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 1962 - PAPERLESS ORDER granting [1961] Defendants Lisa McElhone's and Joseph LaForte's Motion to Submit their Proposed Order on [ECF No. 1843] Nunc Pro Tunc. Defendants' Proposed Order on the Receiver's Motion (1) to Approve Proposed Treatment of Claims and (2) for Determination of Ponzi Scheme shall be deemed timely filed. Signed by Judge Rodolfo A. Ruiz, II on 6/14/2024. (mei)
DE 1965 - PAPERLESS ORDER setting deadline for objections regarding [1964] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 627-629 E. Girard Avenue, Philadelphia, PA 19125. Parties with relevant objections shall file them on or before 12:00 P.M. EST on June 24, 2024. Signed by Judge Rodolfo A. Ruiz, II on 6/18/2024. (mei)
DE 1972 - TRANSCRIPT of Status Conference and Motion to Intervene - Via Zoom held on 5/23/2024 before Judge Rodolfo A. Ruiz, II, 1-97 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 7/15/2024. Redacted Transcript Deadline set for 7/25/2024. Release of Transcript Restriction set for 9/23/2024. 
DE 1973 - PAPERLESS ORDER setting deadline for objections regarding [1971] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 135-137 N. 3rd Street, Philadelphia, PA 19123. Parties with relevant objections shall file them on or before 12:00 P.M. EST on July 1, 2024. Signed by Judge Rodolfo A. Ruiz, II on 6/24/2024.
DE 1990 - PAPERLESS Minute Entry for proceedings held before Judge Rodolfo A. Ruiz, II: Zoom Status Conference held on 7/12/2024. Attorney Appearance(s): David Lawrence Ferguson, Andre G. Raikhelson, Noah Elliot Snyder, Amie Riggle Berlin, Timothy Andrew Kolaya, Gaetan J. Alfano, George Bochetto, Clifford E. Haines, Court Reporter: Lance Steinbeisser, 305-523-5633 / [email protected]. (gp)
DE 1991 - PAPERLESS ORDER Setting Briefing Schedule. As discussed at the Hearing held on July 12, 2024, [ECF No. 1990], the Receiver's Distribution Motion shall be filed on or before August 16, 2024. Signed by Judge Rodolfo A. Ruiz, II on 7/12/2024. (mei)
DE 1995 - TRANSCRIPT of Status Conference held on July 12, 2024 before Judge Rodolfo A. Ruiz, II, 1-64 pages, Court Reporter: Lance Steinbeisser, 305-523-5633 / [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 8/7/2024. Redacted Transcript Deadline set for 8/19/2024. Release of Transcript Restriction set for 10/15/2024. (lws)
DE 1998 - PAPERLESS ORDER granting [1997] Receiver's Motion for Extension of Time to File Reply. The Receiver must file his reply to the Responses [ECF Nos. 1987, 1989, 1992, 1993, 1994] to the Motion for: (i) Approval of Settlement among Receiver, Putative Class Plaintiffs, and Eckert Seamans; (ii) Approval of Form, Content, and Manner of Notice of Settlement and Bar Order; (iii) Setting a Deadline to Object to Approval of the Settlement and Entry of Bar Order; and (iv) Scheduling a Hearing; with Incorporated Memorandum of Law, [ECF No. 1861], or otherwise provide the Court with an update on the status of the settlement agreement with, among others, the law firm of Eckert Seamans Cherin & Mellott, on or before July 31, 2024. Signed by Judge Rodolfo A. Ruiz, II on 7/22/2024. (mei)
DE 2000 - PAPERLESS ORDER granting [1995] Motion for Leave to File Conventionally. Dean Vagnozzi, Albert Vagnozzi, Alec Vagnozzi and Terry Kohler may conventionally file Exhibits 5 and 6 in support of their Objections to the Entry of a Bar Order, [ECF No. 1987]. Signed by Judge Rodolfo A. Ruiz, II on 7/22/2024. (mei)
DE 2009 - PAPERLESS ORDER denying [2008] Parker Plaintiff's Motion for Reconsideration of Order Granting Motion to Stay and Requiring Mediation ("Motion"). "Courts have distilled three major grounds justifying reconsideration: (1) an intervening change in controlling law; (2) the availability of new evidence; and (3) the need to correct clear error or manifest injustice." Seff v. Broward Cnty., No. 10-61437, 2011 WL 13111723, at *1 (S.D. Fla. Aug. 19, 2011). The Parker Plaintiffs have not presented any such grounds here. Instead, they merely "ask the Court to rethink what the Court already thought through--rightly or wrongly." Am. Univ. of Caribbean, N.V. v. Carital Healthcare, Inc., No. 08-20374, 2011 WL 13174780, at *1 (S.D. Fla. Mar. 17, 2011). Simply put, that is not the purpose of a motion for reconsideration.  Further, while the Court is aware of the Parker Plaintiff's concerns regarding discovery, the Court does not find that these discovery issues will be an impediment to mediation. Indeed, the Court is confident that the parties can address concerns regarding the Receiver's claims against Eckert Seamans and the contention that Eckert Seamans constitutes part of the Receiver's estate, as well as any related class concerns, during mediation before Michael Hanzman. Accordingly, the Motion for Reconsideration is DENIED. The parties shall proceed to mediation in good faith and with a commitment to transparency as directed by the Court in its Order Granting Motion to Stay and Requiring Mediation [ECF No. 2006]. Signed by Judge Rodolfo A. Ruiz, II on 8/2/2024. (mei)
DE 2013 - PAPERLESS ORDER granting [2012] Receiver's Motion for Extension of Time to File Motion to (1) Approve Proposed Plan of Distribution and (2) Authorize First Interim Distribution ("Distribution Motion"). The Receiver shall file his Distribution Motion on or before August 23, 2024. Signed by Judge Rodolfo A. Ruiz, II on 8/16/2024. (mei)
DE 2017 - PAPERLESS ORDER denying [2016] the Motion to Withdraw the Video Link from Court Filing. The Court does not have the ability to remove portions of a filing from the docket. Should the parties wish to amend a prior filing, they must file a notice of striking the original document and then file an amended version of the document on the docket. Signed by Judge Rodolfo A. Ruiz, II on 8/27/2024.
DE 2022 - PAPERLESS ORDER setting hearing on [2021] Secured Chehebar Investors' Expedited Motion to Bifurcate for tomorrow, Thursday, September 5, 2024 at 2:00 P.M. The Zoom conference can be accessed at https://www.zoomgov.com/j/1604444152?pwd=SmVKTGVNcDNCL205WiswMlFud0V0QT09. The Meeting ID is 160 444 4152 and the Passcode is 258312. Signed by Judge Rodolfo A. Ruiz, II on 9/4/2024. (mei)
DE 2023 - PAPERLESS ORDER denying as moot [2020] Joseph Bowens' Motion for Clarification. The Court will address all claims in its ruling on [2014] the Receiver's Motion to (1) Approve Proposed Plan of Distribution and (2) Authorize First Interim Distribution. Additionally, any requests for clarification as to the inclusion of a claim should be directed to the Receiver. Signed by Judge Rodolfo A. Ruiz, II on 9/4/2024. (mei)
DE 2025 - PAPERLESS Minute Entry for proceedings held before Judge Rodolfo A. Ruiz, II: Zoom Motion Hearing held on 9/5/2024 re [2021] MOTION to Bifurcate MOTION for Case Management Conference re [2014] MOTION to (1) Approve Proposed Plan of Distribution and (2) Authorize First Interim Distribution filed by Albert Chehebar, Josef Chehebar, Cherie Shehebar, Ezra Shehebar, Steven Chehebar, GEMJ Chehebar GRAT LLC, Ezra Chehebar, Albert Shehebar, Isaac Shehebar, Joyce Chehebar, Isaac Shehebar 2008 AIJJ Grantor REtained Annuity Trust, Michael Chehebar, Ezra Shehebar LLC, Cherie Chehebar.Attorney Appearance(s): Marshall Dore Louis, Robert George Keefe, James Miller Kaplan, Timothy Andrew Kolaya, Gaetan J. Alfano, Ryan K. Stumphauzer,Court Reporter: Ilona Lupowitz, 305-523-5737 / [email protected]. (gp)
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)
DE 2029 - PAPERLESS ORDER setting deadline for objections regarding [2027] Motion for Order of Sale Authorizing Receiver's Sale of Real Property Located at 1635 East Passyunk Avenue, Philadelphia, PA 19148. Parties with relevant objections shall file them on or before 12:00 P.M. EST on September 12, 2024. Signed by Judge Rodolfo A. Ruiz, II on 9/9/2024. (mei)
DE 2043 - PAPERLESS ORDER granting [2042] Receiver's Unopposed Motion for Extension of Time. Receiver shall file a reply to [2041] Chehebar's Response in Opposition to Receiver's Distribution Motion on or before September 27, 2024. Signed by Judge Rodolfo A. Ruiz, II on 9/23/2024.
DE 2051 - PAPERLESS ORDER granting [2050], Chehebar Investors' Motion for Leave to File Sur-Reply. The Chehebar Investors may file a sur-reply not to exceed ten (10) pages in length on or before October 4, 2024. Signed by Judge Rodolfo A. Ruiz, II on 10/1/2024. (jgz)
DE 2054 - PAPERLESS ORDER Resetting Briefing Schedule. THIS CAUSE comes before the Court upon sua sponte review of the record. In its Order Establishing Briefing Schedule on Receiver's Motion to Supplement ("Briefing Order"), the Court set a briefing deadline of October 14, 2024 for the Receiver's replies and a briefing deadline of October 18, 2024 for proposed orders. See [ECF No. 2048]. Given the expected impact of Hurricane Milton and the fact that October 14, 2024 falls on a Court holiday, the Court finds good cause to reset the briefing schedule with respect to outstanding deadlines under the Briefing Order. Accordingly, it is hereby ORDERED that (1) the Receiver shall file a reply to each response, or each category of response, on or before Wednesday, October 16, 2024; and (2) the Receiver, and all parties contesting the Receiver's Distribution Motion, [ECF No. 2014], and Motion to Supplement, [ECF No. 2047], shall submit proposed orders to [email protected] in Word format on or before Monday, October 21, 2024. Signed by Judge Rodolfo A. Ruiz, II on 10/8/2024. (jgz)

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