United States Securities and Exchange Commission v. Trevor Cook, et al.

Filing 830

ORDER. IT IS HEREBY ORDERED: The Court will defer ruling on this motion 774 for ninety (90) days. The parties shall appear before the Court on Friday, September 9, 2011, at 11:00 a.m. to determine whether the Receiver has filed claims against NRP and Western. The $3.4 million settlement proceeds at issue here shall remain in escrow pending the Courts decision on this motion.(Written Opinion). Signed by Chief Judge Michael J. Davis on 6/6/11. (GRR)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
U.S. Commodity Futures
Trading Commission,
Plaintiff,

ORDER
Civil No. 09‐3332

v.
Trevor Cook, et al.,

Defendants
__________________________________________________________________
United States Securities 
and Exchange Commission,
Plaintiff,
v.

Civil No. 09‐3333

Trevor Cook, et al.,
Defendants.
___________________________________________________________________
United States Securities 
and Exchange Commission,
Plaintiff,
v.

Civil No. 11‐574

Jason Bo‐Alan Beckman et al.,
Defendant.
____________________________________________________________________ 
1

R.J. Zayed, Tara C. Norgard, Brian W. Hayes and Samuel T. Lockner,
Carlson, Caspers, Vandenburgh & Lindquist, Counsel for the Receiver.
Terrance J. Fleming, Christopher A. Grgurich and Christopher D. Pham,
Lindquist & Vennum PLLP, Counsel for the FINRA Claimants.
_____________________________________________________________________
This matter is before the Court on the Receiver’s motion to enjoin
distribution of settlement proceeds to twelve defrauded investors who brought
arbitration proceedings before the Financial Industry Regulatory Authority
(“FINRA”), seeking damages from Jason Bo‐Alan Beckman, NRP Financial, Inc.
(“NRP”) and Western International Securities, Inc. (“Western”).  The defrauded
investors, referred to as the FINRA claimants, oppose the motion, arguing that
the settlement proceeds are not a Receiver Asset and therefore not subject to the
Asset Freeze Orders issued in these cases.  
Whether or not the settlement proceeds at issue here can be characterized
as a Receiver Asset will depend, in part, on whether the Receiver files claims
against NRP or Western.  The Receiver asserts that he will soon be in the position
to determine whether to proceed against NRP or Western.  Accordingly,

2

IT IS HEREBY ORDERED:
The Court will defer ruling on this motion for ninety (90) days.  The parties
shall appear before the Court on Friday, September 9, 2011, at 11:00 a.m. to
determine whether the Receiver has filed claims against NRP and Western.  The
$3.4 million settlement proceeds at issue here shall remain in escrow pending the
Court’s decision on this motion.
Date:    June 6, 2011
s/ Michael J. Davis                                            
Michael J. Davis
Chief Judge
United States District Court

3