DE 2075 – Bill Bromley’s Opposition to Motion to Supplement Distribution Motion
…DE 2074 – Chehebars’ Response in Opposition to Motion to Supplement Distribution Motion
…DE 2073 – Order Granting Receiver’s Motion to Allocate, But Not Distribute, Distributions on Claims Attributable to Rodney Ermel
…DE 2072 – Receiver’s Motion to Allocate, But Not Distribute, Distributions on Claims Attributable to Rodney Ermel
…DE 2071 – Order Establishing Briefing Schedule on Receiver’s Motion to Supplement Distribution Motion
…DE 2070 – Receiver’s Motion to Supplement Distribution Motion
…DE 2069 – Order Granting Receiver’s 17th Application for Payment of Fees and Reimbursement of Expenses
…DE 2068 – Receiver’s 17th Application for Payment of Fees and Reimbursement of Expenses
…DE 2067 – PAPERLESS ORDER denying [2063] Defendant Lisa McElhone’s Motion for Status Conference (“Motion”). On October 29, 2024, the United States Court of Appeals for the Eleventh Circuit handed down its Mandate, [ECF No. 2058], in Securities and Exchange Commission v. Complete Business Solutions Group, Inc., No. 23-10228, 2024 WL 4100564 (11th Cir. Sept. 6, 2024) (the “Eleventh Circuit Decision”), which considered the Court’s Granting In Part Plaintiff’s Amended Omnibus Motion for Final Judgment (“Amended Order”), [ECF No. 1450], and the related Amended Final Judgment as to Defendants Joseph LaForte and Lisa McElhone (“Amended Judgment”), [ECF No. 1451]. The Eleventh Circuit Decision affirmed the Court’s disgorgement award but vacated and remanded the civil penalties award due to a scrivener’s error in the Amended Order that suggested the Court imposed civil penalties on a joint and several basis among Defendants Joseph LaForte and Lisa McElhone. Complete Business Solutions Group, 2024 WL 4100564, at *3. As the Eleventh Circuit Decision noted, federal securities law prohibits joint and several liability for civil penalties. Id., at *2 (citing SEC v. Pentagon Cap. Mgmt., 725 F.3d 279, 287-88 (2d Cir. 2013).
The Motion requests that the Court now set a status conference and establish a briefing schedule on the “remaining case issues affecting [Defendant Lisa McElhone] following the issuance of the Mandate,” including, “1) the entry of a new Final Judgment imposing penalties consistent with the Opinion and recalculating Mc. [sic] McElhone’s pre-judgment and post-judgment interest; 2) the determination of how sums applied in partial satisfaction of the prior (now vacated) Final Judgment will be applied to the new Final Judgment …