Par Funding Receivership Website

Securities and Exchange Commission v. Complete Business Solutions Group, Inc., et al.

Case No. 20-cv-81205-RAR

United States District Court for the Southern District of Florida

Key Court Documents

Below are links within this website to certain filings and court orders in the SEC’s lawsuit against the Defendants that may be of interest to visitors of this website. All filings, court orders, including other filings from the Receiver, the parties to the lawsuit, and other persons, are also available on the Document Filing System of the United States District Court for the Southern District of Florida, which is available at: https://ecf.flsd.uscourts.gov/

DE 1757 - PAPERLESS ORDER setting deadline for objections. Parties with relevant objections to [ECF Nos. 1755 and 1756] shall file them on or before 10:00 A.M. EST on November 28, 2023. Signed by Judge Rodolfo A. Ruiz, II on 11/22/2023.
DE 1760 - PAPERLESS Minute Entry for proceedings held before Judge Rodolfo A. Ruiz, II: Evidentiary Motion Hearing held on 11/27/2023 re [1721] MOTION to Modify the Asset Freeze Order [DE 230] to Permit Her to Use Limited Funds Held In Bank Accounts Which Are Not Within the Receivership Estate to Pay Her Attorney Fees re [230] Order on Motion for Preliminary Injunction filed by Lisa Mcelhone.
DE 1761 - PAPERLESS ORDER denying [1721] Defendant Lisa Mcelhone's Motion to Modify the Asset Freeze Order ("Motion"). The Eleventh Circuit has explained that a district court may grant a modification request if the movant shows that: (1) there has been "a significant change either in factual conditions or in law[;]" and (2) "the proposed modification is suitably tailored to the changed circumstances." Sierra Club v. Meiburg, 296 F.3d 1021, 1033 (11th Cir. 2002). For the reasons stated on the record at the hearing held on November 27, 2023, [ECF No. 1760], Defendant Lisa Mcelhone has failed to show a significant change in factual conditions or law. See S.E.C. v. Schiffer, No. 97-CV-5853, 1998 WL 901684, at *1-3 (S.D.N.Y. June 25, 1998) (denying reconsideration of defendant's request to unfreeze assets because his failure to provide financial information on Fifth Amendment grounds "warranted a measure designed to preserve the status quo while the court could obtain an accurate picture of the whereabouts of the proceeds of the [alleged fraud].") (quoting S.E.C. v. Manor Nursing Centers, Inc., 458 F.2d 1082, 1105-06 (2d Cir. 1972)). Accordingly, the Motion is denied without prejudice. Signed by Judge Rodolfo A. Ruiz, II on 11/27/2023.
DE 1765 - PAPERLESS Minute Entry for proceedings held before Judge Rodolfo A. Ruiz, II: Status Conference held on 11/29/2023. Attorney Appearance(s): Andre G. Raikhelson, James Miller Kaplan, Amie Riggle Berlin, Michael J. Roessner, Timothy Andrew Kolaya, Gaetan J. Alfano, Ryan K. Stumphauzer, Court Reporter: Ilona Lupowitz, 305-523-5737 / [email protected].
DE 1766 - PAPERLESS ORDER Requiring Status Report. As discussed at the hearing on November 29, 2023, [ECF No. 1765], Plaintiff and Defendant Lisa McElhone shall submit a joint status report to the Court on or before December 4, 2023 regarding their meet and confer and notify the Court as to whether Defendant will be asserting her Fifth Amendment privilege in response to the proposed Court-ordered accounting. If Defendant Lisa McElhone intends to assert her Fifth Amendment privilege, the parties shall include a proposed briefing schedule in their joint status report. Signed by Judge Rodolfo A. Ruiz, II on 11/29/2023
DE 1768 - PAPERLESS ORDER SETTING STATUS CONFERENCE for Monday, March 4, 2024, at 10:00 A.M. during which the Court will request that Receiver's Counsel provide an update regarding the progress of the claims administration process, as well as an update regarding collection efforts on behalf of the investors. The Status Conference will take place in-person in Courtroom 11-2, 11th Floor, at the Wilkie D. Ferguson, Jr. United States Courthouse, 400 North Miami Avenue, Miami, Florida 33128. For the benefit of investors with an interest in the claims administration portion of this litigation, the Court also provides the following Zoom link:https://www.zoomgov.com/j/1602475715?pwd=eFd0bmRRa2NPKzB4bHdTb2VJQXpVdz09 Meeting ID: 160 247 5715 Passcode: 245760. Signed by Judge Rodolfo A. Ruiz, II on 12/5/2023.
DE 1772 - TRANSCRIPT of Motion Hearing held on 11/27/2023 before Judge Rodolfo A. Ruiz, II, 1-81 pages, Court Reporter: Ilona Lupowitz, 305-523-5737 / [email protected]. Transcript may be viewed at the court public terminal or purchased by contacting the Court Reporter/Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER. Redaction Request due 1/2/2024. Redacted Transcript Deadline set for 1/11/2024. Release of Transcript Restriction set for 3/11/2024. (ilz)
DE 1773 - TRANSCRIPT of Status Conference held on 11/29/2023 before Judge Rodolfo A. Ruiz, II, 1-113 pages, Court Reporter: Ilona Lupowitz, 305-523-5737 / [email protected]. Transcript may be viewed at the court public terminal or purchased by contacting the Court Reporter/Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER. Redaction Request due 1/3/2024. Redacted Transcript Deadline set for 1/16/2024. Release of Transcript Restriction set for 3/12/2024. (ilz)
DE 1779 - PAPERLESS ORDER on [1778] Expedited Motion for Order to Show Cause Why Receiver Should Not Be Held in Contempt of Court or Alternatively to Compel ("Motion"). Having reviewed the Motion and the record, the Court does not find good cause to grant the relief requested in the Motion-namely, counsel's frivolous request to hold the Receiver in contempt for purportedly delaying in its determinations regarding the validity of claims pertaining to Capital Source 2000, Inc. However, given that Defendant Joseph Cole Barleta has requested an extension of time to provide objections to the Receiver's claim determination pertaining to Capital Source 2000, Inc., Defendant shall meet and confer with counsel for the Receiver to address the possibility of extending Capital Source 2000 Inc.'s objection deadline. Counsel for the Receiver and Defendant shall file a status report regarding the results of their meet and confer on or before tomorrow, December 20, 2023 at 5:00 PM. Signed by Judge Rodolfo A. Ruiz, II on 12/19/2023.
DE 1788 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Zoom Settlement Conference held on 1/23/2024. Recessed with mediation to be continued on January 30, 2024. Total time in court (including ex parte calls on 1/22/2024): 5 hour(s) : 30 minutes.
DE 1789 - PAPERLESS Order scheduling a Continued Settlement Conference via Zoom for 1/30/2024.
DE 1790 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Continued Zoom Settlement Conference held on 1/30/2024. Settlement conference continued until 1/31/24 at 2:00 p.m. Participants shall use the zoom link previously provided. Total time in court: 5 hours.
DE 1791 - APERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Continued Zoom Settlement Conference held on 1/31/2024. Settlement conference will continue on 2/1/24 at 3:00 p.m. Participants shall use Zoom link previously provided. Total time in court: 2 hours : 45 minutes.
DE 1793 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Continued Zoom Settlement Conference held on 2/1/2024. Settlement conference will continue on 2/16/24 at 1:00 p.m. Participants shall use the zoom link previously provided. Total time in court: 2 hours.
DE 1797 - PAPERLESS ORDER setting deadline for objections regarding [1794] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 1427-1435 Melon Street, Philadelphia, PA 19130. Parties with relevant objections shall file them on or before 12:00 P.M. EST on February 9, 2024. Signed by Judge Rodolfo A. Ruiz, II on 2/2/2024.
DE 1798 - PAPERLESS ORDER on Plaintiff's Notice Regarding [1795] the Receiver's Thirtieth Motion to Lift Litigation Injunction as to certain Garnishment Proceedings. [ECF No. 1796]. Plaintiff has indicated that it intends to meet and confer with the Receivers counsel to determine if it objects to the relief requested in the Receivers Motion. Accordingly, the Securities and Exchange Commission shall file a status report on February 5, 2024 advising the Court as to whether it intends to oppose the relief sought in the Receiver's Motion. Signed by Judge Rodolfo A. Ruiz, II on 2/2/2024.
DE 1806 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Zoom Settlement Conference held on 2/16/2024. Total time in court: 1 hour(s) : 30 minutes.
DE 1807 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Continued Settlement Conference held on 2/20/2024. Total time in court: 1 hour : 30 minutes.
DE 1810 - PAPERLESS ORDER on [1808] Motion for Order to Show Cause Why Receiver Has Delayed in Making a Determination as to Capital Source 2000 Inc. ("Motion"). Having reviewed the Motion and the record, the Court finds that Defendant has not included a proper certification under Local Rule 7.3(a) which requires that "counsel for the moving party [] certify either: (A) that counsel for the movant has conferred with all parties or non-parties who may be affected by the relief sought in the motion in a good faith effort to resolve the issues raised in the motion and has been unable to do so; or (B) that counsel for the movant has made reasonable efforts to confer with all parties or non-parties who may be affected by the relief sought in the motion, which efforts shall be identified with specificity in the statement (including the date, time, and manner of each effort), but has been unable to do so." Defendant shall therefore meet and confer with Receiver's counsel regarding the Receiver's determination of Capital Source 2000, Inc.'s claim. Receiver's counsel and Defendant shall file a status report on their meet and confer on or before February 28, 2024. Signed by Judge Rodolfo A. Ruiz, II on 2/22/2024.
DE 1814 - PAPERLESS ORDER setting deadline for objections regarding [1813] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 1248 N. 25th Street, Unit A, Philadelphia, PA 19121. Parties with relevant objections shall file them on or before 12:00 P.M. EST on March 6, 2024 Signed by Judge Rodolfo A. Ruiz, II on 2/29/2024.
DE 1815 - PAPERLESS ORDER denying without prejudice [1808] Motion for Order to Show Cause Why the Receiver Has Delayed in Making a Determination as to Capital Source 2000, Inc. In the Receiver Ryan K. Stumphauzer and Defendant Joseph Cole Barleta's Status Report Regarding Paperless Order Dated February 22, 2024, [ECF No. 1812], the parties have indicated that the Receiver expects to make a determination as to Capital Source 2000, Inc.'s claim by March 22, 2024. Accordingly, the Motion for Order to Show Cause, [ECF No. 1808], is denied without prejudice. Signed by Judge Rodolfo A. Ruiz, II on 2/29/2024.
DE 1816 - PAPERLESS ORDER requiring status report from the Receiver. In the Receiver Ryan K. Stumphauzer and Defendant Joseph Cole Barleta's Status Report Regarding Paperless Order Dated February 22, 2024, [ECF No. 1812], the Receiver indicated that the claims reconciliation process is going to be completed by March 15, 2024. While the Court is ready to proceed with the Status Conference set for March 4, 2024, [ECF No. 1768], it notes that, for the benefit of investors, the Receiver may be able to provide a more fulsome update after March 15, 2024 when the reconciliation process has completed. Accordingly, the Receiver shall file a brief status report before noon on March 1, 2024 indicating whether a brief reset of the status conference would be advisable. Signed by Judge Rodolfo A. Ruiz, II on 2/29/2024.
DE 1817 - Pursuant to 11th Cir. R. 11-2 and 11th Cir. R. 11-3, the Clerk of the District Court for the Southern District of Florida certifies that the record is complete for purposes of this appeal re: [1783] Notice of Appeal, Appeal No. 24-10054-AA. The entire record on appeal is available electronically.
DE 1819 - PAPERLESS Minute Entry for proceedings held before Judge Rodolfo A. Ruiz, II: Status Conference held on 3/4/2024. Attorney Appearance(s): Andre G. Raikhelson, James Miller Kaplan, Seth David Haimovitch, Amie Riggle Berlin, Timothy Andrew Kolaya, Gaetan J. Alfano, Ryan K. Stumphauzer, Court Reporter: Ilona Lupowitz, 305-523-5737 / [email protected].
DE 1821 - PAPERLESS ORDER setting deadline for objections regarding [1820] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 715 Sansom Street, Philadelphia, PA 19106. Parties with relevant objections shall file them on or before 5:00 P.M. EST on March 8, 2024. Signed by Judge Rodolfo A. Ruiz, II on 3/5/2024.
DE 1822 - PAPERLESS ORDER on [1819] Status Conference. As discussed at the Status Conference held on March 4, 2024, counsel for the Securities and Exchange Commission and the Receiver shall meet and confer on the outstanding issues related to the claim reconciliation and distribution processand provide the Court with a joint status report on the same on or before March 11, 2024. Signed by Judge Rodolfo A. Ruiz, II on 3/5/2024.
DE 1824 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Continued Zoom Settlement Conference held on 3/5/2024. Total time in court: 1 hour(s) : 30 minutes.
DE 1826 - TRANSCRIPT of Status Conference held on 3/4/2024 before Judge Rodolfo A. Ruiz, II, 1-122 pages, Court Reporter: Ilona Lupowitz, 305-523-5737 / [email protected]. Transcript may be viewed at the court public terminal or purchased by contacting the Court Reporter/Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER. Redaction Request due 3/29/2024. Redacted Transcript Deadline set for 4/8/2024. Release of Transcript Restriction set for 6/6/2024.
DE 1829 - PAPERLESS ORDER on [1828] Joint Notice Regarding Distribution and Request for an Additional 10 Days to Complete Conferral Regarding Claims Calculation. Counsel for the Securities and Exchange Commission and the Receiver shall meet and confer on the outstanding issues related to the claims calculation formula and provide the Court with a joint status report on the same on or before March 21, 2024. Signed by Judge Rodolfo A. Ruiz, II on 3/11/2024.
DE 1831 - PAPERLESS ORDER granting [1830] Counsel for Non-Party Toorak Capital Partners, LLC's Motion to Withdraw as Counsel. Attorney Nardo Dorsin is hereby discharged of all further responsibilities related to Non-Party Toorak Capital Partners LLC. The Clerk is directed to remove Attorney Dorsin from the CM/ECF electronic list of counsel to be served in this action. Signed by Judge Rodolfo A. Ruiz, II on 3/15/2024.
DE 1836 – PAPERLESS ORDER setting deadline for objections regarding [1835] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 500 Fairmount Avenue, Philadelphia, PA 19123. Parties with relevant objections shall file them on or before 12:00 P.M. EST on April 1, 2024. Signed by Judge Rodolfo A. Ruiz, II on 3/25/2024.
DE 1837 - PAPERLESS ORDER setting deadline for objections regarding [1834] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 142 N. 2nd Street, Unit 1A, Philadelphia, PA 19106. Parties with relevant objections shall file them on or before 12:00 P.M. EST on April 1, 2024. Signed by Judge Rodolfo A. Ruiz, II on 3/25/2024.
DE 1841 - PAPERLESS ORDER on [1840] Status Report Regarding Claims Determination Motion ("Status Report"). In the Status Report filed on April 5, 2024, the Receiver indicates that he shall be seeking the Court's approval of his "determinations of the claims that investors submitted in this case utilizing a calculation method that considers the investors' net investment in Par Funding (i.e., total cash in, minus total cash out)." Status Report at 2. The Status Report further indicates that the SEC has taken the position that the Court must first determine "that Par Funding was operating a Ponzi scheme before this claim calculation methodology can be utilized." Id. Based on this, the Receiver intends to provide a draft of his motion to certify his claims calculation to the SEC, allow the SEC two weeks to review the draft, and provide the Court with another status report within two weeks. Id. However, as the Court stressed at the Hearing held on March 4, 2024, [ECF No. 1819], time is of the essence in this matter. The Receiver, the SEC, and the Court must work efficiently and carefully to ensure that defrauded investors receive compensation in a timely manner. Accordingly, the Receiver shall provide his draft motion to certify his claims calculations to the SEC on or before April 15, 2024. From the day the draft motion is provided to the SEC, the SEC shall have five (5) days to review the draft and meet and confer with the Receiver regarding its position. Thereafter, the Receiver shall file the final motion with the Court within three (3) days of his meet and confer with the SEC. Signed by Judge Rodolfo A. Ruiz, II on 4/8/2024.
DE 1844 - PAPERLESS ORDER REQUIRING EXPEDITED RESPONSE ON [1842] SECURED CHEHEBAR INVESTORS'S MOTION TO INTERVENE. The Receiver shall file its response to the Motion on or before May 1, 2024. To the extent the Securities and Exchange Commission takes a position on the Chehebar Investors's Motion to Intervene, they shall also file a response on or before May 1, 2024. The Chehebar Investors shall file their reply on or before May 7, 2024. Signed by Judge Rodolfo A. Ruiz, II on 4/23/2024.
DE 1848 - PAPERLESS ORDER setting deadline for objections regarding [1847] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 861 N. 3rd Street, Philadelphia, PA 19123. Parties with relevant objections shall file them on or before 5:00 P.M. EST on April 29, 2024. Signed by Judge Rodolfo A. Ruiz, II on 4/25/2024. (mei)
DE 1852 - PAPERLESS ORDER granting in part [1849] Chehebar Investor's Motion to Permit Consolidated Response Exceeding Page Limit. GEMJ Chehebar GRAT, LLC, Albert Chehebar, Isaac Shehebar, Isaac Shehebar 2008 AIJJ Grantor Retained Annuity Trust, Michael Chehebar, Ezra Shehebar, Ezra Chehebar, Ezra Shehebar LLC, Cherie Chehebar, Josef Chehebar, Steven Chehebar, and Joyce Chehebar may elect to file a single consolidated response of no more than twenty pages. Signed by Judge Rodolfo A. Ruiz, II on 5/1/2024.

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