Free Response to Motion - District Court of Arizona - Arizona

Guttilla & Murphy, PC
Firm No. 00133300 Patrick M . M urphy (No. 002964) 4150 W est 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 Investors in IFA, an unincorporated association, by and through its elected representatives, Charles Kingston, James Vaugh, Deborah Wolf, Kimberly Phillips, John Yoder, Janice Gough and Brian Lunski, Plaintiffs. vs. International Funding Association; Global Management Group; Crown Enterprises; Cambridge Global Group; American Assets Ltd Trust Co.; International Funding Consultants; Funding Consultants Ltd.; Ronald and Annette Holt, husband and wife; Eugene J. Kernan; Mari-Ann Alston; Michael Bloomquist; Hap M. Butler; Christopher Buchanan; Richard Flowers, Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Cause No. CV 03-1302-PHX-PGR JOINT RESPONSE TO RONALD HOLT'S MOTION TO EXTEND FURLOUGH

Related Case: CFTC vs. International Funding Association, et al., cause number CV 03-1826 PHX PGR Related Case: SEC v. Ronald Holt, et al cause number CV 03-1825-PHX-PGR

The Court's Receiver ("Receiver"), the United States Securities and Exchange Commission ("SEC"), the United States Commodities Futures Trading Commission ("CFTC"), and the IFA Investor Group ("IFA Investors") submit the following joint response to the Motion to Extend Furlough filed by Defendant Ronal Holt ("Holt"). Holt filed a motion to extend his holiday furlough on the eve of the date of his scheduled return to custody. Holt assumes in his motion that a pending settlement Case 2:03-cv-01302-PGR Document 155 Filed 01/24/2006 Page 1 of 3

1 between him and the SEC and CFTC makes further incarceration for contempt 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 unnecessary. Holt's counsel has been repeatedly told that Holt's settlement of the underlying claims of the SEC and the CFTC does not resolve his continued refusal to comply with the Court's receivership order entered in CV 03-1825, for which he has been adjudged in contempt and incarcerated. Holt continues to refuse to turnover the investor funds, to account for their disposition, or to truthfully explain the current location of the approximately $3,000,000 of investor funds that he transferred offshore. In fact all Holt has done since his last hearing on his contempt, is file a motion for a furlough during the holidays. He has not provided the Receiver with information or otherwise complied with this Court's orders. Earlier efforts to assist Holt in meeting his obligations, such as the extensive time spent by the Receiver's staff meeting with Holt during one of his furloughs last summer proved to be of no value. All Holt did was continue to make false statements about the investors' funds, such as claiming to have not personally handled cash from investors or to have not used investor funds to purchase his house. Even when Holt appeared in Court he continued his lies, such as at the hearing on October 13, 2005 when he again falsely testified, among other things, that he had turned over records to the Receiver when in fact the Receiver had secured these records on his own without any assistance from Holt. Notwithstanding efforts by the IFA Investors, Holt has not reached an agreement to settle the action filed by the IFA Investors in cause number CV 03-1302. There are, however, settlement agreements now before the SEC and the CFTC for approval which would settle the claims asserted by the government in the complaints filed in CV 03-1825 and in CV 03-1826. If approved by the respective commissions, the settlements will be submitted to the Court for approval. Even if approved, however, these settlements will not purge Holt's contempt for his continued failure to comply with the Court's orders. The Receiver, the SEC, the CFTC, and the IFA Investors respectfully request that the Motion to Extend Furlough be denied. Over the next 60 days the parties will attempt once again to obtain compliance from Holt with the Court's orders and if successful will promptly advise the Court. If unsuccessful, the parties will advise the Court within 60 days and the Court can then schedule a hearing at which Holt can make his case to the Court that he has purged his contempt. Respectfully submitted this 24th day of January, 2006. GUTTILLA & MURPHY, PC
Guttilla Phoenix,orthern PC 4150 & est N Arizona 85051 W Murphy, A ve

Case 2:03-cv-01302-PGR

Document 155 2 Filed 01/24/2006

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0835-012(48354)

s/Patrick M. Murphy Patrick M. Murphy Attorneys for the Receiver SECURITIES AND EXCHANGE COMMISSION s/Marshall Gandy Marshall Gandy Attorneys for the Plaintiff COMMODITY FUTURES TRADING COMMISSION s/Timothy Mulreany Timothy J. Mulreany Attorneys for the Plaintiff BURCH & CRACCHIOLO, PA s/Suzanne Ingold Suzanne Ingold Attorneys for the IFA Investors

PROOF OF SERVICE This is to certify that a true copy of the foregoing response has been filed electronically with the Court, and that the persons on the attached service list designated as "CM/ECF Registered" will be served with same by the Court's CM/ECF system, and that the other persons on the attached service list will be served with a copy of the Response by first class mail on January 24 th, 2006.

s/Patrick M. Murphy Patrick M. Murphy

Guttilla Phoenix,orthern PC 4150 & est N Arizona 85051 W Murphy, A ve

Case 2:03-cv-01302-PGR

Document 155 3 Filed 01/24/2006

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