SMALL BUSINESS CAPITAL CORP. RECEIVERSHIP
Thomas Seaman, As Receiver

SEC vs.  SMALL BUSINESS CAPITAL CORP.; MARK FEATHERS; INVESTORS PRIME FUND, LLC; and SBC PORTFOLIO FUND, LLC;

CASE NO. 5:12-CV-03237-EJD

 

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

HONORABLE EDWARD J. DAVILA, PRESIDING

 

HOW TO CHANGE YOUR MAILING ADDRESS TO RECEIVE DISTRIBUTIONS
Changes to a creditor’s mailing address for purposes of receiving distributions can only be made by emailing your new mailing address and contact information to the Receiver by clicking here.  The Receiver will then update the official list of creditor contact information.  Official creditor information is not stored on this website or edited by changing your email address.


Thomas Seaman, Receiver for Small Business Capital Corp, et al
3 Park Plaza, Ste. 550
Irvine, CA  92614

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Website Of

Thomas Seaman, CFA

Judicial Receiver

Thomas Seaman Company

3 Park Plaza, Suite 550

Irvine, California 92614



This website was last updated April 24, 2014, at 2:32 pm.
Welcome to the website of the Permanent Receiver for Small Business Capital Corporation, Investors Prime Fund, LLC; and SBC Portfolio Fund, LLC, their subsidiaries and affiliates.

 

IMPORTANT NOTICE:  ALL HYPERLINKS TO DOCUMENTS ARE RESTORED.

This website has been established to facilitate efficient communications between investors, creditors, former employees, and other interested parties of Small Business Capital Corporation, Investors Prime Fund, LLC, and SBC Portfolio Fund, LLC, all of its subsidiaries and affiliates; and Thomas Seaman who is serving as their Receiver.  Mr. Seaman was appointed as Receiver on June 26, 2012, by the Honorable Edward J. Davila, Judge of the United States District Court in a securities fraud enforcement action brought by the Securities and Exchange Commission (the "Commission").
 

The Commission has alleged that the defendants violated federal securities laws. Judge Davila also ordered that the assets of Small Business Capital Corporation, Mark Feathers, Investors Prime Fund, LLC, and SBC Portfolio Fund, LLC, and subsidiaries and affiliates, be frozen and issued a TEMPORARY RESTRAINING ORDER AND ORDERS: (1) FREEZING ASSETS; (2) PROHIBITING THE DESTRUCTION OF DOCUMENTS; (3) GRANTING EXPEDITED DISCOVERY; (4) REQUIRING ACCOUNTINGS; AND (5) APPOINTING A TEMPORARY RECEIVER; AND AN ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION AND APPOINTMENT OF PERMANENT RECEIVER (“TRO").  A copy of the Commission’s COMPLAINT can also be found on the Case Documents page. 

Other questions involving the Receiver's role can be answered on the Frequently Asked Questions page.

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RECEIVER'S MOST RECENT REPORTS TO THE COURT


RECEIVER'S EIGHTH INTERIM REPORT

On January 30, 2014, the Receiver filed the RECEIVER'S EIGHTH INTERIM REPORT [Dkt. No. 689]

The report provides a summary of the Receiver’s actions over the past three months on behalf of the estate; an accounting for the quarter ending December 31, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger; as well as inception-to-date reports.

RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 
RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 
RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 
RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 
RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 
RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 

 

FOURTH FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP
On December 4, 2013, the Receiver filed his [Dkt. No. 648] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 646] RECEIVER'S FOURTH INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from August 1, 2013, through October 31, 2013.  The Receiver and his staff worked 861.0 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task. Exhibit B of the application is a Summary By Timekeeper. Exhibit C is a Summary By Task. The Receiver seeks an order to approve payment of 90% of the detailed fees of the Fourth Fee Application Period.  The hearing of this fee application is set for February 14, 2014, at 9:00 a.m.

 

On December 4, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 647] FOURTH INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court.  The fee application details 227.8 hours of work performed by the attorneys from August 31, 2013, through October 31, 2013, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for February 14, 2014, at 9:00 a.m.

 

RECEIVER'S SEVENTH INTERIM REPORT

On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 

 

RECEIVER'S SEVENTH INTERIM REPORT
On October 18, 2013, the Receiver filed the RECEIVER'S SEVENTH INTERIM REPORT [Dkt. No. 618].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of September 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. 

THIRD FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP 
On September 20, 2013, the Receiver filed his [Dkt. No. 609] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 607] RECEIVER'S THIRD INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from January 1, 2013, through July 31, 2013. The Receiver and his staff worked 2,871.5 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court. Exhibit A of the application details all fees sorted by task. Exhibit B of the application is a Summary By Timekeeper. Exhibit C is a Summary By Task. The Receiver seeks an order to approve payment of 90% of the detailed fees of the Third Fee Application Period. The hearing of this fee application is set for November 22, 2013, at 9:00 a.m.

 

On September 20, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 608] THIRD INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court. The fee application details 736.20 hours of work performed by the attorneys from January 1, 2013, through July 31, 2013, on behalf of the receivership estate. The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs. The hearing of this fee application is set for November 22, 2013, at 9:00 a.m.

 

DEFENDANT’S AND SEC’S RESPONSES TO FEE APPLICATIONS OF RECEIVER AND COUNSEL

On September 27, 2013, the Defendant filed with the Court his [Dkt. No. 614] DEFENDANT’S OMNIBUS OPPOSITION REPLY ON RECEIVER’S AND RECEIVER’S COUNSEL REQUEST FOR PAYMENT; and his [Dkt. No. 615] DECLARATIONS OF MARK FEATHERS ACCOMPANYING RESPONSE RECEIVER’S AND RECEIVER’S COUNSELS REQUEST FOR APPROVAL OF THIRD PAYMENT.

 

On September 30, 2013, the SEC filed with the Court its [Dkt. No. 613] PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S CONSOLIDATED RESPONSE TO THE THIRD INTERIM FEE APPLICATIONS OF THE RECEIVER AND THE RECEIVER’S GENERAL COUNSEL, ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP.  The hearing for the fee applications and responses are calendared for November 22, 2013, at 9:00 a.m.

 

On September 27, 2013, the Defendant filed with the Court his [Dkt. No. 614] DEFENDANT’S OMNIBUS OPPOSITION REPLY ON RECEIVER’S AND RECEIVER’S COUNSEL REQUEST FOR PAYMENT; and his [Dkt. No. 615] DECLARATIONS OF MARK FEATHERS ACCOMPANYING RESPONSE RECEIVER’S AND RECEIVER’S COUNSELS REQUEST FOR APPROVAL OF THIRD PAYMENT.
On September 30, 2013, the SEC filed with the Court its [Dkt. No. 613] PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S CONSOLIDATED RESPONSE TO THE THIRD INTERIM FEE APPLICATIONS OF THE RECEIVER AND THE RECEIVER’S GENERAL COUNSEL, ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP.  The hearing for the fee applications and responses are calendared for November 22, 2013, at 9:00 a.m.

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OTHER ANNOUNCEMENTS IN CHRONOLOGICAL ORDER

 

RE: MOTION FOR APPROVAL OF SALE OF LOAN PORTFOLIOS AND SBA LENDING AUTHORITY; SEC’S MEMORANDUM IN SUPPORT; FEATHERS’ OPPOSITION; RECEIVER’S REPLY TO FEATHER’S OPPOSITION
Previously posted on March 12, 2014, was the Receiver’s [Dkt. No. 762] MOTION FOR (A) APPROVAL OF SALES PROCEDURES FOR LOAN PORTFOLIOS AND 7(a) LICENSE AND (B) AUTHORITY TO ENGAGE VOIT REAL ESTATE SERVICES LP AS BROKER.  

On March 26, 2014, after the Receiver filed his motion, the SEC filed its [Dkt. No. 809] PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S MEMORANDUM RE RECEIVER’S MOTION FOR (A) APPROVAL OF SALES PROCEDURES FOR LOAN PORTFOLIOS AND 7(a) LICENSE AND (B) AUTHORITY TO ENGAGE VOIT REAL ESTATE SERVICES LP AS BROKER.

On March 26, 2014, Mr. Feathers filed his objection as [Dkt. No. 824] MARK FEATHERS OPPOSITION TO RECEIVERS MOTION (COURT DOCKET 762) TO SELL ASSETS OF THE RECEIVERSHIP ESTATE.  The opposition is supported by exhibits, a declaration and a proposed order that are attached to the main document.

On April 2, 2014, after Feathers’ opposition, the Receiver filed his [Dkt. No. 830] RECEIVER'S REPLY IN SUPPORT OF MOTION FOR APPROVAL OF PROCEDURES FOR SALE OF LOAN PORTFOLIOS AND SBA LENDING AUTHORITY.  The hearing is calendared for April 25, 2014, at 9:00 a.m.

DISTRIBUTION CHECKS MAILED
The Receiver began mailing distribution checks to investors yesterday and the mailing will be completed today, Tuesday March 18, 2014.  The amount of the check that investors will receive is equal to the 42.86109% of their original investment less any amounts received prior to the appointment of a receiver.

 

MOTION FOR APPROVAL OF SALES PROCEDURES FOR LOAN PORTFOLIOS AND SBA LICENSE
On March 12, 2014, the Receiver filed with the Court his [Dkt. No. 762] NOTICE OF MOTION AND MOTION FOR (A) APPROVAL OF SALES PROCEDURES FOR LOAN PORTFOLIOS AND 7(a) LICENSE AND (B) AUTHORITY TO ENGAGE VOIT REAL ESTATE SERVICES LP AS BROKER; MEMORANDUM OF POINTS AND AUTHORITIES.  The motion is supported by the [Dkt. No. 762-1] DECLARATION OF PETER BEAUCHAMP IN SUPPORT OF RECEIVER'S MOTION FOR (A) APPROVAL OF SALES PROCEDURES FOR LOAN PORTFOLIOS AND 7(a) LICENSE, AND (B) AUTHORITY TO ENGAGE VOIT REAL STATE SERVICES LP AS BROKER; and, the [Dkt. No. 762-2] DECLARATION OF THOMAS A. SEAMAN IN SUPPORT OF MOTION FOR (A) APPROVAL OF SALES PROCEDURES FOR LOAN PORTFOLIOS AND 7(a) LICENSE AND (B) AUTHORITY TO ENGAGE VOIT REAL ESTATE SERVICES LP AS BROKER.  The motion is calendared for April 25, 2014, at 9:00 a.m.

APPROVAL OF RECEIVER’S OMNIBUS AND SPECIFIC CLAIM OBJECTIONS; DISTRIBUTION PLAN
February 28, 2014:  The Receiver is very pleased to report that the Court has approved the Receiver’s Omnibus And Specific Claim Objections ([Dkt. No. 714] AMENDED ORDER APPROVING OMNIBUS AND SPECIFIC CLAIM OBJECTIONS; vacated on April 15, 2014, and replaced by Dkt. No. 845 - see below) and Plan Of Distribution ([Dkt. No. 715] AMENDED ORDER APPROVING DISTRIBUTION PLAN AND AUTHORIZING INTERIM DISTRIBUTIONS), and has authorized the Receiver to make an interim distribution of $15 million.  The Receiver expects to issue the checks within the next two to three weeks.

 

NEW!

SECOND AMENDED ORDER APPROVING OMNIBUS AND SPECIFIC CLAIM OBJECTIONS

April 15, 2014 Update:  Judge Davila vacated his prior [Dkt. No. 714] AMENDED ORDER APPROVING OMNIBUS AND SPECIFIC CLAIM OBJECTIONS; and entered his [Dkt. No. 845]  SECOND AMENDED ORDER APPROVING OMNIBUS AND SPECIFIC CLAIM OBJECTIONS.

 

NOTICE OF CONTINUING MOTIONS FOR HEARING
On January 23, 2014, the clerk of the Court filed his [Dkt. No. 683] CLERK'S NOTICE CONTINUING MOTIONS FOR HEARING.  You are notified that the following motions by Receiver Thomas Seaman are continued from January 31, 2014, at 9:00 AM to February 14, 2014, at 9:00 AM:
(1) MOTION to Approve Omnibus and Specific Claim Objections (Docket Item No. 626)
(2) MOTION Notice of Motion and Motion for Approval of Distribution Plan and Authorization to Make Interim Distribution (Docket Item No. 628)
(3) MOTION Receiver's Fourth Interim Fee Application (Docket Item No. 646)
(4) MOTION Fourth Interim Fee Application of Allen Matkins Leck Gamble Mallory & Natsis LLP, General Counsel to the Receiver (Docket Item No. 647)
The hearing for these motions are now set for February 14, 2014, at 9:00 AM.

 

RECEIVER’S REPLIES TO OBJECTIONS TO MOTIONS FOR APPROVAL OF CLAIM OBJECTIONS, DISTRIBUTIONS

On December 6, 2013, the Receiver filed his [Dkt. No. 655] REPLY TO RESPONSES TO MOTION TO APPROVE OMNIBUS AND SPECIFIC CLAIM OBJECTIONS.  On December 10, 2013, the Receiver filed with the Court his [Dkt. No. 657] REPLY TO RESPONSES TO MOTION FOR APPROVAL OF DISTRIBUTION PLAN AND AUTHORIZATION TO MAKE INTERIM DISTRIBUTIONS.  The reply is supported by his [Dkt. No. 657-1] DECLARATION OF THOMAS A. SEAMAN IN SUPPORT REPLY TO RESPONSES TO MOTION FOR APPROVAL OF DISTRIBUTION PLAN AND AUTHORIZATION TO MAKE INTERIM DISTRIBUTIONS.  The hearing date to approve claims objections, approve the distribution plan and to authorize an interim distribution has been calendared for February 14, 2014, at 9:00 a.m.  

SMALL BUSINESS ADMINISTRATION OBJECTION TO CLAIM OBJECTIONS AND INTERIM DISTRIBUTION
On November 27, 2013, the Small Business Administration filed with the Court their oppositions to the Receiver’s motion to approve claim objections and plan for an interim distribution.  The filed documents include [Dkt. No. 632] OPPOSITION OF U.S. SMALL BUSINESS ADMINISTRATION TO RECEIVER’S MOTION TO APPROVE OMNIBUS AND SPECIFIC CLAIM OBJECTIONS; and [Dkt. No. 634] OPPOSITION OF U.S. SMALL BUSINESS ADMINISTRATION TO RECEIVER’S MOTION FOR APPROVAL OF DISTRIBUTION PLAN AND AUTHORIZATION TO MAKE INTERIM DISTRIBUTIONS


NEW HEARING DATE OF FEBRUARY 14, 2014, RE CLAIMS OBJECTIONS, DISTRIBUTION PLAN, AUTHORIZATION OF AN INTERIM DISTRIBUTION

On November 26, 2013, the Court entered its [Dkt. No. 631] ORDER SHORTENING TIME ON: 1) MOTION TO APPROVE OMNIBUS AND SPECIFIC CLAIM OBJECTIONS [re Dkt. No. 626] 2) MOTION FOR APPROVAL OF DISTRIBUTION PLAN AND AUTHORITY TO MAKE INTERIM DISTRIBUTIONS (re Dkt. No. 628).  Consequently, the previous hearing date of April 25, 2014, has been canceled and the new hearing date to approve claims objections, approve the distribution plan and to authorize an interim distribution has been advanced to February 14, 2014, at 9:00 a.m. 

MOTION TO APPROVE OMNIBUS AND SPECIFIC CLAIM OBJECTIONS; MOTION FOR APPROVAL OF DISTRIBUTION PLAN AND AUTHORIZATION TO MAKE INTERIM DISTRIBUTIONS
November 20, 2013 update: The Receiver is pleased to announce that he has filed an Omnibus and Specific Claims Objections motion (NOTICE OF MOTION AND MOTION TO APPROVE OMNIBUS AND SPECIFIC CLAIM OBJECTIONS [Dkt. No. 626]; and, DECLARATION OF THOMAS A. SEAMAN IN SUPPORT OF MOTION TO APPROVE OMNIBUS AND SPECIFIC CLAIM OBJECTIONS [Dkt. No. 626-1]), which recommends to the Court the amount of each claim so that the Court may establish the basis for distributions to investors and non-investor claimants. The Receiver has also filed a Distribution Plan and a motion to approve the Distribution Plan and authorize the Receiver make an interim distribution of $19 million (NOTICE OF MOTION AND MOTION FOR APPROVAL OF DISTRIBUTION PLAN AND AUTHORIZATION TO MAKE INTERIM DISTRIBUTIONS; MEMORANDUM OF POINTS AND AUTHORITIES [Dkt. No. 628]). The Receiver has been provided a hearing date of April 25, 2014 January 31, 2014. However, the Receiver is also filing an administrative motion for an order shortening time because allowing the Receiver to make the distribution of $19,000,000 sooner will significantly mitigate the losses suffered by investors. 


If you oppose the Motion, you are required to file your written opposition with the Office of the Clerk, United States District Court, 280 South 1st Street, San Jose, California, 95113, and serve the same on the Receiver. All interested parties will receive notice of these motions and the final hearing date in the mail.

 

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES
On November 6, 2013, Judge Davila entered his [Dkt. No. 622] ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES against the Defendant, Mark Feathers.  The order includes a permanent injunction against violations of specific provisions of federal securities law, disgorgement of a total amount of $7,782,961.07, and a civil penalty in the amount of $10,000.

 

On August 16, 2013, Judge Davila entered his [DKT. 591] ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT. 
ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DEFENDANT'S MOTION DENIED
On August 16, 2013, Judge Davila entered his [DKT. 591] ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT. 
ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DEFENDANT'S MOTION DENIED
On August 16, 2013, Judge Davila entered his [DKT. 591] ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT. 
ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DEFENDANT'S MOTION DENIED
On August 16, 2013, Judge Davila entered his [DKT. 591] ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT. 

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES
On November 6, 2013, Judge Davila entered his [Dkt. No. 622] ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES.  The order includes a permanent injunction against violations of specific provisions of federal securities law, disgorgement of a total amount of $7,782,961.07, and a civil penalty in the amount of $10,000.
ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES
On November 6, 2013, Judge Davila entered his [Dkt. No. 622] ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES.  The order includes a permanent injunction against violations of specific provisions of federal securities law, disgorgement of a total amount of $7,782,961.07, and a civil penalty in the amount of $10,000.
ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES
On November 6, 2013, Judge Davila entered his [Dkt. No. 622] ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES.  The order includes a permanent injunction against violations of specific provisions of federal securities law, disgorgement of a total amount of $7,782,961.07, and a civil penalty in the amount of $10,000.
ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES
On November 6, 2013, Judge Davila entered his [Dkt. No. 622] ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES.  The order includes a permanent injunction against violations of specific provisions of federal securities law, disgorgement of a total amount of $7,782,961.07, and a civil penalty in the amount of $10,000.
ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES
On November 6, 2013, Judge Davila entered his [Dkt. No. 622] ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR INJUNCTIVE RELIEF AND MONETARY REMEDIES.  The order includes a permanent injunction against violations of specific provisions of federal securities law, disgorgement of a total amount of $7,782,961.07, and a civil penalty in the amount of $10,000.

RECEIVER'S UPDATE OF AUGUST 27, 2013

The Receiver provides the following status update to the SB Capital Receivership as of August 27, 2013.  Investor K-1s for the 2012 tax year will be mailed to investors on August 28, 2013.  With the forensic accounting completed, the tax work finished, and with the SEC’s motion for summary judgment having recently been granted, the Receiver is now able to focus on determining creditor and investor claims with the goal of distributing cash collected by the Receiver to those with allowed claims.  Review and reconciliation of claims filed by creditors, investors, and other parties is currently underway and will be completed within the next few weeks.  The Receiver will then file a motion to have the Court determine the allowed amount of each claim.  Thereafter, the Receiver will prepare and request Court approval of a Plan of Distribution, including authorization to make interim distributions to those with allowed claims. 

 

In the meantime, the Receiver is preparing the remaining assets for sale and is consulting with the SBA accordingly.  The Receiver is preparing a due diligence package for potential purchasers and evaluating processes to attain the highest and best value for the assets.  Once this analysis is completed, the Receiver will seek Court approval of proposed sale procedures and confirmation of the sale. 

 

The current cash in the receivership estate is approximately $16 million.

 

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DEFENDANT'S MOTION DENIED
On August 16, 2013, Judge Davila entered his [DKT. 591] ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT.

RECEIVER'S SIXTH INTERIM REPORT

On July 23, 2013, the Receiver filed the RECEIVER'S SIXTH INTERIM REPORT [Dkt. No. 581]. Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of June 30, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership. The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution.

RECEIVER'S FORENSIC ACCOUNTING REPORT 
On June 27, 2013, the Receiver filed his RECEIVER'S FORENSIC ACCOUNTING REPORT. The accounting information presented herein covers the period from January 1, 2007, through the time of the Receiver’s appointment on June 26, 2012. The report is supported by EXHIBIT “A” SUMMARY OF SOURCES AND USES OF FUNDSEXHIBIT “B” PROFIT & LOSS BY CLASSEXHIBIT “C” BALANCE SHEET BY CLASS; ; EXHIBIT “E” GENERAL LEDGER; and EXHIBIT "F" TRANSACTIONS BY ACCOUNT.

DEFENDANT'S MOTION FOR SUMMARY JUDGMENT; SEC'S MOTION FOR SUMMARY JUDGMENT
On May 13, 2013, the Defendant filed with the Court his [DKT. 459] DEFENDANT’S MOTION FOR SUMMARY JUDGMENT, OR FOR PARTIAL SUMMARY JUDGMENT, OR IN THE ALTERNATIVE FOR AN ORDER TREATING SPECIFIED FACTS AS ESTABLISHED.  The motion is supported by the [DKT. 460] DEFENDANT'S DECLARATION ACCOMPANYING REQUEST FOR SUMMARY JUDGMENT; the [DKT. 461] MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT RE 459 MOTION FOR SUMMARY JUDGMENT; the [DKT. 461-1] EXHIBIT A;  the [DKT. 462] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES; and the [DKT. 462-1] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT; SEC'S MOTION FOR SUMMARY JUDGMENT
On May 13, 2013, the Defendant filed with the Court his [DKT. 459] DEFENDANT’S MOTION FOR SUMMARY JUDGMENT, OR FOR PARTIAL SUMMARY JUDGMENT, OR IN THE ALTERNATIVE FOR AN ORDER TREATING SPECIFIED FACTS AS ESTABLISHED.  The motion is supported by the [DKT. 460] DEFENDANT'S DECLARATION ACCOMPANYING REQUEST FOR SUMMARY JUDGMENT; the [DKT. 461] MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT RE 459 MOTION FOR SUMMARY JUDGMENT; the [DKT. 461-1] EXHIBIT A;  the [DKT. 462] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES; and the [DKT. 462-1] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT; SEC'S MOTION FOR SUMMARY JUDGMENT
On May 13, 2013, the Defendant filed with the Court his [DKT. 459] DEFENDANT’S MOTION FOR SUMMARY JUDGMENT, OR FOR PARTIAL SUMMARY JUDGMENT, OR IN THE ALTERNATIVE FOR AN ORDER TREATING SPECIFIED FACTS AS ESTABLISHED.  The motion is supported by the [DKT. 460] DEFENDANT'S DECLARATION ACCOMPANYING REQUEST FOR SUMMARY JUDGMENT; the [DKT. 461] MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT RE 459 MOTION FOR SUMMARY JUDGMENT; the [DKT. 461-1] EXHIBIT A;  the [DKT. 462] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES; and the [DKT. 462-1] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT; SEC'S MOTION FOR SUMMARY JUDGMENT
On May 13, 2013, the Defendant filed with the Court his [DKT. 459] DEFENDANT’S MOTION FOR SUMMARY JUDGMENT, OR FOR PARTIAL SUMMARY JUDGMENT, OR IN THE ALTERNATIVE FOR AN ORDER TREATING SPECIFIED FACTS AS ESTABLISHED.  The motion is supported by the [DKT. 460] DEFENDANT'S DECLARATION ACCOMPANYING REQUEST FOR SUMMARY JUDGMENT; the [DKT. 461] MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT RE 459 MOTION FOR SUMMARY JUDGMENT; the [DKT. 461-1] EXHIBIT A;  the [DKT. 462] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES; and the [DKT. 462-1] ERRATA TO MEMORANDUM OF POINTS AND AUTHORITIES.
On May 23, 2013, the Security Exchange Commission filed with the Court their [DKT. 477] PLAINTIFF SECURITIES AND EXCHANGE COMMISSION NOTICE OF MOTION AND MOTION FOR SUMMARY JUDGMENT AGAINST DEFENDANT MARK FEATHERS.  The motion is supported by [DKT. 477-1] POINTS AND AUTHORITIES; and the [DKT. 477-2] (PROPOSED) FINAL JUDGMENT; as well as the following exhibits:
[DKT. 478] DECLARATION OF BARBARA BUSHEE
[DKT. 479] DECLARATION OF SARAH MITCHELL
[DKT. 480] DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-1] EXHIBITS 1-15 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-2] EXHIBITS 16-25 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-3] EXHIBITS 26-27 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-4] EXHIBITS 28-45 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-5] EXHIBITS 46-58 TO DECLARATION OF JEFFREY SPIEGEL 
[DKT. 480-6] PROOF OF SERVICE OF DECLARATION OF JEFFREY SPIEGEL
[DKT. 481] DECLARATION OF ROBERT MORRIS
[DKT. 481-1] EXHIBITS 118-123 TO DECLARATION OF ROBERT MORRIS 
[DKT. 481-2] EXHIBITS 124-131 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-3] EXHIBITS 132-141 TO DECLARATION OF ROBERT MORRIS 
[DKT. 481-4] EXHIBITS 142-147 TO DECLARATION OF ROBERT MORRIS 
[DKT. 481-5] EXHIBITS 148-153 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-6] EXHIBITS 154-159 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-7] EXHIBITS 160-163 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-8] PROOF OF SERVICE OF DECLARATION OF ROBERT MORRIS
[DKT. 482] DECLARATION OF DAVID GRUEBELE
[DKT. 482-1] EXHIBITS 3-79 TO DECLARATION OF DAVID GRUEBELE
[DKT. 482-2] EXHIBITS 80-117 TO DECLARATION OF DAVID GRUEBELE
[DKT. 482-3] PROOF OF SERVICE OF DECLARATION OF DAVID GRUEBELE
[DKT. 483] DECLARATION OF JOHN B. BULGOZDY IN SUPPORT OF PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
[DKT. 483-1] EXHIBIT 172 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-2] EXHIBITS 173-174 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-3] EXHIBITS 175-176 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-4] EXHIBIT 177 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-5] EXHIBITS 178-180 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-6] EXHIBITS 181-182 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-7] EXHIBITS 183-184 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-8] EXHIBITS 185-186 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-9] EXHIBITS 187-216 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-10] EXHIBITS 217-219 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-11] PROOF OF SERVICE OF DECLARATION OF JOHN B. BULGOZDY

On May 23, 2013, the Security Exchange Commission filed with the Court their [DKT. 477] PLAINTIFF SECURITIES AND EXCHANGE COMMISSION NOTICE OF MOTION AND MOTION FOR SUMMARY JUDGMENT AGAINST DEFENDANT MARK FEATHERS. The motion is supported by [DKT. 477-1] POINTS AND AUTHORITIES; and the [DKT. 477-2] (PROPOSED) FINAL JUDGMENT; as well as the following exhibits:
[DKT. 478] DECLARATION OF BARBARA BUSHEE

DKT. 479] DECLARATION OF SARAH MITCHELL
[DKT. 480] DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-1] EXHIBITS 1-15 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-2] EXHIBITS 16-25 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-3] EXHIBITS 26-27 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-4] EXHIBITS 28-45 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-5] EXHIBITS 46-58 TO DECLARATION OF JEFFREY SPIEGEL
[DKT. 480-6] PROOF OF SERVICE OF DECLARATION OF JEFFREY SPIEGEL
[DKT. 481] DECLARATION OF ROBERT MORRIS
[DKT. 481-1] EXHIBITS 118-123 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-2] EXHIBITS 124-131 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-3] EXHIBITS 132-141 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-4] EXHIBITS 142-147 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-5] EXHIBITS 148-153 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-6] EXHIBITS 154-159 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-7] EXHIBITS 160-163 TO DECLARATION OF ROBERT MORRIS
[DKT. 481-8] PROOF OF SERVICE OF DECLARATION OF ROBERT MORRIS
[DKT. 482] DECLARATION OF DAVID GRUEBELE
[DKT. 482-1] EXHIBITS 3-79 TO DECLARATION OF DAVID GRUEBELE
[DKT. 482-2] EXHIBITS 80-117 TO DECLARATION OF DAVID GRUEBELE
[DKT. 482-3] PROOF OF SERVICE OF DECLARATION OF DAVID GRUEBELE
[DKT. 483] DECLARATION OF JOHN B. BULGOZDY IN SUPPORT OF PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

[DKT. 483-1] EXHIBIT 172 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-2] EXHIBITS 173-174 TO DECLARATION OF JOHN B. BULGOZDY [DKT. 483-3] EXHIBITS 175-176 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-4] EXHIBIT 177 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-5] EXHIBITS 178-180 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-6] EXHIBITS 181-182 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-7] EXHIBITS 183-184 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-8] EXHIBITS 185-186 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-9] EXHIBITS 187-216 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-10] EXHIBITS 217-219 TO DECLARATION OF JOHN B. BULGOZDY
[DKT. 483-11] PROOF OF SERVICE OF DECLARATION OF JOHN B. BULGOZDY


ORDER DENYING DEFENDANT'S MOTION FOR RECONSIDERATION (re DKT. 329)
On May 10, 2013, the Court entered its [DKT. NO. 457] ORDER DENYING DEFENDANT'S MOTION FOR RECONSIDERATION (re DKT. 329).  The order denied the Defendant's motion that the Court reconsider its previous [DKT. 70] ORDER DENYING REQUEST FOR LEGAL EXPENSES from September 26, 2012.

ORDER AUTHORIZING RECEIVER TO SELL PROPERTIES; INSURANCE POLICY TERMINATION; MOTION TO DISMISS DENIED
On May 10, 2013, Judge Davila entered his [DKT. NO. 454] CIVIL MINUTES OF MAY 10 HEARING and [DKT. NO. 456] ORDER AFTER MAY 10 HEARING.  The minutes and orders covered several issues brought before the Court, specifically, the Receiver Thomas Seaman’s motion for order instructing defendant Mark Feathers to terminate an insurance policy and turn over cash value (Docket Item No. 177) is GRANTED; the Defendant Mark Feathers’ second amended motion to dismiss and motion for sanctions (Docket Item No. 275) is DENIED; and Receiver Thomas Seaman’s motion for authorization to sell the Natoma, Sweet Fingers and Whiskey Junction properties and accept a discounted payoff of the Four Brothers’ Inns loan (Docket Item No. 419) is GRANTED. 

RECEIVER’S RESPONSE TO DEFENDANT’S OPPOSITION TO RECEIVER’S MOTION

On May 7, 2013, the Receiver filed his [Dkt 441] RECEIVER’S RESPONSE TO DEFENDANT MARK FEATHERS’ OPPOSITION TO RECEIVER’S MOTION FOR AUTHORITY TO: SELL NATOMA PROPERTY; SELL SWEET FINGERS PROPERTY; SELL WHISKEY JUNCTION PROPERTY; AND ACCEPT DISCOUNTED PAYOFF FROM THE FOUR BROTHERS INNS, LLC. The hearing is calendared for May 10, 2013, at 9 a.m.

HEARING TO SELL NATOMA, SWEET FINGERS & WHISKEY JUNCTION PROPERTIES AND ACCEPT DISCOUNTED PAYOFF OF FOUR BROTHERS INNS LOAN; SET FOR MAY 10, 2013
On April 26, 2013, Judge Davila entered his [DKT. 429] ORDER SHORTENING TIME ON RECEIVER'S MOTION FOR AUTHORIZATION TO: (A) SELL NATOMA PROPERTY; (B) SELL WHISKEY JUNCTION PROPERTY; (C) SELL SWEET FINGERS PROPERTY; AND (D) ACCEPT DISCOUNTED PAYOFF OF LOAN TO THE FOUR BROTHERS INNS, LLC.  The hearing will be on May 10, 2013. Oppositions to the motion are due May 3, 2013.  The Receiver’s reply is due May 7, 2013. 
MOTION FOR AUTHORITY TO SELL NATOMA, SWEET FINGERS & WHISKEY JUNCTION PROPERTIES; ACCEPT DISCOUNTED PAYOFF RE FOUR BROTHERS INNS, LLC
On April 24, 2013, the Receiver filed with the Court his [DKT. 419] MOTION FOR AUTHORITY TO: (A) SELL NATOMA PROPERTY; (B) SELL SWEET FINGERS PROPERTY; (C) SELL WHISKEY JUNCTION PROPERTY; AND (D) ACCEPT DISCOUNTED PAYOFF FROM THE FOUR BROTHERS INNS, LLC.  The motion is supported by the [DKT. 419-1] DECLARATION OF THOMAS A. SEAMAN IN SUPPORT OF MOTION FOR AUTHORITY TO: (A) SELL NATOMA PROPERTY; (B) SELL WHISKEY JUNCTION PROPERTY; (C) SELL SWEET FINGERS PROPERTY; AND (D) ACCEPT DISCOUNTED PAYOFF OF LOAN TO THE FOUR BROTHERS INNS, LLC.  This motion is calendared for August 23, 2013, at 9:00 a.m.

The Receiver also filed his [DKT. 420] EX PARTE APPLICATION FOR ORDER SHORTENING TIME ON MOTION FOR AUTHORITY TO: (A) SELL NATOMA PROPERTY; (B) SELL SWEET FINGERS PROPERTY; (C) SELL WHISKEY JUNCTION PROPERTY; (D) ACCEPT DISCOUNTED PAYOFF OF LOAN TO THE FOUR BROTHERS INNS, LLC.

RECEIVER'S FIFTH INTERIM REPORT

On April 15, 2013, the Receiver filed the RECEIVER'S FIFTH INTERIM REPORT [Dkt. No. 386].  Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of March 31, 2013, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for the management and disposition of receivership assets; and, the claims process and plan of distribution. Also filed with the report is the [PROPOSED] ORDER APPROVING RECEIVER’S FIFTH INTERIM REPORT [Dkt. No. 386-1].

ORDER STRIKING IMPROPERLY FILED PLEADINGS
On April 12, 2013, Judge Davila entered his [DKT. 371] ORDER STRIKING IMPROPERLY FILED PLEADINGS.  The Court has stricken opposition pleadings filed by investors who are not parties to the litigation and instructed them to be received in the same manner as letters.  Moreover, the Court has previously stated that it will not read letters submitted by non-parties.    
 
SECOND FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP
On April 4, 2013, the Receiver filed his [Dkt. No. 340] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 338] RECEIVER'S SECOND INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from October 1, 2012, through December 31, 2012.  The Receiver and his staff worked 1,019.1 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task.  Exhibit B of the application is a Summary By Timekeeper.  Exhibit C is a Summary By Task.  The Receiver seeks an order to approve payment of 90% of the detailed fees of the First Fee Application Period.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.

 

On April 4, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 339] SECOND INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court.  The fee application details 262.1 hours of work performed by the attorneys from October 1, 2012, through December 31, 2012, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.


SECOND FEE APPLICATIONS OF RECEIVER AND COUNSEL: SEC RESPONSE; DEFENDANT’S OPPOSITION; RECEIVER AND COUNSEL’S REPLY TO OPPOSITION
On April 18, 2013, the SEC filed with the Court their [DKT. 398] PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S CONSOLIDATED RESPONSE TO THE SECOND INTERIM FEE APPLICATIONS OF THE RECEIVER AND THE RECEIVER’S GENERAL COUNSEL, ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP

On April 18, 2013, the Defendant filed his [DKT. 399] DEFENDANT’S OPPOSITION REPLY ON RECEIVER’S MOTION FOR PAYMENTS and his [DKT. 400] DEFENDANT’S OPPOSITION REPLY ON RECEIVER’S COUNSEL’S MOTION FOR PAYMENT.  The oppositions are supported by the [DKT. 401] DECLARATION OF MARK FEATHERS IN OPPOSITION TO RECEIVER’S COUNSEL’S MOTION FOR PAYMENT.

On April 25, 2013, the Receiver filed his [DKT. 426] REPLY TO DEFENDANT MARK FEATHERS' OPPOSITION TO RECEIVER'S SECOND INTERIM FEE APPLICATION.  The Receiver’s counsel, Allen Matkins, filed their [DKT. 427] REPLY TO DEFENDANT MARK FEATHERS' OPPOSITION TO SECOND INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER.

The hearing on the fee applications has been re-calendared to July 5, 2013, at 2:00 p.m.
REQUEST FOR AUTHORITY TO ACCEPT PAYOFF OF BAY ROAD CONSTRUCTION LOAN; DEFENDANT’S OPPOSITION; ORDER GRANTING AUTHORITY
On March 22, 2013, the Receiver filed his [DKT. NO. 307] MOTION FOR ADMINISTRATIVE RELIEF UNDER CIVIL L.R. 7-11; REQUEST FOR AUTHORITY TO ACCEPT PAYOFF OF CONSTRUCTION LOAN, which is supported by the [DKT. NO. 307-1] DECLARATION OF THOMAS A. SEAMAN IN SUPPORT OF MOTION FOR ADMINISTRATIVE RELIEF.  
  
DEFENDANT’S OPPOSITION
 
ORDER GRANTING AUTHORITY TO ACCEPT PAYOFF OF BAY ROAD LOAN
 
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION; ORDER GRANTING RECEIVER'S APPLICATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver. 
 
ORDER GRANTING RECEIVER'S APPLICATION FOR RECONSIDERATION OF ORDEROn April 12, 2013, the Court entered its [DKT. 362] ORDER GRANTING EX PARTE APPLICATION FOR RECONSIDERATION AND CLARIFICATION OF AMENDED ORDER RE: DEFENDANT’S PENDING ADMINISTRATIVE MOTIONS (DKT. 302).  The order clarifies the previous order, [Dkt. 302], entered March 19, 2013, and requires the Defendant to apply to the Court before initiating any legal action against the Receiver.

RECEIVER’S MOTION TO PURSUE CLAIMS AGAINST CALIFORNIA BUSINESS BANK; DEFENDANT’S OPPOSITION; ORDER APPROVING RECEIVER’S MOTION
On March 29, 2013, the Receiver filed his [DKT. 322] MOTION FOR ADMINISTRATIVE RELIEF REQUEST FOR AUTHORITY TO PURSUE CLAIMS AGAINST CALIFORNIA BUSINESS BANK AND ITS OFFICERS AND DIRECTORS.  The motion is supported by his [DKT. 322-1] DECLARATION OF THOMAS SEAMAN IN SUPPORT OF MOTION FOR AUTHORITY TO PURSUE CLAIMS AGAINST CALIFORNIA BUSINESS BANK AND ITS OFFICERS AND DIRECTORS.  The Receivers also filed a proposed order,  [DKT. 322-2] PROPOSED ORDER AUTHORIZING RECEIVER TO PURSUE CLAIMS AGAINST CALIFORNIA BUSINESS BANK AND ITS OFFICERS AND DIRECTORS.

On April 2, 2013, the Defendant filed his [DKT. 331] OPPOSITION ON RECEIVER'S MOTION FOR ADMINISTRATIVE RELIEF (RE DKT. NO. 322), supported by his [DKT. 332] DECLARATION OF MARK FEATHERS IN OPPOSITION TO RECEIVER'S ADMIN MOTION (RE DKT. NO. 322).

On April 12, 2013, Judge Davila entered his [DKT. 361] ORDER AUTHORIZING RECEIVER TO PURSUE CLAIMS AGAINST CALIFORNIA BUSINESS BANK AND ITS OFFICERS AND DIRECTORS.
 
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 

ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 

ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  

On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 

CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 

THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302. 
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 

ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 

ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  

On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 

CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 

THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302.
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 

ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 

ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  

On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 

CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 

THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302.
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 

ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 

ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  

On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 

CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 

THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302.
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 
ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 
ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  
On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 
CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 
THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302. 
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 
ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 
ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  
On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 
CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 
THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302. 
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 
ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 
ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  
On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 
CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 
THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302.
DEFENDANT’S MOTION TO SUE THE RECEIVER; ORDER THEREON; RECEIVER’S APPLICATION FOR RECONSIDERATION
On March 14, 2013, the defendant, Mark Feathers, filed his [DKT NO. 296] DEFENDANT’S MOTION FOR LEAVE TO FILE LAWSUIT 
ACTION AGAINST THE RECEIVER.  On March 19, 2013, the Court entered its [DKT NO. 302] AMENDED ORDER RE DEFENDANT’S PENDING 
ADMINISTRATIVE MOTIONS, granting the Defendant leave to file a lawsuit against the Receiver.  
On March 26, 2013, the Receiver filed his [DKT. NO. 311] RECEIVER'S EX PARTE APPLICATION FOR RECONSIDERATION AND 
CLARIFICATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302; which is supported by the [DKT. NO. 311-1] DECLARATION OF 
THOMAS A. SEAMAN IN SUPPORT OF EX PARTE APPLICATION FOR RECONSIDERATION OF THIS COURT'S AMENDED ORDER RE DOCKET NO. 302.
SECOND FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP 
On April 4, 2013, the Receiver filed his [Dkt. No. 340] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 338] RECEIVER'S SECOND INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from October 1, 2012, through December 31, 2012.  The Receiver and his staff worked 1,019.1 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task.  Exhibit B of the application is a Summary By Timekeeper.  Exhibit C is a Summary By Task.  The Receiver seeks an order to approve payment of 90% of the detailed fees of the First Fee Application Period.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.
On April 4, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 339] SECOND INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court.  The fee application details 262.1 hours of work performed by the attorneys from October 1, 2012, through December 31, 2012, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.
SECOND FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP 
On April 4, 2013, the Receiver filed his [Dkt. No. 340] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 338] RECEIVER'S SECOND INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from October 1, 2012, through December 31, 2012.  The Receiver and his staff worked 1,019.1 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task.  Exhibit B of the application is a Summary By Timekeeper.  Exhibit C is a Summary By Task.  The Receiver seeks an order to approve payment of 90% of the detailed fees of the First Fee Application Period.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.
On April 4, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 339] SECOND INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court.  The fee application details 262.1 hours of work performed by the attorneys from October 1, 2012, through December 31, 2012, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.
SECOND FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP 
On April 4, 2013, the Receiver filed his [Dkt. No. 340] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 338] RECEIVER'S SECOND INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from October 1, 2012, through December 31, 2012.  The Receiver and his staff worked 1,019.1 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task.  Exhibit B of the application is a Summary By Timekeeper.  Exhibit C is a Summary By Task.  The Receiver seeks an order to approve payment of 90% of the detailed fees of the First Fee Application Period.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.
On April 4, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 339] SECOND INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court.  The fee application details 262.1 hours of work performed by the attorneys from October 1, 2012, through December 31, 2012, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.

SECOND FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP

On April 4, 2013, the Receiver filed his [Dkt. No. 340] NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his [Dkt. No. 338] RECEIVER'S SECOND INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from October 1, 2012, through December 31, 2012.  The Receiver and his staff worked 1,019.1 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task.  Exhibit B of the application is a Summary By Timekeeper.  Exhibit C is a Summary By Task.  The Receiver seeks an order to approve payment of 90% of the detailed fees of the First Fee Application Period.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.

 

On April 4, 2013, the Receiver's attorneys, Allen Matkins LLP, filed their [Dkt. No. 339] SECOND INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVER with the Court.  The fee application details 262.1 hours of work performed by the attorneys from October 1, 2012, through December 31, 2012, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for July 5, 2013, at 9:00 a.m.

 

RECEIVER’S LETTER TO INVESTORS REGARDING 2012 MEMBER K-1s
On March 12, 2013, the Receiver began sending to investors of Investors Prime Fund, LLC, SB Capital Portfolio Fund, LLC, and SBC Senior Commercial Loan Fund, LLC, his RECEIVER’S LETTER TO INVESTORS REGARDING 2012 MEMBER K-1s.
The letter informs members that the Funds will apply to the Internal Revenue Service and the California Franchise Tax Board for an extension until September 16, 2013, and October 15, 2013, respectively, to file the Funds’ 2012 federal and California income tax returns.

 

HEARING OF FEBRUARY 22, 2013; CIVIL MINUTES AND ORDER

On February 22, 2013, the Court ruled on several motions filed by Mr. Feathers.  The Court denied all of Mr. Feathers’ motions except for his request for living expense which was granted for $5,000 per month and will be paid from the receivership estate for six months.  The Court also stated that it had received many letters from investors and that the Court files them, but is not permitted to read them. 

 

The Court took the Receiver’s matters under submission.  After the hearing the Court entered its CIVIL MINUTES FOR THE FEBRUARY 22, 2013 HEARING.

 

DEFENDANT REQUESTS TRO AND INJUNCTION AGAINST PLAINTIFF’S USE OF THE WORD “PONZI”; COURT DENIES
On February 5, 2013, Defendant Mark Feathers filed his DEFENDANT’S EX PARTE REQUEST FOR TEMPORARY RESTRAINING ORDER AND INJUNCTION AGAINST PLAINTIFF’S USE OF THE WORD “PONZI”, AND AN ORDER FOR THE IMMEDIATE DISCONTINUATION OF ITS POSTINGS OF THE WORD “PONZI”

On February 11, 2013, Judge Davila entered his ORDER DENYING DEFENDANT’S REQUEST FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE FOR PRELIMINARY INJUNCTION

RECEIVER'S PRELIMINARY FORENSIC ACCOUNTING REPORT AND PETITION FOR INSTRUCTION

On January 16, 2013, the Receiver filed his RECEIVER'S PRELIMINARY FORENSIC ACCOUNTING REPORT AND PETITION FOR INSTRUCTION. The report provides a status of completion of the accounting work, preliminary summary level information, an analysis of the cost of the accounting work and a petition for instruction directing the Receiver to complete the detailed compilation of cash based receipts and disbursements, or, should the information presented herein be deemed to sufficient by the Court, to stop the forensic accounting work to conserve receivership estate resources. The accounting information presented herein covers the period from January 1, 2007 through the time of the Receiver’s appointment on June 26, 2012.

DEFENDANT FEATHERS OPPOSITION TO PRELIMINARY FORENSIC ACCOUNTING
On January 16, 2013, Defendant Mark Feathers filed with the Court his DEFENDANT’S OPPOSITION TO COURT APPROVAL OF RECEIVER’S PRELIMINARY FORENSIC ACCOUNTING REPORT.

 

DEFENDANT FEATHERS AMENDED OPPOSITION TO PRELIMINARY FORENSIC ACCOUNTING
On January 18, 2013, Defendant Mark Feathers filed with the court his DEFENDANT’S AMENDED OPPOSITION TO COURT APPROVAL OF RECEIVER’S PRELIMINARY FORENSIC ACCOUNTING REPORT.

 

NATALIE FEATHERS DECLARATION IN OPPOSITION TO PRELIMINARY FORENSIC ACCOUNTING
On January 22, 2013, Natalie Feathers filed with the Court her E.DECLARATION OF NATALIE E. FEATHERS IN OPPOSITION TO COURT APPROVAL OF THE RECEIVERS’S PRELIMINARY FORENSIC REPORT TO THE COURT.

 

RECEIVER’S RESPONSE TO NATALIE FEATHERS’ OPPOSITION TO THE PRELIMINARY FORENSIC ACCOUNTING
On February 1, 2013, the Receiver filed with the Court his RESPONSE TO DECLARATION OF NATALIE E. FEATHERS IN OPPOSITION TO RECEIVER'S PRELIMINARY FORENSIC ACCOUNTING REPORT.

 

DEFENDANT'S MOTION TO DISMISS; RECEIVER'S RESPONSE TO MOTIONOn February 22, 2013, Defendant Mark Feathers filed the following motion to dismiss with the Court: FRCP 12 MOTION TO DISMISS. On March 8, 2013, the Receiver filed the following DECLARATION OF THOMAS SEAMAN IN RESPONSE.

 

PLAINTIFF SEC’S OPPOSITION TO DEFENDANT’S MOTION TO DISMISS
 

RECEIVER'S FOURTH INTERIM REPORT
On January 15, 2013, the Receiver filed the RECEIVER’S FOURTH INTERIM REPORT. Items discussed in this Status Report include a summary of the Receiver’s actions over the past three months, an inventory of key assets of the receivership and an accounting as of December 31, 2012, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership. The report also summarizes the Receiver's recommendations for further investigation and activities, including; the management and disposition of receivership assets; and, the claims process and plan of distribution.

 

DEFENDANT'S OPPOSITION TO COURT APPROVAL OF RECEIVER'S FOURTH INTERIM REPORT
On January 18, 2013, Defendant Mark Feathers’ filed with the Court his DEFENDANT'S OPPOSITION TO COURT APPROVAL OF RECEIVER'S FOURTH INTERIM REPORT.

 

RECEIVER’S RESPONSE TO DEFENDANT'S OPPOSITION TO FOURTH INTERIM REPORT
On February 1, 2013, the Receiver filed his RESPONSE TO DEFENDANT MARK FEATHERS' OPPOSITION TO RECEIVER'S FOURTH INTERIM REPORT.

DEFENDANT’S MOTION FOR A REQUIREMENT FOR RECEIVERSHIP ESTATE TO ENJOIN A LEGAL ACTION; SEC’S OPPOSITION; RECEIVER’S RESPONSE
On January 3, 2013, defendant Mark Feathers filed with the Court his (1) REQUEST FOR A COURT ORDERED AMENDMENT TO THE ORDER AND INJUNCTION; AND, (2) MOTION FOR A REQUIREMENT FOR THE RECEIVERSHIP ESTATE TO ENJOIN A LEGAL ACTION

On January 16, 2013, the SEC filed their PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S OPPOSITION TO DEFENDANT MARK FEATHERS’ REQUEST FOR A COURT ORDERED AMENDMENT TO THE ORDER AND INJUNCTION AND MOTION FOR A REQUIREMENT FOR THE RECEIVERSHIP ESTATE TO ENJOIN A LEGAL ACTION (DKT. NO. 156). The Receiver also filed his RECEIVER’S RESPONSE TO DEFENDANT FEATHERS’ MOTION FOR DEFENDANT FEATHERS’ MOTION FOR A REQUIREMENT FOR THE RECEIVERSHIP ESTATE TO ENJOIN IN A LEGAL ACTION. The hearing is calendared for February 22, 2013, at 9:00 a.m.


FIRST FEE APPLICATIONS OF RECEIVER AND RECEIVER’S COUNSEL, ALLEN MATKINS LLP
On December 6, 2012, the Receiver filed his NOTICE OF HEARING ON INTERIM FEE APPLICATIONS FOR APPROVAL AND PAYMENT OF COMPENSATION TO RECEIVER AND HIS PROFESSIONALS, and his RECEIVER'S FIRST INTERIM FEE APPLICATION with the Court. The fee application details work performed by the Receiver from June 1, 2012, through September 30, 2012.  The Receiver and his staff worked 1,072.7 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court.  Exhibit A of the application details all fees sorted by task.  Exhibit B of the application is a Summary By Timekeeper.  Exhibit C is a Summary By Task.  The Receiver seeks an order to approve payment of 90% of the detailed fees of the First Fee Application Period.  The hearing of this fee application is set for February 22, 2013, at 9:00 a.m.

On December 6, 2012, the Receiver's attorneys, Allen Matkins LLP, filed their FIRST INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP, GENERAL COUNSEL TO THE RECEIVERFebruary with the Court.  The fee application details 299.19 hours of work performed by the attorneys from June 26, 2012, through September 30, 2012, on behalf of the receivership estate.  The Receiver’s attorneys seek an order authorizing the Receiver to pay 90% of the detailed fees and 100% of claimed costs.  The hearing of this fee application is set for February 22, 2013, at 9:00 a.m.

 

DEFENDANT FEATHERS’ OPPOSITIONS TO FEE APPLICATIONS OF RECEIVER AND HIS COUNSEL

On December 10, 2012, Defendant Mark Feathers filed with the Court his DEFENDANT’S OPPOSITION REPLY ON RECEIVER’S MOTION FOR PAYMENTS (DOCKET NO. 134).  On December 20, 2012, Defendant Mark Feathers filed with the Court his DEFENDANT’S OPPOSITION REPLY ON ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP’S (RECEIVER’S COUNSEL), MOTION FOR FIRST INTERIM PAYMENT (DOCKET NO. 135).  isThe hearing of this fee application is set for February 22, 2013, at 9:00 a.m. 

 

RECEIVER’S AND HIS COUNSEL’S REPLIES TO DEFENDANT’S OBJECTIONS TO FEE APPLICATIONS

On December 27, 2012, the Receiver filed with the Court his RESPONSE TO (A) OPPOSITION OF DEFENDANT MARK FEATHERS, (B) DECLARATION OF STEPHEN PAHL, (C) LETTER FROM HELEN HUNSAKER, (D) LETTER FROM CHARLOTTE WU, AND (E) LETTER FROM THE JEFF AND JANE SHEN TRUST REGARDING RECEIVER’S FIRST INTERIM FEE APPLICATION.  The Receiver’s counsel, Allen Matkins, also filed their RESPONSE TO (A) OPPOSITION OF DEFENDANT MARK FEATHERS, AND (B) DECLARATION OF STEPHEN PAHL REGARDING ALLEN MATKINS’ FIRST INTERIM FEE APPLICATION.  The hearing of this fee application is set for February 22, 2013, at 9:00 a.m.

 
RECEIVER’S AND SECURITIES EXCHANGE COMMISSION’S RESPONSES TO MOTIONS OF THE DEFENDANT MARK FEATHERS
On November 19, 2012, the Receiver filed his RECEIVER'S RESPONSE TO DEFENDANT MARK FEATHERS' MOTION TO DISMISS RECEIVER.  The Receiver’s response is to the several motions Defendant Mark Feathers’ filed with the Court on November 5, 2012.  Also on November 19, 2012, the Plaintiff, the Securities Exchange Commission, filed its PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S OMNIBUS OPPOSITION TO DEFENDANT MARK FEATHERS’S (1) MOTION TO DISMISS UNDER RULE 12(b)(2), (3), (4), (5), AND (6), RULE 8(d), AND RULE 9(a)(1)(B) (Dkt. No. 92), (2) MOTION TO DISMISS FOR CAUSE UNDER RULE 12(b) (Dkt. No. 93), AND (3) MOTION TO DISMISS RECEIVER (Dkt. No. 94); as well as its PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S OPPOSITION TO DEFENDANT MARK FEATHERS’ RULE 12(b)(6) MOTION TO DISMISS AND REQUEST FOR RULE 11 SANCTIONS (Dkt. No. 96).  The hearing of the motion and responses is calendared for February 22, 2013.
 
RECEIVER STARTS THE CLAIMS PROCESS WITH COURT FILING
On November 20, 2012, the Receiver started the claims process by filing with the Court the NOTICE OF MOTION AND MOTION FOR ADMINISTRATIVE RELIEF UNDER CIVIL L.R. 7-11: 1) SETTING CLAIMS BAR DATE; AND 2) APPROVING CLAIM FORMS.  The motion is supported by the DECLARATION OF THOMAS A. SEAMAN IN SUPPORT OF MOTION FOR ADMINISTRATIVE RELIEF UNDER CIVIL L.R. 7-11: 1) SETTING CLAIMS BAR DATE; AND 2) APPROVING CLAIM FORMS.  Until the Court rules on this motion and approves the claim forms, there is no action required by the investors.

MOTIONS FILED BY DEFENDANT FEATHERS
On November 5, 2012, Defendant Mark Feathers filed with the Court the following motions:  
MOTION TO DISMISS UNDER F.R.C.P. 12(B)2,3,4,5,6; MOTION TO DISMISS UNDER F.R.C.P. 8(D) AND F.R.C.P. 9(A)1(B); F.R.C.P. RULE 12(B) MOTION TO DISMISS FOR CAUSE; MOTION TO DISMISS RECEIVER; and F.R.C.P. RULE 12(B)(6) MOTION TO DISMISS; F.R.C.P. REQUEST FOR RULE 11 SANCTIONS AGAINST PLAINTIFF.

RECEIVER'S THIRD INTERIM REPORT AND PETITION FOR INSTRUCTIONS

On October 12, 2012, the Receiver filed the RECEIVER'S THIRD INTERIM REPORT AND PETITION FOR INSTRUCTIONS.  Items discussed in this Status Report include a summary of the Receiver’s actions over the past two months, an inventory of key assets of the receivership and an accounting as of September 30, 2012, including a Profit and Loss Statement, Balance Sheet, a redacted detailed General Ledger, as well as an inception-to-date accounting of the receivership.  The report also summarizes the Receiver's recommendations for further investigation and activities, including; document recovery efforts; receivership asset recovery efforts and investigation; management and disposition of receivership assets; and providing accounting and reporting to the Court.

 

ORDER DENYING REQUEST FOR LEGAL EXPENSES
On September 26, 2012, Judge Davila entered his ORDER DENYING REQUEST FOR LEGAL EXPENSES regarding the Defendant's request to use funds held by the Receiver for his legal defense.
ORDER GRANTING ADMINISTRATIVE RELIEF UNDER CIVIL L.R. 7-11
On August 28, 2012, Judge Davila entered his ORDER GRANTING ADMINISTRATIVE RELIEF UNDER CIVIL L.R. 7-11.
 

DEFENDANT'S ANSWER TO COMPLAINT AND DEMAND FOR JURY TRIAL

On August 24, 2012, the Defendant filed with the Court the DEFENDANT'S ANSWER TO COMPLAINT AND DEMAND FOR JURY TRIAL.
 
RECEIVER'S MOTION FOR ADMINISTRATIVE RELIEF
 

RECEIVER’S EX PARTE APPLICATION FOR AUTHORITY TO COMPLETE POOLING TRANSACTIONS FOR TWO EXISTING LOANS

 

DEFENDANT'S REPLY TO LETTER BRIEFS OF THE SEC'S AND THE RECEIVER'S OPPOSITION TO USE OF RECEIVERSHIP ASSETS FOR DEFENSE

On August 17, 2012, the Defendant's attorney submitted his REPLY LETTER BRIEF IN SUPPORT OF REQUEST FOR ATTORNEY'S FEES.  The brief is supported by the DECLARATION OF MARK P. FICKES IN SUPPORT OF REPLY LETTER BRIEF.  The brief replies to the SEC’s and the Receiver’s opposition to the use of the Defendant's claimed receivership assets to pay for defense costs.
 
LETTER BRIEFS REGARDING DEFENDANT'S REQUEST FOR RECEIVERSHIP FUNDS FOR LEGAL DEFENSE
On August 3, 2012, the Defendant's attorneys filed with the Court FEATHERS' ATTORNEYS' LETTER BRIEF requesting receivership funds for the defense of Mr. Feathers.  On August 10, 2012, the SEC submitted the SEC LETTER BRIEF in opposition to Feathers' request for use of receivership funds for his defense. The Receiver also submitted the RECEIVER'S LETTER BRIEF.


RECEIVER'S SECOND INTERIM REPORT AND PETITION FOR INSTRUCTIONS
On August 10, 2012, the Receiver filed the RECEIVER'S SECOND INTERIM REPORT AND PETITION FOR INSTRUCTIONS.  Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of July 31, 2012, including a Profit and Loss Statement, Balance Sheet and a redacted detailed General Ledger.  The report also summarizes the Receiver's recommendations for further investigation and activities, including; document recovery efforts; receivership asset recovery efforts and investigation; management and disposition of receivership assets; and providing accounting and reporting to the Court.


APPOINTMENT OF THOMAS SEAMAN AS PERMANENT RECEIVER; PRELIMINARY INJUNCTION AND ORDERS   

 

TEMPORARY RECEIVER'S FIRST STATUS REPORT AND INVENTORY        

On July 9, 2012, the Temporary Receiver filed his TEMPORARY RECEIVER'S FIRST STATUS REPORT AND INVENTORY. A hearing on the case is scheduled for July 10, 2012, at 10:00 a.m., before Judge Davila, in Courtroom 4 on the 5th Floor of the US District Courthouse located at 280 S. 1st St., San Jose, CA 95113.