Free Motion for Miscellaneous Relief - District Court of Arizona - Arizona

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Guttilla Murphy Anderson, PC

Guttilla Murphy Anderson, PC
Firm No. 00133300 Patrick M. Murphy (No. 002964) 4150 West Northern Ave. Phoenix, Arizona 85051 (623) 937-2795 (623) 937-6897 [email protected]

Attorneys for the Receiver IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA Securities and Exchange Commission, Plaintiff, vs. Ronald Stephen Holt; and International Funding Association, Defendants, and Annette Holt; American Assets Limited Trust; Leonora Street Trust; Dover Childrens Trust; Clarendon Avenue Holding Trust; Dublin Holding Trust; Jeffery Williams (aka Jeffrey Williams); Mari Ann Alston; Pacific Central Asset Management; and American Benefit Card Services, Inc. Defendants Solely for Purposes of Equitable Relief. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Cause No. CV 03-1825 PHX PGR PETITION NO. 30 PETITION FOR INSTRUCTIONS REGARDING CERTAIN REAL PROPERTY LOCATED IN NAVAJO COUNTY

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Lawrence J. Warfield, as the court appointed Receiver, respectfully petitions the Court as follows: 1. On September 18, 2003, this Court entered its Order Appointing Receiver,

which appointed Lawrence J. Warfield as Receiver of Ronald Stephen Holt, International Funding Association and the Relief Defendants ("Receivership Order"). The
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Receivership Order asserted exclusive jurisdiction over and vested custody and control with the Receiver of all of the assets of the Defendants and Relief Defendants, including American Assets Limited Trust. American Assets Limited Trust was placed in receivership because it served as the trustee of various trusts that held properties acquired with investor funds, including the Leonora Street Trust and the Dover Childrens Trust. 2. The Receiver has identified three parcels of property located in Navajo

County that are Receivership Assets ("Navajo Properties"). The Navajo Properties are legally described in Exhibits "A" and "B". 3. Title to two (2) of the Navajo Properties was acquired in the name of

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American Assets Ltd., as Trustee for the Gull Cottage Holding Trust by a Quit Claim Deed dated January 21, 1997, and recorded on January 27, 1997 (Exhibit "A" ). 4. Title to one (1) of the Navajo Properties was acquired in the name of

American Assets Ltd., as Trustee for the Second Avenue Holding Trust by a Quit Claim Deed dated January 21, 1997, and recorded on January 27, 1997 (Exhibit "B"). 5. No attempt was made to comply with the disclosure requirements of A.R.S.

§ 33-404. The Grantor under each Quit Claim Deed was Henry Haas, and each deed was signed by Julia Haas-Garvin, attorney in fact. Henry Haas died on January 24, 1997, three days after the date on the deeds and three days before the deeds were recorded in Navajo County. 6. Upon discovering that the Navajo Properties were titled in the name of a

receivership entity, the Receiver notified Julia Haas-Garvin by letter dated October 3, 2003, that the assets of American Assets Trust Limited had been placed in receivership. The Receiver provided Julia Haas-Garvin a copy of the Receivership Order.
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7.

Subsequently, the Receiver was contacted by Julia Haas-Garvin who

claimed to be the beneficiary of the Gull Cottage Holding Trust and the Second Avenue Holding Trust and therefore the beneficial owner of the Navajo Properties. Mrs. HaasGarvin, however, has been unable to produce the trust agreement for the Gull Cottage Holding Trust or the Second Avenue Holding Trust. No other person has come forward claiming an interest in the Navajo Properties, the Gull Cottage Holding Trust or the Second Avenue Holding Trust. 8. Mr. Haas' hand written will dated December 2, 1995, bequeaths all his

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personal property and certain specified real property (not including the Navajo Properties)1, to his daughter Julia Haas-Garvin. The will does not contain a general disposition of other real property interests not expressly addressed in the will. 9. Michael Bloomquist has testified under oath that in the 1990's and later he

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worked for a company called Crown Enterprises ("Crown"), which was in the business of creating trusts for the public using American Assets Limited Trust as the trustee of the trusts. Bloomquist further testified that Crown was run by Douglas Carpa and Robert Stanford. Stanford is a defendant in the action here brought by the Securities and Exchange Commission and he is Bloomquist's stepfather. Bloomquist further testified that although he does not remember the above transaction involving the Navajo Properties, his review of the Quit Claim Deeds, Exhibits "A" and "B" indicates to him that it was the typical trust arrangement that Crown created for its clients. Mr. Bloomquist's testimony lacks credibility in light of his 2003 conviction of conspiracy to

The Navajo Properties are not mentioned in the Will because they were not acquired until the following year. Case 2:03-cv-01825-PGR Document 379 3 Filed 07/09/2008 Page 3 of 8

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defraud the United States by unlawfully obstructing the Internal Revenue Service. Mrs. Haas-Garvin, however, states that Bloomquist is the person who recommended to her that she create the Gull Cottage Holding Trust and the Second Avenue Holding Trust and place her father's real estate in the trust. 10. Moreover, the Navajo Properties were acquired by Henry Haas in 1996

which date is prior to the date the first known IFA Investor funds were received by the Defendants and therefore it appears that the properties were not acquired with IFA Investor Funds. In addition, the Receiver, in his investigation of the financial records of IFA, has not seen any disbursements for the acquisition or maintenance of the Navajo Properties. 11. Because the transfer from Henry Haas to American Assets Ltd. did not

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comply with the disclosure requirements of A.R.S. §33-404, Mr. Haas would have been entitled to rescind the transaction if he had realized the problems created by this trust arrangement in time to commence an action before his death. 12. On November 1, 2007, Mrs. Haas-Garvin died. On December 4, 2007, Joe

P. Lansden was appointed as the Personal Representative of the estate of Julia Haas Garvin by the Probate Registrar, Superior Court of Arizona for Navajo County, Case No. PB20070143. A copy of the Statement of Informal Probate is attached as Exhibit "C". The Statement incorrectly states that the date of death was July 9, 2007. The Personal Representative has asked that the Navajo Properties be transferred by the Receiver to the Personal Representative. 13. The Receiver has been unable to identify any IFA Investor funds going to

Henry Haas, Mrs. Haas-Garvin, or to the Navajo Properties and neither Mr. Haas nor
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Mrs. Haas-Garvin appear in the IFA records as investors. For these reasons it appears that the ownership of the properties in the name of American Assets Ltd. is entirely coincidental to the IFA fraud. 14. Accordingly the Receiver recommends that the Navajo Properties be

released from this receivership and the Receiver authorized to convey the Navajo Properties to Joe P. Lansden, as Personal Representative of the estate of Julia Haas Garvin. 15. The Receiver intends to give notice of this petition to Joe P. Lansden, as

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Personal Representative of the estate of Julia Haas Garvin, in addition to those persons on the Master Service List. WHEREFORE, the Receiver respectfully requests that the Court enter an order releasing the Navajo Properties from this receivership and authorizing the Receiver to convey the Navajo Properties to the Joe P. Lansden, as Personal Representative of the estate of Julia Haas Garvin. Respectfully submitted this 9th day of July, 2008. GUTTILLA MURPHY ANDERSON, PC

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s/Patrick M. Murphy Patrick M. Murphy Attorneys for the Receiver

PROOF OF SERVICE This is to certify that on this 9th day of July, 2008, I electronically transmitted the foregoing document to the Clerk's Office using the CM/ECF System for filing and transmittal of a Notice of Electronic Filing to the CM/ECF registrants on the attached
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Master Service List; and that the persons on the attached Master Service List who are not registered participants of the CM/ECF System and the additional persons listed below, have been served with a copy of the foregoing document by first class mail this date. Joe P. Lansden, Personal Representative Attorney At Law P.O. Box 940616 Simi Valley, CA 93094-0616 Marshall C. Sanders Attorneys for Joe Lansden 1300 East Missouri Avenue, Suite D-200 Phoenix, Arizona 85014 s/Patrick M. Murphy Patrick M. Murphy
0835-001(35990)

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MASTER SERVICE LIST
SEC v. Ronald Stephen Holt, et al. United States District Court for the District of Arizona CV 03-1825 PHX FJM
(Rev. March 27, 2008)

Lawrence J. Warfield International Funding 14555 North Scottsdale Road, #340 Scottsdale, AZ 85254 Receiver Patrick M. Murphy Guttilla Murphy Anderson, P.C. 4150 West Northern Avenue Phoenix, Arizona 85051 Registered CM/ECF: [email protected] Counsel for Receiver Timothy McCole Securities and Exchange Commission 801 Cherry Street, Suite 1900 Fort Worth, TX 76102 [email protected] Counsel for SEC Merwin D. Grant Grant & Vaughn, P.C. 6225 North 24th Street Suite 125 Phoenix, Arizona 85016 Registered CM/ECF: [email protected] Attorney for Relief Defendant Annette Holt

Ronald Stephen Holt and International Funding Association, Leonora Street Trust, Dover Children's Trust, Clarendon Avenue Holding Trust Dublin Holding Trust, Pacific Central Asset Management, American Benefit Card Services, Inc. Ronald Stephen Holt Central Arizona Detention Center Detainee Ronald Holt 82642008 1155 N. Pinal Parkway Florence, Arizona 85232 Robert L. Stanford Jeffery Williams aka Jeffrey Williams 8415 W. Alex Avenue Peoria, Arizona 85382. Relief Defendant American Assets Limited Trust c/o Registered Agent Michael Bloomquist 4410 W. Union Hills #7-233 Glendale, Arizona 85308 Relief Defendant Mari Ann Alston 305 Nordina Street Redlands, California 92373 Relief Defendant

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James Vaughn 100 South Antietam Place Tucson, Arizona 85710 Suzanne Ingold Burch & Cracchiolo, P.A. 702 E. Osborn Rd. #200 P.O. Box 16882 Phoenix, Arizona 85014-5281 Timothy J. Mulreany Commodity Futures Trading Commission Division of Enforcement 1155 21st Street, N.W. Washington, D.C. 20581 Thomas M. Connelly 2425 East Camelback Rd. Suite 880 Phoenix, Arizona 85016-4208 Michael S. Reeves Attorney at Law 1212 E. Osborn Phoenix, AZ 85014-5533 Registered CM/ECF: [email protected] Attorney for Defendant Ronald S. Holt

0835-001(19488)

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