Securities and Exchange Commission v. Nadel et al

Filing 840

ORDER ATTACHED regarding the sale of the Graham, North Carolina (Rite-Aid) property referenced at docket 823. Signed by Judge Richard A. Lazzara on 5/8/2012. (CCB)

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;
and SCOOP MANAGEMENT, INC.,
Defendants,
SCOOP REAL ESTATE, L.P.;
VALHALLA INVESTMENT PARTNERS, L.P.;
VALHALLA MANAGEMENT, INC.;
VICTORY IRA FUND, LED.; VICTORY FUND, LED.;
VIKING IRA FUND, LLC; VIKING FUND, LLC;
and VIKING MANAGEMENT, LLC,
Relief Defendants.
/
ORDER
Pending before the Court is the Receiver’s motion seeking this Court’s approval of the
sale of real property located in Graham, Alamance County, North Carolina on which a Rite-Aid
drugstore sits.1 The Securities and Exchange Commission does not oppose the motion.
However, Wells Fargo has filed an objection to the motion and memorandum of law in

1

See docket 823.

opposition.2 After careful consideration, the Court concludes that the Receiver’s motion should
be granted and his proposed order be entered as the Court’s order.
The Court agrees with the Receiver’s position that the sale of the Rite-Aid property is
necessary at the negotiated sale offer of $2,400,000.00, even though Wells Fargo is a secured
creditor and the amount of the indebtedness exceeds the purchase price. Wells Fargo submits
that as of April 25, 2012, it was owed $3,303,461.60, with interest accruing at $397.61 per diem.
Three appraisals have been submitted: $2,400,000.00 by Skeahan, the appraiser to which both
parties agreed; $2,600,000.00 by Shiplett, suggested by the Receiver; and $3,740,000.00 by
Fortenberry, suggested by Wells Fargo.3 These appraisals satisfy the requirement of 28 U.S.C. §
2001(b) as performed by independent, disinterested appraisers, and the sale of the property has
been published in accordance with 28 U.S.C. § 2001(b). The Receiver set forth the marketing
history of the property which reveals that 1) a broker recommended by Wells Fargo has been
used in the listing of the property; 2) current economic conditions for the real estate market, and
in particular this area, are poor; 3) this Rite-Aid store performs in the bottom 5% of all stores; 4)
the financial condition of Rite-Aid is not healthy; and 5) any further delay in the sale of the
property will only result in a lower sales price. Thus, the speedy sale of the property is in the best
interest of the defrauded investors and the receivership estate. Wells Fargo’s specific claim with
respect to the Rite-Aid property can and will be determined later.4 This decision therefore
renders Wells Fargo’s Motion (I) for Relief from Injunction or, in the alternative, (II) to Compel

2

See docket 832.

3

The tax collector of Alamance County appraised the property at $2,041,514.00 for
the years 2009, 2010, and 2011.
4

The Court is ever mindful that the state lawsuit filed by the Receiver against Wells
Fargo for participation in the Ponzi scheme is on-going.

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the Receiver to Abandon the Property located at 841 South Main Street, Graham, North Carolina
(Dkt. 719) moot.

DONE AND ORDERED at Tampa, Florida, on May 8, 2012.

s/Richard A. Lazzara
RICHARD A. LAZZARA
UNITED STATES DISTRICT JUDGE
COPIES FURNISHED TO:

Counsel of Record

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