Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-arwd-2_06-mc-00018/USCOURTS-arwd-2_06-mc-00018-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: Civil Miscellaneous Case

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DEFUTY CLEIU(

DISTRICT COI]RT

MASSACHUSETTS

UNITED STATES OF AIVIERICA I

Plcirtiff' 1

v.;

AxxoN CAPTTAL, L'P'

,msl&f,r

IN THE UNITED STATES

FOR TEE DISTRICT OF

tf. 

"

CIVILACTION NO' 05-cs-U298-lUIw

trs-DL*/g

Defendant :

, ORDEB

Before this Court is the Complaint by tho Unitcd States of Amcdee' on behalf of

the uflited statEs ***t **tnu.* Administration ('sBA '), for a pertrlanEnl ifljuf,chdnr

and tho eppointnent of the SBA as Permanef,t, uquidating r6caivor for Ax{on Cryital'

L.P. Affa hoariags on Merch 15, 2006, aad March 27, 2006, it is httcby OREDERED

that;

I'Ptusuanttothopmvisionsofl5U'S.c.$687c'thiscoulttakesexclusive

jurisdiction ofA:txou capital, LF f'Axxon"), and all ofite asscts, whorovff located" and

the Uuiteil Statos SmBII BusinesE Adminislration ("SBA"), is lrereby appointed t'ho

pumancnt liquitlating raceiver (,tha Reoeivet') of Axxon to eorve without bofld ultil

further ordcrr of this court, The Reociver is appointed for the pruposo of adnrinistering

mushaling and liquidatilg all ofAxxou's assEtd to Eatisfli thc cleims of oreditors

thoreftom in thc order ofprionty as detennined by this Coun'

2. The Receivot ehall havc all powarr, authoritteo, rights end privilegos

hetEtoforc pogsessed by thc general partner, managing membor of the genual partter'

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managcrr, officers, and alrroctors df Axxon mdor applicable ttete and fedar*l law urd by

tho Chartor, By'Laws, Certiflcate of Limited Partnership and/or Pulnership Agreemcnt of

said pertrership, in atldition to all pwers and authority ootfcrred upon tho Rmoiver by

thc provisions of 15 U.S'C- $ 6E7c and

28 U.S-C. $ 754. Thc genoral parbror, menagomcnt company' anagers' diroctors'

officers, omlloyees ald agents ofA-'rxou arc hereby diemissed' $uch pemons shell hsve

no authotity with resFcdt to Axxotr'E operations ot aseets' el(ccrpt as flray hartafter be

expressly grarrtcd by the Rcceivo. The Roceiver ehf,ll assrrma end oontrol tho operafion

of Axxon ond shall pr:rsuo and prcserve all of its olaifls'

3. The past and/or preeont officers, dircctors, agentst flatragdment cornpEnyl

firanagcrE, general parbre,rs, aocountarts, attotnoys and crnployees ofAxxon' as woll as all

thoee acting in their placc, aro hereby ordored and directed to tum over to thc Reoeiver

forthwith Bli bookE, rcoords, doouflents, aEooutrts and all other inabuments and papels of

seiil partncrstrip auil all othcr assotn and propeirty of the paftterrship, whe*hu real or

pcrsonal. Axxon Capital Arlvisors, LLC shall firmish a wittetx state$firt wrtlin ten (10)

days after the mtry of this ordcr, li8ting ihe idmtity, Iocation and cstimated valut of all

assets of Ajfion as well eg the narnes, addressce and amounts of claif,s of all lcnown

creditors ofAxxofl. All persons having conhol, odEtody or posEo8sion ofany rusots ot

property ofAxxon, includitg Axxol Capital Advisors, LLC, are herohy directed to tum

such assets or prcperty ovEE to the Reueiver4. Thc Reoeiver shall profitptly givc notioe of its BppolnEftnt to all knos'n

officets, drrectors, agents, rnanagers, general partrrets' rnaflegefient company, omployecs'

shmeholders, creditors, debtors anrl agwte ofA:oton. AJl porsoos and arrtities owing any

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obligationsotdabtstoAxxonshall,uutilfirtherrorderedbythisCourt'payallsuch

obligatione in aocord$rce with thc tetms thereof to the Receivc'r' md its re+oipt for such

pa}m€flrtsshellhavethoearneforceandoffeotasiflo'rotonhadracaiycdsuchFaJnaru'

5. The Reooiwr is hercby euthorized to open zuch Rcceivefs bank tcoouts"

atbarrrlciagoroth6lfieencialinstitutions,t'oottcadctodrtonbehalfofAxton'toutilieo

SBA pereounel, arrd to employ such othsr porsolrta] sE nccessary !o offootrrato thc

oporatiou of the receivorehip including, tmt not limitcil to' attomeys and accountanta' and

is further authorized t'o oxpend receivurship funds to oompensatq such petsonnel in such

arroimts ald upon suoh tfffiu a5 the R@eivet shail dcelE teasoublo in light of the usual

fees ald billiug practicte anal procodues of such pereormel' Thc Reooiver ie not requited

toobteiflcourtepprovalpriortothadiebursementofreceive'relripfurrdsforptymerrtsto

personnel employed by the Receivor or paynouts for expe'ntce incidental to

administetionoftheReoeiversfup,Irratltlition,theRooaiverisauthorize'ltoreifibu$e

the SBA or its omployees fot ttavel expeusee inculrdtl by SBA perrorrnol in tira

ostablislffiodt ErLd administation of the receiverehip' The Raoeiver may' without firthu

order of this Court, taflsfor, comprotnise, or othorwise dispoae of any claim ot asset'

other than real astate, which wouid result in net prooecds to thc Roceiver'

5. The Receivet will file a quenerly Receiver's Report with this Court'

whiohreportshallcontainadcscrriptionoftheactivitieeundertekd[bytheRoooivelrfor

that partioular quartsr, afld sball fllbsta[tiate tlra coats, disbursurncnt! and experscs for

that partioular quarter, attd explain why they weto reasonablc' Any and sll such guaficrly

reports filetl by tho Receiver will be subjecto thi$ coutt's post-approval and ell costs'

oxpurrses and disburscrmcnts paid by the Rccuiver will be subject to this Court'e authonty

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to ersote a ourcharge agains thc Racaiver for any uuaalonabte paymenG'

7, Axxon's p65t 8n#or preseflt officers" drrectorsr agents' flEtragcrs' gcEotal

partnsrsr managfrlneflt oorlpefly' thareholders, trnployseB' dtrd othef, apptopdete pltr8onE

(including, without limitation tho ilefondant s porlfolio of small bueiness ooncctns and

banksorothorfirrendialilrBtitutionsdoingbueiucsowithdefendantanrVordefcrrdaflt's

portfolioofsmallbusincssconcems)shallalsworrrndcroath'PursuaflttoaRcceivcf,'s

NotioeorSubpoena"tothoRecoiver,allquostronewhic}ritflayputtothemregardingthe

businose of taid partnership, ot eny othor matter relevani to tho operation or

administration ofthe rooeivership or,the colleotiou offimds due to Axxon' In the event

that the Reccivrtr deems it uecessary to toquire the appearerroe ofthe aforementioncd

persons, the productiofl of dooflmeuts, informatioo, ot any othet fotm of disoovery

oonoenring thc asscrts, Propsrty or businosr aesets ofAxxon ot any othc'r rnatter telovanl

totheoperationorft.lffirdstationoftltcReceivershiporthcoollectio,noffurrdsdueto

Axxon, the Rcoeivcr Ehtll aliftct notico fot any oucir appearance by oertified ma:l' and

said persons shall appear and give aruwet to the Reoeiver, ptoduce docruncnts ot submit

to any olher form of riiscovery il aocordance with the Federal Rules of Civil Prooeduro'

8. Axxon and its past an#or prosent dircctors, offioers' managors'

mfiragement company, genoral parkrftE, egeflts, omploytee and other persons acting in

concertotparticipationwiththfirLareeqjoinedftomeitherdirectlyorindirectlytaking

any artioas or causing rny ruoh action to bc taksn which wo[]d tlitsipate the assets and

propertyofAxxofltothedefrimd[toftheRmeivetoppointedinthiscauBe,i[aludingbut

not limited to destruotion ofpdrtneretrip records, or wlrich would violato the small

Business Investmeflt Aot of 1958, as amendod, (ttre "sBIA"), l5 u,s.c. section 661 El

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sEq- or ths regulations promulgated thorermdor, (ttrc "Regulatione")' 13 C'F'R' $ 107'l et

!9!t.

9- The Receivat is aul]ronzdd to borrow on behalfofAxxon, ftom the SEA'

up to $ 1,000,000, antl is tuthorizod to cauee Axxon to issrre Rocaivede ccrtifcatae of

Irdebte&1ffs ilr the priuoip al rrnornls of the sums boffowotl, which oertiftcates will bcar

intcrfft st or about

10 percent pm uurun ald will havo a maturity date no lslor than 18 months after the dato

of irsuc.

I0,ThisCourtdeterminosoniladjudrce*oFthatAlxo4hasviolatodt,hoSBIA

end the Rcgulations, as alleged in thc complaint filod in this mattu, After oomploting its

activitics in accordanoo vrith this ordcr, the Recciver may rccommerrd to thie court in its

final quarterly Rooeivor's Roport filetl in nccordance ruith paragraph 5, above' that

Axxof,'s }icense ae en SBIC bo rovoked.

+l^ t

so 0RDERED tbis.iEo ' aay of *r'daed',2006-

I

STATES DISTRICT COURT

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