Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_09-cv-00665/USCOURTS-caed-2_09-cv-00665-30/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

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STIPULATION AND [PROPOSED] ORDER PLACING EIMT PROPERTIES, LLC UNDER RECEIVER’S AUTHORITY

CASE NO. CV 09-000665 LKK-DAD 

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FUTTERMAN DUPREE 

DODD CROLEY

MAIER LLP

FUTTERMAN DUPREE DODD CROLEY MAIER LLP

JAMIE L. DUPREE (158105) 

JAIME E. GODIN (233187) 

180 Sansome Street, 17th Floor 

San Francisco, CA 94104 

Telephone: (415) 399-3840 

Facsimile: (415) 399-3838 

jdupree@fddcm.com

jgodin@fddcm.com

Attorneys for Receiver 

Stephen E. Anderson 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO 

SECURITIES AND EXCHANGE 

COMMISSION, 

Plaintiff 

v. 

ANTHONY VASSALLO, et al, 

Defendants. 

Case No. CV 09-000665 LKK-DAD 

STIPULATION AND ORDER PLACING 

EIMT PROPERTIES, LLC UNDER 

RECEIVER’S AUTHORITY 

Judge Lawrence K. Karlton 

RECITALS 

Pursuant to orders dated April 30, 2009 and July 31, 2009, the Court appointed Stephen 

E. Anderson (“Receiver”) as Receiver over Defendant Equity Investment Management Trading, 

Inc. (“EIMT”). 

The Court has empowered Receiver to “take all steps the receiver deems necessary to 

secure and protect the assets and property of EIMT....” Order Appointing Temporary Receiver 

for Equity Investment Management and Trading, Inc. and Order to Show Cause for Appointment 

of Permanent Receiver dated April 30, 2009 (“OAR”), ¶ III B. 

Receiver’s investigation into the affairs of EIMT has revealed an entity was formed called 

EIMT Properties, LLC in or around July 2007. Receiver believes that EIMT was the sole 

member of EIMT Properties, LLC at the time it was formed. EIMT investor funds were used to 

purchase a property located at 3788 Century Drive, Island Park, Idaho 83429 (the “Idaho 

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Case 2:09-cv-00665-JAM-KJN Document 128 Filed 09/04/09 Page 1 of 4
STIPULATION AND [PROPOSED] ORDER PLACING EIMT PROPERTIES, LLC UNDER RECEIVER’S AUTHORITY

CASE NO. CV 09-000665 LKK-DAD 

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FUTTERMAN DUPREE 

DODD CROLEY

MAIER LLP

Property”) in the name of EIMT Properties, LLC. Of the $2,750,000 paid for the Idaho Property, 

$500,000 was returned to the purchaser from the seller in escrow at the time of purchase, and the 

seller holds a $1,000,000 note and deed of trust on the property. Receiver believes that the 

$500,000 in cash returned to the purchaser was invested in the name of EIMT Properties, LLC. 

Receiver believes all assets in the name of EIMT Properties, LLC were purchased with EIMT 

investor funds. 

Defendant Kenneth Kenitzer is the Trustee for the Kenitzer Family Foundation. Prior to 

November 4, 2008, the Kenitzer Family Foundation was a fifty percent (50%) member of Tracy 

Clover 22, LLC, which was a business entity formed in California in 2002, before the fraudulent 

activity alleged in the complaint in this action. Tracy Clover 22, LLC owns an interest in a Tracy, 

California shopping center (the “Tracy Shopping Center”). 

On November 4, 2008, EIMT, acting through Defendant Anthony Vassallo, and the 

Kenitzer Family Foundation, acting through Defendant Kenneth Kenitzer, entered into an 

“Exchange Agreement” and an “Assignment of Interests” through which EIMT purported to 

transfer its membership interest in EIMT Properties, LLC to the Kenitzer Family Foundation in 

exchange for the Kenitzer Family Foundation’s fifty percent (50%) membership interest in Tracy 

Clover 22, LLC (the “Membership Transfer”). The purported Membership Transfer had the 

effect of transferring ownership of the Idaho Property and investment funds held in the name of 

EIMT Properties, LLC to the Kenitzer Family Foundation and the fifty percent (50%) interest in 

Tracy Clover 22, LLC (and its interest in the Tracy Shopping Center) to EIMT. 

Receiver does not believe that the purported Membership Transfer conveyed fair and 

adequate value to the EIMT investors. 

Defendant Kenneth Kenitzer, on behalf of the Kenitzer Family Foundation, is willing to 

stipulate and agree that the assets held by EIMT Properties, LLC belong to EIMT and further 

stipulate and agree that EIMT Properties, LLC be placed under authority of Receiver under the 

same terms and conditions as in the OAR and the July 31, 2009 Order permanently appointing 

Receiver. Defendant Kenneth Kenitzer represents that he is authorized to make this stipulation on 

behalf of the Kenitzer Family Foundation. 

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Case 2:09-cv-00665-JAM-KJN Document 128 Filed 09/04/09 Page 2 of 4
STIPULATION AND [PROPOSED] ORDER PLACING EIMT PROPERTIES, LLC UNDER RECEIVER’S AUTHORITY

CASE NO. CV 09-000665 LKK-DAD 

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FUTTERMAN DUPREE 

DODD CROLEY

MAIER LLP

Receiver believes that EIMT has no interest in Tracy Clover 22, LLC, and has been unable 

to identify any EIMT investor funds that were used in connection with any assets held by Tracy 

Clover 22, LLC. Accordingly, Receiver shall file a noticed motion seeking Court authorization to 

unwind the purported transfer of the Kenitzer Family Foundation’s fifty percent (50%) 

membership interest in Tracy Clover 22, LLC to EIMT, in exchange for EIMT’s membership 

interest in EIMT Properties, LLC, and relinquishing all claim of EIMT to any interest in Tracy 

Clover 22, LLC, which will restore the Kenitzer Family Foundation’s ownership interest in Tracy 

Clover 22, LLC. 

STIPULATION 

NOW, THEREFORE, Receiver, on behalf of EIMT, through his counsel of record, and 

Defendant Kenneth Kenitzer, as Trustee for the Kenitzer Family Foundation, HEREBY 

STIPULATE AND AGREE AS FOLLOWS: 

1. EIMT is the sole owner of any and all membership interests in EIMT Properties, 

LLC. 

2. Receiver Stephen E. Anderson shall be appointed Receiver over EIMT Properties, 

LLC with all of the same rights, duties, powers and obligations for EIMT Properties, LLC as he 

has over EIMT as set forth in the OAR dated April 30, 2009, and the July 31, 2009 order making 

Receiver a permanent Receiver. 

3. Receiver shall file a noticed motion seeking Court authorization to unwind the 

purported transfer of the Kenitzer Family Foundation’s fifty percent (50%) membership interest in 

Tracy Clover 22, LLC to EIMT, in exchange for EIMT’s membership interest in EIMT 

Properties, LLC, and relinquishing all claim of EIMT to any interest in Tracy Clover 22, LLC, 

which will restore the Kenitzer Family Foundation’s ownership interest in Tracy Clover 22, LLC. 

IT IS SO STIPULATED AND AGREED. 

Dated: September 1, 2009 FUTTERMAN DUPREE DODD CROLEY 

MAIER LLP 

By:Jamie L. Dupree 

Jamie L. Dupree 

Attorneys for Receiver Stephen E. Anderson 

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STIPULATION AND [PROPOSED] ORDER PLACING EIMT PROPERTIES, LLC UNDER RECEIVER’S AUTHORITY

CASE NO. CV 09-000665 LKK-DAD 

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FUTTERMAN DUPREE 

DODD CROLEY

MAIER LLP

Dated: September 1, 2009 KENITZER FAMILY FOUNDATION 

By:Kenneth L. Kenitzer 

Kenneth Kenitzer, Trustee 

[PROPOSED] ORDER 

Having reviewed the parties’ Stipulation and Proposed Order Placing EIMT Properties, 

LLC under Receiver’s Authority, and for good cause shown, 

THE COURT FINDS AND ORDERS: 

1. EIMT is the sole owner of any and all membership interests in EIMT Properties, 

LLC. 

2. Receiver Stephen E. Anderson is hereby appointed Receiver over EIMT 

Properties, LLC with all of the same rights, duties, powers and obligations for EIMT Properties, 

LLC as he has over EIMT as set forth in the OAR dated April 30, 2009, and the July 31, 2009 

order making Receiver a permanent Receiver. No further bond shall be required of Receiver. 

3. If he has not already done so, Receiver shall file a noticed motion seeking Court 

authorization to unwind the purported transfer of the Kenitzer Family Foundation’s fifty percent 

(50%) membership interest in Tracy Clover 22, LLC to EIMT, in exchange for EIMT’s 

membership interest in EIMT Properties, LLC, and relinquishing all claim of EIMT to any interest 

in Tracy Clover 22, LLC, which will restore the Kenitzer Family Foundation’s ownership interest 

in Tracy Clover 22, LLC. 

IT IS SO ORDERED. 

Dated: September 3, 2009 

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