Securities and Exchange Commission v. Beasley et al, No. 2:2022cv00612 - Document 448 (D. Nev. 2023)
Court Description: ORDER Granting 446 Stipulation Authorizing the Sale of Real Property at 2143 Via Regina Coeli Street, Las Vegas, Nevada. Signed by Judge Cristina D. Silva on 1/30/2023. (Copies have been distributed pursuant to the NEF - TRW)
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Securities and Exchange Commission v. Beasley et al Doc. 448 Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 1 of 7 1 Jarrod L. Rickard, Bar No. 10203 jlr@skrlawyers.com Katie L. Cannata, Bar No. 14848 2 klc@skrlawyers.com 3 SEMENZA KIRCHER RICKARD 10161 Park Run Drive, Suite 150 4 Las Vegas, Nevada 89145 Telephone: (702) 835-6803 5 Facsimile: (702) 920-8669 6 David R. Zaro (admitted pro hac vice) dzaro@allenmatkins.com Joshua A. del Castillo (admitted pro hac vice) 7 jdelcastillo@allenmatkins.com 8 Matthew D. Pham (admitted pro hac vice) mpham@allenmatkins.com ALLEN MATKINS LECK GAMBLE 9 MALLORY & NATSIS LLP 10 865 South Figueroa Street, Suite 2800 Los Angeles, California 90017-2543 11 Telephone: (213) 622-5555 Facsimile: (213) 620-8816 12 Attorneys for Receiver Geoff Winkler 13 Kara B. Hendricks, Bar No. 07743 hendricksk@gtlaw.com Jason K. Hicks, Bar No. 13149 hicksja@gtlaw.com Kyle A. Ewing, Bar No. 014051 ewingk@gtlaw.com GREENBERG TRAURIG, LLP 10845 Griffith Peak Drive, Suite 600 Las Vegas, Nevada 89135 Telephone: (702) 792-3773 Facsimile: (702) 792-9002 14 UNITED STATES DISTRICT COURT 15 DISTRICT OF NEVADA 16 17 SECURITIES AND EXCHANGE COMMISSION, 18 Plaintiff 19 vs. 20 MATTHEW WADE BEASLEY, et al., 21 Defendants 22 THE JUDD IRREVOCABLE TRUST, et al., 23 Relief Defendants 24 25 Case No. 2:22-cv-00612-CDS-EJY STIPULATION AND ORDER AUTHORIZING THE SALE OF REAL PROPERTY AT 2143 VIA REGINA COELI STREET, LAS VEGAS, NEVADA The following Stipulation and [Proposed] Order (the "Stipulation") regarding the sale of the 26 real property located at 2143 Via Regina Coeli St., Las Vegas, Nevada and bearing the legal 27 description appended hereto as Exhibit A (the “Regina Property”), is entered into by and between 28 Geoff Winkler (the “Receiver”), the Court-appointed receiver in the above-entitled action, and the LAW OFFICES Allen Matkins Leck Gamble Mallory & Natsis LLP Dockets.Justia.com Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 2 of 7 1 plaintiff Securities and Exchange Commission (the "Commission"), by and through their respective 2 representatives, and with respect to the following facts: 3 1. The Receiver was appointed on June 3, 2022 pursuant to this Court’s Order 4 Appointing Receiver [ECF No. 88] which was amended on July 28, 2022 [ECF 207] (collectively 5 the “Appointment Order”). Pursuant to the Appointment Order, the Receiver was appointed as the 6 federal equity receiver for, among other entities, J&J Consulting Services, Inc., a Nevada 7 corporation (“Seller”); 8 2. The Appointment Order required the turnover of certain personal and real property 9 to the Receiver, including but not limited to the Regina Property (the “Regina Property”.) The 10 Regina Property was transferred to Seller in accordance with the Appointment Order. 11 3. The proposed buyers for the Regina Property, Howard N. Herndon and Dawna T. 12 Herndon (collectively, “Buyer”), have agreed to purchase the Regina Property for the sum of 13 $430,000 in accordance with the Residential Purchase Agreement dated November 2, 2022 (the 14 “RPA”). The Buyer has deposited $9,000 into an escrow established at First American Title (the 15 “Escrow”), pursuant to that escrow agreement dated 10/25/22, as an earnest money deposit. The 16 proceeds of the sale shall be transmitted from Escrow to the Receiver, via wire transfer, immediately 17 upon the closing of the sale. It is anticipated that the sale will close within 30 days of the District 18 Court's approval of this Stipulation. The Receiver believes that the offer represents fair market 19 value for the Regina Property. 20 4. The Receiver is seeking to close the sale via this Stipulation in lieu of a receiver’s 21 auction process because of unanticipated delays in the transfer of title to the Seller and a dispute 22 with the Clark County Recorder’s office over transfer taxes, both of which put the sale of the Regina 23 Property, and the recovery of the sales proceeds for the benefit of the receivership estate, at risk in 24 the immediate term. The transfers of title from the defendants to the Receiver are necessary in order 25 for the Receiver to conduct the auctions contemplated by 28 U.S.C.§ 2001, and the sales procedures 26 already approved by this Court (which include sale pursuant to stipulation, in certain circumstances). 27 However, the title company needs to underwrite title policies for the transfers to the Buyer in order 28 to issue policies and this is taking time given the overall title company concerns with receivers and LAW OFFICES Allen Matkins Leck Gamble Mallory & Natsis LLP -2- Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 3 of 7 1 receivership matters. The timing of the foregoing matters could result in the loss of the sale of the 2 Regina Property, and several other of the properties, and therefore potentially reduced returns to the 3 receivership estate. 4 5. The Regina Property has been listed for sale since 10/7/22 and Buyer’s offer is the 5 only all-cash offer received by the Seller, despite a price reduction. The Regina Property was 6 initially listed for $450,000. No offers were received at this price. Buyer’s offer reflects the recent 7 deterioration of the housing market in Clark County, the rise in mortgage interest rates, and the 8 overall expectation that homes in this price range will be subject to material negotiations over the 9 listed price. 10 6. The Seller and the real estate broker further believe that delays in the closing beyond 11 the timing contemplated by the RPA will jeopardize the sale. As noted above, the market is 12 deteriorating as a result of the extraordinary rise in mortgage rates over the past six months. It is 13 possible that if this sale does not close, the Regina Property may remain on the market through the 14 winter. 15 7. After payment of closing costs and brokers' commissions, as specifically reflected in 16 the RPA, all sale proceeds from the sale of the Regina Property shall be wired directly to the Seller 17 from Escrow, as provided for in Paragraph 3, above. It is estimated that the net proceeds of the sale, 18 which will be wired from the Escrow to the Seller, will be approximately $405,624.04. 19 8. Based upon the time that the has been on the market, the terms of the Buyer's offer, 20 and anticipated market conditions for homes in this price range, the Receiver, and the Commission 21 have agreed to the immediate sale of the Regina Property to the Buyer, on the terms set forth in the 22 RPA. 23 9. Accordingly, in light of the unique facts and circumstances surrounding the proposed 24 sale of the Regina Property including but not limited to the limited market for an “as-is” sale of real 25 property, the all-cash terms of the sale, as well as the Receiver's concerns that failing to immediately 26 move forward with this sale may lead to the receipt of significantly less recovery for the receivership 27 estate, the undersigned parties believe this Stipulation is necessary, and in the best interest of all 28 parties and the receivership estate. Therefore, the undersigned agree that it is appropriate to waive LAW OFFICES Allen Matkins Leck Gamble Mallory & Natsis LLP -3- Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 4 of 7 1 any requirements imposed by 28 U.S.C. § 2001, et. seq. to the extent they are applicable to the offer, 2 the RPA and the proposed sale. ACCORDINGLY, IT IS HEREBY STIPULATED AND AGREED by and between the 3 4 undersigned counsel that: 5 A. Seller may sell the Regina Property pursuant to the offer reflected in the RPA; 6 B. The deposit received relating to the RPA shall be immediately delivered to the Seller; C. Following the District Court's approval of this Stipulation, on the Closing Date 7 and 8 9 reflected in the RPA, that the net proceeds of the sale shall be wired directly from Escrow to the 10 Seller. 11 DATED this 27th day of January, 2023 DATED this 27th day of January, 2023 12 GREENBERG TRAURIG, LLP SECURITIES & EXCHANGE COMMISSION 13 By: /s/ Kara B. Hendricks KARA B. HENDRICKS (SBN 07743) 15 JASON K. HICKS (SBN 13149) KYLE A. EWING (SBN 14051) 16 JARROD L. RICKARD (SBN 10203) 17 KATIE L. CANNATA (SBN 14848) SEMENZA KIRCHER RICKARD 18 10161 Park Run Drive, Suite 150 19 Las Vegas, Nevada 89145 Telephone: (702) 835-6803 20 Facsimile: (702) 920-8669 By: 14 21 22 23 24 25 26 27 /s/ Casey R. Fronk TRACY S. COMBS, ESQ. (California Bar No. 298664) CASEY R. FRONK, ESQ. (Illinois Bar No. 6296535) 351 South West Temple, Suite 6 100 Salt Lake City, Utah 84101 Telephone: (810) 524-5796 Facsimile: (810) 524-3558 DAVID R. ZARO* JOSHUA A. del CASTILLO* MATTHEW D. PHAM* *admitted pro hac vice ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP 865 South Figueroa Street, Suite 2800 Los Angeles, California 90017-2543 Telephone: (213) 622-5555 Facsimile: (213) 620-8816 Attorneys for Receiver Geoff Winkler 28 LAW OFFICES Allen Matkins Leck Gamble Mallory & Natsis LLP -4- Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 5 of 7 ORDER 1 2 IT IS HEREBY ORDERED that: 3 A. Seller may sell the Regina Property pursuant to the terms of the RPA. 4 B. The deposit received by Escrow pursuant to the RPA shall be immediately 5 transferred to the Seller; and 6 C. Upon the Closing of the sale of the Regina Property pursuant to the RPA, the net 7 proceeds shall be wired directly from Escrow to the Seller. 8 IT IS SO ORDERED. 9 10 Dated: 11 January 30, 2023 HON. CRISTINA D. SILVA Judge, United States District Court 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 LAW OFFICES Allen Matkins Leck Gamble Mallory & Natsis LLP -5- Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 6 of 7 Case 2:22-cv-00612-CDS-EJY Document 448 Filed 01/30/23 Page 7 of 7 LEGAL DESCRIPTION The Land referred to herein below is situated in the County of Clark, State of Nevada, and is described as follows: LOT FOUR (4) IN BLOCK FIVE (5) OF CAMP LADY OF THE SNOWS SUBDIVISION AS SHOWN BY MAP THEREOF ON FILE IN BOOK 5, OF PLATS, PAGE 45, IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA ACTIVE 684921297v1
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