Filed: Aug. 07, 2015
Latest Update: Aug. 07, 2015
Summary: ORDER TO SHOW CAUSE RE CIVIL CONTEMPT AND ASSET TURNOVER DALE S. FISCHER , District Judge . This matter comes before the Court on the ex parte application by the Court-Appointed Receiver and Liquidating Receiver, Thomas W. McNamara (the "Receiver"), for entry of an order to show cause against non-parties (1) Jon Bloomberg ("Bloomberg"); (2) Bloc, LLC ("Bloc LLC"); (3) True Merchant, Ltd. ("True Merchant"); and (4) Michael Pearse ("Pearse"). Bloomberg and Bloc LLC opposed the ex parte applic
Summary: ORDER TO SHOW CAUSE RE CIVIL CONTEMPT AND ASSET TURNOVER DALE S. FISCHER , District Judge . This matter comes before the Court on the ex parte application by the Court-Appointed Receiver and Liquidating Receiver, Thomas W. McNamara (the "Receiver"), for entry of an order to show cause against non-parties (1) Jon Bloomberg ("Bloomberg"); (2) Bloc, LLC ("Bloc LLC"); (3) True Merchant, Ltd. ("True Merchant"); and (4) Michael Pearse ("Pearse"). Bloomberg and Bloc LLC opposed the ex parte applica..
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ORDER TO SHOW CAUSE RE CIVIL CONTEMPT AND ASSET TURNOVER
DALE S. FISCHER, District Judge.
This matter comes before the Court on the ex parte application by the Court-Appointed Receiver and Liquidating Receiver, Thomas W. McNamara (the "Receiver"), for entry of an order to show cause against non-parties (1) Jon Bloomberg ("Bloomberg"); (2) Bloc, LLC ("Bloc LLC"); (3) True Merchant, Ltd. ("True Merchant"); and (4) Michael Pearse ("Pearse"). Bloomberg and Bloc LLC opposed the ex parte application on the grounds that ex parte relief was inappropriate. Their arguments are focused entirely on the time needed to respond to the underlying merits of the OSC rather than whether an OSC should issue in the first place. The Court finds that it is appropriate to issue an OSC on an expedited basis as the responding parties will have an ample time to respond to the merits of the OSC before the Court makes a final determination.
Therefore, for good cause shown, the Court hereby orders as follows:
(1) Bloomberg, Bloc LLC, Pearse, and True Merchant are hereby ordered to show cause as to why they should not be jointly and severally ordered to pay to the receivership the $192,365.52 released from Bloc Priya, LLC ("Bloc Priya") and attributable to True Merchant as identified in the Receiver's application and supporting papers;
(2) Bloomberg, Bloc LLC, Pearse, and True Merchant are hereby ordered to show cause as to why they should not be jointly and severally ordered to pay to the receivership the $268,970.45 released from Bloc DT 1, LLC ("Bloc DT") and attributable to True Merchant as identified in the Receiver's application and supporting papers;
(3) Bloomberg and Bloc LLC are hereby ordered to show cause as to why they should not be jointly and severally ordered to pay the Receivership the $192,365.52 owed from Bloc Priya and attributable to Miao Partners as identified in the Receiver's application and supporting papers;
(4) Bloomberg and Bloc LLC are hereby ordered to show cause as to why they should not be jointly and severally ordered to pay the Receivership the $268,970.45 owed from Bloc DT and attributable to Miao Partners as identified in the Receiver's application and supporting papers;
(5) Bloomberg and Bloc LLC are hereby ordered to show cause as to why they should not be jointly and severally ordered to pay the Receivership the $12,683.34 owed from Bloc Priya and attributable to both Miao Partners and True Merchant as identified in the Receiver's application and supporting papers;
(6) Bloomberg, Bloc LLC, Pearse, and True Merchant are hereby ordered to show cause as to why they should not be jointly and severally ordered to pay to the receivership its reasonable costs and expenses in seeking the return of the funds identified above in items (1) through (5), above; and
(7) Bloomberg, Bloc LLC, Pearse, and True Merchant are hereby ordered to show cause as to why the Court should not order that True Merchant's stock in Bloc Priya be transferred to the receivership.
Bloomberg, Bloc, Pearse, and True Merchant shall serve and file their responses to this Order no later than August 24, 2015. The Receiver shall file a reply no later than August 31, 2015. The Court shall hear this matter on September 14, 2015 at 1:30 p.m.
IT IS SO ORDERED.
