SEC v. Quest Energy Mgmt. Grp., No. 13-12778 (11th Cir. 2014)Annotate this Case
The SEC filed suit against Arthur Nadel and two of his investment companies for operating a Ponzi scheme. The district court appointed a receiver to take possession and control over Quest because the officers were funding the company with proceeds from a Ponzi scheme. The district court enjoined the current officers from taking any actions on behalf of Quest and vested the receiver with the authority to "[d]efend, compromise or settle legal actions, including the instant proceeding." The officers now appeal the appointment of the receiver. The court granted the receiver's motion to dismiss for lack of jurisdiction because the officers did not have standing to appeal in the name of Quest where the district court enjoined the officers from taking any action on behalf of Quest.