United States of America v. Hispania Private Equity

Filing 2

COPY OF ORDER from USDC-Northern District of Illinois appointing the Small Business Administration as receiver of Hispania Private Equity, L.P. (TCL )

Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 1 of 6 PagelD #:14

IN THE UN1TIm STATES DISTRICf COURT

fOa THE NORTHERN DISTRlCf OJ'ILLINOIS

. EASTERN DMSION

UNTrED STATES OP AMI.RlCA,

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BISPANIA PRWATE BQUITY, L.P.
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Clv.AeIIoa No.1: 12-CV-09232
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jurisdiction ofHispaaia Priwto Equity, LP. ("Hispaaia"), aDd all onts us_aDd property, of

whatever kind mi wherever locatlld, IDd th"Uaited States Small BusiDcsI Adm.Inistmtion
(MSBA") is hereby appointed Receiver ("the Racleiver") ofHispaoia to serve without bond until

fi.uthcr order of this COUIt. The R.eccmrer is appointed.1br the pmpDM of mmhalinllDd

liquidating all ofHispania·..... and satisfying the claimlll of cndtors therefiom i-n the cmIer of
priority as dctenniDld by this Court.
The Receiver shaD. have all powers. authorities, rlpts mel prlviIeps ben=tofare

possessed 'by the diNCtors, IDIIIIpIS and JIIlCI81 and limited partnen of HiaplDia UDder

applicable state and federal Jaw, by the Arlicles ofLimitad Partnenhip, and By-Laws ofsaid

limited putDenbip, in addition to all powers IDd authority of a reca~ at equity, IIDIl all powers
and authority oonfemd upon the Receiver by the provisions of 15 U.S.e. § (; 87c and 28 U.S.C. i
754. The ~ dUecton, manaps, employees, iuvestmeDt advisors, au::countant8, I1tomeyI
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Pursuant to the provisicma 15 U.S.C. 16870, this Com hereby takes ex.clusive

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CONSENT QRPRPlBECEIyIRSJIIP
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IT IS BBREBY ORDERED, ADJUDGED AND DICR.DD:

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Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 2 of 6 PagelD #:15 .

and other age:ats ofltispania am hereby dsmi.1ICd and the puwen of any ~ partners are

hereby smpended. Sud! pcnoDI8I1d mIi1l.1IhaIl have no IIII1hority widl respect to HispaDiats
operations or usets, except to the meat. may hereafter be expressly granted by the Receiver.
The Receiver shall asswno aDd control the operation ofHispania aDd &hall put'8UO .md ptelC'tVe

all ofi.. claims.
3.

The Receiver it mtf.tled to take immediate possession of all asets, blDk aoooaats

or other financial accounts, books aDd !'&'lOI'ds . . all other documents or instrumODtl relating to
Hispania. The past anNor prescot oftiCIII, directors.

aaems. DlllD8lal. pill_lad limited

parbHn, t:rc:I8toc8, a~ IICCIOUDtIIIts, IDd CIIIployees ofHisplDia. as weU 81 aU thote actina

in their place. are baby onlcnd -.I directed to tum over to the Receiver fortbwidl all books,

records. documentl. ICCOUDIB and all 0 _ iDstrumeats IIId papers of and telatiq to Hispania
aod all ofHispaia·. assets ad all OIherllletsand property oftbe limited pll.l'blerSbip, whether
real or pcncmal. The aenaII parbler ofHispDia shaD furnish a writllm statemeDl within fiw (5)

days after the entry of this Order, liatiag tbD ideatlty. location and estimatad value of aU useta of
H'18pU1ia, a list of aU employees (and job titloa thcnot). other pcnonocl. attomeys. accountants

and any other apats or con1raCtors ofHIspaaia, as wei) as the names, addresses IDd 8IDOUD.ta of
claims ofall known creditors ofHispaniL W'l1hin thirty (30) days fOUowiq the eatry of this
Order, the pncnI partDer of Hispania IbaU also furnish • wriltcll report describin,g all auets. AU

pasoI1Iand eotiti- haviDs CO.DtIol. euslOdy orpossesaton of any use1I or property ofHispBDia
BIt bereby directed to tum such .... ami property over to the Rcceiva'.

4.

The Receiver sba1l promptly giw no1ice ofits appointmmt to aD Jmown officers,

directors, ageaI8, employees, shareboldas, creditors, debtors, maaagcn and paend and limited

partners of Hfap_1I, • the Receiver deems ~ or advisable 10 etr.ctuate the operation of

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the 11IC8ivcnhip. All pcr80III and entities owq any obligatiOn, debt, or distribution with I'I8pKt
to a puiDenblp intaIest to Hiapania aball, WltiI fbrther ordesed by this ~ pay allsucla

obligatious in accordance with the terms thereof to the Jb:ceivar IDd its receipt for such
paymcats shall have the I8IDI force and effect as ifHilplDia but n:ceival such paymeats.
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The Receiver il hereby a1Jthorized to open . d Recei:ver's 8CCOUDII at bllnkina or

other fiDanoial iDstitutions to ex.taDd credit on beIIalf ofHispimia. to utilize SBA pllrlODDBl. 8Dd
to employ such other perIODII.Claa it may deem aecesa.ry to effectuate the operatlOll ofthD

receiwnhip indudiD& but DOt limited to, attomeys, IlCOOI.1IlIImtI CODIUItants and apanisll'l, and

is further authorized to expcm.d JeCeivership fimds to CXHDpenslte auch peraoDDd in sucb lIDlOuats
and upoa such terms 81 the Receiver shall deem reuoaable in light of the UIII81 feas and billiDg

pmeticcs aDd pnx:eduree of such penoaad. The'Receiwr il DOl nquired. to obtain Court
appro~

prior to the dilburaemeat ofn=ceivenhip fuDds for paymmts to pet'IOIUI.el employed by

the R.ecoiver or for 8XpeIIIeI that the R.eceivcIr deems adwnfa8cous to the onJerly acImi1listration

and operation oltho rccei.vcnbip. In addition, the R.cccivcr is aufOOrizcd to reimburse the SBA

for travel expeIlICJI iDcurrecI by SBA personnel ill the establishmaat and administration of the
receivet'lhip. The R.ecciver IDlY, wtthout tbrther order ofthil Court, tnmsfer, c:ompromiae, or
otherwise dispoae of any olaim or uset in the ordinary COW'le ofbusiDess, other than real estate.
6.

Hilplaiat. pIIt lIDdIor presc:at ofticcn_ directors, apnts, attomcys. managers,

shareholders, . .ployees, 8COOUI1taah, debfon, creditors, IIlIJlIFI and .-raJ and limited
partaen ofHispania, and other appropriate penon. or entities (includina without limitation. the

defeDdant'a portfolio of small busil1elS CODcems and tinaDcial inslitutiarJs doiDs busiDlss with
defendant mdlor dcfeadanr. poItfoJio of small bulUxaS concc:ms) IhaD answer 'UDder oath II) the

Receiver all questiODl whieh the Reeeiver may put to tban and produce any documents as

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Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 4 of 6 PagelD #:17

required by the Receiwer reprding.tbo business of saki limited partnership, or any other matter

relevant to the opcratioa or ~1trati0D oftbe ftlCeivenbip or the collection offonds due to

Hi:sp1lliB. In the evea.t that the Receiver deems it necessuy to nq1.lire tho IppOaiIllCe of.,
aforaDentioDed pc:noa or entities, the Receiver shall mllke its dlscowry request(8) in
accordance with the Ycd«aI Rules of CiW Pmcedme.

.7.

The parti. or prospective parties to any and all civil Jepl JmlC«Idings wherever

located, iDcludin& but DOt Iimit:ed to arbitJllion ~np, bakruptcy or roftdosure actiom,
default pocecdimp. or my otberpmc-tin,p involving (i) Hispenia eii} lIllY ..... of Hispania.
(till the Receiver for HiSlNlDiat and (iv) Hispania'i presert or past direcCora, paeraI . . . . . or
tDIU1IpI'I, to the -.teat Slid Civillepl prq,adinp inYOlw ..yaction taken bythcIID wlWe actiDa

in thdr official capacity for HiapaDia, lie CDjoinacl mm takiDa any actioD.lDcluding discoYery.
commeociag or continuiDa any lepl proceeding of my nature without iUrther order oftbis Qna.t.

8.

All civil iep1 proceediD.&l wherever located, includin.g arbitration proc_finas.

fiwealo!um activities, bID1auptcy actiolll, or ddwttpmceediaas, but exdudina the inataat
proceedin&. iDvolYing (i) Hispania, (ii) any of asset. ofHispania, (iii) the Receiva- fOr Hispania or
(iv) Hispania's plWIIeBt or put geaeral pII'tnerI, directDra, or m-.n to the _teat said civillepl
~inp involve any action talc. in their otJ:iciaI c:apacity i:Jr Hilpania, . . stayed in their

ea.tireIy, and all Courts having any jurildictioa thereofare cmjoiDaJ from. ta1dD& or I*mittina any

action in such proceediDP lDltil tiutber OMer ofthia Court.
9.

Further. as to a ~eof.::tion41ocrued or8CCl'UingiD fa\1lrofHiaplmiaqaiDst a

third peEBOI1 or pady.IIlY applicable lltatute oflimitatloa is tolled du.riq the period. in which this
injunction apiDst COIDD1CDC8IDCIDt of 1epl proceedinp is in effect as to that CllD8e of action.

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10.

Hispania and its put lDdIor pamt directors. officers, managers. pneraI or

limi~ partners, agents. employees and other periODS 01 CDtities actina in c:onQiIt or participatinl

therewitb be, aad they bercby are, cqjoinod &om either diRlcdy or iDdirectly takinllDf ICtioas
or causing any such action to be faten wbich woald dissipate the. . . and/or property of
Hispania to the detriment ofHiJplDia CII' ofthc Rec:eiver appoinkd in this awse. ind.udina but
not limited to destnacdon of COIpCX1de records, or wmch would lIiolate the Small Bus:incu

InWlStmcnt Act of 1958, • amended., IS U.S.C. 661 !It.BIu or th, replations promulptcd

thctcuDder, (uR.eplatioDa"), 13 C.F.R.II07.1 sLlS.
11.

The Receiver is authorized to bOIrow CD behalf ofHispania, from the SDA, up to

$1,000,000 and is authorized to CIU80 Hjspania to issue RDceiv.rJ Certificat.s of~ in
the principal amounts ofthe sums borrowed, which ccrtificata will bell'intensl at or about 10
pcm:ent per aamum and will bave a maturity date no ..tar thaD 18 months aftao the ~ of i.asuc.

Said Receivezois pmficates of IDdebtednesllhaIl have priority O'WJl' all other debts and

obligations of Hispania, _eluding administralivo GpCDSOS of the R.ecei'Wl'ibip, whllh.e.r
cmrently cxiatiq CI' herehder incurrccl, indudina without limitation any claims of lIIDenaI 01'
limited partners ofHiIPlUlia.
12.

Tbis Court deCermines and adjudicata that SRA hu made I sufBcieDI: showing

that Hispania has violated the Act aDd the Regulations, as alleged in the Complaint tiled qaiDIt

Hispmia in the instaJa action. to obtain bs relief SO mqUOIIDd.

a~ of A4rc..4c.~ ., 201

DATED this 3fJ

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UNITBD STATES DISTRlCI' COURT JUDGE

Samuel Dsr-Yeghiayan

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Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 6 of 6 PagelD #:19

HISPANIA PRlVATB BQUrrY, LP.
By. Hitpaaia lIMIt.,.