Free Order - District Court of California - California

Case 3:08-cv-00764-BEN-NLS

Document 52

Filed 08/28/2008

Page 1 of 2

1 2 3 4 5 6 7 8 9 10 11 12 v. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PLUS MONEY, INC. and MATTHEW LA MADRID, Defendants, THE PREMIUM RETURN FUND LIMITED-LIABILITY LIMITED PARTNERSHIP, et al., Relief Defendants. SECURITIES AND EXCHANGE COMMISSION, Plaintiff, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Civil No.08cv764-BEN(NLS) ORDER FOLLOWING EARLY NEUTRAL EVALUATION CONFERENCE; ORDER SETTING SHOW CAUSE HEARING UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

An Early Neutral Evaluation Conference ("ENE") was scheduled on August 25, 2008 in the above-entitled matter. Counsel for Plaintiff Securities and Exchange Commission appeared for the ENE. Defense counsel and Defendants Matthew La Madrid/Plus Money Inc. appeared for the conference, as well as counsel for the court-appointed Receiver. The Court excused the appearance of Relief Defendants Donald Lopez and Palladium Holding Company based on the representation of counsel that their clients had entered into a stipulated settlement with the SEC and the Receiver, and therefore had no further claims to resolve. On August 25, 2008, during the course of the conference, counsel for the appearing parties advised the Court that the Relief Defendants, as of that date, had failed to comply with the terms of the stipulated settlement. 1

08cv764

Case 3:08-cv-00764-BEN-NLS

Document 52

Filed 08/28/2008

Page 2 of 2

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

The parties filed the stipulated settlement agreement for approval and entry by the Court on July 17, 2008 [Doc. No. 38]. The settlement agreement set a July 31, 2008 deadline for the disgorgement of $10 million dollars by Relief Defendants to the Receiver. (See Supplement to First Interim Report, 3-4.) On August 27, 2008, the Receiver filed a Supplement to his First Interim Report [Doc. No. 51] in which he confirms the Relief Defendants remain in possession of $7.8 million in Receivership assets and as such are in material breach of the stipulated settlement agreement. (Id. at 4-8.) Accordingly, based on the misrepresentation to this Court by counsel for Relief Defendants Donald Lopez and Palladium Holding Company that Plaintiff's claims against their clients had been settled prior to the ENE therefore obviating the need for their presence at the conference, IT IS HEREBY ORDERED THAT Relief Defendants Donald Lopez and Palladium Holding Company and their counsel of record shall appear in person before the Court and show cause why sanctions should not be imposed against them pursuant to Local Civil Rule 83.1. The Show Cause Hearing is set on the calendar of Judge Stormes for September 12, 2008 at 9:30 a.m. in Courtroom "F." IT IS SO ORDERED. DATED: August 28, 2008 Hon. Nita L. Stormes U.S. Magistrate Judge

2

08cv764