Opinion
2:22-cv-00612-CDS-EJY
08-23-2022
SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. MATTHEW WADE BEASLEY; BEASLEY LAW GROUP PC; JEFFREY J. JUDD; CHRISTOPHER R. HUMPHRIES; J&J CONSULTING SERVICES, INC., an Alaska Corporation; J&J CONSULTING SERVICES, INC., a Nevada Corporation; J AND J PURCHASING LLC; SHANE M. JAGER; JASON M. JONGEWARD; DENNY SEYBERT; ROLAND TANNER; LARRY JEFFERY; JASON A. JENNE; SETH JOHNSON; CHRISTOPHER M. MADSEN; RICHARD R. MADSEN; MARK A. MURPHY; CAMERON ROHNER; AND WARREN ROSEGREEN; Defendants; and THE JUDD IRREVOCABLE TRUST; PAJ CONSULTING INC; BJ HOLDINGS LLC; STIRLING CONSULTING, L.L.C.; CJ INVESTMENTS, LLC; JL2 INVESTMENTS, LLC; ROCKING HORSE PROPERTIES, LLC; TRIPLE THREAT BASKETBALL, LLC; ACAC LLC; ANTHONY MICHAEL ALBERTO, JR.; and MONTY CREW LLC; Relief Defendants.
TRACY S. COMBS (California Bar No. 298664) CASEY R. FRONK (Illinois Bar No. 6296535) U.S. SECURITIES AND EXCHANGE COMMISSION TRACY S. COMBS CASEY R. FRONK Attorneys for Petitioner U.S. Securities and Exchange Commission WILEY PETERSON Jonathan D. Blum, Esq. Nevada Bar No. 9515 PRYOR CASHMAN, LLP John Giardino, Esq., pro hac Attorneys for Defendant Christopher Madsen GREENBERG TRAURIG, LLP KARA B. HENDRICKS, Bar No. 07743 JASON K. HICKS, Bar No. 13149 KYLE A. EWING, Bar No. 014051 JARROD L. RICKARD, Bar No. 10203 KATIE L. CANNATA, Bar No. 14848 SEMENZA KIRCHER RICKARD DAVID R. ZARO* JOSHUA A. del CASTILLO* MATTHEW D. PHAM* *admitted pro hac vice ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP Attorneys for Receiver Geoff Winkler
TRACY S. COMBS (California Bar No. 298664)
CASEY R. FRONK (Illinois Bar No. 6296535)
U.S. SECURITIES AND EXCHANGE COMMISSION
TRACY S. COMBS CASEY R. FRONK Attorneys for Petitioner U.S. Securities and Exchange Commission
WILEY PETERSON
Jonathan D. Blum, Esq. Nevada Bar No. 9515
PRYOR CASHMAN, LLP
John Giardino, Esq., pro hac
Attorneys for Defendant Christopher Madsen
GREENBERG TRAURIG, LLP
KARA B. HENDRICKS, Bar No. 07743
JASON K. HICKS, Bar No. 13149
KYLE A. EWING, Bar No. 014051JARROD L. RICKARD, Bar No. 10203
KATIE L. CANNATA, Bar No. 14848
SEMENZA KIRCHER RICKARD
DAVID R. ZARO*
JOSHUA A. del CASTILLO*
MATTHEW D. PHAM* *admitted pro hac vice
ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP
Attorneys for Receiver Geoff Winkler
MAGISTRATE JUDGE: ELAYNA J. YOUCHAH
PLAINTIFF SECURITIES AND EXCHANGE COMMISSION'S, DEFENDANT CHRISTOPHER MADSEN'S, AND RECEIVER'S STIPULATION CONCERNING LIVING EXPENSES
CRISTINA D. SILVA UNITED STATES DISTRICT JUDGE
WHEREAS, on June 29, 2022, Plaintiff United States Securities and Exchange Commission (“SEC”, “Commission”, or “Plaintiff”) filed its Amended Complaint in this matter, alleging violations of the registration and/or antifraud provisions of the federal securities laws by Defendants, and the receipt of ill-gotten proceeds of such violations by Relief Defendants. (Dkt. No. 118.)
WHEREAS, on June 29, 2022, the Commission filed a Motion to Amend Preliminary Injunction Order to extend the existing preliminary injunctive relief and asset freeze to those defendants added in the Commission's Amended Complaint. (Dkt. No. 119.)
WHEREAS, on June 29, 2022, the Commission filed a Motion to Amend Receivership Order to extend the existing receivership order to include those defendants added in the Commission's Amended Complaint. (Dkt. No. 120.)
WHEREAS, on July 29, 2022, the Court issued its Order Amending Preliminary Injunction and Asset Freeze Order, which, inter alia, extended the asset freeze imposed by the Court on April 13, 2022 to those defendants added in the Commission's Amended Complaint. (Dkt. No. 206.) The Court's Order provided for “an allowance for necessary and reasonable living expenses to be granted only upon good cause shown by application to the Court with notice and an opportunity for the Commission to be heard.”
WHEREAS, on July 29, 2022, the Court issued its Order Amending Receivership Order, which, inter alia, extended the receivership previously imposed by the Court to the assets of those defendants added in the Commission's Amended Complaint. (Dkt. No. 207.)
WHEREAS, at the hearing before the Court on July 25, 2022, the Court directed the parties to discuss any exceptions to the asset freeze regarding living expenses and so as to ensure the scope of the preliminary injunction was tied to the underlying Ponzi scheme.
WHEREAS, on August 4, 2022 the Court entered an order further amending the Preliminary Injunction and Asset Freeze Order exempting certain assets of Defendant Christopher Madsen from the order. (Dkt. No. 229.)
WHEREAS, counsel to the Commission, Defendant Christopher Madsen, and the Receiver have reached the following agreement as to an allowance for living expenses, and jointly provide this proposed agreement for approval by the Court:
1. The Boulder Dam Credit Union account ending in 2001 (the “Boulder Dam Checking Account”) held in the name of Christopher Madsen shall be unfrozen to allow Defendant Christopher Madsen to pay living expenses and hold goingforward, earned income unconnected to the conduct alleged in the Complaint;
2. Defendant Madsen must provide to counsel to the Commission and to the Receiver, without further request or subpoena, the monthly account statements of the Boulder Dam Checking Account for review and inspection by no later than the 5th of each month this stipulation is in effect. The Boulder Dam Checking Account statements shall be provided to counsel to the Commission by email to Casey R. Fronk (fronkc@sec.gov) and Tracy S. Combs (combst@sec.gov); and to the Receiver by email to Kara Hendricks (hendricks@gtlaw.com) as counsel for the Receiver and to Geoff Winkler (geoff@americanfiduciaryservices.com).
IT IS SO ORDERED: