Securities and Exchange Commission v. Nadel et al
MOTION to Approve Settlement re: Jewish Family and Children's Service of Sarasota-Manatee, Inc. by Burton W. Wiand. (Attachments: # 1 Exhibit A - Executed Settlement Agreement)(Morello, Gianluca)
UNITED S T A T E S D I S T R I C T C O U R T
MIDDLE DISTRICT OF FLORIDA
SECURITIES AND EXCHANGE
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 A P P R O V E S E T T L E M E N T
Burton W. Wiand, as Receiver, moves the Court for an order approving settlement of
claims against Jewish Family and Children's Service of Sarasota-Manatee, Inc. a Florida
corporation ("JFCS") for recovery of sums received from one or more Receivership Entities
as "charitable contributions" 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] ongoing fraud, maintain the status quo, and preserve investor assets
. . . ." (Dkt. 1, Compl., f 7.) Burton W, Wiand was appointed by this Court as the Receiver
for Defendants and Relief Defendants.
(See Order Reappointing Receiver (Dkt. 140).)
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); and Home Front Homes, LLC (Dkt. 172); and Traders Investment Club
A l l of the entities in receivership are collectively identified herein as the
Pursuant to the Order Reappointing Receiver (Dkt. 140), 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.
The Receiver's investigation has revealed several organizations that received
"charitable contributions" which consisted of proceeds of the scheme underlying this case.
Those organizations' receipt of those funds operated to the detriment of investors in the
scheme underlying this case who lost money as a result of their investment. JFCS was not an
"investor" in the hedge funds used to perpetrate the scheme, but is a charitable organization
that received contributions which consisted of funds obtained through the scheme.
Specifically, JFCS received a total of $227,405 in charitable contributions which consisted of
As shown by the attached Settlement Agreement, JFCS, subject to the approval of
this Court, has agreed to pay $140,000.00, to be paid in accordance with a set payment
In reaching this agreement, the Receiver considered the risks and expense of
litigation, JFCS's willingness to resolve the matter before the Receiver had to file a lawsuit,
and JFCS's financial ability to pay. The settlement reflected by the Settlement Agreement is
in the best interests of the Receivership, the investors in the Receivership Entities, and JFCS,
because resolution of the claims avoids protracted litigation, conserving Receivership assets
and judicial resources, and avoids the cost of litigation to JFCS.
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 O F 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 H E R E B Y C E R T I F Y that on September 22, 2011, I electronically filed the
foregoing with the Clerk of the Court by using the CM/ECF system.
I F U R T H E R C E R T I F Y that on September 22, 2011, I mailed the foregoing
document and the notice of electronic filing by first-class mail to the following non-CM/ECF
Arthur G. Nadel
Register No. 50690-018
FCI BUTNER LOW
Federal Correctional Institution
P.O. Box 999
Burner, NC 27509
s/ Gianluca Morello
Gianluca Morello, FBN 034997
Michael S. Lamont, FBN 0527122
Wiand Guerra King P.L.
3000 Bayport Drive
Tampa, FL 33607
Tel: (813) 347-5100
Attorneys for the Receiver, Burton W. Wiand
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