Selected Closed Receiverships:
Larriva v Delia; Maricopa County Superior Court; Receiver, 2017
Simon was appointed Receiver for Elite Architectural Supply, LLC due to litigation resulting from a dispute between the company’s partners. Elite 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 Elite’s assets and take actions to recover assets for the benefit of Elite’s creditors.
Protective Life Insurance Company v MJKL Enterprises LLC; Maricopa County Superior Court; Receiver, 2016
MJKL Enterprises, LLC 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 MJKL’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.
Magnotta v Serra, et al; Maricopa County Superior Court; Receiver, 2016
Simon was appointed the Receiver over iCollego, LLC 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. Once Simon was appointed Receiver Simon discovered that virtually all the assets of the company had been removed. The Court request that Simon perform an investigation into the dissipation of the Company’s assets, which Simon performed and presented to the Court. Once Simon’s investigation was completed the Receivership was dissolved while the litigation continued.
Cale A. Clayton v CV Flooring Mgmt. LLC, et al.; Maricopa County Superior Court; Receiver, 2015
Simon was appointed Receiver for CV Flooring Mgmt, LLC due to litigation resulting from a dispute between the company’s partners. CV Flooring is a commercial flooring contractor. The Receiver was appointed to take possession and control of the company’s assets and to wind down the company. The Receiver 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.
Hallmark Hospice LLC v Garrett, et al; Maricopa County Superior Court; Receiver, 2014
Simon was appointed Receiver for Hallmark Hospice, LLC 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.
SVP Restaurant Financing LLC v KCI Restaurant Management LLC, et al.; Maricopa County Superior Court; Receiver, 2014
Sky Financial Investments, LLC and SVP Financial Services Partners, LLLP acquired interests in various subsidiaries that operated various Taco Bell and Pizza Hut restaurants in the Midwest and East Coast. Simon was appointed Receiver for Sky and SVP due to litigation between various members and managers resulting from a dispute over management fees. Simon’s investigation in this matter determined that both Sky and SVP 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, the Receiver obtained the Court’s to file bankruptcy petitions on behalf of SVP and Sky in the United States Bankruptcy Court for the District of Arizona.
Hellman v Edgar, Ancillary Care Solutions LLC; Maricopa County Superior Court; Receiver, 2013
Simon was appointed Receiver for Ancillary Care Solutions, LLC due to litigation resulting from a dispute between the company’s partners. ACS established and managed physical, occupational, and speech therapy programs by providing regulatory compliance guidance, billing systems, and other solutions. The Receiver was appointed 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 ACS 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.
Talisman Partners LLC v LHR Inc., et al.; Maricopa County Superior Court; Receiver, 2012
LHR, Inc. was a debt collection agency based in Hamburg, New York. Simon was appointed Receiver for certain assets managed by LHR due to litigation brought by the Plaintiff, for whom LHR has provided debt collection services. As Receiver, Simon was responsible for confirming the accuracy, propriety, and timeliness of LHR’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 of the Receiver’s investigation into LHR’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.