United States of America v. Rodges

Filing 41

ORDER granting 40 Motion for Charging Order. Signed by Magistrate Judge S. Allan Alexander on 4/2/15. (bnd)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF MISSISSIPPI
DELTA DIVISION

UNITED STATES OF AMERICA
V.

PLAINTIFF
CASE NO. 2:11-CV-0075-SAA

REGINALD L. RODGES

DEFENDANT

ORDER GRANTING MOTION FOR CHARGING ORDER
The United States has filed a Motion for a Charging Order [40] on the financial interest
of defendant Reginald L. Rodges for payment of the unsatisfied amount of money damages
ordered in this case. The defendant did not file a response, and the time to do so has expired.
On September 24, 2012, a consent judgment [34] was entered against Reginald L. Rodges
for money damages in the amount of $269,402.46, plus interest to accrue at the legal rate.
Rodges is not currently making payments on this debt. Based on information submitted to the
court, Rodges is a member of Natural Pain Back Institute, LLC. By its motion, the government
seeks to satisfy the consent judgment out of the defendant’s financial interests in his limited
liability company.
Mississippi law provides that “a charging order is the exclusive remedy by which a
judgment creditor of a judgment debtor or its assignee may satisfy a judgment out of the
judgment debtor’s financial interest” in a limited liability company. MISS. CODE ANN. §79-29705. Thus, under§ 79-29-705, the government is entitled to have the financial interests of
defendant Reginald L. Rodges in Natural Pain Back Institute, LLC, whether such interests are
held directly or indirectly, charged with the payment of the unsatisfied amount of the consent
judgment entered in this action. Further, to the extent so charged, the government is entitled to

the rights of any assignee of the defendant’s LLC interests in and to Natural Pain Back Institute,
LLC, whether those interests are held directly or indirectly. The government’s Motion for a
Charging Order is GRANTED.
IT IS HEREBY ORDERED that:
1. The financial interests of Reginald L. Rodges in and to Natural Pain Back Institute, LLC,
whether or not such interests are held directly or indirectly, described herein are charged
with the payment of the unsatisfied amount of the consent judgment entered in this action
on September 24, 2012, in the amount of $269,402.46, plus interest.
2. The government will receive all distributions or payments to which the defendant is
entitled or may in the future become entitled to receive from Natural Pain Back Institute,
LLC, by virtue of his membership interests in the LLC until the consent judgment, with
interest, is paid in full.
3. Until the government receives the distributions or payments from the defendant in the
total principal amount of the consent judgment with any interest then due, the
government will hold the rights of an assignee of the defendant’s financial interests in
Natural Pain Back Institute, LLC.
4. This Order does not entitle the government to become or to exercise any voting rights of
a member of Natural Pain Back Institute, LLC, or confer upon the government any rights
other than to receive, as would an assignee of the defendant, any distribution(s) or other
payments that the defendant would have been entitled to receive by virtue of his
applicable interests in Natural Pain Back Institute, LLC.
5. The government will not be considered a member of Natural Pain Back Institute, LLC,
for purposes of reporting to the Mississippi Department of Revenue, the Internal Revenue
Service, or any other federal, state, or local governmental entity.

6. All income and other tax consequences, local, state, and federal of the defendant’s
membership interests in Natural Pain Back Institute, LLC, remain the responsibility of
the defendant and no profits, losses, income, gain, deductions, credits or similar items,
may be allocated to or attributed to the government.
7. The government should not receive any Federal Schedule K-1 forms or Mississippi
Partnership, LLC or LLP Schedule K-1 forms.
8. The government will not be liable for the debts or liability of any of the members of
Natural Pain Back Institute, LLC, and is not obligated to contribute any money or
property to Natural Pain Back Institute, LLC.
9. This Order will remain in place, and the government will receive all distributions and
others payments to which the defendant would be entitled to receive from Natural Pain
Back Institute, LLC, until the Government has collected from the defendant, either
through this Order charging the financial interests of the Defendant in Natural Pain Back
Institute, LLC, or otherwise, the entire principal amount of the consent judgment
described in this Order, together will all interest provided for in the Consent Judgment.
THIS the 2nd day of April, 2015.

s/ S. Allan Alexander
UNITED STATES MAGISTRATE JUDGE