Securities and Exchange Commission v. Path America, LLC et al

Filing 642

ORDER directing parties to file a joint status report within fourteen (14) days of the date of this order detailing the remaining items necessary to bring this matter to resolution and proposing a schedule for accomplishing the same. Signed by Judge James L. Robart. (PM)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,
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v.

ORDER DIRECTING THE
RECEIVER AND REMAINING
PARTIES TO FILE A JOINT
STATUS REPORT

PATH AMERICA, LLC, et al.,

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CASE NO. C15-1350JLR

Defendants, and
POTALA SHORELINE, LLC, et al.,

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Relief Defendants.

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Following the entry of final judgment against Defendant Lobsang Dargey and
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Relief Defendant Path Othello, LLC (see Final Judgment (Dkt. # 509)), the court directed
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all remaining parties to file a joint status report stating what issues remained for trial and
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a proposing case schedule to bring this matter to resolution (JSR Order (Dkt. # 557)). On
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June 28, 2017, Plaintiff Securities and Exchange Commission (“the SEC”) and Receiver
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ORDER - 1

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Michael A. Grassmueck (“the Receiver”) responded to the court’s order. (JSR (Dkt.

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# 564).) At that time, the Receiver and the SEC asked the court to vacate the trial date

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because both the Receiver and SEC expected “the remaining parties . . . to request

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resolution of the SEC’s claims by consent judgments.” (Id. at 2.)

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The parties also proposed that the Receiver continue to administer the estate. (Id.)

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The outstanding issues related to the estate and noted at that time were (1) Grassmueck v.

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Zhou Yan, No. C17-0794JLR, which is now dismissed; (2) Grassmueck v. Potala Village,

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LLC, No. C17-0236JLR, which is on appeal to the Ninth Circuit; (3) the sale of the

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Kirkland property owned by Potala Village, which was approved on July 11, 2017

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(7/11/17 Order (Dkt. # 569)); (4) the sale of the Shoreline property owned by Potala

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Shoreline, LLC, which was approved on February 21, 2018 (2/21/18 Order (Dkt. # 618));

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and (5) completion of the claims and distribution process, which the Receiver estimated

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was unlikely to occur prior to the spring of 2018. (JSR at 2-3.)

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As noted above, many of the items listed by the parties in their June 28, 2017,

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joint status report are now complete. Further, the court is mindful of the continuing costs

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of administering the estate. (See Orders granting various fee applications (Dkt. ## 260,

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344, 418, 463, 513, 558, 583, 609, 619, 629, and 641).) Accordingly, the court ORDERS

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the parties to file a joint status report within fourteen (14) days of the date of this order

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ORDER - 2

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detailing the remaining items necessary to bring this matter to resolution and proposing a

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schedule for accomplishing the same.

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Dated this 29th day of August, 2018.

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A

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JAMES L. ROBART
United States District Judge

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ORDER - 3