Free Motion for Miscellaneous Relief - District Court of Arizona - Arizona

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

Guttilla & Murphy, PC
Firm No. 00133300 Patrick M. Murphy (No. 002964) 4150 West Northern Ave. Phoenix, Arizona 85051 (623) 937-2795 [email protected]

Attorneys for the Receiver IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA Securities and Exchange Commission, Plaintiff, vs. Ronald Stephen Holt; and International Funding Association, Defendants, and Annette Holt; American Assets Limited Trust; Leonora Street Trust; Dover Childrens Trust; Clarendon Avenue Holding Trust; Dublin Holding Trust; Jeffery Williams (aka Jeffrey Williams); Mari Ann Alston; Pacific Central Asset Management; and American Benefit Card Services, Inc. Defendants Solely for Purposes of Equitable Relief. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Cause No. CV 03-1825 PHX PGR PETITION NO. 24 PETITION FOR INSTRUCTIONS REGARDING PROPERTY LOCATED AT 10620 NORTH 84TH STREET, SCOTTSDALE, ARIZONA

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Lawrence J. Warfield, as the court appointed Receiver, respectfully petitions the Court 19 as follows: 20 1. 21 which appointed Lawrence J. Warfield as Receiver of Ronald Stephen Holt, International
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On September 18, 2003, this Court entered its Order Appointing Receiver,

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

Funding Association and the Relief Defendants ("Receivership Order"). The Receivership Order asserted exclusive jurisdiction over and vested custody and control with the Receiver of all of the assets of the Defendants and Relief Defendants, including American Assets Limited Trust. American Assets Limited Trust was placed in receivership because it served as the trustee of various trusts that held properties acquired with investor funds, including the Leonora Street Trust and the Dover Childrens Trust. 2. The Receiver has identified a single family residence that is a Receivership

Asset. The property is located at 10620 North 84th Street, Scottsdale, Arizona (hereinafter the "84th Street Property") and is legally described as follows: Lot 6, Sundown Ranch Acres, according to Book 74 of Maps, page 39, records of Maricopa County, Arizona. 3. Title to the 84th Street Property was acquired in the name of American Assets

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Limited, as Trustee for the East Maricopa Holding Trust dated September 9, 1999 by 13 Warranty Deed dated April 20, 2001 (Exhibit "A"). In an attempt to comply with the 14 disclosure requirements of A.R.S. § 33-404, the Warranty Deed states that the beneficiary of 15 the East Maricopa Holding Trust is American Asset Limited. If the Warranty Deed is 16 accurate, American Assets Limited would hold both legal and equitable title to the 84th Street 17 Property. 18 4. 19 receivership entity, the Receiver recorded a Notice of Lis Pendens on the 84th Street Property 20 to provide notice to all concerned that the assets of American Assets Trust Limited had been 21 placed in receivership. 2
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Upon discovering that the 84th Street Property had been titled in the name of a

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

5.

Subsequently, the Receiver was contacted by Barry Jordan who claimed to be

the occupant and beneficial owner of the 84th Street Property. At the Receiver's request, Mr. Jordan produced bank records that show that the funds from a bank account titled in the name of Barry Jordan were used to make the initial down payment on the purchase of the 84th Street Property. The balance of the purchase price was paid by Mr. Jordan agreeing to a wrap loan to the sellers, Samuel Richardson and Shari McMahan Richardson ("Sellers"), under which Jordan agreed to pay the Sellers' monthly payment on their first mortgage. The Sellers have confirmed this arrangement and have informed the Receiver that Jordan has defaulted on his agreement to make a balloon payment in 2006 on the wrap loan. 6. Mr Jordan has produced a copy of a trust agreement purporting to create the

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East Maricopa Holding Trust (Exhibit "B"). The Trust purports to be created by an Enrique Almodovar and is signed on behalf of the trustee, American Assets Limited Trust, by Jeffery Williams. The signatures are notarized by Robert Stanford. Stanford is a defendant in the action brought by the Securities and Exchange Commission and Jeffrey Williams is believed to be a fictitious name used by Stanford on numerous documents in this case. Mr. Jordan testified that the purpose of creating the East Maricopa Holding Trust was to "hold property and for ­ you know, in case of a lawsuit or whatever; just for protection, basically." 7. The East Maricopa Holding Trust agreement states that the beneficiary of the

trust is the Roger Mills Trust. Mr. Jordan has produced a photocopy of the last page of what he claims is the Roger Mills Trust agreement but this page does not disclose the name of the beneficiary of the Trust. This signature page is signed by Jeffery Williams as the purported 3
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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

trust officer of the trustee. Williams is a fictitious name used by Robert Stanford, a defendant in this action. Jordan states that he is unable to locate the other pages of the trust agreement that would identify the beneficiary of that trust (Exhibit "C"). Jordan has testified, however, that the beneficiaries of the Roger Mills Trust are his children, his two boys, and that he gave them that interest as a gift. See paragraph 10 below for a discussion of Mr. Jordan's two children. 8. Michael Bloomquist has testified under oath that beginning in the 1990's he

worked for a company called Crown Enterprises ("Crown"), which was in the business of creating trusts for the public using American Assets Limited Trust as the trustee of the trusts. Bloomquist further testified that Crown was run by Douglas Carpa and Robert Stanford. Stanford is a defendant in the action here brought by the Securities and Exchange Commission and he is Bloomquist's stepfather. Bloomquist further testified that although he does not remember the above transaction involving the 84th Street Property, his review of the Warranty Deed, Exhibit "A", and the trust agreements, indicates to him that it was the typical trust arrangement that Crown created for its clients. Mr. Bloomquist's testimony lacks credibility in light of his 2003 conviction of conspiracy to defraud the United States by unlawfully obstructing the Internal Revenue Service. 9. The Receiver, in the course of his investigation, has not seen evidence of IFA

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Investor Funds being used for the acquisition or maintenance of the 84th Street Property. 10. In investigating this matter the Receiver discovered that during the period of

time that the 84th Street Property was acquired, Mr. Jordan was in litigation with his former 4
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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

spouse, Noily Maria Cope, in the Arizona Superior Court for Maricopa County, DR1992004657, for his failure to pay child support for his two male children, BTJ born in 1988 and GAJ born in 19901. Mrs. Cope has advised the Receiver that during 2000 and later Mr. Jordan failed to pay court ordered child support payments (See Exhibit "D") and presently owes more than $30,000 in such payments. Mrs. Cope further advised the Receiver that she has been awarded full custody of BTJ and GAJ. 11. The Receiver also discovered that in 1997 Maureen Gaughan as the Chapter 7

bankruptcy trustee for Charles Thomas Brown sued Barry Jordan and others for their involvement in a fraud. (Exhibit "E"). On June 4, 2001, the Honorable George Nielson entered in that case an Amended Default Judgment against Barry Jordan for $13,433,770.41 (Exhibit "F"). 12. It appears that if it is true that Jordan acquired the 84th Street Property, he

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caused title to be placed in a series of trusts which did not contain his name in an effort to hide his interest in that property from the Maricopa County Superior Court and his former spouse, from Maureen Gaughan, and from Jordan's other creditors. 13. The Receiver intends to give notice of this petition to Barry Jordan, Noily

Maria Cope, Barry Jordan's children BTJ and GAJ, and Maureen Gaughan, in addition to those persons on the Master Service List.

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In accordance with the CM/ECF Administrative Policies and Procedures Manual adopted by the Clerk of the Court in accordance with the local rules, the names of the children and their respective dates of birth have been replaced by their respective initials and years of birth.

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

WHEREFORE, the Receiver respectfully requests: 1. That the Court enter an order authorizing the Receiver to secure and prepare the

Property for sale, and market and sell the Property in accordance with the procedures set forth in this Court's Order Approving Procedures for the Sale of Real Property Re: Petition No. 10 (Dock. # 184) and apply the sale proceeds to pay (a) the existing encumbrances, including any secured obligations to the Sellers, (b) all costs of the sale and associated with this petition incurred by the Receiver, (3) the amount of court ordered child support payments due and owing by Barry Jordan, and (4) the remaining balance to an appropriate person to hold in trust for the benefit of the children of Barry Jordan, BTJ and GAJ. 2. Alternatively, that the Court enter an order declaring that the 84th Street

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Property is a Receivership Asset free and clear of any interest claimed by Barry Jordan, the East Maricopa Holding Trust, the Roger Mills Trust, Noily Maria Cope, or Maureen Gaughan, and authorize the Receiver to secure the property and market and sell the property and apply the proceeds to the existing encumbrances, including any secured obligations to the Sellers, with the balance paid to the Receivership estate. Respectfully submitted this 6th day of September, 2006. GUTTILLA & MURPHY, PC

s/Patrick M. Murphy Patrick M. Murphy Attorneys for the Receiver

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Guttilla & Murphy, PC
4150 West Northern Ave Phoenix, Arizona 85051 (623) 937-2795

PROOF OF SERVICE This is to certify that on this 6th day of September, 2006, I electronically transmitted the foregoing document to the Clerk's Office using the CM/ECF System for filing and transmittal of a Notice of Electronic Filing to the CM/ECF registrants on the attached Master Service List; and that the persons on the attached Master Service List who are not registered participants of the CM/ECF System and the additional persons listed below, have been served with a copy of the foregoing document by first class mail this date. Noily Cope 5128 E. Whitton Avenue Phoenix, AZ 85018 John Fries Ryley Carlock & Applewhite, P.A. 101 N. First Avenue Suite 2700 Phoenix, Arizona 85003 Attorney for Maureen Gaughan Barry T. Jordan 10620 N. 84th Street Scottsdale, AZ 86260

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0835-001(49939)

s/Patrick M. Murphy Patrick M. Murphy

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MASTER SERVICE LIST
SEC v. Ronald Stephen Holt, et al. United States District Court for the District of Arizona CV 03-1825 PHX FJM
(Rev. August 11, 2005)

Lawrence J. Warfield International Funding 14555 North Scottsdale Road, #340 Scottsdale, AZ 85254 Receiver Patrick M. Murphy Guttilla & Murphy, PC 4150 West Northern Avenue Phoenix, Arizona 85051 Registered CM/ECF: [email protected] Counsel for Receiver Marshall M. Gandy Securities and Exchange Commission 801 Cherry Street, Suite 1900 Fort Worth, TX 76102 Registered CM/ECF: [email protected] Counsel for SEC Merwin D. Grant Grant & Vaughn, P.C. 6225 North 24th Street Suite 125 Phoenix, Arizona 85016 Registered CM/ECF: [email protected] Attorney for Relief Defendant Annette Holt

Ronald Stephen Holt and International Funding Association, Leonora Street Trust, Dover Children's Trust, Clarendon Avenue Holding Trust Dublin Holding Trust, Pacific Central Asset Management, American Benefit Card Services, Inc. Ronald Stephen Holt Central Arizona Detention Center Detainee Ronald Holt 82642008 1155 N. Pinal Parkway Florence, Arizona 85232 Robert L. Stanford Jeffery Williams aka Jeffrey Williams 8415 W. Alex Avenue Peoria, Arizona 85382. Relief Defendant American Assets Limited Trust c/o Registered Agent Michael Bloomquist 4410 W. Union Hills #7-233 Glendale, Arizona 85308 Relief Defendant Mari Ann Alston 305 Nordina Street Redlands, California 92373 Relief Defendant

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James Vaughn 100 South Antietam Place Tucson, Arizona 85710 Suzanne Ingold Burch & Cracchiolo, P.A. 702 E. Osborn Rd. #200 P.O. Box 16882 Phoenix, Arizona 85014-5281 Timothy J. Mulreany Commodity Futures Trading Commission Division of Enforcement 1155 21st Street, N.W. Washington, D.C. 20581 Thomas M. Connelly 2425 East Camelback Rd. Suite 880 Phoenix, Arizona 85016-4208 Michael S. Reeves Attorney at Law 1212 E. Osborn Phoenix, AZ 85014-5533 Registered CM/ECF: [email protected] Attorney for Defendant Ronald S. Holt

0835-001(19488)

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