Free Response - District Court of Colorado - Colorado

Case 1:04-cv-00354-WDM-BNB

Document 175

Filed 11/29/2006

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 04-cv-00354-WDM-BNB SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. KELSEY L. GARMAN, KOINONIA INVESTMENT CLUB II, KOINONIA INCOME ACCOUNT, KOINONIA 100/200 CLUB, and KOINONIA KINGDOM CLUB, Defendants. _____________________________________________________________________________ PLAINTIFF SECURITIES AND EXCHANGE COMMISSION RESPONSE TO JUDGMENT DATED NOVEMBER 8, 2006 _____________________________________________________________________________ On November 8, 2006, the Court has ordered that the Plaintiff show cause by November 30, 2006 why the case should not be closed. The standard practice in cases in which a judgment has been entered against a defendant containing an injunction and other relief is for the Court to retain jurisdiction for purposes of enforcing the judgment. Obviously enforcement of the judgment can occur even if the case is closed. However, in this case, the Receiver has yet to make a final distribution and has two pending matters that may ultimately require court action. First, the Receiver has not had any resolution of the IRS issues such that the Receiver can make a final distribution and close the case. Second, there were funds identified and located in Hong Kong that the division that controls the funds has been questioning whether the Court's order is enforceable there, so the Receiver has been working along with the Securities and Exchange Commission to resole the issue without having to engage counsel in Hong Kong and incur

Case 1:04-cv-00354-WDM-BNB

Document 175

Filed 11/29/2006

Page 2 of 3

substantial fees. There has been no status conference set in the future to address these issues; however the Receiver is keeping the parties apprised of his efforts to resolve them. There are unresolved matters being addressed by the Receiver which have the possibility of requiring further action or approval by this Court. For these reasons, Plaintiff specifically requests the Court not to close the case at this time.

Respectfully Submitted this 29th day of November, 2006. s/ Elizabeth E. Krupa Elizabeth E. Krupa Attorney for Plaintiff Securities and Exchange Commission 1801 California Street, Suite 1500 Denver, CO 80202 Phone 303.844.1000 Fax 303.844.1068 Email: [email protected]

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Case 1:04-cv-00354-WDM-BNB

Document 175

Filed 11/29/2006

Page 3 of 3

CERTIFICATE OF SERVICE I certify that on November 29, 2006 I electronically filed the foregoing with the using the CM/ECF system which will send notification to the following e-mail addresses. John Alonzo Hutchings [email protected], Christine J. Jobin [email protected]

s/ Elizabeth E. Krupa Elizabeth E. Krupa

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