William Walt Pettit, Receiver, v. Allen et al

Filing 83

ORDER that the Court will reserve its ruling on Receiver's Motion to Dismiss 77 ; and the Receiver shall file such information, under seal, as directed by the terms of this Order w/n 14 days. Information regarding defendants due 6/1/15. Signed by District Judge Richard Voorhees on 5/13/15. (smj)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
STATESVILLE DIVISION
CIVIL ACTION NO. 5:11-CV-158
WILLIAM WALT PETTIT, in his capacity
as Court-Appointed Receiver for the
Biltmore Financial Group, Inc.
Plaintiff,
v.
STEPHEN ALLEN, ET AL.,
Defendants.

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ORDER

BEFORE THE COURT is Plaintiff’s Motion to Dismiss Defendants Paul Barringer,
Alma Barringer, Gracie Bolick, Tommy Houston, Martha Houston, Jonathan Lehman, Steve
McRary, Mary McRary, and Beulah Sipe. (Doc. 77). According to the allegations in the
Complaint, said Motion will result in the failure to recover around $300,000 in false profits. (Doc.
1, at 9).
William Walt Pettit was appointed Receiver over all property, assets and records of the
Biltmore Defendants in connection with Civil Action No. 08-CV-00136. The instant lawsuit seeks
to recover proceeds that were distributed to the named defendants in order to compensate the
victims of the Biltmore Ponzi scheme.
The Court has already indicated that it will not give the Receiver carte blanche over
resolution of claims against Defendants. (Doc. 69). The Receiver indicated that it has considered
various factors in dismissing the claims against each defendant. (Doc. 77, at ¶¶ 9-10). The
Receiver indicated that it can and will submit individualized information regarding each
Defendant, under seal, should the Court so desire. (Id. at ¶ 10 n.1). The Court desires such

information. Further, the Court would like the Receiver to address why certain Defendants were
never served and whether the failure to serve certain Defendants impacts any potential defenses.
IT IS, THEREFORE, ORDERED THAT
(1) The Court will reserve its ruling on the Receiver’s Motion to Dismiss (Doc. 77); and
(2) The Receiver shall file such information, under seal, as directed by the terms of this Order
within fourteen (14) days.

Signed: May 13, 2015