Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_09-cv-00665/USCOURTS-caed-2_09-cv-00665-37/pdf.json

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

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[PROPOSED] ORDER GRANTING RECEIVER’S MOTION TO UNWIND MEMBERSHIP TRANSFER

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 

ORDER GRANTING MOTION OF 

RECEIVER TO UNWIND PURPORTED 

TRANSFER OF EIMT PROPERTIES, 

LLC MEMBERSHIP INTERESTS FOR 

TRACY CLOVER 22, LLC 

MEMBERSHIP INTERESTS AND TO 

RELINQUISH ALL CLAIM TO ANY 

INTEREST IN TRACY CLOVER 22, 

LLC 

Date: October 13, 2009 

Time: 10:00 a.m. 

Courtroom: No. 4, 15th Floor 

Judge: Hon. Lawrence K. Karlton 

The motion of court-appointed Receiver Stephen E. Anderson (“Receiver”) to unwind the 

purported transfer of EIMT Properties, LLC membership interests for Tracy Clover 22, LLC 

membership interests and to relinquish all claim to any interest in Tracy Clover 22, LLC came on 

regularly for hearing on October 13, 2009 at 10:00 a.m. in Courtroom 4 of the above-entitled 

Court, with counsel for Receiver, Jamie L. Dupree, appearing on behalf of Receiver. There was 

no appearance by Plaintiff or Defendants. 

No opposition having been filed or presented, for good cause shown, and in order to 

empower and authorize the Receiver to carry out his duties and obligations, 

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Case 2:09-cv-00665-JAM-KJN Document 178 Filed 11/13/09 Page 1 of 2
[PROPOSED] ORDER GRANTING RECEIVER’S MOTION TO UNWIND MEMBERSHIP TRANSFER

CASE NO. CV 09-000665 LKK-DAD 

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FUTTERMAN DUPREE 

DODD CROLEY

MAIER LLP

THE COURT HEREBY FINDS AND ORDERS AS FOLLOWS: 

Adequate and proper notice of this motion was given by Receiver. 

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 did not convey fair and adequate value to the EIMT 

investors. 

Receiver’s investigation established EIMT investor funds were used to purchase assets in 

the name of EIMT Properties, LLC, but no EIMT investor funds were used to purchase assets in 

the name of Tracy Clover 22, LLC. 

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

Receiver is hereby authorized to execute any and all appropriate documentation to unwind 

the purported Membership Transfer, restoring EIMT’s interest in EIMT Properties, LLC, and 

returning the Kenitzer Family Foundation’s fifty percent (50%) interest in Tracy Clover 22, LLC 

to it. 

EIMT has no interest in Tracy Clover 22, LLC, and Receiver is hereby authorized to 

relinquish any claim of interest in Tracy Clover 22, LLC. 

IT IS SO ORDERED. 

Dated: November 13, 2009 

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Case 2:09-cv-00665-JAM-KJN Document 178 Filed 11/13/09 Page 2 of 2