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

Filing 488

ORDER directing Valley National Bank to file Response re: #385 Motion within 14 days addressing the substantive arguments contained in order. Responses due 4/19/2016. Signed by Senior Judge Graham Mullen on 4/5/2016. VNB served by US Mail - William Kamski, 1455 Valley Road, Wayne, NJ 07470(tmg)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION
3:12CV519
SECURITIES AND EXCHANGE
COMMISSION,

)
)
)
Plaintiff,
)
)
vs.
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REX VENTURE GROUP, LLC d/b/a
)
ZEEKREWARDS.COM, and PAUL BURKS,
)
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Defendants.
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)
__________________________________________)

ORDER

This matter is before the Court upon the Receiver’s Motion for an Order Directing Valley
National Bank to Turn Over Receivership Assets or to Appear and Show Cause Why it Should
Not be Held in Contempt for Violation of the Court’s Orders Freezing and Preserving
Receivership Assets. (Doc. No. 385). Valley National Bank made a limited appearance by filing
a memorandum in opposition to the Receiver’s motion, arguing that the Court lacks personal
jurisdiction over the Bank, as it has no minimum contacts with North Carolina.
In cases involving federal equity receiverships, the court acquires nationwide jurisdiction
based upon the interaction of 28 U.S.C. § 754 and 28 U.S.C. § 1692. Quilling v. Gilliland, 2006
U.S. Dist. LEXIS 8480, at *3 (W.D.N.C. 2006). Minimum contacts are not necessary. Pursuant
to Rule 4 of the Federal Rules of Civil Procedure, this Court can obtain personal jurisdiction over
a citizen of a foreign state, as long as such jurisdiction is pursuant to a federal statute that
provides for extraterritorial service of process upon an individual not residing or located within
the forum state. 28 U.S.C. §§ 1692 and 754 provide for such extraterritorial service of process,

provided the Receiver has met the filing requirements of 228 U.S.C. § 754. The Receiver has
timely met the filing requirements as demonstrated in his motion. Accordingly, the Court finds
that this Court has personal jurisdiction over Valley National Bank.
While Valley National Bank’s response to the Receiver’s motion only addressed
jurisdictional issues, it reserved the right to address the substantive issues raised by the
Receiver’s motion. Accordingly, Valley National Bank is hereby directed to file a response to
the Receiver’s motion within fourteen days addressing the substantive arguments therein. The
Court will thereafter schedule a hearing.
IT IS SO ORDERED.

Signed: April 5, 2016