Securities and Exchange Commission v. Nadel et al

Filing 139

MOTION for miscellaneous relief, specifically to Reappoint Receiver by Burton W. Wiand. (Attachments: #1 Exhibit A - Proposed Order Reappointing Receiver)(Nelson, Carl)

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION
CASE NO.: 8:09-cv-87-T-26TBM

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,
v.

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.
/

ORDER REAPPOINTING RECEIVER

WHEREAS, Plaintiff Securities and Exchange Commission ("Commission") filed an
emergency motion for the appointment of a Receiver over Defendants Scoop Capital LLC and
Scoop Management Inc. ("Defendants"), and Relief

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"),
with full and exclusive power, duty

and authority to: administer and manage the business affairs,

funds, assets, choses in action and any other property of the Defendants and Relief Defendants;

BXBIT-Å

marshal and safeguard all of the assets of the Defendants and Relief Defendants; and take whatever
actions are necessary for the protection of the investors; and

WHEREAS, the Commission has made a sufficient and proper showing in support of the
relief requested by evidence demonstrating a prima facie case of violations of the federal securities
laws by the Defendants; and
WHEREAS, the Commission submitted the credentials of

Burton W. Wiand to be appointed

as Receiver of all of the assets, properties, books and records, and other items of the Defendants and
Relief Defendants, including any properties, assets and other items held in the names of the
Defendants and Relief

Defendants, and the Commission has advised the Court that Burton W. Wiand

was prepared to assume this responsibility if so ordered by the Court; and
WHEREAS, Burton W. Wi

and was appointed Receiver over the Defendants and Relief

Defendants; and

WHEREAS, upon suffcient and proper showing by Burton W. Wiand and, for the
protection of the investors and the Receivership Estate, the Court expanded the Receivership to
include Venice Jet Center, LLC; Tradewind, LLC; Laurel Mountain Preserve, LLC; Laurel Preserve,

LLC; the Marguerite 1. Nadel Revocable Trust DAD 8/2/07; the Laurel Mountain Preserve
Homeowners Association, Inc.; The Guy-Nadel Foundation, Inc.; Lime Avenue Enterprises, LLC;

and A Victorian Garden Florist, LLC,
NOW, THEREFORE, IT is ORDERED AND ADJUDGED that Burton W. Wi

and is

hereby reappointed the Receiver over the Defendants and Relief

Defendants and Venice Jet Center,

LLC; Tradewind, LLC; Laurel Mountain Preserve, LLC; Laurel Preserve, LLC; the Marguerite 1.
Nadel Revocable Trust DAD 8/2/07; the Laurel Mountain Preserve Homeowners Association, Inc.;
The

Guy-Nadel Foundation, Inc.; Lime Avenue Enterprises, LLC; and A Victorian Garden Florist,

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LLC (collectively "Receivership Entities"), their subsidiaries, successors and assigns, and is hereby
authorized, empowered, and directed to:

1. Take immediate possession of all property, assets and estates of every kind of the
Receivership Entities, whatsoever and wheresoever located belonging to or in the possession of the
Receivership Entities, including but not limited to all offices maintained by the Receivership

Entities, rights of action, books, papers, data processing records, evidences of debt, bank accounts,
savings accounts, certificates of deposit, stocks, bonds, debentures and other securities, mortgages,

furniture, fixtures, offce supplies and equipment, and all real property of the Receivership Entities
wherever situated, and to administer such assets as is required in order to comply with the directions
contained in this Order, and to hold all other assets pending further order of

this Court;

2. Investigate the maner 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
those individuals, corporations, partnerships, associations and/or unincorporated organizations, which

the Receiver may claim have wrongfully, ilegally or otherwise improperly misappropriated or

transferred monies or other proceeds directly or indirectly traceable from investors in the
Receivership Entities, including against their officers, directors, employees, affiliates, subsidiaries, or

any persons acting in concert or participation with them, or 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 of
profits, recovery and/or avoidance of fraudulent transfers under Florida Statute § 726.1 01, 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;

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3. Present to this Court a report reflecting the existence and value of the assets of the

Receivership Entities and of the extent of liabilities, both those claimed to exist by others and those
the Receiver believes to be legal obligations of the Receivership Entities;

4. Appoint one or more special agents, employ legal counsel, actuaries, accountants,
clerks, consultants and assistants as the Receiver deems necessary and to fix and pay their reasonable
compensation and reasonable expenses, as well as all reasonable expenses of taking possession of

the

assets and business of the Receivership Entities, and exercising the power granted by this Order,
subject to approval by this Court at the time the Receiver accounts to the Court for such expenditures

and compensation;

5. Engage persons in the Receiver's discretion to assist the Receiver in carrng out the
Receiver's duties and responsibilities, including, but not limited to, the United States Marshal's
Service or a private security firm;
6. Defend, compromise or settle legal actions, including the instant proceeding, in which

the Receivership Entities or the Receiver is a party, commenced either prior to or subsequent to this
Order, with authorization of this Court; except, however, in actions where the Receivership Entities
are a nominal party, where the action does not effect a claim against or adversely affect the assets of

the Receivership Entities, the Receiver may file appropriate pleadings in the Receiver's discretion.
The Receiver may waive any attorney-client or other privilege held by the Receivership Entities;

7. Assume control of, and be named as authorized signatory for, all accounts at any
bank, brokerage firm or financial institution which has possession, custody

or control of any assets or

funds, wherever situated, of the Receivership Entities and, upon order of this Court, of any of their
subsidiaries or affliates, provided that the Receiver deems it necessary;

8. Make or authorize such payments and disbursements from the funds and assets taken

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into control, or thereafter received by the Receiver, and incur, or authorize the incurrence of, such
expenses and make, or authorize the making of, such agreements as may be reasonable, necessary,
and advisable in discharging the Receiver's duties;
9. Have access to and review all mail of

the Receivership Entities (except for mail that

appears on its face to be purely personal or attorney-client privileged) received at any office or

address of the Receivership Entities.

IT is FURTHER ORDERED AND ADJUDGED that, II connection with the
reappointment of the Receiver provided for above:

10. The Receivership Entities and all of their directors, officers, agents, employees,
attorneys, attorneys-in-fact, shareholders, and other persons who are in custody, possession, or

control of any assets, books, records, or other property of the Receivership Entities shall deliver

forthwith upon demand such property, monies, books and records to the Receiver, and shall forthwith

grant to the Receiver authorization to be a signatory as to all accounts at banks, brokerage firms or
financial institutions which have possession, custody or control of any assets or funds in the name of
or for the benefit of the Receivership Entities;

1 1. All banks, brokerage firms, financial institutions, and other business entities which
have possession, custody or control of any assets, funds or accounts in the name of, or for the benefit
of, the Receivership Entities shall cooperate expeditiously in the granting of control and authorization

as a necessary signatory as to said assets and accounts to the Receiver;
12. Unless authorized by the Receiver, the Receivership Entities and their principals shall
take no action, nor purport to take any action, in the name of or on behalf of the Receivership

Entities;

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13. The Receivership Entities, and their respective officers, agents, employees, attorneys,

and attorneys-in-fact, shall cooperate with and assist the Receiver. The Receivership Entities and

their principals, respective offcers, agents, employees, attorneys, and attorneys-in-fact shall take no

action, directly or indirectly, to hinder, obstruct, or otherwise interfere with the Receiver in the
conduct of the Receiver's duties or to interfere in any manner, directly or indirectly, with the custody,

possession, management, or control by the Receiver of the funds, assets, premises, and choses in
action described above;

14. The Receiver, and any counsel whom the Receiver may select, are entitled to
reasonable compensation from the assets now held by or in the possession or control of or which may

be received by the Receivership Entities; said amount or amounts of compensation shall be
commensurate with their duties and obligations under the circumstances, subject to approval of the
Court;

15. Without prior permission from this Court, during the period of this receivership all persons, including creditors, banks, investors, or others, with actual notice of this Order, are enjoined

from filing a petition for relief under the United States Bankptcy Code or from in any way
disturbing the assets or proceeds of the receivership or from prosecuting any actions or proceedings
which involve the Receiver or which affect the property of the Receivership Entities;
16. The Receiver is fully authorized to proceed with any filing the Receiver may deem

appropriate under the Banptcy Code as to the Receivership Entities;

17. Title to all property, real or personal, all contracts, rights of action and all books and
records of the Receivership Entities and their principals, wherever located within or without this.

state,
it

is vested

by operation oflaw in the Receiver;

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18. Upon request by the Receiver, any company providing telephone services to the
Receivership Entities shall provide a reference of calls from any number presently assigned to any of

the Receivership Entities to any such number designated by the Receiver or perform any other
changes necessary to the conduct of the receivership;

19. Any entity furnishing water, electric, telephone, sewage, garbage or trash removal
services to the Receivership Entities shall maintain such service and transfer any such accounts to the
Receiver unless instructed to the contrary by the Receiver;

20. The United States Postal Service is directed to provide any information requested by
the Receiver regarding the Receivership Entities, and to handle future deliveries of the mail

of the

Receivership Entities as directed by the Receiver;

21. No bank, savings and loan association, other financial institution, or any other person
or entity shall exercise any form of set-off, alleged set-off, lien, or any form of self-help whatsoever,
or refuse to transfer any funds or assets to the Receiver's control without the permission ofthis Court;

22. No bond shall be required in coimection with the appointment of the Receiver.
Except for an act of gross negligence or greater, the Receiver shall not be liable for any loss or
damage incurred by the Receivership Entities or by the Receiver's officers, agents or employees, or
any other person, by reason of any act performed or omitted to be performed by the Receiver in
connection with the discharge of

the Receiver's duties and responsibilities;
persons who have invested in the

23. In the event that the Receiver discovers that funds of

Receivership Entities have been transferred to other persons or entities, the Receiver shall apply to

this Court for an Order giving the Receiver possession of such funds and, if the Receiver deems it
advisable, extending this receivership over any person or entity holding such investor funds; and
24. This Court shall retain jurisdiction of

this matter for all purposes.

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DONE AND ORDERED this _ day of June, 2009, in Chambers in Tampa, Florida.
Sf Richard A. Lazzara

RICHARD A. LAZZARA UNITED STATES DISTRICT JUDGE
Copies to:

Counsel of record by CMfECF
Arthur G. Nadel, Register MCC New

No. 50690-018

York Metropolitan Correctional Center 150 Park Row New York, NY 10007

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