DE 2026 – PAPERLESS ORDER. This matter came before the Court on September 5, 2024, [ECF No. 2025], for a hearing on Defendants Lisa McElhone and Joseph LaForte’s Motion for Enlargement of Time to File their Response to the Receiver’s Distribution Motion, [ECF No. 2024], and the Chehebar Investors’ Motion for Bifurcation, [ECF No. 2021]. As discussed at the hearing, given the unique circumstances applicable to the Chehebar Investors, Lisa McElhone, and Joseph LaForte, said parties only may file a response to the Receiver’s Distribution Motion, [ECF No. 2014], on or before September 16, 2024. All other parties shall file their responses to the Receiver’s Distribution Motion on or before September 9, 2024 as set forth in the Court’s prior scheduling order, [ECF No. 2015]. The Receiver’s reply in support of its Distribution Motion shall remain due on September 23, 2024 without prejudice to the Receiver seeking an extension of time if necessary. Finally, the Receiver, and all parties contesting the Receiver’s Distribution Motion, shall submit proposed orders to [email protected] in Word format on or before September 30, 2024. Further, as discussed at the hearing, the Court will bifurcate the adjudication of two issues involving the Chehebar Investors. See [ECF No. 2021]. First, the Chehebar Investors shall brief their position on the enforceability of their UCC-1 financing statements in their response to the Receiver’s Distribution Motion. The Court will rule on the enforceability of the UCC-1 financing statements in ruling on the Distribution Motion. Second, if necessary, the Court will reconvene the parties to discuss setting an evidentiary hearing to address allegations that the Chehebars were “insiders” to the fraudulent merchant cash advance scheme at the center of this case. In the interim, the Receiver and the Chehebar Investors shall meet and confer to develop a proposed discovery plan regarding the adjudication of the Chehebar’s insider status. Signed by Judge Rodolfo A. Ruiz, II on 9/6/2024. (mei)