LIST OF RECEIVERSHIPS

Below is a list of selected current and past matters in which Simon professionals were appointed as Receiver:

Current/Open:

Murphy Elementary School District No. 21; Arizona State Board of Education; Receiver, 2018

Appointed as Receiver by the Arizona State Board of Education, Simon is tasked with resolving the district’s financial mismanagement helping the district to achieve financial solvency. Simon has replaced the leadership team and key accounting personnel and continues to work with the district to restructure operations in order to operate within budget and repay outstanding debts. Simon is proactively working with the district to implement policies and procedures to avoid future overspending, while improving the quality of education.

MMJ Apothecary GP, et al. v EOM&D Management LLC, et al; Maricopa County Superior Court; Receiver, 2017

Simon was appointed Receiver for MMJ Apothecary, GP, et al., which operates a medical marijuana dispensary based in Wickenburg, AZ, due to a dispute between the company’s directors. The Receiver was tasked with maintaining the status quo of the business, which proved to be difficult due to the lackluster market for medical marijuana in the town of Wickenburg. As Receiver, Simon closed and liquidated the company’s cultivation facility, evaluated the potential costs and benefits of moving the dispensary, and assisted with the refinancing of the company’s debts. Simon continues to oversee dispensary operations while ensuring compliance with strict Arizona rules and regulations during the pendency of the underlying litigation.

Arizona Corporation Commission v DenSco Investment Corporation; Maricopa County Superior Court; Receiver, 2016

Simon was appointed Receiver for DenSco Investment Corporation in a matter brought by the Arizona Corporation Commission in August 2016. DenSco was engaged primarily in funding hard money loans for the purchase of real estate secured by deeds of trust using money raised from investors. In the short time since the inception of the receivership, Simon has identified the underlying fraud schemes that resulted in DenSco’s collapse and has collected over $12 million for the benefit of investor victims. Simon has completed the administration of DenSco’s remaining loan portfolio and continues to pursue numerous additional avenues of recovery. Additional information regarding this ongoing receivership is available on the Receiver’s website at http://denscoreceiver1.godaddysites.com/.

Sonnenschein, et al. v Palo Verde Capital LLC; Maricopa County Superior Court; Receiver, 2013

Simon was appointed Receiver for Palo Verde Capital, LLC, et al. as a result of litigation brought forth by several investors due to the financial distress and mismanagement of two hedge funds. As Receiver, Simon was tasked with identifying, recovering, and liquidating receivership assets consisting of several business interests and foreign investments, which required the extensive analysis and investigation of numerous financial and business records. Simon determined that the receivership entities raised investor funds totaling $37.5 million and returned only $12.6 million, resulting in approximately $24.9 million in investor losses.

Cedar Unified School District; Arizona State Board of Education; Receiver, 2011

As Receiver for Cedar, Simon has successfully achieved financial solvency, corrected deficiencies in the district’s compliance with the Uniform System of Financial Records (“USFR”), disposed of unnecessary assets, and reduced operating costs. Simon continues to work with Cedar to repay debt and state aid overages, increase operating efficiencies, and further reduce costs.

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Selected Closed Receiverships:

Cinder Pit Operator; Navajo County Superior Court; Receiver, 2018

Simon was appointed Receiver for a cinder pit operator as a result of litigation between the company’s members. The receivership entity extracts and sells gravel and other rock materials from a pit located in Navajo County, AZ. As Receiver, Simon oversaw management of the business by employees of a related entity while attempting to untangle three highly commingled entities. Simon also coordinated the preparation of an aggregate reclamation plan pursuant to Arizona State Mine Inspector requirements and conducted an extensive investigation into whether the business had any basis to claim an ownership in the pit property.

Construction Contractor; Maricopa County Superior Court; Receiver, 2017

Simon was appointed Receiver for a construction contractor due to litigation resulting from a dispute between the company’s partners. The company was a designer, builder and installer of custom garage doors, doors and windows, masonry work, and custom indoor and outdoor fireplaces. The company ceased operations after the Plaintiff filed a lawsuit and the Defendant essentially took control and possession of Elite’s assets for the purposes of carrying on the business under a new name and ownership. The Receiver was appointed to investigate the disposition of the company’s assets and take actions to recover assets for the benefit of its creditors.

Fast Food Franchise Operator; Maricopa County Superior Court; Receiver, 2016

Simon was appointed Receiver for an Arizona company that franchised and operated Carl’s Junior and other fast food restaurants and convenience stores at various locations nationwide, including a property located in Guadalupe, Arizona. Simon was appointed Receiver for the property as a result of litigation brought forth by the secured lender due to the company’s failure to make payments. The Receiver was responsible for safeguarding the property and collecting lease income until the Plaintiff foreclosed on the property.

Titan Capital Holdings LLC, et al; Maricopa County Superior Court; Receiver, 2016

Simon was appointed Receiver for Titan Capital Holdings, LLC, et al. in February 2016 after the companies’ founder determined that the companies were insolvent. The insolvency was caused in whole or in part by non-performing loans, including loans to Titan principals and related entities, and by the failure of the companies to effectively collect funds due. The Receiver was appointed to conduct an orderly liquidation of Titan’s assets. During the investigation, Simon determined that Titan was insolvent only six short months after the company began operating, and only two months after it began accepting investor funds. Simon continues to administer Titan’s remaining loan portfolio and pursue claims against Titan principals and third parties for the benefit of its creditors.

Collections Software Developer; Maricopa County Superior Court; Receiver, 2016

Simon was appointed Receiver for a collections software developer, which provided cloud-based collections software that allowed homeowners associations to take control of the collections process and to manage thousands of accounts online in one centralized location. The Receivership arose out of an ownership dispute. After Simon was appointed Receiver, Simon discovered that virtually all of the company’s assets had been removed. Simon investigated the dissipation of the company’s assets and presented its findings to the Court.

Commercial Flooring Contractor; Maricopa County Superior Court; Receiver, 2015

Simon was appointed Receiver for a commercial flooring contractor due to litigation resulting from a dispute between the company’s partners. The Receiver was appointed to take possession and control of the company’s assets and to wind down the company. Simon took a supervisory role in this matter to reduce receivership costs by working with the partners and their staff to complete all outstanding projects, collect remaining accounts receivable, and pay remaining debts.

Hospice Provider; Maricopa County Superior Court; Receiver, 2014

Simon was appointed Receiver for a hospice provider due to litigation resulting from a dispute between the company’s owners. The Receivership was limited to monitoring and approving cash disbursements with no operational control. Due to the financial condition of the company and the disposition of the underlying litigation it was determined that the limited Receivership was no longer necessary and the Receivership was dissolved.

Fast Food Franchise Operator; Maricopa County Superior Court; Receiver, 2014

Two Arizona companies acquired interests in multiple subsidiaries that operated several Taco Bell and Pizza Hut restaurants in the Midwest and East Coast. Simon was appointed Receiver for the companies due to litigation between various members and managers resulting from a dispute over management fees. Simon’s investigation in this matter determined that both companies were insolvent prior to the payment of certain management fees. Due to the financial condition of the entities and because of additional remedies available to a trustee in bankruptcy that would not be available to the Receiver, Simon obtained the Court’s to file bankruptcy petitions on behalf of the companies in the United States Bankruptcy Court for the District of Arizona.

Compliance and Billing Provider; Maricopa County Superior Court; Receiver, 2013

Simon was appointed Receiver for an Arizona company due to litigation resulting from a dispute between the company’s partners.  The Receivership entity established and managed physical, occupational, and speech therapy programs by providing regulatory compliance guidance, billing systems, and other solutions. Simon was appointed Receiver to take control of the company’s assets and manage ongoing operations pending the resolution of the parties’ claims. Simon assisted with the dissolution, liquidation, and closing of the books of the company pursuant to a settlement agreement between the parties.

PNTM Management Services LLC, et al. v Absolute Healthcare Inc., et al.; Maricopa County Superior Court; Receiver, 2014

Simon was appointed Receiver for Absolute Healthcare, Inc., a medical marijuana dispensary based in Gilbert, AZ, due to a dispute between the company’s members. The Receiver was tasked with several challenging responsibilities in this case, including (1) identifying and selecting a management candidate with sufficient background and expertise to operate the dispensary, a cultivation, and a commercial kitchen operation; (2) closing down the dispensary’s cultivation site and liquidating its assets; (3) operating the business in compliance with strict federal banking laws; and (4) keeping the dispensary viable after losing access to internally produced medical marijuana products. Simon successfully operated the dispensary until conclusion of the litigation.

Federal Trade Commission v Money Now Funding LLC, et al.; United States District Court, District of Arizona; Receiver, 2013

The Federal Trade Commission (“FTC”) sought the appointment of Simon, on an ex parte basis, as the Receiver over a fraudulent telemarketing operation in Phoenix Arizona. The perpetrators of the telemarking scam targeted elderly individuals offering a number of different fraudulent work-from-home or investment opportunities and ultimately defrauded consumers of over $10.7 million. With the assistance of United States Postal Inspectors and the Phoenix Police Department, Simon shuttered several active telemarketing “boiler rooms” throughout Phoenix and located and searched a number of abandoned locations for information.

The individual defendants in this matter created a maze of interrelated companies to confuse consumers and to evade detection. Simon performed extensive forensic research to locate over 60 entities used by the perpetrators to defraud consumers. Simon subpoenaed and analyzed over 100 bank and merchant accounts from 34 financial institutions in its efforts to recover estate assets and to identify the perpetrators of the scam. Once the FTC’s civil actions against the perpetrators were completed and it was determined that additional recoveries would be unlikely, the Receivership was terminated. Simon also provided information to law enforcement to assist in criminal proceedings against the perpetrators.

Pham v All Greens Inc., et al.; Maricopa County Superior Court; Receiver, 2013

Simon was appointed Receiver for All Greens, Inc., a medical marijuana dispensary based in Surprise, Arizona due to a dispute between the company’s members. The Receiver was tasked with several challenging responsibilities in this case, including (1) meeting strict Arizona Department of Health Services (“AZDHS”) deadlines in order to open the dispensary before the company’s dispensary registration certificate expired; (2) identifying and selecting a management candidate with sufficient background, expertise, and resources to finance, open, and operate the dispensary; (3) the difficulty of obtaining inventory given the infancy of the Arizona dispensary industry in 2013; and (4) operating the business in compliance with strict federal banking laws. Simon worked with the parties to negotiate a settlement agreement that successfully settled many of the receivership estate’s largest claims and debt obligations and helped to ensure that All Greens remained economically viable after the receivership.

Debt Collection Agency; Maricopa County Superior Court; Receiver, 2012

Simon was appointed Receiver for certain assets managed by a debt collection agency based in Hamburg, New York due to litigation brought by the Plaintiff, for whom the agency provided debt collection services. As Receiver, Simon was responsible for confirming the accuracy, propriety, and timeliness of the agency’s remittances of collections, as well as coordinating the transfer of certain collections accounts to a new service provider. In addition, Simon performed various analyses and tests to determine the propriety of the balances and activity related to nearly two million consumer accounts. Simon filed a detailed report and provided testimony regarding the Receiver’s investigation into the agency’s significant violation of the terms and provisions of the Court’s receivership order.

Union Elementary School District; Arizona State Board of Education; Receiver, 2007

Appointed as Receiver by the Arizona State Board of Education (“SBE”), Simon restructured the debts and reorganized the operations of the Union Elementary School District (“UESD”) located in Maricopa County. As Receiver, Simon successfully addressed the district’s financial mismanagement and over-expenditures. UESD is now out of receivership and functioning on its own.

Arizona Corporation Commission v Trend Management Group Inc., Trend Capital LLC; Maricopa County Superior Court; Receiver, 2006

Simon was appointed Receiver over a bad debt investment scheme in a matter brought by the Arizona Corporation Commission in November 2006. This case involved an extensive fraud examination and financial investigation in order to trace approximately $16 million raised from the sale of unregistered securities to over 375 investors nationwide. Simon recreated the Trend investment scheme from bank records, while addressing numerous inquiries from over 375 investors, most of whom were elderly. Simon’s investigation determined that the funds that the Trend entities were operating a Ponzi scheme. As Receiver, Simon oversaw various causes of action including fraudulent transfer claims resulting in the recovery of over $6 million. Simon completed three interim distributions totaling approximately 42% of net investments to investor victims, which is significantly higher than typical investor returns in similar investment schemes.

During a hearing, the Court stated that the Trend receivership had been “wildly successful…in large part, if not completely, because of Mr. Davis’ services in protecting whatever has been received from distribution to the victims.” The Court expressed appreciation for Mr. Davis’ willingness to accommodate the Court’s concerns, and further reiterated Mr. Davis’ “great work on this case.”

Colorado City Unified School District; Arizona State Board of Education; Receiver, 2005

In December 2015, CCUSD became the first Arizona school district to be placed in receivership following the enactment of the new state law in the spring of the same year. Appointed as Receiver by the Arizona State Board of Education (“SBE”), Simon encountered and overcame numerous obstacles as the first School Receiver over a district serving a remote northern Arizona community long dominated by a polygamist sect. As Receiver for CCUSD, Simon investigated various allegations of fraud and determined that former staff and governing board members had embezzled over $600,000. Simon replaced the leadership team and the key accounting personnel, liquidated unnecessary assets, resolved various outstanding claims and oversaw the passage of legislation enabling a longer payback period of debt repayments. Simon successfully addressed and resolved the district’s gross financial mismanagement, corrected deficiencies in CCUSD’s compliance with the Uniform System of Financial Records (“USFR”), assisted CCUSD’s staff in maintaining and improving the quality of education, and achieved financial solvency by the fiscal year ending June 30, 2008.

Other Closed Receiverships:

Federal Trade Commission v National Card Monitor LLC, et al.; United States District Court, District of Arizona; Receiver, 2012

Federal Trade Commission v ELH Consulting LLC, et al.; United States District Court, District of Arizona; Receiver, 2012

Golden State Bank v Sean Brunske (dba Travel Inn); Maricopa County Superior Court; Receiver, 2011

Klemp v AZ Wine Outlet Party Rentals and Appliances #1 LLP, et al.; Maricopa County Superior Court; Receiver, 2011

McMaster v Master Block Inc., et al.; Maricopa County Superior Court; Receiver, 2011

Bank of America NA v Estrella Mountain Dentistry PLLC, et al.; Maricopa County Superior Court; Receiver, 2011

Wenima Development LLC v Wenima Village LP, et al.; Apache County Superior Court; Receiver, 2010

Marino v Focus Home Therapy & Medical Services LLC, et al.; Maricopa County Superior Court; Receiver, 2010

First Fidelity Bank NA v TL Qik Stop Market Inc.; Maricopa County Superior Court; Receiver, 2010

National Bank of Arizona NA v Rock Hard Designs Inc.; Maricopa County Superior Court; Receiver, 2010

Tung v US Mental Math Federation Inc., et al.; Maricopa County Superior Court; Receiver, 2010

First Citizens Bank & Trust Company v Terra Villa Estates LLC, et al.; Maricopa County Superior Court; Receiver, 2010

JPMorgan Chase Bank NA v Hutchinson’s Furniture of Lake Havasu City Inc., et al.; Mohave County Superior Court; Receiver, 2010

US Bank NA v Educational Facilities Acquisition LLC; Maricopa County Superior Court; Receiver, 2010

Midfirst Bank v Alba Investment Group LLC, et al.; Maricopa County Superior Court; Receiver, 2009

First Regional Bank v Casa Real Apartments LLC; Maricopa County Superior Court; Receiver, 2009

Fortune, et al. v Hoover, et al.; Mohave County Superior Court; Receiver, 2009

Stradling v Grant, et al.; Maricopa County Superior Court; Temporary Receiver, 2009

Steri-Lube International Ltd.; Maricopa County Superior Court; Receiver, 2009

Sturman v Adamson, et al.; Maricopa County Superior Court; Special Master, 2009

KeyBank NA v Power Marine Sales Inc., et al.; Maricopa County Superior Court; Receiver, 2009

Wells Fargo Bank NA v Vega, Pratt, et al.; Maricopa County Superior Court; Receiver, 2009

Sherk v Wenrick, TGR Properties LLC; Maricopa County Superior Court; Receiver, 2008

Prestige Window Cleaning Inc., et al.; Maricopa County Superior Court; Receiver, 2008

M&I Marshall & Ilsley Bank v Namwest–Pinnacle Peak & 7th Avenue LLC; Maricopa County Superior Court; Receiver, 2008

M&I Marshall & Ilsley Bank v Namwest–67th Avenue & I-10 LLC; Maricopa County Superior Court; Receiver, 2008

M&I Marshall & Ilsley Bank v 67th & Glendale LLC; Maricopa County Superior Court; Receiver, 2008

Aracaju Inc., Gwilliam v True North Inc., Gwilliam; Maricopa County Superior Court; Receiver, 2008

Four Horsemen LLC, et al. v Coram Deo Partners Inc., et al.; Maricopa County Superior Court; Rule 53 Special Master and Receiver, 2007

Arizona Corporation Commission v The 12 Percent Fund I LLC, Coyote Growth Management LLC; Maricopa County Superior Court; Receiver, 2007

Jones v K&L Furniture, et al.; Pinal County Superior Court; Receiver, 2007

Jones, Dirt 101 LLC, Access 101 LLC v Myers, KJK Management Inc.; Maricopa County Superior Court; Receiver, 2006

Gates-04 LLC, et al. v ENTI Inc., et al.; Maricopa County Superior Court; Receiver, 2006

Jones v Jones; Maricopa County Superior Court; Rule 53 Special Master and Receiver, 2005

Normand v Normand; Maricopa County Superior Court; Rule 53 Special Master and Receiver, 2005