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Case Status Report: Equity Financial, Shasta or Tech Traders
2007 Updates
Interim August 2007 Update
Although the trial team cannot provide a full case update at this time, this update will provide the details of the most significant current events.
On July 17, 2007, the Court issued a notice of trial setting the trial date for this matter to commence against the remaining defendants, Equity Financial Group, Robert Shimer and Vincent Firth as of August 27, 2007 at 9:30 a.m. in Courtroom 4D of the Mitchell H. Cohen Federal Building & U.S. Courthouse at One John F. Gerry Plaza, Camden, New Jersey. We expect the trial to continue through September 7, 2007. After the trial, the Court will issue dates for a post trial briefing schedule, then the matter will await the Court’s ruling on the merits of this action.
Updated February 21, 2007
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, 2004. 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 meantime, the Commission and the other parties in the litigation have conducted discovery. That discovery period ended on February 28. 2006.
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.
Status Updates and Court Documents for 2008 | 2006 | 2005 | 2004
Status Updates and Related Documents for 2007
December 26, 2007
• Notice of Appeal filed by Alison E. Shimer regarding the order on motion for miscellaneous relief
December 10, 2007
• Response by Alison E. Shimer to Reply of the Equity Receiver (Attachments: Certificate of Service, Exhibit A, Exhibit B, Exhibit C, Exhibit D)
December 5, 2007
• Order amending previous order granting the Receiver’s motion for authority to make a final distribution
December 4, 2007
• Order granting Equity Receiver’s motion for approval of final report, termination of receivership, discharge from further responsibilities, and related relief
• Order granting Equity Receiver’s motion for attorney fees
December 3, 2007
• Order granting motion for attorney fees
• Order granting motion for determination of pending objection
• Order granting Receiver’s motion for authority to make final distribution
November 30, 2007
• Reply by Receiver to Alison Shimer’s response to motion for determination of pending objections
November 27, 2007
• Response by Alison Shimer in opposition to motion for determination of pending objections
November 14, 2007
• Motion for joinder in Receiver’s motion for determination of pending objections by the Commodity Futures Trading Commission
November 13, 2007
• Notice of Motion for approval of Equity Receiver’s final report, termination of receivership, discharge from responsibilities and related relief by Stephen T. Bobo (Attachments: Motion for Approval of Final Report, Termination of Receivership, Discharge from Responsibilities, and Related Relief, Final Report of Equity Receiver, Proposed Order)
• Final Motion for attorney fees and expense reimbursement by Stephen T. Bobo (Attachments: Application of Reed Smith Sachnoff & Weaver for Final Compensation and Expense Reimbursement, Application of Pepper Hamilton LLP for Final Compensation and Expense Reimbursement, Application of FGMK, LLC for Final Compensation and Expense Reimbursement, Declaration of S. Bobo in Support of Final Compensation and Expense Reimbursement, Proposed Order
• Notice of Motion for attorney fees by Stephen T. Bobo (Attachments: Thirteenth Application of Equity Receiver and Reed Smith Sachnoff & Weaver for Interim Compensation and Expense Reimbursement, Declaration of Stephen T. Bobo, Proposed Order)
• Notice of Motion for determination of objections to Alison Shimer claim by Stephen T. Bobo (Attachments: Motion for a Determination of Objections to Alison Shimer Claim, Proposed Order)
November 7, 2007
• Trial Brief by Vincent J. Firth
• Order granting motion for attorney fees
• Order granting motion to fix amount of non-investor creditor claims
November 6, 2007
• Proposed Findings of Fact and Conclusions of Law and Post-Trial Brief by Robert W. Shimer
• Proposed Findings of Fact by the Commodity Futures Trading Commission
• Supplemental Post-Trial Brief by the Commodity Futures Trading Commission
October 9, 2007
• Motion for authority to make final distribution of receivership funds (Attachments: Proposed Order, Affidavit of Stephen T. Bobo in Support of Equity Receiver’s Motion for Authority to Make Final Distribution [with exhibits])
September 14, 2007
• Order granting plaintiff leave to submit supplemental findings of fact, conclusions of law and brief, on or before November 6, 2007
August 27, 2007
• Revised Order granting motion of Equity Receiver regarding treatment of the Sterling claims and claims of Sterling investors
• Order approving amendment to settlement agreement regarding the Man Pro account
• Affidavit by Stephen T. Bobo regarding projected Shasta restitution amount
August 23, 2007
• Proposed Order of appeal of magistrate judge decision regarding motion to withdraw as attorney to District Court by Equity Financial Group LLC
• Notice of Appeal of magistrate judge decision regarding motion to withdraw as attorney to District Court by Equity Financial Group LLC
August 21, 2007
• Order denying motion to withdraw as attorney
August 20, 2007
• Amended Reply to Firth’s response to motion in limine by the Commodity Futures Trading Commission
• Reply to Firth’s response to motion in limine by the Commodity Futures Trading Commission (Attachment: Exhibits)
• Reply to Shimer’s to Firth’s response to motion in limine by the Commodity Futures Trading Commission
• Proposed Findings of Fact by the Commodity Futures Trading Commission
• Trial Brief by the Commodity Futures Trading Commission
August 17, 2007
• Response to motion in limine filed by Vincent J. Firth
August 15, 2007
• Brief filed by Equity Financial Group LLC
August 14, 2007
August 3, 2007
• Proposed Order for motion to withdraw as attorney by Equity Financial Group LLC
• Brief in support of motion to withdraw as attorney by Equity Financial Group LLC
• Affidavit in support of motion to withdraw as attorney by Equity Financial Group LLC
• Motion to withdraw as attorney by Equity Financial Group LLC
July 31, 2007
• Order by consent of the parties, the May 17, 2007 letter attached as an exhibit to Joint Final Pre-trial Order is stricken
July 30, 2007
• Motion in Limine by the Commodity Futures Trading Commission
July 23, 2007
• Teague Settlement Agreement
• Order granting motion for approval of settlement
• Opinion regarding motion for approval of settlement with Puttman & Teague, LLP
• Amendment to final joint pre-trial order
July 19, 2007
• Notice of Hearing - bench trial set for August 27, 2007 at 9:30 a.m. in Courtroom 4D before Judge Robert B. Kugler in Camden
• Notice of Motion for motion for interim compensation and expense reimbursement to Reed Smith Sachnoff & Weaver, Pepper Hamilton LLP and FGMK, LLC by Stephen T. Bobo (Attachments: Application of Reed Smith Sachnoff & Weaver, Application of Pepper Hamilton, Application of FGMK, Supporting Declaration of S. Bobo with exhibits attached, Proposed Order)
July 6, 2007
• Order of USCA regarding notice of appeal previously filed by Robert W. Shimer and Vincent J. Firth
June 28, 2007
• Consent Order of permanent injunction and other ancillary relief against defendants Tech Traders, Inc., Tech Traders, Ltd., Magnum Investments, Ltd., Magnum Capital Investments, Ltd., and Coyt E. Murray
June 26, 2007
• Status Report by Stephen T. Bobo
• Motion to fix the amount of non-investor creditor claims by Stephen T. Bobo (Attachments: Affidavit of Stephen T. Bobo (with exhibits attached), Proposed Order)
June 11, 2007
• Order granting motion for Daniel T. Graham leave to appear pro hac vice
June 8, 2007
• Order regarding amendment of the final pre-trial order
• Letter from Magistrate Judge Donio
• Withdrawal of Objection to motion of Equity Receiver regarding treatment of the Sterling claims and the claims of Sterling investors by CMP Fund and DRL Twenty Plus Funds
June 5, 2007
June 4, 2007
• Motion to approve amendment of settlement agreement regarding Man Pro account (Attachments: Affidavit of S. Bobo, Supporting Memorandum, Proposed Order
June 1, 2007
• Reply to response to motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors by Stephen T. Bobo
May 31, 2007
• Response to motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors by Patti Reiter
May 30, 2007
• Order denying Shimer’s and Firth’s motions to stay trial
May 29, 2007
• Motion to stay trial pending appeal by Robert W. Shimer (Attachments: Brief, Proposed Order)
May 25, 2007
• Motion to stay trial pending appeal by Vincent J. Firth
May 17, 2007
• Response in opposition to motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors filed by CMP Fund, Ltd. and DLR TwentyPlus Fund
May 16, 2007
• Motion for leave to appear pro hac vice by CMP Fund, Ltd. and DLR TwentyPlus Fund (Attachments: Certification of Carol Ann Slocum in Support, Certification of Daniel T. Graham, Proposed Order)
May 15, 2007
• Order granting Receiver’s motion for attorney fees for October 2006 to December 2006
• Order granting Receiver’s motion for attorney fees for July 2006 to September 2006
• Order granting motion by the Equity Receiver seeking interim compensation and expense reimbursement
• Order granting Receiver’s motion for settlement with DiIenno
• Opinion regarding motion for settlement and approval of settlement agreement with Donald A. DiIenno
May 11, 2007
• Response in support of motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors filed by Stephen T. Bobo (Attachments: Supplemental Affidavit of Stephen T. Bobo in Support of motion of Equity Receiver Regarding Treatment of the Sterling Claims and Claims of Sterling Investors)
• Opinion regarding Shimer and Firth’s motions to stay on motions to compel
May 9, 2007
• Letter from Vincent J. Firth
• Scheduling Order – Final pre-trial conference set for 6/5/2007 at 11:00 am before Magistrate Judge Ann Marie Donio
May 7, 2007
• Response to motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors filed by Mary Reaf
May 4, 2007
• Response to motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors filed by Patti Reiter
May 2, 2007
• Response to Firth’s letter by CFTC
April 30, 2007
• Letter from Vincent J. Firth
April 24, 2007
• Motion for issuance of an order regarding the treatment of Sterling claims and claims of Sterling investors by Stephen T. Bobo (Attachments: Memorandum in Support of Motion Regarding Treatment of Sterling Claims and Claims of Sterling Investors, Affidavit of Stephen T. Bobo (with Exhibit A attached), Exhibits B through F of Bobo Affidavit, Proposed Order)
• Motion for approval of settlement agreement with Donald A. DiIenno by Stephen T. Bobo (Attachments: Affidavit of Stephen T. Bobo in Support of Motion to Approve Settlement with Donald A. DiIenno, Memorandum in Support of Motion to Approve Settlement with Donald A. DiIenno)
April 9, 2007
• Response in opposition to Shimer and Firth’s motions to stay of order to compel filed by Stephen T. Bobo (Attachments: Declaration of J. Carr in Support of Equity Receiver’s Response to Motions for Stay of Order Compelling Production of Tax Returns)
• Motion for interim compensation and expense reimbursement by Stephen T. Bobo (Attachments: Proposed Order, Declaration of Stephen T. Bobo in Support of Interim Compensation and Expense Reimbursement, 11th Application of Reed Smith Sachnoff & Weaver, 11th Application of Pepper Hamilton LLP, 9th Application of FGMK)
April 5, 2007
• Order granting Koestel’s motion for Debon for leave to appear pro hac vice
• Scheduling Order setting final pretrial conference for June 1, 2007
March 30, 2007
• Order granting CFTC’s motion for reconsideration of the December 18, 2006 denial of summary judgment
March 27, 2007
• Motion to Stay by Vincent J. Firth regarding previous order on motion to compel production of tax returns
• Motion to Stay by Robert W. Shimer regarding previous order on motion to compel production of tax returns
• Order granting Receiver’s motion for settlement with Lynn Obester
March 26, 2007
• Order granting Receiver’s motion to settle disputes with McDermott, Will & Emery
March 23, 2007
• Order granting Receiver’s motion to settle disputes with Marshall LaFar
March 16, 2007
• Order denying as moot motions to stay order to produce certain tax records filed by Shimer and Firth
March 14, 2007
• Order denying Shimer and Firth’s appeals to the District Court of Magistrate Judge Donio’s order to compel production of tax records
March 13, 2007
• Notice of Firm Name Change filed by Receiver Stephen T. Bobo
February 21, 2007
• Motion for Leave to Appear Pro Hac Vice for the admission of Miguel M. Debon, Esq. filed by Deanna L. Koestel, Esq. on behalf of Donald DiIenno (Attachments: Declaration of Deanna L. Koestel, Declaration of Miguel M. Debon, Proposed Order)
February 20, 2007
• Notice of Appearance by Deanna L. Koestel on behalf of Donald A. DiIenno
February 9, 2007
• Scheduling Order entered by Judge Donio: Final Pretrial Conference set for 5/24/2007 11:00 a.m.; telephone status conference set for 4/4/2007 10:00 a.m.
• Defendants Shimer and Firth’s Joint Notice of Appeal as to Judge’s Opinion on Motions for Reconsideration of Summary Judgment
February 8, 2007
• Status conference held before Judge Donio
February 1, 2007
• Decision by the Third Circuit Court of Appeals denying Defendant Shimer's Writ of Mandamus (Opinion, Cover Letter)
January 22, 2007
• Order entered by Judge Kugler: dismissing as moot motion to strike
• CFTC's reply to response to Motion for Reconsideration of Order on Motion for summary judgment on violation of 17 CFR 4.30
January 19, 2007
• Receiver's Motion to Disallow certain Universe Investor Claims Based on Repayments Received From Kaivalya Holding Group, Inc. (Proposed Order, Memorandum In Support, and Affidavit of Stephen Bobo in Support with Exhibits attached)
• Equity Receiver's Motion for Interim Compensation and Expense Reimbursement to Sachnoff & Weaver, Ltd, Pepper Hamilton LLP, and FGMK, LLC (Proposed Order and Declaration of Stephen Bobo as Equity Receiver for interim (with Exhibits in Support)
January 12, 2007
• Defendant Shimer’s Response In Opposition to Motion for Reconsideration of Order on Motion for Summary Judgment On Violation of 17 CFR 4.30
• Scheduling Order: setting telephone status conference for February 8 at 11:30 AM
January 11, 2007
• Telephonic conference held before Judge Donio
January 9, 2007
January 5, 2007
January 4, 2007
• Order entered by Judge Kugler: adopting June 19, 2006 Report and Recommendation of Judge Donio and order disallowing the Claims of Citco Global Custody N.V., Peter Mt. Shasta, Bally Lines, Dream Venture Group, Gregg Amerman, ICC Finance Corp, and Quest for Life
Related Documents:
• 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