Securities and Exchange Commission v. Martin et al

Filing 37

ORDER granting in part and denying in part 36 Motion for Authority to Close Estate. The Court's Order filed 3/30/12, is hereby stayed 4 weeks from the date on which this Order is filed. Signed by District Judge Richard Voorhees on 8/13/12. (smj)

IN THE DISTRICT COURT OF THE UNITED STATES
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
STATESVILLE DIVISION
CASE NO. 5:09-CV-00022-RLV-DSC
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
SHELBY DEAN MARTIN, D.
MARTIN ENTERPRISES, INC.,
and DM VENTURES, LLC,
Defendants.

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ORDER

THIS MATTER is before the Court upon Receiver Pettit’s Report and Motion, filed on
July 20, 2012. (Doc. 36.)
On March 30, 2012, the Court directed that funds presently held in escrow be paid to the
U.S. Securities and Exchange Commission, and thereafter deposited with the Crime Victims
Fund in the U.S. Treasury, partly in light of Plaintiff’s belief at the time that Martin and his wife
had no additional assets. (Doc. 31.) Receiver Pettit thereafter brought to the Court’s attention a
number of equity interests in both publicly traded and privately held entities owned by Martin,
which Receiver represented as having potentially significant value. (Doc. 32.) In response, the
Court, in an Order filed April 26, 2012, stayed its March 30 Order and directed Receiver to file a
status report on or before June 5, 2012. (Doc. 33.) On June 12, 2012, and in response to
Receiver’s June 5 Status Report (Doc. 34), the Court stayed its March 30 Order an additional
forty-five days, authorized Receiver to liquidate the publicly traded shares identified in the
Report, and directed Receiver to file a second status report on or before July 20, 2012 (Doc. 35).
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In satisfaction of this June 12 Order, Receiver has submitted his second Status Report in which
he moves for authority to liquidate Defendants’ shares in Virginia Uranium, Ltd., valued at
$4,662.25, and in GlowBal, Inc., of undetermined value. (Doc. 36.)
IT IS, THEREFORE, ORDERED that Receiver Pettit’s Motion for Authority to Close
Estate be GRANTED in part and DENIED in part. (Doc. 36.) The Court’s Order filed March
30, 2012, is hereby stayed four weeks from the date on which this Order is filed. Furthermore,
Receiver, within two weeks from the date on which this Order is filed, shall (1) liquidate the two
remaining equity interests and (2) file an application for (a) all attorney’s fees and costs incurred
to date as well as (b) anticipated fees and expenses required to distribute all personal property to
the investor-victims (to be identified separately from fees and costs already incurred). Finally,
the Court would hear from Plaintiff SEC as to whether the circumstances arising since the
Court’s March 30 Order justify deviating from the distribution plan articulated in that Order.
Plaintiff SEC shall respond within seven days from the date on which Receiver’s application is
filed, and Receiver shall not distribute any assets pending further direction from the Court.
Signed: August 13, 2012

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