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 Ryan W. Anderson (No. 020974) 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. 25 PETITION FOR APPROVAL OF SETTLEMENT AGREEMENT WITH ANNETTE HOLT REGARDING 3750 EAST DOVER STREET, MESA, ARIZONA

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Lawrence J. Warfield, as the court appointed Receiver, respectfully petitions the 19 Court as follows: 20 1. 21 hereinafter (AReceivership Order@) which appointed Lawrence J. Warfield as Receiver of 22 23
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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

Ronald Stephen Holt, International Funding Association and the assets of certain Relief Defendants including Annette Holt (wife of Ron Holt) and the Dover Children's Trust. 2. During the initial stages of the Receivership, the Receiver identified a

single family residence located at 3750 East Dover Street, Mesa, Arizona, and more legally described as: Lot 210, CROSSPOINTE VILLAGE, according to Book 273 of Maps, Page 43, records of Maricopa County, Arizona, and Affidavit of Correction recorded in Document No. 844610 and Document No. 84503317. APN: 140-13-478 (hereinafter "Dover"). 3. Dover was alleged to be held in the name of the Dover Children's Trust

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which held legal title to real property that may have been purchased with International Funding investor funds. (See Complaint, SEC v. Ronald Holt et al, ¶15). The Receiver investigated to determine if the Property had been purchased by International Funding investor funds. 4. Annette Holt, through counsel, has presented to the Receiver various

records and sworn testimony that the funds used to purchase Dover were not International Funding Investor funds, but the proceeds from a life insurance policy which Annette Holt was the sole beneficiary. 5. The Receiver's independent investigation confirms that the source of the

funds used to purchase Dover can be traced back to the proceeds ($150,000.00) of a life insurance policy paid to Annette Holt upon the death of her previous husband James Buchanan. According to Annette Holt and confirmed by independant records, the proceeds of the life insurance policy were used to purchase a property located at 5323 Fellars Drive, Scottsdale Arizona (hereinafter "Fellars"). Fellars was purchased in 1982
Case 2:03-cv-01825-PGR Document 297 2 Filed 04/11/2006 Page 2 of 7

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

by a Annette Stetler and John Stetler, husband and wife1. On March 8, 1984, by quit claim deed, Fellars was transferred to Annette Stelter as her sole and separate property. In March of 1985, a Deed of Release and Full Reconveyance was issued by American Continental Mortgage Company, evidencing that after a payment of $107,400.00 Fellers was free of all mortgage liens. Essentially, in March of 1985 Fellars was owned free and clear of any encumbrances by Annette Stelter. 6. in 1989. 7. In April, 1999, Annette Holt executed a warranty deed transferring, Fellers, After the divorce of John Stelter, Annette Stetler and Ronald Holt married

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as her sole and separate property, to a Timothy and Cathy Kowal. A review of the escrow records from the sale of Fellars details that $135,000.00 of the proceeds from the sale of Fellars were made payable to the North American Title Company for the purchase of Dover. The check evidencing the proceeds used to purchase Dover identify that the funds are for the benefit of Annette Holt. Collectively, The Recevier's investigation, review of records and the testimony of Annette Holt establish that Dover was purchased with the the sole and separate property of Annette Holt. 8. While the proceeds which were used to purchase Dover were the sole and

separate property of Annette Holt, soon after its purchase, the property was titled in the name of the Receivership Defendant American Assets Limited, as Trustee of the Dover Children's Trust. 9. Annette Holt does not recall the execution of a deed transferring her

ownership of Dover to the American Asset Limited Trust. Annette Holt does not recall
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Annette Stelter will later become Annette Holt, by marriage to Ron Holt in 1989

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

the execution of a deed transferring her ownership of Dover to the Dover Children's Trust. Since both American Asset Limited Trust and the Dover Children's Trust are Relief Defendants under the control of this Court, pursuant to the Receivership Order, the Receiver has constructive possession and control of Dover. Annette Holt with the consent of the Receiver, currently resides at Dover. 10. However, through his investigation, the Receiver determined that

$20,000.00 of International Funding investor funds were used to maintain Dover and purchase furniture and fixtures located inside Dover. 11. Annette Holt has agreed to repay $20,000.00 to the Receiver to resolve all

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claims which may be brought against her by the Receiver for the return of investor funds. The Receiver has agreed to release Dover, and the furniture, personal property and fixtures therein, from the Receivership and transfer Dover by Special Warranty Deed to Annette Holt as her sole and separate property free and clear of any claims, liens or interests of any other person. The Receiver has also agreed to allow Annette Holt to refinance Dover, if necessary, in order for Annette Holt to obtain the $20,000 to repay the Receiver. 12. SEC and the CFTC have agreed to the relief requested herein. Since

Annette Holt is a Defendant in the action filed by the SEC, (Cause No. CV 03-1825 PHX PGR), the SEC has also indicated willingness to dismiss Annette Holt as a Relief Defendant and release all further claims it may with respect to Dover. WHEREFORE, the Receiver respectfully requests that the Court enter an order:

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

1. Receiver; 2. 3.

Approving the settlement agreement between Annette Holt and the

Releasing Dover from the International Funding Receivership; and Authorizing the Receiver to deed Dover to Annette Holt in accordance with

the settlement agreement; Respectfully submitted this 11th day of April, 2006. GUTTILLA & MURPHY, PC

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s/Ryan W. Anderson Ryan W. Anderson Attorneys for the Receiver

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0835-001(50045)

This is to certify that on the 11th day of April, 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 have been served with a copy of the foregoing document by first class mail this date.

s/Ryan W. Anderson Ryan W. Anderson

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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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