Securities and Exchange Commission v. Rex Venture Group, LLC et al

Filing 432

ORDER granting #428 MOTION to Stay Receiver's Motion to Enforce Stay of Ancillary Proceedings with Regard to Certain Arkansas Real Property. Signed by Senior Judge Graham Mullen on 9/11/2015. (Pro se litigant served by US Mail.)(eef)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION

SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
REX VENTURE GROUP, LLC
d/b/a ZEEKREWARDS.COM, and PAUL
BURKS,
Defendants,

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No. 3:12-CV-519

ORDER GRANTING RECEIVER'S MOTION TO ENFORCE
STAY OF ANCILLARY PROCEEDINGS WITH REGARD TO
CERTAIN ARKANSAS REAL PROPERTY

Before the Court is the Receiver's Motion to Enforce Stay of Ancillary Proceedings With
Regard to Certain Arkansas Real Property (the "Motion"). The Motion relates to a civil lawsuit
pending in Division IV of the Circuit Court of Johnson County, Arkansas, entitled Dawn WrightOlivares and Alexandre DeBrantes v. Ben Powell Construction, LLC, and Michael Benjamin
Powell (CV-2013-31) involving real property (the “Property”) purchased by former officers of the
Receivership Defendant, using funds received from the Receivership Defendant, and later assigned
to the Receiver in partial satisfaction of a settlement with the Receivership Estate.
Among other claims, the proceedings in Wright-Olivares v. Powell involve a counterclaim
to enforce a lien on the Property (the “Lien”) which was recorded months after entry of this Court’s
Aug. 17, 2012 Agreed Order Appointing Temporary Receiver And Freezing Assets of Defendant
Rex Venture Group, LLC (Doc. No. 4, the “Initial Receiver Order”), which prohibited such liens.

The Receiver asks the Court to issue an order holding that the Property is Receivership Property
as defined in the Initial Receiver Order, and therefore subject to the stay of litigation and
injunctions against interference with Receivership Property set forth in the Initial Receiver Order.
Having considered the Receiver’s Motion, it is HEREBY ORDERED that the Receiver’s
Motion is GRANTED.
It is further ORDERED that:
1. The real property at issue in Wright-Olivares v. Powell is Receivership Property as
defined in the Initial Receiver Order;
2. The Lien at issue in Wright-Olivares v. Powell, any counterclaims seeking to enforce
the Lien, and any counterclaims affecting the value of the Property are thus Ancillary Proceedings
as defined in Paragraph 32 of the Initial Receiver Order;
3. As such, the Lien, any counterclaims seeking to enforce the lien, and any counterclaims
affecting the value of the Property are subject to the stay of litigation set forth in the Initial Receiver
Order, which stays all Ancillary Proceedings in their entirety and enjoins all Courts having
jurisdiction over such proceedings from taking or permitting any action until further Order of this
Court; and
4. Any further attempts to enforce or allow enforcement of the Lien, or to pursue or allow
pursuit of counterclaims related to the Lien or counterclaims affecting the value of the Property,
are in violation of the stay of litigation and the injunctions set forth therein.

Signed: September 11, 2015