Securities and Exchange Commission v. Kaplan, Esq. et al

Filing 116

ORDER granting ECF No. 115 Stipulation Regarding Attorney Trust Account Funds. Signed by Judge Miranda M. Du on 6/1/2018. (Copies have been distributed pursuant to the NEF - LH)

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Christy J. White (D.C. Bar No. 974102)
U.S. Securities and Exchange Commission
100 F Street, NE, Mail Stop 5628
Washington, DC 20549
Tel: [phone]
Email: [e-mail]
Facsimile: 202-572-1372

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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.

Case No.: 3:16-cv-00270-MMD-VPC

DAVID B. KAPLAN, ESQ., ET AL,

STIPULATION AND ORDER
REGARDING ATTORNEY TRUST
ACCOUNT FUNDS

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Honorable Miranda Du

Defendant, and
LISA M. KAPLAN, et al.

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Relief Defendants.

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Plaintiff, the United States Securities and Exchange Commission (“SEC” or

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“Commission”), by its undersigned counsel, Christy J. White, and third party, Matthew B.

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Kaplan, Esq. (“Matthew Kaplan”), 1 hereby stipulate as follows:

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WHEREAS, on May 19, 2016, the Commission brought suit against David B. Kaplan,
Esq.

(“David

Kaplan”),

Synchronized

Organizational

Solutions,

LLC,

Synchronized

Organizational Solutions International, Ltd. (“SOSI”), and Manna International Enterprises, Inc.,

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as Defendants, and Lisa M. Kaplan (“Lisa Kaplan”), The Water-Walking Foundations, Inc., and
Manna Investments, LLC, as Relief Defendants. (ECF No. 1);

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1 Matthew Kaplan has no relation to Defendant, David Kaplan.

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WHEREAS, on May 20, 2016, this Court entered a Temporary Restraining Order and

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Asset Freeze (“2016 Asset Freeze”) against the Defendants, Relief Defendants, and their agents,

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servants, employees, attorneys-in-fact, and those persons in active concert or participation with

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them. (ECF No. 13). The Asset Freeze ordered them to retain funds and other assets held by the

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Defendants and Relief Defendants, directly or indirectly, and to prevent the “withdrawal, sale,

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payment…, transfer, dissipation, assignment, pledge, alienation, encumbrance, disposal, or

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diminution of value” of such assets;

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WHEREAS, on January 8, 2018, a final judgment (“Judgment”) was entered in favor of

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the Commission and against the Defendants. (ECF No. 105). The Judgment required them to

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pay disgorgement in the amount of $7,139,884.87, together with prejudgment interest thereon in

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the amount of $680,157.61, for a total of $7,820,042.48. David Kaplan was also ordered to pay a
civil penalty of $300,000;

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WHEREAS, on or about April 25, 2016, Matthew Kaplan was retained by Defendant,

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David Kaplan, in connection with a complaint filed against him and co-defendant, SOSI, in the

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District Court for the Eastern District of Virginia.

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See Dean Properties, LLC, et al, v.

Synchronized Organizational Solutions International, Ltd., et al., 1:16-cv-00050 (E.D. Va.)
(“Virginia Civil Matter”);

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WHEREAS, on April 27, 2016, Matthew Kaplan received an initial retainer deposit from

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David Kaplan for his services in the amount of $12,000. These funds were deposited into the

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Kaplan Law Firm PLLC’s (“Kaplan Law Firm” or “Firm”) trust account at Eagle Bank;

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WHEREAS, on May 2, 2016, Matthew Kaplan received another deposit from David

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Kaplan for his services in the amount of $12,000. These funds were also deposited into the

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Kaplan Law Firm’s trust account at Eagle Bank;

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WHEREAS, a total sum of $24,000 was deposited into the Kaplan Law Firm’s trust

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account in connection with Matthew Kaplan’s representation of David Kaplan in the Virginia

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Civil Matter; and

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WHEREAS, prior to the entry of the Commission’s asset freeze on May 20, 2016 (“Asset

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Freeze”), $2,031.44 was transferred from the Kaplan Law Firm’s trust account to pay for

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services rendered and invoiced by the Firm, which left a balance of $21,968.56 in the Firm’s

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trust account. Because of the Commission’s Asset Freeze, this amount remains in the Kaplan

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Law Firm’s trust account at Eagle Bank.

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IT IS HEREBY STIPULATED AND AGREED that:
1.

The 2016 Asset Freeze is modified to permit Matthew Kaplan to transfer the

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Attorney Trust Funds as follows: (a) $10,984.28 to be paid to the Commission in partial
satisfaction of its Judgment; and (2) $10,984.28 to be applied to the outstanding balance owed by
David Kaplan for legal services performed by Matthew Kaplan; and
2.

Nothing stated herein releases David Kaplan from the remaining balance owed to

Matthew Kaplan for services he rendered in the Virginia Civil Matter.
Dated: May 31, 2018

Respectfully submitted,

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/s/ Christy White
Christy J. White (D.C. Bar No. 974102)
U.S. Securities and Exchange Commission
100 F Street, NE, Mail Stop 5628
Washington, DC 20549

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Counsel for Plaintiff

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Dated: May 31, 2018

Respectfully submitted,

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/s/ Matthew B. Kaplan, Esq.
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Matthew B. Kaplan, Esq.
The Kaplan Law Firm
1100 N Glebe Rd, Suite 1010
Arlington, VA 22201
[phone] (telephone)
[phone] (fax)
[e-mail]

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IT IS SO ORDERED.

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_______________________________
United States District Judge

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Dated: _________________________
June 1, 2018

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