Free Response - District Court of Arizona - Arizona

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

Attorneys for the Receiver

IN THE UNITED STATES DISTRICT COURT 6 FOR THE DISTRICT OF ARIZONA 7 8 9
Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

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) ) Cause No. CV 03-1826 PHX PGR ) Plaintiff, ) ) JOINT RESPONSE TO RONALD ) HOLT'S MOTION TO EXTEND ) vs. FURLOUGH ) ) ) International Funding Association; ) Cambridge Global Group; Global ) Management Group; and Ronald Stephen ) Related Case: SEC vs. Ronald Holt, et al., cause number CV 03-1825 PHX PGR ) Holt, ) Defendants. ) Related Case: Investors in IFA v. ) International Funding, et al., cause ) number CV 03-1302-PHX-PGR ) ) Commodity Futures Trading Commission, The Court's Receiver ("Receiver"), the United States Securities and Exchange

17 Commission ("SEC"), the United States Commodities Futures Trading Commission 18 ("CFTC"), and the IFA Investor Group ("IFA Investors") submit the following joint 19 response to the Motion to Extend Furlough filed by Defendant Ronal Holt ("Holt"). 20 Holt filed a motion to extend his holiday furlough on the eve of the date of his 21 scheduled return to custody. Holt assumes in his motion that a pending settlement 22 23
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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

between him and the SEC and CFTC makes further incarceration for contempt unnecessary. Holt's counsel has been repeatedly told that Holt's settlement of the underlying claims of the SEC and the CFTC does not resolve his continued refusal to comply with the Court's receivership order entered in CV 03-1825, for which he has been adjudged in contempt and incarcerated. Holt continues to refuse to turnover the investor funds, to account for their disposition, or to truthfully explain the current location of the approximately $3,000,000 of investor funds that he transferred offshore. In fact all Holt has done since his last hearing on his contempt, is file a motion for a furlough during the holidays. He has not provided the Receiver with information or otherwise complied with this Court's orders. Earlier efforts to assist Holt in meeting his obligations, such as the extensive time spent by the Receiver's staff meeting with Holt during one of his furloughs last summer proved to be of no value. All Holt did was continue to make false statements about the investors' funds, such as claiming to have not personally handled cash from investors or to have not used investor funds to purchase his house. Even when Holt appeared in Court he continued his lies, such as at the hearing on October 13, 2005 when he again falsely testified, among other things, that he had turned over records to the Receiver when in fact the Receiver had secured these records on his own without any assistance from Holt. Notwithstanding efforts by the IFA Investors, Holt has not reached an agreement to settle the action filed by the IFA Investors in cause number CV 03-1302. There are, however, settlement agreements now before the SEC and the CFTC for approval which would settle the claims asserted by the government in the complaints filed in CV 03-1825
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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

and in CV 03-1826. If approved by the respective commissions, the settlements will be submitted to the Court for approval. Even if approved, however, these settlements will not purge Holt's contempt for his continued failure to comply with the Court's orders. The Receiver, the SEC, the CFTC, and the IFA Investors respectfully request that the Motion to Extend Furlough be denied. Over the next 60 days the parties will attempt once again to obtain compliance from Holt with the Court's orders and if successful will promptly advise the Court. If unsuccessful, the parties will advise the Court within 60 days and the Court can then schedule a hearing at which Holt can make his case to the Court that he has purged his contempt. Respectfully submitted this 18th day of January, 2006.

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GUTTILLA & MURPHY, PC s/Patrick M. Murphy Patrick M. Murphy Attorneys for the Receiver

SECURITIES AND EXCHANGE COMMISSION s/Marshall Gandy Marshall Gandy Attorneys for the Plaintiff COMMODITY FUTURES TRADING COMMISSION s/Timothy Mulreany Timothy J. Mulreany Attorneys for the Plaintiff

Case 2:03-cv-01826-PGR

Document 111 3 Filed 01/18/2006

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

BURCH & CRACCHIOLO, PA s/Suzanne Ingold Suzanne Ingold Attorneys for the IFA Investors

PROOF OF SERVICE This is to certify that a true copy of the foregoing response has been filed electronically with the Court and that the persons on the attached service list designated as "CM/ECF Registered" will be served with same by the Court's CM/ECF system; that a proposed Order has been e-mailed to the assigned Judge with copies to all persons on the attached service list designated as "CM/ECF Registered"; and that the other persons on the attached service list have been served with a copy of the Petition and proposed Order

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by first class mail this 18th day of January, 2006. s/Patrick M. Murphy Patrick M. Murphy

0835-008(48214)

Case 2:03-cv-01826-PGR

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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. August 11, 2005)

Lawrence J. Warfield International Funding 14555 North Scottsdale Road, #340 Scottsdale, AZ 85254 Receiver Patrick M. Murphy Guttilla & Murphy, PC 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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Filed 01/18/2006

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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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Document 111

Filed 01/18/2006

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