Opinion
2:22-cv-00612-CDS-EJY
01-23-2023
SECURITIES AND EXCHANGE COMMISSION, Plaintiff v. MATTHEW WADE BEASLEY; et al., Defendants THE JUDD IRREVOCABLE TRUST; et al., Relief Defendants
KARA B. HENDRICKS, Bar No. 07743 JASON K. HICKS, Bar No. 13149 KYLE A. EWING, Bar No 014051 GREENBERG TRAURIG, LLP JARROD L. RICKARD, Bar No. 10203 KATIE L. CANNATA, Bar No. 14848 SEMENZA KIRCHER RICKARD Attorneys f or Receiver Geoff Winkler DAVID R. ZARO* JOSHUA A. del CASTILLO* MATTHEW D. PHAM* *admitted pro hac vice ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP 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 SECURITIES & EXCHANGE COMMISSION TRACY S. COMBS, ESQ. (California Bar No. 298664) CASEY R. FRONK, ESQ. (Illinois Bar No. 6296535) CHRISTIANSEN TRIAL LAWYERS PETER S. CHRISTIANSEN, ESQ. #5254) KENDELEE L. WORKS, ESQ. (#9611) KEELY A. PERDUE, ESQ. (#13931) Attorneys for Christopher Humphries CHRISTOPHER HUMPHRIES, JESSICA HUMPHRIES, FOLEY & LARDNER LLP, PAMELA L. JOHNSTON, ESQ. Attorney for Jessica Humphries (Non- Appearing
KARA B. HENDRICKS, Bar No. 07743 JASON K. HICKS, Bar No. 13149 KYLE A. EWING, Bar No 014051 GREENBERG TRAURIG, LLP JARROD L. RICKARD, Bar No. 10203 KATIE L. CANNATA, Bar No. 14848 SEMENZA KIRCHER RICKARD Attorneys f or Receiver Geoff Winkler
DAVID R. ZARO* JOSHUA A. del CASTILLO* MATTHEW D. PHAM* *admitted pro hac vice ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP
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
SECURITIES & EXCHANGE COMMISSION TRACY S. COMBS, ESQ. (California Bar No. 298664) CASEY R. FRONK, ESQ. (Illinois Bar No. 6296535)
CHRISTIANSEN TRIAL LAWYERS PETER S. CHRISTIANSEN, ESQ. #5254) KENDELEE L. WORKS, ESQ. (#9611) KEELY A. PERDUE, ESQ. (#13931) Attorneys for Christopher Humphries
CHRISTOPHER HUMPHRIES, JESSICA HUMPHRIES, FOLEY & LARDNER LLP, PAMELA L. JOHNSTON, ESQ. Attorney for Jessica Humphries (Non- Appearing
STIPULATION AND ORDER AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 516 11th STREET HUNTINGTON BEACH CA WITH PROCEEDS FROM SALE TO BE TRANSFERRED FROM ESCROW DIRECTLY TO THE RECEIVER
Hon. Cristina D. Silva Judge, United States District Court
The following Stipulation and [Proposed] Order (the "Stipulation") regarding the sale of the real property located at 516 11th Street, Huntington Beach, CA 92648 and bearing the legal description appended hereto as Exhibit A (the "Property"), with proceeds from the sale to be transferred from escrow directly to Geoff Winkler (the "Receiver"), the Court-appointed receiver in the above-entitled action, is made by and between Geoff Winkler, in his capacity as Receiver in the above-entitled action and the plaintiff Securities and Exchange Commission (the "Commission"), on the one hand, and Christopher R Humphries and Jessica Humphries (“Seller”), on the other hand, and with respect to the following facts:
1. The Receiver was appointed on June 3, 2022 pursuant to this Court's Order Appointing Receiver [ECF No. 88] which was amended on July 28, 2022 [ECF 207] (collectively the "Appointment Order");
2. Among other things, the Appointment Order required the turnover of certain personal and real property to the Receiver, including the Property;
3. The proposed buyer for the Property is John Elias Haddad and Meredith Ann Carter (collectively "Buyer"). Buyer has agreed to purchase the Property for the sum of $2,600,000 in accordance with that certain California Residential Purchase Agreement and Joint Escrow Instructions dated November 14, 2022, as amended by Addendums 1-4 (the "PSA"). Per the PSA, the Buyer has deposited $78,000 into an escrow established at Escrow of the West (the" Escrow"), pursuant to that certain escrow agreement dated November 14, 2022, as an earnest money deposit;
4. The Buyer, Seller, and Receiver, have agreed that all proceeds of the foregoing sale shall be transmitted from the Escrow to the Receiver, via wire transfer, immediately upon the closing of the sale. It is anticipated that the sale will close within thirty (30) days of the Court's approval of this Stipulation. The Receiver and Seller, understand that Buyer's offer represents fair market value for the Property;
5. The Receiver is seeking to close the sale via this Stipulation in lieu of a receiver's auction process because recent changes and uncertainties in the real estate marketplace jeopardize the sale of the Property, and the recovery of the maximum sale proceeds for the benefit of the receivership estate in the immediate term. In most cases, transfers of title from the defendants in the above-entitled action to the Receiver would be necessary in order for the Receiver to conduct the auctions contemplated by 28 U.S.C. § 2001, and the sales procedures already approved by this Court (which include sale pursuant to stipulation, in certain circumstances). However, delays in connection with the closing of the sale that result from the auction process, and the time required by the title company to underwrite title policies, have created untenable delays that could result in the Buyer walking away from the sale;
6. The Receiver and his real estate broker believe that delays in the closing beyond the timing contemplated by the PSA will jeopardize the sale. As noted above, the market is deteriorating as a result of, among other things, the extraordinary rise in mortgage rates over the past six months. It is possible that if this sale does not close, the Property may remain on the market through the winter;
7. Seller has agreed that, after payment of closing costs and brokers' commissions, as reflected in the PSA, all sale proceeds from the sale of the Property shall be wired directly to the Receiver from Escrows, as provided above. It is estimated that the net proceeds of the sale, which will be wired from the Escrows to the Receiver, will be approximately $737,062.00;
8. Based upon the time that the Property has been on the market, the terms of the Buyer's offer, and anticipated market conditions for homes in this price range, the Receiver, Seller, and the Commission have agreed to the immediate sale of the Property to the Buyer, on the terms set forth in the PSA; and
9. Accordingly, in light of the unique facts and circumstances surrounding the proposed sale of the Property including but not limited to the limited market for an "as is" sale of real property, the all-cash terms of the sale, as well as the Receiver's concerns that failing to immediately move forward with this sale may lead to the receipt of significantly less recovery for the receivership estate, the undersigned parties believe this Stipulation is necessary, and in the best interest of all parties and the receivership estate. Therefore, the undersigned agree that it is appropriate to waive any requirements imposed by 28 U.S.C. § 2001, et. seq. to the extent they are applicable to the offer, the PSA, and the proposed sale.
ACCORDINGLY, IT IS HEREBY STIPULATED AND AGREED by and between the undersigned counsel that:
A. Seller may sell the Property pursuant to the terms of the PSA.
B. The deposit received by the Escrow pursuant to the PSA shall be immediately transferred to the Receiver; and
C. Upon the Closing of the sale of the Property pursuant to the PSA, all of the net sale proceeds shall be wired directly from the Escrow to the Receiver.
IT IS HEREBY ORDERED that:
A. Seller may sell the Property pursuant to the terms of the PSA.
B. The deposit received by the Escrow pursuant to the PSA shall be immediately transferred to the Receiver; and
C. Upon the Closing of the sale of the Property pursuant to the PSA, all of the net sale proceeds shall be wired directly from the Escrow to the Receiver.
EXHIBIT A
Legal Description
EXHIBIT "A"
LEGAL DESCRIPTION
Order No.: 1885526
Escrow No.: 1885526
The land referred to herein is situated in the State of California, County of Orange, City of Huntington
Beach and described as follows:
Lot 16 of Block 510 Main Street Section of Huntington Beach, in the City of Huntington Beach, County of Orange, State of California, as per Map recorded in Book 3, Page 43 of Miscellaneous Maps, in the Office of the County Recorder of said Orange County.
APN: 024-101-34
(End of Legal Description)