Securities and Exchange Commission v. Churchville et al

Filing 88

ORDER granting 75 Motion to Clarify. So Ordered by Chief Judge William E. Smith on 11/1/2016. (Jackson, Ryan)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF RHODE ISLAND
________________________________________
)
)
)
Plaintiff,
)
)
v.
)
)
PATRICK CHURCHVILLE,
)
CLEARPATH WEALTH MANAGEMENT, LLC,
)
)
Defendants,
)
)
and
)
)
CLEARPATH MULTI-STRATEGY FUND I, L.P.
)
CLEARPATH MULTI-STRATEGY FUND II, L.P. )
CLEARPATH MULTI-STRATEGY FUND III, L.P. )
HCR VALUE FUND, L.P.,
)
)
Relief Defendants.
)
________________________________________)
SECURITIES AND EXCHANGE COMMISSION,

C.A. No. 15-191 S

ORDER
WILLIAM E. SMITH, Chief Judge.
Before

the

Court

is

an

Assented

to

Petition

brought

by

Stephen F. Del Sesto, Esq. solely in his capacity as the Courtappointed
Churchville

Receiver
and

(“Receiver”)

ClearPath

Wealth

for

Defendants

Management,

LLC

as

Patrick
well

as

Relief Defendants ClearPath Multi-Strategy Fund I, LP, ClearPath
Multi-Strategy Fund II, LP, ClearPath Multi-Strategy Fund III,
LP (collectively “Receivership Entities”). Receiver’s Assented
to Petition is for (1) Instructions Regarding Monies Held in

Escrow

by

Capio

Partners,

LLC;

(2)

the

Establishment

of

an

Escrow Account by the Receiver; and (3) the Receiver’s Request
for an Accounting from Capio Partners, LLC. (ECF No. 75.)
Capio Partners currently holds approximately $700,000 in an
escrow account for the benefit of ClearPath Multi-Strategy Fund
II, ClearPath Multi-Strategy Fund III, and Receivable Partners,
LLC. Capio Partners has received conflicting guidance from these
three

parties

with

regards

to

how

payments

should

be

distributed. (Letter from Counsel for Capio Partners, LLC, Ex. C
to

Receiver’s

represented

to

Petition,

ECF

No.

the

that

Capio

Court

75-3.)

The

Receiver

Partners,

LLC

has

wishes

to

relinquish its obligation to administer its escrow account.
The Receiver requests an Order directing Capio Partners to
transfer its escrow funds to an account to be identified by the
Receiver.

Additionally,

the

Receiver

requests

authority

from

this Court to collect half of those transferred funds for the
benefit of the Receivership Estate and to hold the other half of
those transferred funds in escrow pending further disposition of
the

ownership

rights

to

those

monies.

Lastly,

the

Receiver

requests that the Court enter an Order directing Capio Partners
to issue an accounting of its escrow account to the Receiver
reflecting all credits and debits to the account since either
the establishment of the account or over the last three (3)
2

years,

whichever

represented

to

period
the

of

Court

time
that

is
the

shorter.
Securities

Petitioner
and

has

Exchange

Commission has assented to this Petitioner.
Receiver’s

Petition

is

GRANTED.

Capio

Partners,

LLC

is

hereby ordered to transfer the aforementioned monies held in
escrow to an account identified by the Receiver and provide an
accounting of that escrow account to the Receiver. Receiver is
authorized

to

collect

half

of

the

transferred

funds

for

the

benefit of the Receivership Estate and to hold the other half of
those transferred funds in escrow pending further disposition of
the ownership rights.

IT IS SO ORDERED.

William E. Smith
Chief Judge
Date: November 1, 2016

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