Securities and Exchange Commission v. Penn et al

Filing 397

ORDER DIRECTING J.P. MORGAN CHASE BANK, N.A. TO TURN OVER FROZEN FUNDS IN PARTIAL SATISFACTION OF JUDGMENTS: ORDERED that the Commission shall serve a copy of this Order upon Chase, Lawrence E. Penn III ("Penn"), Camelot Group International ("CGI") and Camelot Acquisitions Secondary Opportunities Management, LLC ("CASO Management"). Service may be made by electronic mail upon the consent of the receiving party, by overnight delivery service such as United Parcel Ser vice, or by certified mail, return receipt requested. FURTHER ORDERED that the account balances turned over pursuant to Sections III, IV and V of this Order shall be paid to the Commission in three separate payments, each specifying the judgment to which such payment relates, by one of the following means: as set forth herein. FURTHER ORDERED that within 14 days from receipt of this Order, Chase shall turn over to the Commission all funds remaining in Penn's account with account number end ing in 5567. Such payment shall specify that payment is made pursuant to this Order in satisfaction ofthe Judgment entered against Lawrence E. Penn III entered on October 1, 2018. FURTHER ORDERED that within 14 days from receipt of this Order, Chase shall turn over to the Commission all funds remaining in CASO Management's account with account number ending in 1202. Such payment shall specify that payment is made pursuant to this Order in satisfaction of the Judgment entered against CASO Ma nagement entered on April 1, 2020. FURTHER ORDERED that within 21 days from receipt of this Order, Chase shall release any restrictions previously imposed, pursuant to the Asset Freeze Orders, on the use of any accounts in the names of, or controlled or owned by, any of the Defendants, if such accounts are for credit cards or lines of credit, or have zero or negative balances. Chase may restore the account(s) to normal operation or, at its election, close the account(s). FURTHER ORDERED that this Court shall retain jurisdiction to enforce compliance with this Order. And as set forth herein. (Signed by Judge Valerie E. Caproni on 3/31/2021) (ama)

USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #:
DATE FILED:

The Plaintiff Securities and Exchange Commission (the “Commission”) having moved
for a turnover order directed to non-party J.P. Morgan Chase Bank, N.A. (“Chase”) with respect
to certain accounts, and for the release of certain other accounts from the asset freeze imposed
and continued by Orders of this Court issued on January 30, 2014 (Docket Entry 2), July 11,
2014 (Docket Entry 56), October 1, 2018 (Docket Entry 300) and/or March 15, 2020 (Docket
Entry 335) (collectively, the “Asset Freeze Orders”), and the Court having considered the papers
submitted on such motion, and it appearing that such an order should be issued, it is hereby:

that the Commission shall serve a copy of this Order upon Chase, Lawrence
E. Penn III (“Penn”), Camelot Group International (“CGI”) and Camelot Acquisitions Secondary
Opportunities Management, LLC (“CASO Management”). Service may be made by electronic
mail upon the consent of the receiving party, by overnight delivery service such as United Parcel
Service, or by certified mail, return receipt requested.

that the account balances turned over pursuant to Sections III,
IV and V of this Order shall be paid to the Commission in three separate payments, each
specifying the judgment to which such payment relates, by one of the following means:
a. Electronically, wherein the Commission will provide detailed ACH
transfer/Fedwire instructions upon request made to [phone] and/or
[e-mail];
b. Direct payment from a bank account via Pay.gov through the Commission’s
website at http://www.sec.gov/about/offices/ofm.htm; or
c. By certified check, bank cashier’s check, or United States postal money order,
made payable to the “Securities and Exchange Commission” and setting forth
the title and civil action number of this action (“SEC v. Penn, et al., 14-cv0581”) and the name of this Court (“United States District Court, Southern
District of New York”); and specifying the judgment to which such payment
relates. The funds may be hand-delivered or mailed to:

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Enterprise Services Center
Accounts Receivable Branch
HQ Bldg., Room 181, AMZ-341
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
Chase shall simultaneously transmit photocopies of evidence of payment and case identifying
information to SEC attorneys Karen E. Willenken and Elizabeth R. Goody, by electronic mail to
[e-mail] and [e-mail].

that within 14 days from receipt of this Order, Chase shall turn
over to the Commission all funds remaining in Penn’s account with account number ending in
5567. Such payment shall specify that payment is made pursuant to this Order in satisfaction of
the Judgment entered against Lawrence E. Penn III entered on October 1, 2018.

that within 14 days from receipt of this Order, Chase shall turn
over to the Commission all funds remaining in CASO Management’s account with account
number ending in 1202. Such payment shall specify that payment is made pursuant to this Order
in satisfaction of the Judgment entered against CASO Management entered on April 1, 2020.

that within 14 days from receipt of this Order, Chase shall turn
over to the Commission all funds remaining in CGI account with account number ending in
8558. Such payment shall specify that payment is made pursuant to this Order in satisfaction of
the Judgment entered against CGI entered on April 1, 2020.

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, that by making the payments set forth in Sections III, IV and V
of this Order, Chase shall be forever released and discharged from any liability with respect to
such funds to Penn, CGI or CASO Management, or to any person or entity claiming a right in
and to such funds derived from Penn, CGI or CASO Management, and from any liability with
respect to such funds as to the Commission.

that within 21 days from receipt of this Order, Chase shall
release any restrictions previously imposed, pursuant to the Asset Freeze Orders, on the use of
any accounts in the names of, or controlled or owned by, any of the Defendants, if such accounts
are for credit cards or lines of credit, or have zero or negative balances. Chase may restore the
account(s) to normal operation or, at its election, close the account(s).

that this Court shall retain jurisdiction to enforce compliance
with this Order.
Dated:

HON. VALERIE E. CAPRONI
CAPRONI
AP
AP
UNITED STATES DISTRICT JUDGE

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