Securities and Exchange Commission v McKnight

Filing 517

ORDER granting 506 Motion for authority to (A) reserve distributions to be made to claimants without valid current addresses in the receiver's database and (B) require such claimants to update their addresses with the receiver within 90 days, and (II) for related relief. Signed by District Judge George Caram Steeh (MBea)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
)
)
)
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Plaintiff,
)
)
vs.
)
)
GREGORY N. MCKNIGHT, and
LEGISI HOLDINGS, LLC,
)
)
)
Defendants,
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)
and
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LEGISI MARKETING, INC., LIDO
CONSULTING , LLC, HEALTHY BODY )
)
NUTRACEUTICALS, LINDENWOOD
)
ENTERPRISES, LLC , DANIELLE
)
BURTON, THERESA BURTON, and
)
JENNIFER MCKNIGHT,
)
)
Relief Defendants.
SECURITIES AND EXCHANGE
COMMISSION,

Case No. 08-11887
Hon. George Caram Steeh

ORDER GRANTING THE RECEIVER’S MOTION (I) FOR AUTHORITY TO (A)
RESERVE DISTRIBUTIONS TO BE MADE TO CLAIMANTS WITHOUT VALID
CURRENT ADDRESSES IN THE RECEIVER’S DATABASE AND (B) REQUIRE SUCH
CLAIMANTS TO UPDATE THEIR ADDRESSES WITH THE RECEIVER WITHIN 90
DAYS, AND (II) FOR RELATED RELIEF

This matter having come before the Court upon The Receiver’s Motion (I) For Authority
To (A) Reserve Distributions To Be Made To Claimants Without Valid Current Addresses In The
Receiver’s Database And (B) Require Such Claimants To Update Their Addresses With The
Receiver Within 90 Days, And (II) For Related Relief (the “Motion”); and the Court having

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considered the Motion and any responses thereto; and it appearing that the Court has jurisdiction
over the subject matter of the Motion and the relief requested therein; and it appearing that
notice of the Motion was sufficient; and the Court being fully advised in the premises;
IT IS HEREBY ORDERED that:
1.

The Motion is granted with the following conditions:

2.

The Receiver is authorized to reserve funds allocated to the Returned-Mail

Claimants on account of the First Interim Distribution.1
2.

Within 30 days of this order, which shall be emailed to the last known electronic

mail address of the each of the Returned-Mail Claimants and posted to the Receiver’s website,
the Receiver shall perform, or have performed, a reasonable amount of investigation using email
addresses, telephone numbers, U.S. Post Office information, and the internet, and/or other
reasonable means, to determine current contact information for the Returned-Mail Claimants.
3.

Returned-Mail Claimants not located through such investigation shall have 90

calendar days from the date of entry of this order to advise the Receiver of their current address
in writing via electronic mail, through the Receiver’s website, by letter, or by facsimile.
4.

Promptly following 90 days after entry of this order, the Receiver shall issue both

a copy of this order and checks on account of the First Interim Distribution to Returned-Mail
Claimants who have either been located through the reasonable investigation contemplated
above or who have timely updated their addresses of record with the Receiver.
5.

Failure to timely present (i.e., cash or deposit) such First Interim Distribution

check within 120 days from the date such check is issued shall be deemed a waiver of the right

1

All capitalized terms used but not defined herein shall have the meanings ascribed to them in
the Motion.
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to participate in the First Interim Distribution by the recipient of such check, and such recipient
shall not be entitled to any “catch-up” payment at a later date with respect to the First Interim
Distribution.
6.

Returned-Mail Claimants who are not located using reasonable investigation

methods or who fail to timely provide updated addresses to the Receiver shall be deemed to have
waived their participation in the First Interim Distribution. In addition, such claimants shall be
deemed to waive future distributions unless they provide updated addresses to the Receiver in
advance of the Court granting authority to make such future distributions.
7.

Any distribution funds which remain on account of (a) any Returned-Mail

Claimant’s failure to present such First Interim Distribution check within 120 days of its
issuance, or (b) the failure of a Returned-Mail Claimant to update its address of record with the
Receiver within 90 days of the entry of this Order, will escheat to the Receivership Estates.
8.

The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry.
9.

The Court retains jurisdiction with respect to all matters arising from or relating

to the interpretation or implementation of this Order.
Dated: December 17, 2012
s/George Caram Steeh
GEORGE CARAM STEEH
UNITED STATES DISTRICT JUDGE
CERTIFICATE OF SERVICE
Copies of this Order were served upon attorneys of record
on December 17, 2012, by electronic and/or ordinary mail.
s/Marcia Beauchemin
Deputy Clerk

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