Sec. & Exch. Comm’n v. Gina Champion-Cain

Full title: SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. GINA CHAMPION-CAIN AND…

Court: UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

Case No.: 3:19-cv-1628-LAB-AHG

Date published: Nov 24, 2020

Fact:

  • The Securities and Exchange Commission (SEC) brought an action against Defendants ANI Development, LLC, Gina Champion-Cain, and Relief Defendant American National Investments, Inc., alleging violations of federal securities laws related to a fraudulent liquor license loan scheme.
  • The Court established an equitable receivership, appointing Krista L. Freitag as the receiver of ANI Development and ANI Inc., granting her control over their funds and assets for the benefit of creditors.
  • The Receiver filed a Motion for Approval of Sale of 812 San Rafael Place Property concerning a single-family residence in San Diego, California, known as the San Rafael Property.

Issue:

ORDERED as follows:

(1) The sale of the single-family residence located at 812 San Rafael Place in the Mission Beach neighborhood of San Diego, California, as described in Exhibit A to the Receiver’s Notice of Results (ECF No. 505), by Krista L. Freitag, as receiver, to Carmel Creek LLC is confirmed and approved;

(2) The purchase price of $1,622,000, to be paid by Winning Bidder for the San Rafael Property, is confirmed and approved;

(3) If and only if Winning Bidder does not close the sale for any reason , the sale of the real property located at 812 San Rafael Place in the Mission Beach neighborhood of San Diego, California, as described in Exhibit B to the Receiver’s Notice of Results (ECF No. 505), by Krista L. Freitag, as receiver, to Ahmed and Michele Kira, at a purchase price of $1,621,000, is confirmed and approved; /// /// 

(4) The Receiver is authorized to pay broker Pacific Pines Real Estate a commission of $51,125 ($39,125 of which will be paid to Winning Bidder’s broker, or Backup Bidders’ broker, if applicable), as provided for in their separate listing agreement;

If Receiver and/or Broker and the broker for Winning Bidder negotiated different terms at the winning bid price, or if the sale closes with Backup Bidders and their agent negotiated different terms with Broker and/or the Receiver, the Court authorizes the Receiver to pay Broker the amount separately agreed upon. Under the Court’s Uniform Property Sale Procedures, the Receiver may, but is not required to, seek authority to pay the real estate broker’s commission from the sale proceeds. ECF No. 219 at 8. Thus, the Receiver already has authority to pay reasonable brokerage commissions and need not separately request modifications to the same.

(5) The Receiver is authorized to pay the property taxes due from the seller at closing, which amount is estimated to zero (with the exact amount to be determined at closing);

(6) The Receiver is authorized to pay the costs of sale, including title, escrow, and recording costs, due from the seller at closing, which amount is estimated to be $8,110 (with the exact amount to be determined at closing);

(7) After the aforementioned estimated amounts are paid out of escrow, the net sale proceeds, which are anticipated to be in the range of $1,561,000 to $1,563,000 (with the exact amount to be determined at closing), shall be paid to the receivership estate; and

Because the Court understands that numerous contingencies (e.g., whether the sale closes with Winning Bidder or Backup Bidders, the amount of property taxes owed, etc.) may affect the net sale proceeds of this particular sale, the Court approves the distribution of the net sale proceeds to the receivership estate even if the final amount is outside of this range.

(8) The Receiver is immediately authorized to complete the sale transaction, including executing any and all documents as may be necessary and appropriate to do so.

(9) If the sale of the San Rafael Property ultimately closes with Backup Bidders, the Receiver is authorized to complete the sale transaction with Backup Bidders, including executing any and all documents as may be necessary and appropriate to do so. 

(10) After closing, the Receiver shall provide a full accounting of sale costs, property taxes paid, and the amount ultimately returned to the receivership estate from the sale proceeds.

IT IS SO ORDERED.

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