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 333 - PAPERLESS ORDER taking under advisement [294, 295] Motion for Protective Order; taking under advisement [294, 295] Motion to Quash; taking under advisement [294, 295] Motion for Attorney Fees. On or before noon on October 22, 2020, Movants shall file Replies to the Receiver's Response to their motions. Signed by Magistrate Judge Bruce E. Reinhart
DE 342 - PAPERLESS ORDER denying without prejudice [304] Defendants' Motion for an Order Directing the Receiver to Comply with the Order Granting Receivership ("Motion") because Defendants failed to certify that they conferred or made reasonable efforts to confer with the Receiver and Plaintiff prior to filing the motion. See S.D. Fla. L.R. 7.1(a)(3). Furthermore, the Court addressed the issues raised in the Motion at the status conference on October 7, 2020. Signed by Judge Rodolfo A. Ruiz, II on 10/22/2020.
DE 347 - PAPERLESS ORDER granting [346] Defendants' Amended Motion for Enlargement of Time to Respond to Complaint. Defendants shall file a single combined response or separate answers to the Amended Complaint, as set forth in the Court's Order Requiring Combined Responses [ECF No. 104], on or before November 2, 2020. Signed by Judge Rodolfo A. Ruiz, II on 10/24/2020.
DE 368 - Paperless Order Granting [367] Defendants' Motion to Stay Briefing, or in the Alternative, Enlarge Time to Respond to Receiver's Motion to Expand Receivership
DE 381 - TRANSCRIPT of Status Conference via Zoom Video held on 8-3-2020 before Judge Rodolfo A. Ruiz, II, 1-32 pages, Court Reporter: Gizella Baan-Proulx, 954-769-5568 / [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 12/1/2020. Redacted Transcript Deadline set for 12/11/2020. Release of Transcript Restriction set for 2/8/2021.
DE 382 - TRANSCRIPT of Status Conference via Zoom Video held on 9-2-2020 before Judge Rodolfo A. Ruiz, II, 1-33 pages, Court Reporter: Gizella Baan-Proulx, 954-769-5568 / [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 12/1/2020. Redacted Transcript Deadline set for 12/11/2020. Release of Transcript Restriction set for 2/8/2021. (gbx)
DE 389 - PAPERLESS ORDER setting Zoom status conference for Tuesday, December 1, 2020 at 2:00 P.M. designed to provide the Court with an update as to the Receiver's ongoing operations and collection efforts. The Receiver is not required to file a written report in advance of the status conference. The Court will enter a separate paperless order with the link to access the Zoom conference. Signed by Judge Rodolfo A. Ruiz, II on 11/13/2020.
DE 393 - PAPERLESS ORDER taking under advisement [294] and [295] Motion for Protective Order Motion to Quash and Motion for Attorneys Fees. Discovery Hearing set for 11/23/2020 01:00 PM before Magistrate Judge Bruce E. Reinhart. Counsel shall appear telephonically using the following conference call instructions: Dial 1-888-557-8511; Enter access code 4098267#; and Enter security code 1234# Signed by Magistrate Judge Bruce E. Reinhart on 11/16/2020.
DE 394 - PAPERLESS ORDER regarding status conference scheduled for Tuesday, December 1, 2020 at 2:00 P.M. The Zoom conference can be accessed at https://www.zoomgov.com/j/1613633795?pwd=STY0VU5HbEkrY3FKNXowVG9kVWpadz09. The Meeting ID is 161 363 3795 and the Passcode is 046899. Signed by Judge Rodolfo A. Ruiz, II on 11/17/2020.
DE 403 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Discovery Hearing held on 11/23/2020. Total time in court: 0 hour(s) : 42 minutes. Discovery hearing adjourned until 11/30/20 at 2:00 PM before Magistrate Judge Bruce E. Reinhart. Counsel shall appear telephonically using the following conference call instructions: Dial 1-888-557-8511; Enter access code 4098267#; and Enter security code 1234#.
DE 406 - PAPERLESS ORDER granting [405] Defendants' Motion to Postpone Status Conference. The Zoom status conference currently set for December 1, 2020 at 2:00 P.M. is hereby RESET to December 15, 2020 at 2:00 P.M.. The Zoom conference can be accessed at https://www.zoomgov.com/j/1613633795?pwd=STY0VU5HbEkrY3FKNXowVG9kVWpadz09. The Meeting ID is 161 363 3795 and the Passcode is 046899. Signed by Judge Rodolfo A. Ruiz, II on 11/24/2020. (as03)
DE 410 - PAPERLESS Minute Entry for proceedings held before Magistrate Judge Bruce E. Reinhart: Discovery Hearing held on 11/30/2020 taking under advisement [294], [295], and [315]. The Parties are hereby ordered to submit a Status Report no later than 5pm on Friday, December 11, 2020, in which they will advise whether the matter has been resolved or another hearing is needed to resolve this matter. Total time in court: 0 hour(s) : 9 minutes.
DE 428 - PAPERLESS ORDER taking under advisement [294], [295], [315], and in light of the parties' request in [422], a Discovery Hearing is set for 12/17/2020 at 04:00 PM before Magistrate Judge Bruce E. Reinhart. Counsel shall appear telephonically using the following conference call instructions: Dial 1-888-557-8511; Enter access code 4098267#; and Enter security code 1234#. Signed by Magistrate Judge Bruce E. Reinhart on 12/14/2020.
DE 429 - PAPERLESS ORDER granting [427] Motion for 1-Hour Continuance of Status Conference. The Zoom status conference scheduled for Tuesday, December 15, 2020 at 2:00 P.M. is hereby RESET for Tuesday, December 15, 2020 at 3:00 P.M. The Zoom conference can be accessed at https://www.zoomgov.com/j/1613633795?pwd=STY0VU5HbEkrY3FKNXowVG9kVWpadz09. The Meeting ID is 161 363 3795 and the Passcode is 046899. Signed by Judge Rodolfo A. Ruiz, II on 12/14/2020.
DE 431 - PAPERLESS ORDER DENYING [430] Defendants' Joint Motion to Adjourn the Status Conference ("Motion"). The Court recognizes Defendants' position that the Declaration [ECF No. 426-1] ("Declaration") filed by Development Specialists, Inc. ("DSI") CEO Bradley D. Sharp on behalf of the Receiver is purportedly "materially flawed," as well as Defendants' request to have "an opportunity to address the Declaration and rebut its conclusions prior to the Court's consideration of the Declaration." Mot. at 1-3. However, the status conference set for tomorrow at 3:00 PM is designed to provide the Court an opportunity to discuss the progress of the Receiver's collection efforts and ongoing management of the Receivership Entities--not to entertain oral argument regarding the disputed contents of the Declaration. To be clear, the Court also intends on asking the Receiver about the findings contained in the Declaration at the status conference in order to obtain further clarification on certain points. The Court reminds all parties that "the Receiver is an officer of the [C]ourt," SEC v. Elliot, 953 F. 2d 1560, 1577 (11th Cir. 1992), and that the Court has tasked the Receiver with independently ascertaining the financial condition of the Receivership Entities. Thus, the Court has an obligation to monitor the Receivership's efforts, independent of the SEC and Defendants' respective views of the evidence. See id. (indicating that the Receiver acts under supervision of the Court). At the status conference, the Court shall address Defendants' opportunity to submit a written response to the Declaration. Signed by Judge Rodolfo A. Ruiz, II on 12/14/2020.
DE 432 - PAPERLESS Order setting Discovery Hearing for 12/23/2020 at 02:00 PM before Magistrate Judge Bruce E. Reinhart.Counsel shall appear telephonically using the following conference call instructions: Dial 1-888-557-8511; Enter access code 4098267#; and Enter security code 1234#. Signed by Magistrate Judge Bruce E. Reinhart on 12/15/2020.
DE 434 - PAPERLESS ORDER REGARDING DISCOVERY ISSUES DISCUSSED AT DECEMBER 15, 2020 STATUS CONFERENCE. As discussed at the status conference, by December 15, 2020, Defendants and the Receiver shall submit proposed protective orders for the Court's consideration. Additionally, as discussed at the status conference, the parties shall meet and confer concerning the materials the Receiver requested that Defendants produce before the Receiver will provide Defendants access to CBSG's financial data. If the parties are unable to reach an agreement, the Receiver shall file a motion to compel production of those materials on or before December 18, 2020. Signed by Judge Rodolfo A. Ruiz, II on 12/15/2020.
DE 442 - PAPERLESS ORDER denying [294] Motion for Protective Order and Motion to Quash the Subpoena Duces Tecum; and denying as moot [294] Motion for Attorney Fees. For the reasons stated on the record at [441], the Motion for Protective Order and Motion to Quash is DENIED. As stated in the parties' Joint Status Report at [422], the parties have resolved all issues, but one. Thus, pursuant to this order, AGM Capital Fund I, LLC. is hereby ordered to produce the documents still in dispute according to the parties' Joint Status Report. Signed by Magistrate Judge Bruce E. Reinhart on 12/17/2020
DE 443 - PAPERLESS ORDER denying [295] Motion for Protective Order and Motion to Quash the Subpoena Duces Tecum; and denying as moot [295] Motion for Attorney Fees. For the reasons stated on the record at [441], the Motion for Protective Order and Motion to Quash is DENIED. As stated in the parties' Joint Status Report at [422], the parties have resolved all issues, but one. Thus, pursuant to this order, AGM Capital Fund II, LLC is hereby ordered to produce the documents still in dispute according to the parties' Joint Status Report. Signed by Magistrate Judge Bruce E. Reinhart on 12/17/2020.
DE 450 - PAPERLESS ORDER granting [449] Receiver's Motion for Extension of Time to File Motion to Compel Pursuant to Order Dated December 15, 2020. If necessary, Receiver shall file the motion to compel on or before December 22, 2020. Signed by Judge Rodolfo A. Ruiz, II on 12/19/2020.
DE 452 - PAPERLESS ORDER REQUIRING FILING OF MEDIATION REPORT. Pursuant to the Court's Order Scheduling Mediation [ECF No. 374], the parties were required to file a mediation report within seven (7) days of their mediation conference. The mediation conference in this matter took place on December 7, 2020 and to date, the parties have not filed a mediation report. Accordingly, the parties are hereby ordered to file their mediation report on or before December 28, 2020. Signed by Judge Rodolfo A. Ruiz, II on 12/22/2020.
DE 457 - PAPERLESS ORDER. Certain Defendants notified this court of a potential discovery issue with the Receiver. This Court has directed Defendants to file a written Motion to Compel addressing the discovery issue. After Defendants file said Motion to Compel, the receiver shall have five days to respond. Signed by Magistrate Judge Bruce E. Reinhart on 12/31/2020.
DE 458 - PAPERLESS ORDER regarding [415] Receiver's Motion to File Unredacted Copies of Lisa McElhone's Personal Financial Statements and Related Communications ("Motion"). Defendant Lisa McElhone filed a response to the motion [ECF No. 435] requesting that the Court defer ruling on the Motion pending ongoing negotiations between the Receiver and Defendants concerning various discovery issues, including a protective order. Accordingly, on or before January 5, 2021, the Receiver shall file a brief status report notifying the Court whether the relief sought in the Motion is still needed in light of recent developments in the case--e.g., the Court's order expanding the receivership [ECF No. 436] and protective order [ECF No. 437]. Signed by Judge Rodolfo A. Ruiz, II on 12/31/2020.
DE 469 - PAPERLESS ORDER directing the [459] Motion to Compel movants (Defendants Joseph W. LaForte, Dean J. Vagnozzi, and Perry S Abbonizio) to file a reply regarding whether, based on the Receiver's representations in its Response at [464], the Motion to Compel is now moot. Signed by Magistrate Judge Bruce E. Reinhart on 1/15/2021.
DE 471 - PAPERLESS ORDER regarding [468] Receiver's Third Motion to Expand Receivership Estate ("Motion"). The Motion states that Defendants Lisa McElhone and Joseph Laforte do not consent to an expansion of the receivership to include 500 Fairmount Avenue, LLC as one of the Receivership Entities. Should Defendants wish to file a response addressing this entity, they shall do so on or before January 22, 2021. No reply will be permitted unless one is requested by the Court. Signed by Judge Rodolfo A. Ruiz, II on 1/15/2021.

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