Securities and Exchange Commission v. Nadel et al
MOTION to Approve Settlement re: Vivian K. Kouvant by Burton W. Wiand. (Attachments: # 1 Exhibit A - Vivian K. Kouvant Settlement Agreement)(Lamont, Michael)
UNITED S T A T E S DISTRICT C O U R T
M I D D L E D I S T R I C T OF F L O R I D A
SECURITIES AND EXCHANGE
Case No. 8:09-cv-87-T-26TBM
SCOOP CAPITAL, LLC,
SCOOP MANAGEMENT, INC.
SCOOP REAL ESTATE, L.P.
V A L H A L L A INVESTMENT PARTNERS, L.P.,
V A L H A L L A MANAGEMENT, INC.
VICTORY IRA FUND, LTD,
VICTORY FUND, LTD,
VIKING IRA FUND, LLC,
VIKING FUND, LLC, AND
R E C E I V E R ' S MOTION T O APPROVE S E T T L E M E N T
Burton W. Wiand, as Receiver, moves the Court for an order approving settlement of
Burton W. Wiand, as Receiver v. Vivian K. Kouvant, CaseNo.: 8:10-cv-225-T-17MAP (M.D.
Fla.) (the "Kouvant 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 "hah [an] ongoing fraud, maintain the status quo, and preserve investor assets . .
. ." (Dkt. 1, Compl., I 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. 493).) 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 U A D 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.
79); Viking Oil & Gas, LLC (Dkt. 153); Home Front Homes, LLC (Dkt. 172); and Traders
Investment Club (Dkt. 454). A l l of the entities in receivership are collectively identified
herein as the Receivership Entities.
Pursuant to the Order Reappointing Receiver (Dkt. 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
"[djefend, compromise or settle legal actions . . . in which the Receivership Entities or the
Receiver is a party . . . with authorization of this Court . . . ."
By a Complaint filed January 19, 2010, the Receiver sued Vivian K. Kouvant (the
"Defendant"), 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.
Specifically, the Receiver sought recovery of "false
profits" (as defined in the complaint) of $420,000.00.
As shown by the attached Settlement Agreement, the Receiver and the Defendant,
subject to the approval of this Court, have agreed to settle the Kouvant Action for $25,000.00
in full settlement of the claims.
In reaching this agreement, the Receiver considered
Defendant's financial situation, the risks and expense of litigation, and the risk associated
with collecting on any eventual judgment.
The settlement reflected by the Settlement Agreement is in the best interests of the
Receivership, the investors in the Receivership Entities, and Defendant, because resolution of
the claim avoids protracted litigation, conserving Receivership assets and judicial resources,
and avoids the cost of litigation to Defendant.
WHEREFORE, the Receiver moves the Court to approve the settlement reflected by
the attached Settlement Agreement.
L O C A L R U L E 3.01(g) C E R T I F I C A T E OF C O U N S E L
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 April 26, 2011,1 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
Register No. 50690-018
FCI BUTNER LOW
Federal Correctional Institution
P.O. Box 999
s/ Michael S. Lamont
Gianluca MoreUo, FBN 034997
Michael S. Lamont FBN 0527122
Wiand Guerra King PL
3000 Bayport Drive
Tampa, FL 33607
Attorneys for the Receiver, Burton W. Wiand
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