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Case Status Report: Equity Financial, Shasta or Tech Traders
2004 Updates
The Commission filed this action on April 1, 2004, based on the limited information known to the Commission at the time. Federal district court judge Robert J. Kugler issued an order freezing the defendants' funds and appointed an equity receiver to marshal the funds of the defendants.
The Commission filed an amended complaint on August 12. The First Amended Complaint adds as defendants Tech Traders, Ltd., Magnum Investments, Ltd.; Magnum Capital Investments, Ltd., Coyt E. Murray and J. Vernon Abernethy and contains additional charges against the original defendants - namely, Equity Financial Group, LLC, Vincent J. Firth, Robert W. Shimer and Tech Traders, Inc. Upon motion by the Commission, Judge Kugler entered consent orders of preliminary injunction against all defendants. These consent orders are intended to maintain the status quo until final orders in this case are entered. In the meanwhile, the Commission and the other parties in the litigation are now conducting discovery.
As a sidelight to this litigation, the Commission also opposed a motion by a group of foreign entities known as the Sterling Group to intervene in this action and gain release of frozen funds which they claim belong to them. That matter went to hearing on May 7, 13 and 14th, 2004. After the hearing, Judge Kugler denied the Sterling Group's motions to intervene and to gain release of funds, finding that the funds should remain subject to the asset freeze pending a determination of investor claims to the frozen funds. The Sterling Group filed a renewed motion to intervene on September 22, 2004 which Judge Kugler denied on March 4, 2005.
With the court's approval, the Receiver has initiated a claims process by which persons who have placed funds with any of the defendants can identify for the record their interest in this matter. On August 23, 2004, the court entered an order requiring all investors to complete and return the Investor Claim Form within 30 days from Friday, August 27, 2004, the date that the attached claim form and letter were sent to investors. If you failed to receive this claim form and letter, please find these documents attached.
Status Updates and Court Documents: 2004
December 21, 2004
- ORDER disbursing funds relating to November 12, 2004 Motion entered by Judge Kugler.
- DECLARATION of Cirino M. Bruno, Esq. in reply to Response in Opposition to Motion by COYT E. MURRAY, MAGNUM CAPITAL INVESTMENTS, LTD., MAGNUM INVESTMENTS, LTD., TECH TRADERS, LTD., TECH TRADERS, INC.
- Scheduling ORDER entered by Judge Donio: telephone status conference is set for January 24, 2005 at 3:00 p.m.; all other provisions set forth in the Scheduling Order of September 10, 2004 shall remain in effect.
- RESPONSE filed by CFTC in Opposition to MOTION to Withdraw as Attorney
- RESPONSE filed by STEPHEN T. BOBO in Opposition to MOTION to Withdraw as Attorney
- STATUS REPORT Second Interim Report of the Temporary Equity Receiver filed by STEPHEN T. BOBO.
- MOTION to Withdraw as Attorney by MAGNUM CAPITAL INVESTMENTS, LTD., MAGNUM INVESTMENTS, LTD., TECH TRADERS, INC., TECH TRADERS, LTD.
- BRIEF Reply filed by STERLING TRUST, LTD. (Attachments: # Affidavit declaration of Martin P. Russo, Esq # Exhibit A to Declaration of Martin P.# Exhibit B to Declaration to Martin P. Russo, Esq.)
- BRIEF in Opposition re MOTION to Intervene filed by CFTC (Attachments: Affidavit Exhibit A; Affidavit Exhibit B; Exhibit C; Affidavit Exhibit D.
- MOTION to Intervene by STERLING TRUST, LTD.. (Attachments: # Declaration of Warren W. Faulk, Esq. # Brief Memorandum of Law in Support of Motion to Intervene, # Text of Proposed Order Permitting Intervention, #Certificate of Service)
- ORDER denying without prejudice Motion to Appoint Pro Bono Counsel. Signed by Judge Ann Marie Donio on 9/16/04.
- SCHEDULING ORDER ENTERED BY JUDGE DONIO: Telephone Status Conference set for 12/6/2004 11:00 AM before Magistrate Judge Ann Marie Donio. Final Pretrial Conference set for 10/6/2005 10:00 AM before Magistrate Judge Ann Marie Donio. Amended Pleadings due by 3/25/2005. Discovery due by 6/30/2005. Dispositive Motions due by 8/2/2005.Signed by Judge Ann Marie Donio on 9/10/04.
September 8, 2004
- Status and Scheduling Conference held with Judge Donio.
- Consent Order of Preliminary Injunction against Tech Traders, Inc., Tech Traders, Ltd., Magnum Investments, Ltd., Magnum Capital Investments, Ltd., and Coyt E. Murray entered by Judge Kugler.
- Consent Order of Preliminary Injunction against J. Vernon Abernethy.
- Order granting Motion for Interim Compensation and Expense Reimbursement to Receiver Stephen Bobo.
- Order granting Motion to Approve Investor Claim Process
- Second Summary of receipts and disbursements of [frozen funds] filed by Receiver Stephen Bobo.
- Motion by CFTC for a Restraining Order and Preliminary Injunction against defendant J. Vernon Abernethy
- Motion by CFTC for Entry of Consent Order of Preliminary Injunction against Tech Traders, Inc., Tech Traders, Ltd., Magnum Investments, Ltd., Magnum Capital Investments, Ltd., and Coyt E. Murray.
- First Amended Complaint against J. Vernon Abernethy, Coyt E. Murray, Magnum Capital Investments, Ltd., Magnum Investments, Ltd. Tech Traders, Ltd., Tech Traders, Inc., Vincent J. Firth, and Robert W. Shimer.
- Order granting Motion for Leave to File an Amended Complaint.
- CFTC's Memorandum in Support of Motion to File Amended Complaint
- Quarterly MOTION for Interim Compensation and Expense Reimbursement to Sachnoff & Weaver, Ltd., Pepper Hamilton LLP, FGMK, LLC and Phoenix Management Services, Inc. by Receiver Bobo
- Brief by Equity, Firth and Shimer in Opposition to CFTC's Motion to File Amended Complaint
- Response by TTI in Opposition to Receiver's Motion to Approve Investor Claim Process
- Motion by Tech Traders, Inc. ("TTI") for Expedited Discovery
- Order granting TTI's Motion for Expedited Discovery
- Motion by CFTC for Leave to File First Amended Complaint [proposed First Amended Complaint attached]
- Supplemental Agreed Order for Release of Funds
- Consent Order of Preliminary Injunction against Defendants Equity, Firth and Shimer
- Scheduling Conference reset to 9/8/04 at 12:00 p.m. before Magistrate Judge Ann Marie Donio
- Motion of Receiver Bobo to Approve Investor Claim Process
- Case status via teleconference with court: Preliminary Injunction hearing rescheduled from 6/18/04 to 7/16/04 at 1:30 p.m.
- Initial Report filed by Temporary Equity Receiver
- Answer to Complaint filed by Defendant Tech Traders, Inc.
- Schedule of Receipts and Statement from the Depository as filed by Temporary Equity Receiver
- Honorable Judge Kugler entered an order denying Sterling Group's Motion to Intervene and Sterling Group's Application for Release of Restraining Funds
- HEARING before Judge Kugler begun, to reconvene on 5/13/04 at 9:00 a.m.
- CFTC files Plaintiff.s Memorandum in Opposition to the Motion of Sterling Entities to Intervene, Application for an Order to Show Cause and Application for Release of Funds
- Answer to Complaint filed by Defendants Equity Financial Group, LLC, Vincent J. Firth and Robert W. Shimer
- HEARING before Judge Kugler set for 5/7/04 at 2:00 p.m. TO SHOW CAUSE on why an order should not be entered permitting Sterling ACS, Limited, Sterling Bank Limited, Sterling Casualty & Insurance, Ltd., Sterling (Anguilla) Trust, Ltd.; to intervene in this action and releasing the funds belonging to these entities which are now restrained pursuant to this Court.s April 1, 2004 injunction order
- MOTION to Intervene by STERLING INVESTMENT MANAGEMENT LTD., STERLING TRUST, LTD., STERLING BANK LIMITED, STERLING CASUALTY AND INSURANCE, LTD., STERLING ACS, LTD.
- Setting returnable date as to MOTION to Intervene for 6/4/2004 before Judge Robert B. Kugler
- MOTION for Martin P. Russo, Esq. Leave to Appear Pro Hac Vice by STERLING ACS, LTD., STERLING BANK LIMITED, STERLING CASUALTY AND INSURANCE, LTD., STERLING INVESTMENT MANAGEMENT LTD., STERLING TRUST, LTD.
- ORDER granting Motion for Martin P. Russo, Esq. Leave to Appear Pro Hac Vice
- ORDER granting permission to Employ Sachnoff & Weaver. Ltd. and Pepper Hamilton LLP as Receiver's Counsel and FGMK, LLC as Receiver's Accountants filed by STEPHEN T. BOBO
- ORDER permitting Samuel F. Abernethy, Esq. and Paul M. Hellegers, Esq. to appear pro hac vice on behalf of defendant Equity Financial Group, LLC.
- CONSENT ORDER extending time for defendant Tech Traders, Inc. until May 28, 2004 to file an answer to plaintiff's complaint
- MOTION for Martin H. Kaplan, Esq. and Melvyn J. Falis, Esq. Leave to Appear Pro Hac Vice by TECH TRADERS, INC
- NOTICE of Appearance by CIRINO M. BRUNO on behalf of TECH TRADERS, INC.
- NOTICE of Appearance by LEWIS B. COHN on behalf of EQUITY FINANCIAL GROUP LLC, VINCENT J. FIRTH, ROBERT W. SHIMER
- MOTION Permission to Employ Sachnoff & Weaver. Ltd. and Pepper Hamilton LLP as Receiver's Counsel and FGMK, LLC as Receiver's Accountants by STEPHEN T. BOBO
- Status hearing held. Judge Kugler scheduled a hearing on the preliminary injunctive relief sought by CFTC for June 18, 2004 at 9:30 a.m. in Courtroom 4D of the Mitchell H. Cohen Federal Bldg. & U.S. Courthouse, 1 John F. Gerry Plaza, Camden, NJ 08101.
- CFTC issues press release - http://www.cftc.gov/opa/enf04/opa4908-04.htm.
- Honorable Judge Robert B. Kugler of the U.S. District Court for the District of New Jersey entered a statutory restraining order against the defendants, freezing their assets and preventing the destruction or alteration of their books and records. Judge Kugler also appointed a receiver with powers to, among other things, take immediate possession, custody, and control of certain assets and property and the books and records of the defendants and take all steps necessary to secure and protect the assets and property of the pool.
- U.S. CFTC Files Complaint against Equity Financial Group, LLC (.Equity.), Tech Traders, Inc., Vincent J. Firth (.Firth.), and Robert W. Shimer (.Shimer.). The complaint charges defendants Equity and Firth with fraud in the solicitation of commodity pool participation interests in Shasta Capital Associates, LLC (Shasta), a Delaware corporation. The CFTC's complaint also charges Tech Traders and Shimer with regulatory violations. In its continuing litigation against defendants, the CFTC is seeking preliminary and permanent injunctive relief, refunds to customers, repayment of ill-gotten gains, and monetary penalties.
Related Documents:
- Information Related to the Claims Process
- Information Related to the CFTC’s Case Against the Defendants
- Daily Updates and Court Documents: 2006
- Daily Updates and Court Documents: 2005
- Daily Updates and Court Documents: 2004
- News Release: 4908-04, April 6, 2004
- Complaint, April 1, 2004
- Initial Questionnaire (Word)
- Initial Questionnaire (PDF)
Media Contact:
Rosemary Hollinger
Associate Director and Regional Counsel
CFTC Division of Enforcement
525 West Monroe Street
Suite 1100
Chicago, IL 60661
(No investor inquiries, please.)
Investor Inquiries:
Joy McCormack, Investigator
CFTC Division of Enforcement
525 West Monroe Street
Suite 1100
Chicago, IL 60661
shasta@cftc.gov
Receiver Contact and Claims Inquiries:
Stephen Bobo
Sachnoff & Weaver, Ltd.
30 South Wacker Drive
29th Floor
Chicago, IL 60606-7484