Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-04187/USCOURTS-cand-5_05-cv-04187-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:631 Small Business Act

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C05 4187 JF - Stipulation on Consent Order -1-

KEVIN V. RYAN (SBN 118321)

United States Attorney

JOANN M. SWANSON (SBN 88143)

Chief, Civil Division

EDWIN L. JOE (SBN 112328)

Special Assistant United States Attorney

455 Market Street, 6th Floor

San Francisco, California 94105-2420

Telephone: (415) 744-8494

Facsimile: (202) 481-1810 or (415) 744-6812

Email: edwin.joe@sba.gov 

Attorneys for Federal Plaintiff

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

__________________________________________

) E-Filing

UNITED STATES OF AMERICA, )

)

Plaintiff, )

)

v. ) Civ. Action No. C05 4187 JF PVT

)

NEW VISTA CAPITAL FUND, LP ) (Cover Sheet)

)

Defendant. ) Stipulation on Consent Order

__________________________________________)

**E-filed 12/8/05**

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 1 of 8
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C05 4187 JF - Stipulation on Consent Order -2-

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

__________________________________________

)

UNITED STATES OF AMERICA, )

)

Plaintiff, )

)

v. ) Civ. Action No. C05 4187 JF

)

NEW VISTA CAPITAL FUND, LP )

)

Defendant. )

__________________________________________)

ORDER

Before this Court is the Complaint by the United States of America, on behalf of the 

United States Small Business Administration (“SBA”), for a permanent injunction, and the 

appointment of the SBA as Permanent Receiver for New Vista Capital Fund, LP. The Court, 

being fully advised in the merits, and based upon the consent of the parties, believes this relief 

should be granted. Therefore, 

IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:

1. Pursuant to the provisions of 15 U.S.C. § 687c, this Court shall take exclusive 

jurisdiction of New Vista Capital Fund, LP ("New Vista”), and all of its assets, wherever located, 

and the United States Small Business Administration ("SBA"), is hereby appointed receiver (“the 

Receiver”) of New Vista to serve without bond until further order of this Court. The Receiver is 

appointed for the purpose of administering, marshalling and, if necessary, liquidating all of New 

Vista’s assets to satisfy the claims of creditors therefrom in the order of priority as determined by 

this Court.

2. The Receiver shall have all powers, authorities, rights and privileges heretofore 

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 2 of 8
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C05 4187 JF - Stipulation on Consent Order -3-

possessed by the general partner, managers, officers, and directors of New Vista under applicable 

state and federal law and by the Charter, By-Laws and Partnership Agreement of said partnership, 

in addition to all powers and authority conferred upon the Receiver by the provisions of 

15 U.S.C. § 687c and 28 U.S.C. § 754. The general partner, managers, directors, officers, 

employees and agents of New Vista are hereby dismissed. Such persons shall have no authority 

with respect to New Vista’s operations or assets, except as may hereafter be expressly granted by 

the Receiver. The Receiver shall assume and control the operation of New Vista and shall pursue 

and preserve all of its claims.

3. The past and/or present officers, directors, agents, managers, general partners, 

accountants, attorneys and employees of New Vista, as well as all those acting in their place, are 

hereby ordered and directed to turn over to the Receiver forthwith all books, records, documents, 

accounts and all other instruments and papers of said partnership and all other assets and property 

of the partnership, whether real or personal. New Vista shall furnish a written statement within 

five (5) days after the entry of this Order, listing the identity, location and estimated value of all 

assets of New Vista as well as the names, addresses and amounts of claims of all known creditors 

of New Vista. All persons having control, custody or possession of any assets or property of New 

Vista, including its former General Partner, New Vista Investment Partners, LLC, are hereby 

directed to turn such property over to the Receiver.

4. The Receiver shall promptly give notice of its appointment to all known officers, 

directors, agents, managers, general partners, employees, shareholders, creditors, debtors and 

agents of New Vista. All persons and entities owing any obligations or debts to New Vista shall, 

until further ordered by this Court, pay all such obligations in accordance with the terms thereof to

the Receiver, and its receipt for such payments shall have the same force and effect as if New Vista 

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 3 of 8
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C05 4187 JF - Stipulation on Consent Order -4-

had received such payments.

5. The Receiver is hereby authorized to open such Receiver's bank accounts, at 

banking or other financial institutions, to extend credit on behalf of New Vista, to utilize SBA 

personnel, and to employ such other personnel as necessary to effectuate the operation of the 

receivership including, but not limited to, attorneys and accountants, and is further authorized to 

expend receivership funds to compensate such personnel in such amounts and upon such terms as 

the Receiver shall deem reasonable in light of the usual fees and billing practices and procedures of 

such personnel. The Receiver is not required to obtain Court approval prior to the disbursement of 

receivership funds for payments to personnel employed by the Receiver or payments for expenses 

incidental to administration of the Receivership. In addition, the Receiver is authorized to 

reimburse the SBA or its employees for travel expenses incurred by SBA personnel in the 

establishment and administration of the receivership. The Receiver may, without further order of 

this Court, transfer, compromise, or otherwise dispose of any claim or asset, other than real estate, 

which would result in net proceeds to the Receiver. 

6. New Vista's past and/or present officers, directors, agents, managers, general 

partners, shareholders, employees, and other appropriate persons (including, without limitation, the 

defendant's portfolio of small business concerns and banks or other financial institutions doing 

business with defendant and/or defendant's portfolio of small business concerns) shall answer 

under oath, pursuant to a Receiver’s Notice or Subpoena, to the Receiver, all questions which it 

may put to them regarding the business of said partnership, or any other matter relevant to the 

operation or administration of the receivership or the collection of funds due to New Vista. In the 

event that the Receiver deems it necessary to require the appearance of the aforementioned 

persons, the production of documents, information, or any other form of discovery concerning the 

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 4 of 8
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C05 4187 JF - Stipulation on Consent Order -5-

assets, property or business assets of New Vista or any other matter relevant to the operation or 

administration of the Receivership or the collection of funds due to New Vista, the Receiver shall 

direct notice for any such appearance by certified mail, and said persons shall appear and give 

answer to the Receiver, produce documents or submit to any other form of discovery in accordance 

with the Federal Rules of Civil Procedure.

7. The parties or prospective parties to any and all civil legal proceedings wherever 

located, including, but not limited to arbitration proceedings, bankruptcy or foreclosure actions, 

default proceedings, or any other proceedings involving New Vista or any assets of New Vista, 

involving New Vista or its present or past officers, directors, managers, or general partners or the 

Receiver, sued for, or in connection with, any action taken by New Vista's officers, directors, 

managers, or general partners while acting in such capacity whether as plaintiff, defendant, thirdparty plaintiff, third-party defendant, or otherwise, or with respect to any assets of New Vista, are 

enjoined from taking any action, including discovery, commencing or continuing any legal 

proceeding of any nature in connection with any proceeding. 

8. All civil legal proceedings wherever located, including arbitration proceedings, 

foreclosure activities, bankruptcy actions, or default proceedings, but excluding the instant 

proceeding, involving New Vista or any of its assets or any action of any nature taken by New 

Vista's present or past officers, directors, managers, or general partners sued for, or in connection 

with, any action taken by them while acting in their official capacity whether as plaintiff, 

defendant, third-party plaintiff, third-party defendant, or otherwise, are stayed in their entirety, and 

all Courts having any jurisdiction thereof are enjoined from taking or permitting any action until 

further Order of this Court.

9. New Vista and its past and/or present directors, officers, managers, general 

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 5 of 8
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C05 4187 JF - Stipulation on Consent Order -6-

partners, agents, employees and other persons acting in concert or participation therewith be, and 

they hereby are, enjoined from either directly or indirectly taking any actions or causing any such 

action to be taken which would dissipate the assets and property of New Vista to the detriment of 

the Receiver appointed in this cause, including but not limited to destruction of partnership records, 

or which would violate the Small Business Investment Act of 1958, as amended, (the "SBIA"), 15 

U.S.C. Section 661 et seq., or the regulations promulgated thereunder, (the "Regulations"), 13 

C.F.R. § 107.1 et seq. 

10. The Receiver is authorized to borrow on behalf of New Vista, from the SBA, up to 

$1,000,000, and is authorized to cause New Vista to issue Receiver's Certificates of Indebtedness 

in the principal amounts of the sums borrowed, which certificates will bear interest at or about ten 

(10) percent per annum and will have a maturity date no later than 18 months after the date of 

issue. Said Receiver's Certificates of Indebtedness shall have priority over all other debts and 

obligations of New Vista, excluding administrative expenses of the Receivership, whether 

presently existing or hereinafter incurred, including without limitation any claims of equity holders 

of New Vista.

11. This Court determines and adjudicates that New Vista has violated the SBIA and 

the Regulations, as alleged in the Complaint filed in this matter. After completing its activities in 

accordance with this Order, the Receiver may submit a report to this Court recommending that 

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Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 6 of 8
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C05 4187 JF - Stipulation on Consent Order -7-

New Vista’s license as an SBIC be revoked.

AGREED AND CONSENTED TO:

United States Small Business Administration

By: __/s/ Thomas G. Morris______8/26/05

Thomas G. Morris, Director

Office of Liquidation

New Vista Capital [Fund], LP 

By: __/s/ Frank S. Greene______8/26/05

Managing Member, LLC

[New Vista Capital, LLC, General Partner of

New Vista Capital Fund, LP]

PURSUANT TO STIPULATION, IT IS SO ORDERED

_________________________________

HONORABLE JEREMY FOGEL 

UNITED STATES DISTRICT JUDGE

DATED: this day of ____________, 2005.

/s/electronic signature authorized

8th December

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 7 of 8
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C05 4187 JF - Stipulation on Consent Order -8-

EXHIBIT 

Case 5:05-cv-04187-JF Document 10 Filed 12/08/05 Page 8 of 8