Securities and Exchange Commission v. Nadel et al

Filing 186

MOTION to Approve Settlement re: John Cart by Burton W. Wiand. (Attachments: #1 Exhibit A - Settlement Agreement re John Cart)(Nelson, Carl)

SETTLEMENT AGREEMENT
WHEREAS, by order dated June 3, 2009, the Court in Sec. & Exch. Comm'n v.
Arhur NadeL, et aI., Case No. 8:09-cv-87-T-26TBM (M.D. Fla.) (the "SEC Receivership
Action"), reappointed Burton W. Wi

and as Receiver (the "Receiver") for Scoop Real

Estate, L.P.; 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; Viking Management; Venice Jet Center,

LLC; Tradewind, LLC; Laurel Mountain Preserve, LLC; Laurel Preserve, LLC; the

Marguerite J. Nadel Revocable Trust UAD 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 and all of their subsidiaries,
successors, and assigns (collectively, the "Receivership Entities"); and

WHEREAS, the Receiver intends to commence a lawsuit in the United States
District Court for the Middle District of Florida seeking the return of certain funds

received from or at the direction of one or more of the Receivership Entities (the

"Lawsuit"); and

WHEREAS, John Cart, without admitting liability, wishes to resolve these
matters amicably; and
WHEREAS, any resolution of this action by agreement of

the Receiver and John

Cart is subject to approval by the Court presiding over the SEC Receivership Action (the
"SEC Receivership Court"),
'\

NOW, THEREFORE, and subject to the approval ófthe SEC Receivership Court,
John Cart has agreed to pay and the Receiver has agreed to accept a total of $46,272.61 in
full settlement of the claims to be asserted in the Lawsuit.

The $46,272.61 re resents
EXHIBIT
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A

90% of $51,414.01, the total of sums received by John Cart in excess of

his investment

("false profits") and is to be paid no later than fourteen (14) days after approval of this
settlement by the SEC Receivership Court.

Upon receipt and clearing of the settlement payment, the Receiver, on behalf of
the Receivership Entities and their employees, agents, representatives, beneficiaries, and
assigns, shall be deemed to have released and forever discharged John Cart and his

successors and assigns of and from any and all claims which could have been asserted by
the Receiver, as well as any and all other claims, demands, rights, promises, and

obligations arising from or related in any way to John Cart's investment in any product,

fund, entity, or venture established, operated, or controlled by Arthur Nadel and the
Receivership Entities.

In further consideration of the release of claims described above, John Cart
warrants that $51,414.01 is the total amount of

money or value that he received from the
his investment, and John Cart agrees to waive and does

Receivership Entities in excess of

hereby waive any claim he had, has, or hereafter may have against the Receiver andlor
the Receivership Estate.

The Receiver and John Cart understand and agree that, subject to the approval of
the SEC Receivership Court, the payment of the aforesaid total sum and waiver of claims

is in full accord and satisfaction of and in compromise of disputed claims, and the
payment and waiver are not an admission of liability, which is expressly denied, but are
made for the purpose of terminating the dispute and avoiding litigation.

After execution of this Settlement Agreement by all parties, the Receiver wil
promptly move the SEC Receivership Court for approval of this settlement. John Cart

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understands and agrees that each party shall bear their own individual costs and attorney

fees incurred in the resolution of this matter other than as indicated above in connection
with a default. To the extent necessary, John Cart agrees to assist the Receiver in seeking
the SEC Receivership Court's approval ofthis settlement.
The Receiver and John Cart agree that this Settlement Agreement shall be

governed by and be enforceable under Florida law in the United States District Court for
the Middle District of

Florida, Tampa Division.

The Receiver and John Cart also agree that electronically transmitted copies of

signature pages wil have the full force and affect of original signed pages.
In witness whereof the parties have set their hands as of the dates indicated.

~~~ 'l. W ca
Date:

i~
Burton W. Wi

/'

and, As Receiver

of the Receivership Entities

g-Iis /O~

Date:

41074645

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