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

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MICHAEL S. REEVES, ESQ. State Bar Number: 010420 1212 East Osborn Phoenix, Arizona 85014 Tel: [602] 604-7577 Fax: [602] 604-7555 Attorney for Ronald Holt UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA Commodities Futures Trading Commission, ) ) Plaintiff ) ) Vs. ) ) International Funding Association; ) Cambridge Global Group; Global ) Management Group; and Ronald Stephen ) Holt, ) ) Defendants. ) ) ) No. CV 03-1826 PHX PGR EMERGENCY MOTION TO RELEASE DEFENDANT RONALD STEPHEN HOLT Related Cases SEC V. Ronald Stephen Holt et al CV 03-1825 PHX PGR Investors in IFA, et al, v. International Funding Association, et al, CV 03-1302

Defense respectfully moves for the immediate release of Defendant Ronald Stephen Holt pursuant to 28 U.S.C. §1826. That statute limits civil contempt incarceration to 18 months, and more than 18 months have passed since Mr. Holt was ordered into custody on July 27, 2004. The following Memorandum of Points and Authorities supports this Motion.

MEMORANDUM OF POINTS AND AUTHORITIES INTRODUCTION Defendant Ronald Stephen Holt must be released from confinement immediately, 28 U.S.C. §1826 requires. That statute limits civil contempt incarceration periods to no more than 18 months, and more than 18 months have passed since Mr. Holt was incarcerated (this Court found him to be in civil contempt for failure to comply with its orders and ordered he be incarcerated July 27, 2004). Defense therefore requests Mr. Holt be released without further delay.

Case 2:03-cv-01826-PGR

Document 117

Filed 02/13/2006

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Case 2:03-cv-01826-PGR

FACTS Ronald Holt is defending against public and private suits arising from his participation in an investment fund (Securities and Exchange Commission v. Holt, et al., CV 03-1825 PHX PGR (SEC Action); Commodities Futures Trading Commission v. International Funding Association, et al., CV 03-1826 PHX-PGR (CFTC Action); Investors in IFA v. International Funding Association, et al., CV 03-1302 PHX PGR). The Court consolidated for purposes of hearings all actions pursuant to parties' joint motions on or about July 27, 2004. The Court granted SEC and CFTC's motions and ordered Mr. Holt be incarcerated for civil contempt of court. See Order Holding Ronald Holt in Civil Contempt of Court (United States District Court, District of Arizona, Rosenblatt, J., lodged July 27, 2004, filed July 29, 2004). In the Order, the Court explains that Mr. Holt can purge his contempt by completing six, enumerated tasks, including disgorgement of assets, clearing vehicle, dismissing numerous lawsuits and acknowledging his being bound by and willingness to comply with the Court's orders in the SEC and CFTC Actions. Order 10:14-12:2. Mr. Holt has been incarcerated since July 24, 2004 with brief furloughs. The Court conducted two hearings regarding contempt status (January 11, 2005 and August 8, 2005) and both times found Mr. Holt failed to purge the contempt. Mr. Holt maintains that he has done all he can to comply with the Court's Order.

ARGUMENT Mr. Holt must be released immediately because the duration of his civil contempt incarceration exceeds the period authorized by 28 U.S.C. § 1826. Section 1826, 28 U.S.C., permits federal courts to hold witnesses in civil matters in contempt of court for willful failure to comply with court orders; however, it limits the incarceration period to no more than 18 months. 28 U.S.C. §1826(a)(2006) ("in no event shall such confinement exceed eighteen months"); U.S. v. Powers, 629 F.2d 619, 626 (9th Cir. 1980) ("The period of confinement cannot, however, exceed the shorter of the life of the court

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proceeding or eighteen months.:); In the Matter of Younger, 986 F.2d 1376, 1378 (11th Cir. 1993). The time limit is mandatory. Younger, 986 F.2d at 1378 ("By its clear language, 28 U.S.C. §1826(a) requires that the term be limited by the lesser of the duration of the bankruptcy case or eighteen months."). See also U.S. v. Mitchell, 556 F.2d 371, 385 (6th Cir. 1977) ("we find that the civil contempt was invalid to the extent it exceeded 18 months, which period must be credited against the defendants' sentences."). Violations of the time period are obviously quite serious. The statute itself underscores the gravity of such violations: subsection (b) requires that appeals from contempt findings be heard promptly, and not more than 30 days after filing date. 28 U.S.C. § 1826(b) ("Any appeal from an order of confinement under this section shall be disposed of as soon as practicable, but not later than thirty days from the filing of such appeal.") Mr. Holt has been incarcerated for civil contempt for more than 18 months (since July 27, 2004) serving time in a federal holding facility in Florence, Arizona. Now that 18 months have passed, 28 U.S.C. §1826 requires the Court release Mr. Holt from custody immediately.

CONCLUSION We respectfully request that Mr. Holt be released from custody immediately, pursuant to 28 U.S.C. §1826. Dated: February 13, 2006 /s/ MICHAEL S. REEVES CERTIFICATE OF SERVICE I hereby certify that on this date, February 13, 2006, I electronically transmitted the attached document to the Clerk's Office using the CM/ECF System for filing and transmittal of Notice of Electronic Filing to the following CM/ECT registrants: Marshall Gandy Merwin D. Grant Patrick M. Murphy by: /s/ Michael S. Reeves

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I hereby certify that on February 13, 2006, I served the attached document by U.S. mail, fax and/or e-mail on the following, who are not registered participants of the CM/ECF System: Timothy J. Mulreany, Chief Trial Attorney Karon Powell, Trial Attorney Division of Enforcement 1155 21st Street, NW Washington, D.C. 20581 Attorneys for the Commodities Future Trading Commission Warfield & Company, CPAs 14555 North Scottsdale Rd., #340 Scottsdale, Az 85254 Receiver Thomas M. Connelly, Esq. 2425 East Camelback Road, Suite 880 Phoenix, Az 85016-4208 Susanne Ingold, Esq. Burch & Cracchiolo, PA 702 East Osborn Rd., #200 P.O. Box 16882 Phoenix, AZ 85011-6882 by: /s/ Michael S. Reeves

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