Securities and Exchange Commission v. Wealth Management LLC et al

Filing 35

TEMPORARY ORDER GRANTING RECEIVER'S MOTION TO STAY ANCILLARY LITIGATION signed by Judge William C Griesbach on June 16, 2009. NOW,THEREFORE, IT IS HEREBY ORDERED, that the Receiver's motion for a stay is temporarily granted, and any and al l ancillary claims against the named Defendants, Relief Defendants, and/or WML Funds' insurer, Houston Casualty Company, or claims that are so related to the above captioned action that they form part of the same case or controversy under Articl e III of the United States Constitution, are hereby STAYED pending a hearing on June 26, 2009, at 10:30 a.m. IT IS FURTHER ORDERED that no later than June 22, 2009, any and all interested investors, creditors and other third parties wishing to be he ard at on June 26, 2009, will file with this Court and properly serve upon the parties a brief in opposition and supporting documentation. IT IS FURTHER ORDERED that the 32 Motion to Intervene by Respondent Tony P. Trimble Revocable Trust is granted, but only as to the Receiver's motion to stay ancillary litigation. (cc: all counsel) (Griesbach, William)

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN GREEN BAY DIVISION
SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. WEALTH MANAGEMENT LLC; JAMES PUTNAM; and SIMONE FEVOLA, Defendants, and WML GRYPHON FUND LLC; WML WATCH STONE PARTNERS, L.P.; WML PANTERA PARTNERS, L.P.; WML PALISADE PARTNERS L.P.; WML L3, LLC.; and WML QUETZAL PARTNERS, L.P., Relief Defendants. Case No. 09-C-506

TEMPORARY ORDER GRANTING RECEIVER'S MOTION TO STAY ANCILLARY LITIGATION

This cause coming before the Court upon the Receiver's Rule 7.4 Expedited NonDispositive Motion to Stay, the Motion to Intervene by Respondent Tony P. Trimble, as Trustee of the Tony P. Trimble Revocable Trust, and the Trust's Memorandum in Opposition to the Receiver's Motion to Stay, and after consideration of the foregoing, the Court in its sound discretion finds that: 1. This Court has jurisdiction to stay litigation that is ancillary to the above-captioned

action pursuant to 28 U.S.C.A. §1367(a).

2.

The Receiver has made a sufficient and proper showing that all known third parties

with potential claims against the named Defendants, Relief Defendants, and/or the WML Fund insurer, Houston Casualty Co., have been sent notice of the following: (a) Entry by this Court of the temporary injunction, appointment of

receiver, and asset freeze issued by this Court; (b) Notice that the Notice of Appointment of Receiver and related

documentation were filed in all U.S. District Courts for jurisdictions within which the WM Funds are known to have sub-funds; 3. Investors, creditors and other third-parties with potential ancillary claims against

the Defendants, Relief Defendants, and/or the WML Fund insurer, Houston Casualty Co., were notified of the pending Motion to Stay, however such parties have had insufficient opportunity to oppose the motion. 4. An Order temporarily staying ancillary litigation is necessary to preserve the status

quo, protect the interests of investors, creditors and other interested third parties, and to protect the Receiver's ability to fulfill her court-ordered duties. NOW, THEREFORE, IT IS HEREBY ORDERED, that the Receiver's motion for a stay is temporarily granted, and any and all ancillary claims against the named Defendants, Relief Defendants, and/or WML Funds' insurer, Houston Casualty Company, or claims that are so related to the above captioned action that they form part of the same case or controversy under Article III of the United States Constitution, are hereby STAYED pending a hearing on June 26, 2009, at 10:30 a.m., at which time interested investors, creditors and other third parties will have opportunity 2

to oppose the Receiver's Motion to Stay Ancillary Litigation. IT IS FURTHER ORDERED that no later than June 22, 2009, any and all interested investors, creditors and other third parties wishing to be heard at on June 26, 2009, will file with this Court and properly serve upon the parties a brief in opposition and supporting documentation. IT IS FURTHER ORDERED that the Motion to Intervene by Respondent Tony P. Trimble Revocable Trust is granted, but only as to the Receiver's motion to stay ancillary litigation. Dated at Green Bay, Wisconsin, this 16th day of June, 2009.

s/ William C. Griesbach William C. Griesbach United States District Judge

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