Free Motion for Hearing - District Court of Connecticut - Connecticut

Case 3:00-cv—OO554—JCH Document 43 Filed O9/07/2004 Page 1 of 4
UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
FEDERAL DEPOSIT INSURANCE CORP.,:
as Receiver for Burritt Interfinancial
Bancorporation, :
Plaintiff, : Docket No. 3:00CV554 (J CH)
VS. :
WINSTED LAND DEVELOPMENT CO. ,:
et al.,
Defendants. I September 3, 2004
MOTION FOR ORDER TO SHOW CAUSE AND
REQ QUEST FOR HEARING THEREON
The parties executed a Settlement Agreement and Release in this case, which was approved
by this Court on June 29, 2001. The Settlement Agreement provided at Paragraph 6A that j udgment
would enter in favor ofthe FDIC and against Defendant John Lombard, individually, in this case as
well as two related cases, FDIC v. Knollwood Dev. Assoc., et al., docket number 3:00CVOO555
(J CH) and FDIC v. Knollwood Dev. Assoc., et al., docket number 3 :00CVOO556 (J CH). However,
Paragraph 6E of the Settlement Agreement provided that the FDIC would forbear from enforcing
the judgment against John Lombard.
In order to induce the FDIC to agree to the terms of the Settlement Agreement, defendant
John Lombard submitted financial statements. Paragraph 10 ofthe Settlement Agreement provided
that in the event that the financial information submitted by John Lombard was false, inaccurate or
misleading, the FDIC would be permitted to enforce collection of its judgment against John
Lombard.

Case 3:00-cv—OO554—JCH Document 43 Filed O9/07/2004 Page 2 of 4
Specifically, Paragraph l0 states in relevant part:
In the event that it is determined by a court of competent jurisdiction
that any of the Lombard Parties have knowingly made or invited
reliance upon a false, forged or counterfeit statement, documents or
thing in connection with this Settlement Agreement, or that any ofthe
Lombard Parties have knowingly provided material information to the
FDIC which is substantially inaccurate or incomplete, in a manner
which would affect the fundamental premises on which this
Settlement Agreement is based, then as to the party or parties who
made or invited reliance upon a false, forged or counterfeit statement,
document or thing or who provided such material and substantially
inaccurate or complete information, this Settlement Agreement shall
be void and, to the extent that the FDIC has not sold or transferred the
underlying obligations, such parties obligations to the FDIC shall be
reinstated in accordance with their original terms.
Based upon the memorandum of law in support of this motion, and supporting exhibits, the
Government contends that the financial information submitted by John Lombard to induce the FDIC
to enter into the Settlement Agreement was knowingly false, inaccurate and misleading.
Accordingly, the Govemment respectfully requests that this Court issue an Order to Show
Cause and schedule a hearing thereon to permit John Lombard to show cause why judgment should
not enforced against him.
In the event that John Lombard fails to show cause why judgment should not be enforced
against him, the Govemment further requests that a debtor examination be held immediately after
the Show Cause hearing to assist the Govemment with enforcing its judgment against Mr. Lombard.
Based upon all of the foregoing reasons, and in the interest of justice, the Govemment
respectfully requests that this motion be granted.
2

Case 3:00-cv—OO554—JCH Document 43 Filed O9/07/2004 Page 3 of 4
KEVIN J. O’CONNOR
UNITED STATES ATTORNEY
2
K, Qin}
CHRIST IN CIARRINO
ASSISTA U.S. ATTORNEY
P.O. BOX 1824
NEW HAVEN, CT 06508
(203) 821-3780
FEDERAL BAR NO. CT3393
3

Case 3:00-cv—OO554—JCH Document 43 Filed O9/07/2004 Page 4 of 4
CERTIFICATION
This is to certify that a copy of the foregoing was mailed, postage prepaid, on this 3rd day
of September, 2004, to:
William L. Stevens, Esq.
St. John, Scappini, Lombard & Stevens
13 First Avenue
Waterbury, CT 06710-2290
· = ‘ \
CHRISTINE S IARRINO
4