1 2 3 4 5 6 7 8 - Westmoore Management, RECEIVERSHIP

Case 8:10-cv-00849-AG -MLG Document 94 Filed 10/21/11 Page 2 of 51 Page ID
#:1051
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A. PROCEDURAL BACKGROUND
1. On June 15, 2010, the Securities and Exchange Commission (the
“SEC”) filed its Complaint for Violations of the Federal Securities Laws against the
four named Westmoore Entities and Matthew Jennings (“Jennings”). On August 12,
2011, the Court entered the Judgment appointing me as permanent receiver with full
powers of an equity receiver over the Westmoore Entities’ assets. Also on August
12, 2011, the Court entered its Final Judgment as to Defendant Matthew R. Jennings
pursuant to which, among other things, Jennings was required to pay the sum of
$492,265.06 to me on or before October 11, 2011.
2. My rights, powers and duties under the Judgment are described in
Article V of the Judgment. Paraphrased for the sake of brevity, these include:
(a) taking custody and control of all of the Westmoore Entities’
assets, including funds, real property, books and records, with full power to collect,
receive and take such assets into possession;
(b) taking control of and being added as the sole authorized signatory
for all of the Westmoore Entities’ accounts, including bank and brokerage accounts;
(c) conducting such investigation and discovery necessary to locate,
account for and recover the Westmoore Entities’ assets;
(d) employing attorneys, accountants and other persons to assist in
my investigation and discovery of the Westmoore Entities’ assets;
(e) prosecuting claims and causes of action which exist as a result of
the activities of present or past employees of the Westmoore Entities;
(f) taking appropriate action to preserve and prevent dissipation of
assets owned or managed by the Westmoore Entities;
(g) filing with the Court as soon as practicable an accounting of the
assets and financial condition of the Westmoore Entities; and
(h) making appropriate disbursements and entering into agreements
necessary for me to discharge my duties as receiver.
500747.2 25713A 2
FIRST REPORT OF DAVID A. GILL, RECEIVER