Federal Trade Commission v. Ivy Capital, Inc. et al

Filing 424

ORDER granting 417 Motion for for Order (1) Approving Final Report and Accounting; (2) Approving Settlement; (3) Allowing Claims and Approving Plan for Distribution of Receivership Assets; (4) Approving Receiver's and Counsels' Fees and Expenses From September 1, 2012 Through Closing; (5) Discharging Receiver; (6) Relieving Receiver of All Duties and Liabilities; (7) Exonerating Receiver's Bond; (8) Authorizing Abandonment and Destruction of Records and Relating Relief; and (9) Granting Relief Pertaining to Notice to Creditors. Signed by Judge James C. Mahan on 12/10/13. (Copies have been distributed pursuant to the NEF - MMM)

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RANDOLPH L. HOWARD (Nev. SBN 006688)
[e-mail]
KOLESAR & LEATHAM, CHTD.
400 South Rampart Boulevard, Suite 400
Las Vegas, NV 89145
Telephone: [phone]
Facsimile: [phone]
GARY OWEN CARIS (CA SBN 088918)
E-mail: [e-mail]
LESLEY ANNE HAWES (CA SBN 117101)
E-mail: [e-mail]
MCKENNA LONG & ALDRIDGE LLP
300 South Grand Avenue, 14th Floor
Los Angeles, CA 90071-3124
Telephone: [phone]
Facsimile: [phone]
Attorneys for Permanent Receiver
ROBB EVANS & ASSOCIATES LLC
UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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FEDERAL TRADE COMMISSION,

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Plaintiff,
v.
IVY CAPITAL, INC., etc., et al.,

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Defendants, and
CHERRYTREE HOLDINGS, LLC,
etc., et al.

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Relief Defendants.

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M C K ENNA L ONG &
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LA 18077287.1

CASE NO. 2:11-cv-00283-JCM-GWF
[PROPOSED] ORDER
GRANTING MOTION FOR
ORDER: (1) APPROVING FINAL
REPORT AND ACCOUNTING;
(2) APPROVING SETTLEMENT;
(3) ALLOWING CLAIMS
AND APPROVING PLAN FOR
DISTRIBUTION OF
RECEIVERSHIP ASSETS; (4)
APPROVING RECEIVER’S AND
COUNSELS’ FEES AND
EXPENSES FROM SEPTEMBER
1, 2012 THROUGH CLOSING; (5)
DISCHARGING RECEIVER; (6)
RELIEVING RECEIVER OF ALL
DUTIES AND LIABILITIES; (7)
EXONERATING RECEIVER’S
BOND; (8) AUTHORIZING
ABANDONMENT AND
DESTRUCTION OF RECORDS
AND RELATED RELIEF; AND (9)
GRANTING RELIEF
PERTAINING TO NOTICE TO
CREDITORS

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The matter of the Motion for Order: (1) Approving Final Report and

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Accounting; (2) Approving Settlement; (3) Allowing Claims and Approving Plan

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for Distribution of Receivership Assets; (4) Approving Receiver's and Counsels'

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Fees and Expenses from September 1, 2012 Through Closing; (5) Discharging

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Receiver; (6) Relieving Receiver of All Duties and Liabilities; (7) Exonerating

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Receiver's Bond; (8) Authorizing Abandonment and Destruction of Records and

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Related Relief; and (9) Granting Relief Pertaining to Notice to Creditors (“motion”)

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filed by Robb Evans & Associates LLC (“receiver”) as receiver of Ivy Capital, Inc.

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and other related and affiliated entities pursuant to the Preliminary Injunction issued

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March 25, 2011, came on regularly for determination by the Court, the Honorable

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James C. Mahan, United States District Judge presiding. The Court, having

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reviewed and considered the motion and all pleadings and papers filed in support

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thereof, and responses or oppositions, if any, to the motion, and any reply, and good

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cause appearing therefor,

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IT IS ORDERED as follows:

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1.

The motion and all relief sought therein is granted in its entirety;

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2.

Without limiting the generality of the foregoing:

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A.

The receiver’s final report and the receiver’s final accounting attached

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as exhibit 1 to the declaration of Brick Kane filed I support of the motion are

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hereby approved;

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B.

The receiver's proposed settlement agreement with the Church of Jesus

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Christ of Latter Day Saints ("LDS Church"), a copy of which is attached as exhibit

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3 to the declaration of Brick Kane filed in support of the motion, is hereby

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approved;

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C.

The claims of non-consumer creditors, including trade and other non-

consumer creditors and taxing authorities, against the receivership estate are hereby

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allowed in the amounts set forth on exhibit 2 to the declaration of Brick Kane filed

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in support of the motion;

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3.

The Receiver is authorized to distribute the remaining assets of the

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receivership estate, after payment of all receivership administrative expenses,

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including all outstanding receiver’s fees and expenses and receiver’s attorneys’ fees

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and expenses, any other unpaid administrative expenses of the estate and

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satisfaction of the tax claims set forth on exhibit 2 to the declaration of Brick Kane

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filed in support of the motion (the “net receivership assets”), pro rata as to the

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allowed non-consumer creditor claims, and the consumer claims, with the receiver

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to make pro rata distribution payments to the holders of the allowed non-consumer

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creditor claims and with the receiver to turn over to the Federal Trade Commission

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(“FTC”) an amount representing the pro rata portion of the net receivership assets

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attributable to the consumer claims and the FTC to be responsible for

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administration of any consumer distributions or redress; provided, however, that

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claims of non-consumer creditors in an amount of less than $312.00 shall not be

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paid a distribution, as reflected in exhibit 2 to the declaration of Brick Kane filed in

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support of the motion;

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4.

All actions and activities taken by or on behalf of the receiver and all

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payments made by the receiver in connection with the administration of the

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receivership estate are hereby approved and confirmed;

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5.

All receivership administrative expenses incurred in this receivership

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proceeding, including the receiver’s fees and expenses and those of its professionals

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incurred in connection with the receivership proceeding, including those previously

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paid to the receiver and its counsel, are hereby approved, and all administrative

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expenses and receiver’s and professionals’ fees and expenses incurred during the

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period from September 1, 2012 through the closing of the receivership estate and

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the discharge of the receiver (“final expense period”), described and estimated in

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the final accounting, are hereby approved and authorized to be paid from assets of

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the receivership estate;

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6.

The receiver is authorized to abandon and destroy the records of the

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receivership defendants and any other corporations or businesses under the control

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of any of the receivership defendants in the possession, custody or control of the

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receiver if, within 30 days after service of written notice to the FTC, the receiver

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has not been served with a written request by the FTC for possession of the records

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or a subpoena by a law enforcement agency for the records, and if during such 30-

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day period, the receiver is served with a written request for the records by the FTC

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or subpoena by a law enforcement agency for the records, authorizing the receiver

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to turn over the original records to the FTC or a law enforcement agency in

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response to the request or subpoena, and any assets not administered by the receiver

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as of the closing of the receivership estate are deemed abandoned;

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7.

Effective upon the completion of the receiver’s wind up of the estate,

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payment of administrative expenses and final distribution of funds as provided

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herein, that the receiver, its agents, employees, members, officers, independent

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contractors, attorneys and representatives are: (a) discharged; (b) released from all

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claims and liabilities arising out of and/or pertaining to the receivership herein; and

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(c) relieved of all duties and responsibilities pertaining to the receivership

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previously established in this action;

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8.

The receiver’s bond shall be exonerated effective upon the completion

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of the receiver’s wind up of the estate, payment of administrative expenses and

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final distribution of funds as provided herein;

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9.

Notice of the motion is deemed to be sufficient under Local Civil Rule

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66-5 and under the provisions of the final judgments entered by the court against

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the defendants in this action based on (a) service of the notice of the filing of this

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motion, the motion and all supporting pleadings and papers on all parties, and (b)

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service of the notice of the filing of the motion on all known taxing authorities with

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claims and non-consumer creditors of the estate concurrent with the filing of this

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motion with the court

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DATED: December 10, 2013.

The Honorable James C. Mahan
United States District Court Judge

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