Securities and Exchange Commission v. Nadel et al

Filing 1311

DECLARATION of Burton W. Wiand re 1310 Verified MOTION for miscellaneous relief, specifically to Enforce Constructive Trust through Turnover of Real Property, or in the Alternative, through Foreclosure of the Receiver's Equitable Lien by Burton W. Wiand. (Attachments: # 1 Exhibit A - Doc 29 Order granting partial motion for summary judgment, # 2 Exhibit B - Final Judgment, # 3 Exhibit C - BK Case Doc 39 Order Granting Motion to Confirm Termination or Absence of Stay or Alternatively Relief From the Automatic Stay, # 4 Exhibit D - AQ Doc 115 Motion to transfer, # 5 Exhibit E - AQ Doc 182 ORDER granting 115 Motion to transfer; granting 117 Motion to transfer, # 6 Exhibit F - AQ Doc 184 Turnover Order, # 7 Exhibit G - 1 (pages 1-25) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits, # 8 Exhibit G - 2 (pages 25-50) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits-2, # 9 Exhibit G - 3 (pages 51-101) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits-2, # 10 Exhibit H - AQ Doc 263 FINAL JUDGMENT CONFIRMING RECEIVER'S SALE OF REALTY, # 11 Exhibit I - Hudgins Doc 264 Order Approving Sale of Real Propert)(Lamont, Michael)

EXHIBIT B

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ORDERED.
Dated: July 20, 2017

UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
In re
VERNON M. LEE

Case No.: 8:15-bk-01038-KRM
Chapter 7

Debtor.
____________________________________/
BURTON W. WIAND as receiver for,
Valhalla Investment Partners, P.L.
Viking Fund, LLC, Viking IRA Fund LLC,
Victory Fund, LTD, Victory IRA Fund, LTD,
Scoop Real Estate, L.P., and Traders
Investment Club,
Plaintiff,
v.

Adv. Pro. No.: 8:15-ap-464-KRM

VERNON M. LEE, individually and as
Trustee of the Vernon M. Lee Trust, and
MANON SOMMERS-LEE,
Defendants.
___________________________________/
FINAL JUDGMENT
THIS PROCEEDING came before the Court to consider entry of a final judgment in this
adversary proceeding. After considering the Motion for Partial Summary Judgment (Doc. No.

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16) filed by Burton W. Wiand (“Receiver”) 1 regarding the Complaint (Doc. No. 1), the Court
entered a Memorandum Opinion (Doc. No. 29) on June 23, 2017, granting summary judgment in
favor of the Receiver on Count I for imposition of an equitable lien and Count II for imposition
of a constructive trust. The Court concluded that an equitable lien and constructive trust should
be imposed on the Debtor’s homestead, in the amount of $227,126.78, representing the amount
of fraudulent funds traced directly into the homestead. Per the Court’s request, the parties have
submitted supplemental memoranda regarding the appropriate interest to be added thereon, and a
hearing on which was conducted on July 18, 2017. 2 Having considered the memoranda,
argument of counsel at the July 18, 2017 hearing, and being further advised in the premises, the
Court finds that the equitable lien and constructive trust should include interest in the amount of
$109,764.61. Consistent with and to implement the Court’s ruling based on the evidence, it is
appropriate to enter Final Judgment. Accordingly, it is
ORDERED that:
1. The Receiver’s Motion for Partial Summary Judgment is GRANTED.
2. On the claims asserted in Count I of the Complaint for the imposition of an equitable
lien and Count II of the Complaint for the imposition of a constructive trust, Final
Judgment is entered in favor of the Receiver, Burton W. Wiand, and against Vernon
M. Lee and Manon Sommers-Lee, whose principal address is 4018 Via Miranda,
Sarasota, Florida.
3. An equitable lien and a constructive trust in the total amount of $336,891.39,
consisting of the principal amount of $227,126.78 and prejudgment interest in the
1

As receiver for Valhalla Investment Partners, P.L., Viking Fund, LLC, Viking IRA Fund, LLC, Victory Fund,
LTD, Victory IRA Fund, LTD, Scoop Real Estate, L.P., and Traders Investment Club.
2
See Plaintiff’s Supplemental Memorandum for an Award of Prejudgment Interest (Doc. No. 33) and Defendants’
Supplemental Memorandum Regarding Prejudgment Interest (Doc. No. 34).

2

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amount of $109,764.61, 3 shall be imposed against the subject property located in
Sarasota County, Florida, commonly known as 4018 Via Miranda, Sarasota, Florida,
which has a legal description of:
LOT 71, MARBELLA, ACCORDING TO THE PLAT THEREOF RECORDED IN
PLAT BOOK 33, PAGES 33 THROUGH 33J, OF THE PUBLIC RECORDS OF
SARASOTA COUNTY, FLORIDA.
4. The total amount in paragraph 3 shall bear interest from this date forward at the
federal rate prescribed in 28 U.S.C. § 1961.
5. The lien of the Receiver is superior in dignity to all rights, titles, interest, or claims of
the Defendants, Vernon M. Lee and Manon Sommers-Lee, and all persons,
corporations, or other entities claiming by, though, or under the Defendants, or any of
them.
6. This Judgment may be recorded and shall evidence the imposition of the equitable
lien and constructive trust.
7. This Court shall retain jurisdiction over the remaining counts of the Receiver’s
Complaint and other issues as necessary to afford relief to the Receiver.

Clerk’s office to serve.
3

As requested by the Receiver in his supplemental memorandum (Doc. No. 33). The interest, calculated by the
Receiver’s CPA, Maria M. Yip, is based on the total requested pre-petition interest of $451,707.21 relating to the
judgment entered in Wiand v. Lee, Case No. 8:10-cv-210-T-17-MAP (M.D. Fla.) (interest has not been calculated or
awarded yet in the District Court case), pro-rated for the amount of funds invested directly into the property located
at 4018 Via Miranda.

3