtors
were scheduled to participate in mediation with the Receiver that ultimately resulted in a
settlement and entry of the Judgment. While sharing the surname of J. Rowe’s relatives, the
reality is that the naming of the Hardin Trust appears to have been done solely to create the
appearance of an unrelated entity and further obfuscate efforts to trace Judgment Debtors’
assets. Indeed, J. Rowe recently testified that the Hardin Trust was created for her and her
family’s benefit. J. Rowe is the grantor of the Hardin Trust, and also has the ability, along
Judgment Debtors’ assets: (1) an annuity at Jackson National Life Insurance Co., Policy
Number 1013222408, purchased on or about March 27, 2013, for the sum of $400,000.00
(“JNL Annuity”); and (2) $150,000 (plus accrued interest) on or about April 26, 2013,
which is currently held in an account at Sabal Palm Bank2 (collectively referred to as the
“Transfers”). Accordingly, on May 21, 2013, the Receiver filed a motion to commence
proceedings supplementary and to implead third parties into the Rowe Action (“Impleader
Motion”), which was granted by the Court on August 8, 2013, to recover assets that were
fraudulently transferred by Judgment Debtors to others, including recovering the Transfers to
As shown by the attached Settlement Agreement, the Receiver and Transferee,
subject to the approval of this Court, have agreed to settle the claims raised in the Rowe
Action, including on the following terms: (1) Transferee agrees to the entry of Final
Judgment of Garnishment against Sabal Palm Bank with respect to the $150,000, plus
accrued interest, currently subject to the Writ; and (2) upon entry of an order approving this
settlement, Transferee shall be deemed to have transferred, assigned, and conveyed all rights,
interest, and ownership of the JNL Annuity to the Receiver, which as of the date of this
agreement has a value of approximately $390,000. Transferee further agreed to execute any
documents necessary and to reasonably cooperate with the Receiver to facilitate the transfer,
assignment, and conveyance of the JNL Annuity.
with D. Rowe, to receive distributions of the trust corpus. Further, the trustee is a friend of
The $150,000 at Sabal Palm Bank is currently subject to a writ of garnishment.
In reaching this agreement, the Receiver considered the risks and expense of further
efforts to recover the Transfers, including the proceeding supplementary. The Receiver
believes that the settlement provides a practical solution which results in the maximum
benefit to the Receivership. Further, the settlement reflected by the Settlement Agreement is
in the best interests of the Receivership, the investors in the Receivership Entities, and
Transferee, because resolution of the claim avoids protracted litigation, conserving
Receivership assets and judicial resources, and avoids the cost of litigation to Transferee.
WHEREFORE, the Receiver moves the Court to approve the settlement reflected by
the attached Settlement Agreement.
LOCAL RULE 3.01(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.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on October 22, 2013, I electronically filed the foregoing
with the Clerk of the Court by using the CM/ECF system.
s/ Gianluca Morello
Gianluca Morello, FBN 034997
Michael S. Lamont FBN 0527122
Wiand Guerra King P.L.
5505 West Gray Street
Tampa, FL 33609
Tel: (813) 347-5100
Fax: (813) 347-5198
Attorneys for the Receiver, Burton W. Wiand
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