Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_18-cv-00616/USCOURTS-caed-2_18-cv-00616-7/pdf.json

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

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1188164.04/LA

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

SACRAMENTO DIVISION

SECURITIES AND EXCHANGE 

COMMISSION,

Plaintiff,

v.

MCKINLEY MORTGAGE CO. LLC; et 

al.,

Defendants.

Case No. 2:18-cv-00616-MCE-CMK

ORDER GRANTING MOTION OF 

INDEPENDENT 

MANAGER/MONITOR, KRISTA L. 

FREITAG, FOR ORDER 

AUTHORIZING AND APPROVING 

SALE OF LOAN PORTFOLIO, FREE 

AND CLEAR OF LIENS AND 

ENCUMBRANCES

Date: March 5, 2020

Time: 2:00 p.m.

Ctrm: 7

Judge Hon. Morrison C. England

Before this Court is the Motion of Krista L. Freitag (the "Monitor"), who has 

been engaged through E3 Realty Advisors, Inc. to serve the Independent Manager 

and Monitor for Defendants McKinley Mortgage Co. LLC, McKinley Mortgage 

Company, LLC, and their respective subsidiaries and affiliates, including but not 

limited to Alaska Financial Company III LLC and Alaska Financial Company2, 

LLC (collectively, the "Monitorship Entities") for an order authorizing and 

approving the sale of a portfolio of loans (collectively, the "Loans") made and held 

by Alaska Financial Company III LLC ("Alaska Financial"), with an aggregate, 

Case 2:18-cv-00616-MCE-DMC Document 30 Filed 06/16/20 Page 1 of 2
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1188164.04/LA -2-

outstanding principal balance of approximately $1.5 million, to Veltra Capital LLC 

("Veltra"), free and clear of liens and encumbrances.

In her Motion and her Declaration in support thereof, the Monitor identifies a 

number of UCC Financing Statements (collectively, the "Financing Statements") 

which purport to reflect perfected security interests in the assets of the Monitorship 

Entities, including the Loans, but which are not derived from any counterpart 

security agreement, as required by law. By her Motion, the Monitor requests that 

the sale of the Loans to Veltra be deemed free and clear of any liens or 

encumbrances created by or reflected in the Financing Statements. As set forth in 

the Monitor’s Reply (ECF No. 25), no oppositions to the Motion have been 

submitted, either timely or otherwise.

The Monitor's Motion having been considered, and good cause appearing 

therefor, this Court orders as follows:

1. The Monitor's Motion (ECF No. 22) is GRANTED, in its entirety;

2. The Financing Statements, being unsupported by the documents 

necessary to create security interests that may be perfected, SHALL NOT constitute 

liens or encumbrances upon the assets of the Monitorship Entities, including the 

Loans;

3. Accordingly, this Monitor's proposed sale of the Loans to Veltra, in 

accordance with the terms and conditions of the Loan Purchase and Sale Agreement 

by and between Alaska Financial and Veltra, and free and clear of liens and 

encumbrances, is AUTHORIZED and APPROVED.

IT IS SO ORDERED.

Dated: June 16, 2020

Case 2:18-cv-00616-MCE-DMC Document 30 Filed 06/16/20 Page 2 of 2