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

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

Guttilla & Murphy, PC
Firm No. 00133300 Ryan W. Anderson (Ariz. No. 020974) 4150 West Northern Ave. Phoenix, Arizona 85051 [email protected] (623) 937-2795 (office) (623) 937-6897 (Fax)

Attorneys for the Receiver UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA Securities and Exchange Commission, ) ) Plaintiff, ) ) vs. ) Cause No. CV 03-1825 PHX PGR ) Ronald Stephen Holt; and International ) PETITION NO. 13 Funding Association, ) PETITION FOR ORDER ) DIRECTING TURNOVER OF Defendants, ) RECEIVERSHIP ASSETS HELD BY ) BURTON M. BENTLEY, P.C. and ) ) Annette Holt; American Assets Limited ) Consolidated for Purposes of Receivership Administration with: Trust; Leonora Street Trust; Dover ) Childrens Trust; Clarendon Avenue ) Holding Trust; Dublin Holding Trust; ) Commodity Futures Trading Commission v. International Funding Association etc, Jeffery Williams (aka Jeffrey Williams); ) Cause No. CV 03-1826 PHX PGR Mari Ann Alston; Pacific Central Asset ) Management; and American Benefit ) Card Services, Inc. ) ) Defendants Solely for ) Purposes of ) Equitable Relief. Lawrence J. Warfield, the court-appointed receiver (the "Receiver"), respectfully

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seeks an order directing Burton M. Bentley, P.C. ("Bentley") to turn over all 22 23
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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

Receivership Assets in its custody or control, including funds which this Court previously determined to be Receivership Assets and which the Receiver traced to Bentley. I. Parties The Petitioner is Lawrence J. Warfield, the receiver appointed pursuant to this Court's Order Appointing Receiver signed on September 18, 2003.1 Respondent Burton M. Bentley, P.C., counsel to Defendant Ronald Holt, is a law firm doing business in Arizona and may be served with process at 5343 North 16th Street, Suite 480, Phoenix, Arizona 85020, through its agent: Burton M. Bentley. II. Jurisdiction This Court has personal jurisdiction over Bentley as a result of its knowing disobedience of this Court's orders, as shown herein.2 Additionally, this Court has personal jurisdiction over Bentley pursuant to 28 U.S.C. § 754 and 15 U.S.C. § 78(aa). III. Venue Venue is proper in this Court because this Court took exclusive jurisdiction of assets, monies, securities, properties, real and personal, tangible and intangible, of whatever kind and description, wherever situated, of the Defendants and Relief Defendants ("Receivership Assets") and authorized the Receiver, as the Court's agent, to

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Order Appointing Receiver, § I, ¶ 2. The Receiver requests the Court take judicial notice of the pleadings on file in this case. 2 See Waffenschmidt v. Mackay, 763 F.2d 711, 718-20 (5th Cir. 1985) (holding that a court has inherent jurisdiction to enforce its own orders, even against nonparties when nonparties knowingly violate the court's orders).

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

take and have possession of such assets.3 As set forth below, this action arises out of and is related to the Receiver's attempt to recover Receivership Assets resulting from the misappropriation and conversion of such assets. IV. The Receiver's Authority This Court appointed Lawrence J. Warfield as the receiver of the Defendants and Relief Defendants, granted the Receiver complete and exclusive control, possession, and custody of all Receivership Assets, and ordered all persons in active concert or participation with the Defendants or Relief Defendants, including attorneys, who receive actual notice of the Order Appointing Receiver, to promptly deliver to the Receiver all Receivership Assets in their possession or under their control.4 V. Receivership Assets Previously, this Court found that real property located a 3719 East Leonora Street, Mesa, Arizona (the "Leonora Street Property"), was a Receivership Asset.5 Title to the Leonora Street Property was transferred to Defendant Ronald Stephen Holt's mother, Rose Holt, who placed a reverse mortgage on the property resulting in a $356,098.50 deposit in her Desert Schools Federal Credit Union Account No. 619643-00 ("Account No. 619643-00").6 Upon discovery of the mortgage loan on the Leonora Street Property and the deposit of loan proceeds in Account No. 619643-00, this Court amended the
Order Appointing Receiver, § 1, ¶¶ 1-2. Order Appointing Receiver, § I, ¶¶ 2, 4. 5 Order of Preliminary Injunction Freezing Assets and Orders Requiring Accounting, Requiring Preservation of Documents and Requiring Repatriation of Assets, p. 3, ¶ 7, which order was filed under Clerk's Document No. 28. 6 Declaration of Lawrence J. Warfield in Support of Petition No. 13, ¶ 6, attached hereto as Exhibit A and referred to herein as "Warfield Dec., ¶ ___." See Order, p. 2, which order was filed under Clerk's Document No. 162.
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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

Order Appointing Receiver to specifically identify the loan proceeds as Receivership Assets.7 Furthermore, the Court has made the following findings: a. Title to the Leonora Street Property was held by the Leonora Street

Trust from October of 1998 until late July of 2003, when title was transferred by warranty deed to Rose Holt. b. After obtaining title to the property, Rose Holt used the property as

collateral to obtain a reverse mortgage loan, through which Rose Holt borrowed $356,098.50 against the Leonora Street Property and deposited such loan proceeds in Account No 619643-00; and c. Portions of the loan proceeds deposited in Account No 619643-00

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were transferred at the request of Rose Holt's son Ronald Holt, and to pay Rose Holt's attorneys.8 The Receiver traced $10,000.00 in Receivership Assets deriving from loan proceeds deposited in Account No 619643-00 to the respondent law firm of Burton M. Bentley, P.C. as follows: (a) $5,000.00 on October 2, 2003; and (b) $5,000.00 on October, 2, 2003.9 VI. The Receiver's Request for Turnover of Receivership Assets On or about May 2, 2006, the Receiver demanded that Bentley turnover the

Amended Order Appointing Receiver, § I, ¶ 1, which order was filed under Clerk's Document No. 79. 8 Order, p. 1-2, which order was filed under Clerk's Document No. 162. 9 Warfield Dec., ¶ 7.

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

Receivership Assets transferred to it.10 VII. The Respondents' Refusal to Turnover Receivership Assets To date, Bentley has failed and refused to turnover Receivership Assets traced it.11 VIII. Conclusion The Receiver asks the Court to enter an order directing respondent Burton M. Bentley, P.C. to turn over to the Receiver Receivership Assets in Bentley's possession or control, including but not limited to funds deriving from a reverse mortgage on the Leonora Street Property, because such funds constitute Receivership Assets. WHEREFORE, the Receiver respectfully requests that the Court enter an order requiring: 1. Burton M. Bentley, P.C. to turn over to the Receiver all Receivership

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Assets in its possession or control, including but not limited to $10,000.00 plus interest, within five business days of the entry of the order; 2. Such other relief to which the Receiver might show himself entitled.

Respectfully submitted this 19th day of July, 2007. GUTTILLA & MURPHY, PC

s/Ryan W. Anderson___________ Ryan W. Anderson Attorneys for the Receiver

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Warfield Dec., ¶ 8. Warfield Dec., ¶ 9.

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1 PROOF OF SERVICE 2 3 4 5 6 7 8 9
Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

This is to certify that on the 19th day of July, 2007, 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 Master Service List; and that the persons on the attached Master Service List who are not registered participants of the CM/ECF System have been served with a copy of the foregoing document by first class mail this date. This is to also certify that a copy of the foregoing document was also mailed to Burton M. Bentley, P.C., by first class mail at the following address: Burton M. Bentley, P.C. 5343 North 16th Street Suite 480 Phoenix, Arizona 85016

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Case 2:03-cv-01825-PGR
0835-001(32625)

s/Ryan W. Anderson____________ Ryan W. Anderson

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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. April 9, 2007)

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 Marshall M. Gandy Securities and Exchange Commission 801 Cherry Street, Suite 1900 Fort Worth, TX 76102 Registered CM/ECF: [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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