Securities and Exchange Commission v. Nadel et al
Filing
137
MOTION to Approve Settlement re: Victor and Susan Trzeciak by Burton W. Wiand. (Attachments: #1 Exhibit A)(Nelson, Carl)
Securities and Exchange Commission v. Nadel et al
Doc. 137
UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA 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. Wi
and, as Receiver, moves the Court for an order approving settlement of
a claim against Victor and Susan Trzeciak for recovery of sums received from one or more
Receivership Entities in excess of investment ("false profits") 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 J ongoing fraud, maintain the status quo, and preserve investor
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assets. . .." (Dkt. I, Compl., ii 7.) Burton W. Wiand was appointed by this Court as the
Receiver for 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 conducted 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 orders from this
Court as may be necessary to enforce this Order.
Dkt. 8 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 eighty-one (81) domestic and three (3) 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
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, Inc.; Lime Avenue Enterprises, LLC; and A Victorian Garden Florist, LLC by orders (Dkts. 17, 44, 68, and 79) entered January 27, 2009, February II,
2009, March 9,2009, and March 17,2009 respectively.
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litigation. The Receiver, with the approval of the Commission, believes it is appropriate 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 sent to Victor and Susan Trzeciak, seeking recovery of
$34,859.48 in false profits, and, as shown by the attached Settlement Agreement, Victor and
Susan Trzeciak, subject to approval of
this Court, has agreed to pay 90% ($31,373.53), with
$15,686.76 to be paid no later than fourteen (14) days after approval and the balance of
$15,686.7 to be paid on or before October 30, 2009.
The settlement reflected by the Settement Agreement is in the best interests of the
Receivership, the investors in the Receivership Entities, and Victor and Susan Trzeciak,
because resolution of the claim avoids protracted litigation, conserving Receivership assets
and judicial resources, and avoids the cost of litigation to Victor and Susan Trzeciak.
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.
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on May 22,2009, I electronically filed the foregoing with
the Clerk of the Court by using the CM/ECF system. I further certify that I mailed the
foregoing document and the notice of electronic filing by first-class mail to the following
non-CM/ECF participants:
Arthur G. Nadel Register No. 50690-018 York MCC New Metropolitan Correctional Center 150 Park Row New York, NY 10007
s/ Carl R. Nelson Carl R. Nelson, FBN 0280186
Email: cnelson(ifowlerwhite.com
Gianluca Morello, FBN 034997 Email: gianluca.morello(ifowlerwhite.com Maya M. Lockwood, FBN 0175481
Email: mlockwood(ifowlerwhite.com Ashley Bruce Trehan, FBN 0043411
Email: atrehan(ifowlerwhite.com
FOWLER WHITE BOGGS P.A. P.O. Box 1438
Tampa, FL 33601
Tel: (813) 228-7411 Fax: (813) 229-8313
Attorneys for the Receiver, Burton W. Wiand
40714814vl
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