RECEIVERSHIP:

SEC vs. WESTMOORE

MANAGEMENT, LLC, ET AL.

 

David A. Gill, Receiver

Recent Developments

[10/06/15]  The status conference held October 5, 2015 has been continued to April 4, 2016 at 9:00 a.m. before Judge Andrew J. Guilford, in Courtroom 10D, 411 West Fourth Street, Santa Ana, California.  Copy of the Notice may be found in the "Notices and Documents" section of this website (document number 212)
[09/11/15]  The status conference has been continued from September 14, 2015 to October 5, 2015 at 9:00 a.m. before Judge Andrew J. Guilford, in Courtroom 10D, 411 West Fourth Street, Santa Ana, California.  Copy of the Court's Order may be found in the "Notices and Documents" section of this website (document number 211)
[09/09/15]  On September 4, 2015, the Receiver filed the following documents:  Third Application of David A. Gill, Receiver, for Approval of Professional Fees and Expenses •  Third Application of Danning, Gill, Diamond & Kollitz, LLP, for Approval of Professional Fees and Expenses; and Declaration of John N. Tedford, IV, in Support Thereof •  Third Application of PCG Consultants for Approval of Fees and Costs Incurred as Forensic Analyst, Investigator and Expert Witness; and Declaration of Max P. Liphart in Support Thereof •  Second Application of Crowe Horwath LLP for Approval of Fees and Expenses Incurred as Accountants to David A. Gill, Receiver; and Declaration of Susan P. Tomlinson in Support Thereof •  Notice of Errata re:  Third Application of David A. Gill, Receiver, for Approval of Professional Fees and Expenses •  Notice of Errata re:  Third Application of Danning, Gill, Diamond & Kollitz, LLP, for Approval of Professional Fees and Expenses; and Declaration of John N. Tedford, IV, in Support Thereof.  Copies of the Receiver's Applications may be found in the "Notices and Documents" section of this website (document numbers 204 through 209)

Motions are set for hearing on October 5, 2015 at 10:00 a.m. before Judge Andrew J. Guilford, in Courtroom 10D, 411 West Fourth Street, Santa Ana, California.   
[05/28/2015]  On May 28, 2015, the Receiver filed his Notice of Intent to Compromise Litigation With Matthew R. Jennings.  Copy of the Receiver's notices may be found in the "Notices and Documents" section of this website (document number 203)
[12/16/14]  On December 12, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notices may be found in the "Notices and Documents" section of this website (document number 201)
[11/26/14]  On November 26, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notices may be found in the "Notices and Documents" section of this website (document number 200).
[11/14/14]  On November 13, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notices may be found in the "Notices and Documents" section of this website (document number 199).
[11/12/14]  On November 12, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notices may be found in the "Notices and Documents" section of this website (document number 198).
[09/25/14]  On September 25, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notices may be found in the "Notices and Documents" section of this website (document number 192).
[09/10/14]  On September 10, 2014, the Receiver filed his Fifth Report and Account.  Copy of the Receiver's report and account may be found in the "Notices and Documents" section of this website (document number 189).
[08/25/14]  On August 25, 2014, the Receiver filed three Notices of Intent to Compromise Litigation.  Copy of the Receiver's notices may be found in the "Notices and Documents' section of this website (document numbers 186, 187 and 188).
[08/18/14]  On August 18, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents' section of this website (document number 185).
[08/18/14]  On August 18, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents' section of this website (document number 184).
[08/14/14]  On August 14, 2014, the Receiver filed the following two documents:  •  Notice of Receiver's Motion for Order (1) Authorizing Receiver to Sell Limited Partnership Interest in MHS Capital Partners, L.P., Free and Clear of Liens and Encumbrances, and (2) Approving Compromise with the Bankruptcy Estate of GM Funding, LLC; •  Motion for Order (1) Authorizing Receiver to Sell Limited Partnership Interest in MHS Capital Partners, L.P., Free and Clear of Liens and Encumbrances, and (2) Approving Compromise with the Bankruptcy Estate of GM Funding, LLC; Memorandum of Points and Authorities, Declaration of David A. Gill, and Request for Judicial Notice in Support Thereof.  Copies may be found in the "Notices and Documents" section of this website (document numbers 181 and 182).
[07/24/14]  On July 24, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents' section of this website (document number 180).
[07/03/14]  On July 2, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 179).
[07/02/14]  On June 10, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 178).
[04/23/14]  On April 22, 2014, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 177).
[04/16/14]  On April 16, 2014, the Receiver filed his Notice of Intent to Compromise Litigation with John Leffler, Mark Molenaar, Ostes Hernandez and Empire Family Limited Partnership.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 176).

[02/28/14]  On February 27, 2014, the Receiver filed his Notice of Intent to Compromise Litigation with Steven Goodrich and Edward Salti.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 175).

 

[02/28/14]  On February 11, 2014, the Receiver filed his Notice of Intent to Compromise Litigation with Buck Blessing and W2 Investments, LLC (f/k/a Waters Winery, LLC).  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 172.)

[01/03/14]  On January 3, 2014, the Receiver filed his Notice of Filing of Applications for Approval of Professional Fees and Expenses.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 170).
[11/13/13]  On November 13, 2013, the Receiver filed his Notice of Intent to Compromise Litigation.  Copy of the Receiver's notice may be found in the "Notices and Documents" section of this website (document number 165).
[08/7/13]  On August 7, 2013, the Receiver filed his Fourth Report and Account.  Copy of the Receiver's report and account may be found in the "Notices and Documents" section of this website (document number 162).

 

[06/14/13]  On June 14, 2013, the Receiver filed a motion for approval of a proposed settlement with Lester and Betsydiane Hendrickson, and for modification of the Court’s permanent injunction with respect to certain litigation pending in the United States Bankruptcy Court for the Eastern District of Washington.  Copies of the motion and the Receiver’s separate notice of the motion may be found in the “Notices and Documents” section of this website (document numbers 153 and 154).

Case No. 8:12-cv-02235.  On December 28, 2012, the Receiver filed a complaint for fraudulent transfer, unjust enrichment, breach of fiduciary duty, aiding and abetting/participation in breach of fiduciary duty, and breach of contract in which the following persons were named as defendants:  (1) Matthew Jennings; (2) Robert Jennings; (3) Greg Contillo; (4) Marty Stuthers; (5) Shawn Crawford; (6) Wayne Leffler; (7) Michael Cornelius; (8) Steve Goodrich; (9) Mark Molenaar; and (10) Edward Salti.  The Receiver’s Second Amended Complaint was filed on March 7, 2013.  A copy of the Second Amended Complaint may be found in the “Notices and Documents” section of this website.

 

Case No. 8:12-cv-2236.  On December 28, 2012, the Receiver filed a complaint for fraudulent transfer, unjust enrichment, breach of contract, aiding and abetting/participation in breach of fiduciary duty, breach of contract, alter ego, and judicial foreclosure in which the following persons and entities were named as defendants:  (1) Active Resources, Inc.; (2) Ceralta Medical Institute, Inc.; (3) Michael Wall; (4) Hodgson Russ, LLP; (5) Mobile Truss, Inc.; (6) Trussnet USA, Inc./Trussnet USA Nevada, Inc.; (7) Capital Truss, Inc.; (8) George Alvarez; (9) Changestar Corporation; (10) Primetech Consulting, Inc; (11) Servimax Financial, Inc. / Servimax Financial, LLC; (12) Waters Winery, LLC; (13) The Tippet Fund, LP; (14) TSB Company, Inc.; (15) Craig Brod; (16) Factory MX Parts, LLC; (17) Maplewood Solutions, LLC; (18) Jason Huntley; (19) Fix N Flex, LLC; (20) Nick Hasir; (21) Christine Hasir; (22) Lighthorse Ventures, LLC; (23) Paul Bickford; (24) Kendall Bickford; (25) Linas Kleiza; (26) Nita Criswell; (27) Sanford Millar; (28) Scott Leventhal; (29) Heather Leventhal; and (30) Quartz Rock, LL.  The Receiver’s First Amended Complaint was filed on March 22, 2013.  A copy of the First Amended Complaint may be found in the “Notices and Documents” section of this website.

 

Case No. 8:13-cv-00132.  On January 25, 2013, the Receiver filed a complaint for fraudulent transfer and unjust enrichment in which the following persons and entities were named as defendants:  (1) Buck Blessing; (2) Celia Crawford; (3) Chin Wang; (4) Diane Braun; (5) Florinda Reed Trust; (6) Frank Gable; (7) Gil Kim; (8) Igor Olshanksky; (9) Igor Shlimovich; (10) Inglewood Jewelry and Loan, Inc.; (11) John Leffler; (12) Martin Davis; (13) Michael Linsley; (14) Ostes Hernandez; (15) Pablo Villanueva; (16) Paul Weinberg; (17) Ron Egigian; (18) Sanford Millar; (19) Scott Leventhal; (20) Stein Family Trust; (21) Steve Claunch; (22) The Balelo Family Trust; (23) Yakov Shlimovich; (24) William Jackson; and (25) Harriett Beebe.  The Receiver’s Second Amended Complaint was filed on March 7, 2013.  A copy of the Second Amended Complaint may be found in the “Notices and Documents” section of this website.

 



 

[11/15/12]   On November 15, 2012, the Receiver filed his third report and account, and his separate notice thereof. Copies of the notice as well as the Receiver’s report and account may be found in the “Notices and Documents” section of this website (document numbers 132 and 133).

 

[08/13/12] Pursuant to Court authority, the Receiver has retained the law firm of Castillo Snyder, a Professional Corporation, as his special litigation counsel to conduct a more detailed investigation of claims against third parties and, if appropriate, to prosecute such claims. Castillo Snyder will work with the Receiver and his other professionals, including the Receiver’s forensic accountant, in its investigation. With respect to fees and expenses incurred by Castillo Snyder, the Receiver will not be required to fund the investigation from the limited funds on hand because two individuals who invested in Westmoore have agreed to advance such fees and costs (subject to reimbursement from any recovery on account of the claims being investigated by Castillo Snyder). Also, if litigation is required, Castillo Snyder will advance costs and its compensation will be based on a percentage of amounts actually collected.

 

[08/10/12]  On August 6, 2012, the Court granted the Receiver’s motion for authority to sell real property in Tahoe City, and the Receiver’s motion for authority to employ Castillo Snyder as special counsel. Copies of the Court’s orders may be found in the “Notices and Documents” section of this website (document numbers 129 and 130).

 

 

[07/02/12]  On July 2, 2012, the Receiver filed a motion for authority to sell real property in Tahoe City.  The Receiver also filed a motion for authority to employ Castillo Snyder.  Also filed was a withdrawal of the Receiver's motion to sell Rockwall Holdings Common stock as the buyer did not intend to close the sale.  Copies of the motions and the Receiver's separate notice of motions may be found in the "Notices and Documents" section of this website (document numbers 124, 125, 126, 127 and 128).

 

[5/8/12] On May 8, 2012, the Receiver filed a motion for authority to sell common stock in Rockwall Holdings, Inc., registered in the names of Westmoore Investment, LP, Westmoore Management, LLC, and Westmoore Capital Group, LLC (Series B and Series II), and for related relief. Copies of the motion and the Receiver’s separate notice of the motion may be found in the “Notices and Documents” section of this website (document numbers 117 and 118).




[5/7/12] On May 7, 2012, the Receiver filed his second report and account and first request for approval of professional fees and expenses, and his separate notice thereof. Copies of the notice as well as the Receiver’s report and account may be found in the “Notices and Documents” section of this website (document numbers 115 and 116).




[5/3/12] At the Receiver’s request, the case status conference to be held on June 4, 2012, will be heard at 10:00 a.m., instead of 9:00 a.m. A written status report will be filed a few weeks before the status conference, and a copy will be posted on this website.




[5/3/12] On April 30, 2012, the Court entered an order granting the Receiver’s motion for approval of his proposed sale of unit 411 of the Belmont Lofts condominium project in Seattle, Washington. A copy of the order may be found in the “Notices and Documents” section of this website (document number 113).




[3/30/12] On March 30, 2012, the Receiver filed a motion for approval of his proposed sale of a third condominium unit located in Seattle, Washington, owned by Westmoore Management, LLC. The Receiver anticipates that the net sales proceeds will be approximately $148,000. The notice of the Receiver’s motion and proposed sale may be found in the “Notices and Documents” section of this website (document number 111).




[3/30/12] On March 12, 2012, the Court entered an order granting the Receiver’s motion for approval of his proposed sale of units 406 and 409 of the Belmont Lofts condominium project in Seattle, Washington. A copy of the order may be found in the “Notices and Documents” section of this website (document number 108).




02/13/12] On February 13, 2012, the Receiver filed a motion for approval of his proposed sale of two condominium units located in Seattle, Washington, owned by Westmoore Management, LLC. The Receiver anticipates that the net sales proceeds will be approximately $275,000. The notice of the Receiver’s motion and proposed sale may be found in the “Notices and Documents” section of this website (document number 107).




[11/07/11] Notice of Motion and Receiver's Motion for Order Establishing Procedures re: Notices to Creditors, the Sale of Real and Personal Property and Approval of Compromises; and Memorandum of Points and Authorities in Support Thereof




[11/07/11] Notice of Motion and Receiver's Motion re: Employment of Counsel and Other Professionals, and for Instructions re: Sandoval V. Jennings; and Memorandum of Points and Authorities, Declarations of John N. Tedford, IV, Howard B. Grobstein, and Max P. Liphart, and Request for Judicial Notice in Support Thereof




[10/21/11] Notice of Hearing on First Report of Receiver David A. Gill




[10/21/11] First Report of Receiver David A. Gill




[08/12/11] Final Judgment as to Defendant Matthew R. Jennings




[08/12/11] Order re Stipulation re: Consent of Defendants Westmoore Management, LLC; Westmoore Investment, L.P.; Westmoore Capital Management, Inc.; and Westmoore Capital, LLC to Judgment of Permanent Injunction, Appointment of Permanent Receiver and Imposing Other Relief




[08/12/11] Judgment of Permanent Injunction, Appointment of Permanent Receiver, and Imposing Other Relief as to Defendants Westmoore Management, LLC; Westmoore Investment, L.P.; Westmoore Capital Management, Inc.; and Westmoore Capital, LLC




[06/15/10] Complaint for Violations of the Federal Securities Laws