Free Response - District Court of Arizona - Arizona

1 2 3 4 5 6 7 8
Guttilla Murphy Anderson, P.C.

Guttilla Murphy Anderson, P.C.
Ariz. Firm No. 00133300

Patrick M. Murphy (Ariz. No. 002964)
4150 West Northern Avenue Phoenix, Arizona 85051 Email: [email protected] Phone: (623) 937-2795 Fax: (623) 937-6897

Attorneys for the Receiver

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA Securities and Exchange Commission, Plaintiff, vs. U.S. Reservation Bank & Trust; Higher Investments Technologies, Inc.; GlobalLink Capital Markets, Ltd.; Edward J. Driving Hawk, Sr.; Leo R. Driving Hawk, Sr.; John M. Adams; Edmund J. Smedley; Kenneth S. Harrison; William J. Herisko; and Thomas T. Emerton, III; Defendants, and Oyate Development, Inc.; Oyate Enterprises, LLP; Oyate Trust; River Walk Development, LLC; HPHC, Inc.; Ringthunder Racing Stables, Inc.; James R. Driving Hawk; and Orpha Jane Johnston; Defendants Solely for Purposes of Equitable Relief. ) ) Cause No. CIV 02-0581 PHX EHC ) ) ) RESPONSE TO OBJECTIONS TO ) PETITION NO. 98 FILED BY GEORGE ) CARNIE ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

9
4150 West Northern Ave. Phoenix, Arizona 85051 (623) 937-2795

10 11 12 13 14 15 16 17 18 19 20 21 22 23

The Receiver hereby responds to the Objection to Petition No. 98 filed by George Carnie (Doc. # 687) ("Carnie Objection"). The Carnie Objection is nothing more than a request for additional time to prepare and file an objection to the Receiver's recommendation in Petition No. 98 that the two
Case 2:02-cv-00581-EHC Document 690 Filed 08/23/2007 Page 1 of 5

1 2 3 4 5 6 7 8
Guttilla Murphy Anderson, P.C.

claims filed by Mr. Carnie be denied. Mr. Carnie has not objected to the other recommendations of the Receiver contained in Petition No. 98. With respect to Mr. Carnie's objection to Petition No. 98, he has provided no new evidence or arguments but simply asks for four more weeks to provide such evidence. Mr. Carnie, however, has had since February 6, 2004, when he was first notified of the claims process, to provide bank records or other documents to support his claimed ownership of funds transferred to USRBT and HITI. A detailed discussion of the defects in Mr. Carnie's claim is contained in paragraphs 18 through 27 of the Receiver's Petition No. 98 (Dock. #685). Mr. Carnie does not identify in his objection any specific facts that he believes are in dispute that might warrant a hearing but simply states that "I . . . object to the accuracy and truth to any allegations of Petition No. 98 concerning my involvement with any of the named Defendants . . ." Such a blanket and unsupported objection should not be sufficient to prolong the matter further. Only the Interinvest Investors and Carnie have filed objections to Petition No. 98. The Receiver is currently engaged in discussions with the Interinvest Investors in an attempt to resolve or narrow the disputed issues and on this date a stipulation was filed to extend the Receiver's time for responding to the objections filed by the Interinvest Investors. Since the Carnie objection is meritless and no other objections have been filed, it is appropriate at this time for the Court to enter an order finally resolving all remaining claims except for the claims of the Interinvest Investors. Accordingly, the Receiver has filed with this response a revised form of order which reserves final action on the claims of the Interinvest Investors and resolves all

9
4150 West Northern Ave. Phoenix, Arizona 85051 (623) 937-2795

10 11 12 13 14 15 16 17 18 19 20 21 22 23

Case 2:02-cv-00581-EHC

Document 690 2 Filed 08/23/2007

Page 2 of 5

1 2 3 4 5 6 7 8
Guttilla Murphy Anderson, P.C.

other pending claims as recommended by the Receiver in his Petition No. 98, including the denial of the claims filed by George Carnie. Respectfully submitted this 23rd day of August, 2007. GUTTILLA & MURPHY, PC

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

9
4150 West Northern Ave. Phoenix, Arizona 85051 (623) 937-2795

PROOF OF SERVICE This is to certify that on this 23rd day of August, 2007, I served a copy of the foregoing document by first class mail upon: George Carnie 1317 Hundred Acre Wood Way Kettle Falls, WA 99141 I additionally certify that 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. s/Patrick M. Murphy Patrick M. Murphy
0776-001(65595)

10 11 12 13 14 15 16 17 18 19 20 21 22 23

Case 2:02-cv-00581-EHC

Document 690 3 Filed 08/23/2007

Page 3 of 5

MASTER SERVICE LIST
SEC v. U.S. Reservation Bank & Trust, et al. United States District Court for the District of Arizona Phoenix CIV 02-0581 PHX EHC
(Rev. April 9, 2007 )

Lawrence J. Warfield 14555 N. Scottsdale Road, #340 Scottsdale, AZ 85254 Receiver Patrick M. Murphy Guttilla Murphy Anderson, PC 4150 West Northern Avenue Phoenix, Arizona 85051 Registered CM/ECF: [email protected] Counsel for Receiver Marshall Gandy Securities & Exchange Commission 801 Cherry Street, Suite 1900 Fort Worth, Texas 76102 Registered CM/ECF: [email protected] Counsel for the Plaintiff Leo Driving Hawk, Sr. 4575 East Campbell Court Higley, Arizona 85236 Defendant James R. Driving Hawk 1867 East Browning Place Chandler, Arizona 85249 Relief Defendant

Orpha Jane Johnston 4906 Overlook Drive Harrison, Ohio 45030 Relief Defendant Edmund J. Smedley 4906 Overlook Drive Harrison, Ohio 45030 Defendant Ron Brewer 127 Fred Road Lake Charles, Louisiana 70615 Attorney for Y2K Millenium, LLC. Edward Driving Hawk, Sr., and Oyate Enterprises, LLP Ringthunder Racing Stables, Inc. Oyate Trust River Walk Development, LLC U.S. Reservation Bank & Trust % Edward Driving Hawk, Sr. 2221 East Indian Wells Drive Chandler, Arizona 85249 Relief Defendants Oyate Development, Inc. % Leo R. Driving Hawk, Sr. 4575 East Campbell Court Higley, Arizona 85236 Relief Defendant

Case 2:02-cv-00581-EHC

Document 690

Filed 08/23/2007

Page 4 of 5

Ronald J. Herisko P.O. Box 2830 Palm Springs, California 92263 Attorney for Defendants Global-Link, William J. Herisko and Thomas T. Emerton Rex Reese Attorney At Law 1645 International Drive, Suite 9 Mclean, Virginia 22102 Registered CM/ECF: [email protected] Attorney for Defendants Higher Investments Technologies, Inc. and John M. Adams and Relief Defendant HPHC, Inc. Joseph Lee Matalon 450 Seventh Avenue, Suite 1409 New York, New York 10123 Attorney for Ann Palmer Charles J. Crozier P.O. Box 15322 Austin, Texas 78761-5322 Attorney for Defendant Kenneth S. Harrison Douglas C. Erickson Maynard Cronin Erickson Curran & Sparks, P.L.C. 1800 Great American Tower 3200 North Central Avenue Phoenix, Arizona 85012 Registered CM/ECF: [email protected] Attorneys for the Estate of Amanda Beck Elden Sorenson P.O. Box 265 Cheney, Washington 99004 Claimant

Gina M. Hattenbach, Esq. HATTENBACH LAW GROUP 2029 Century Park East, Ste 900 Los Angeles, CA 90067
0776-001 (12351)

Case 2:02-cv-00581-EHC

Document 690

Filed 08/23/2007

Page 5 of 5