Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-arwd-2_06-mc-00017/USCOURTS-arwd-2_06-mc-00017-0/pdf.json

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

---

{

ROSLYM.I R, MAUSKOPF

UNITED STATES ATTORNEY

wlLLIAM YOTJNC (WY9t60)

Sp€cial As$istnnt U.S. Artorney

I Pienepont Ptazs, 14" Fl.

Brooklyn, New York I I?01

Telephonc: (71 E) ?54-6957

ARLENE M. EMBREY (AE97I8)

]'rial Atromey

$mall Business Administratioh

409 'fhird $treet, S.W,, Seventh Hk',rr

Wsshin8ton, D.C.20416

Telephonc: (?02)205-6976

Facsimile: (202) 4E I.0324

USDCSDNY

DOCIJMENT

I.IECTRONICALLY FILED

il{-rc #:

DATEFILEDI

tu*tlrf,

*"1'fr *oJpffifrtftYfl*'*

MAR I b 2006

CHFIS R. Jofili"L,d' CLEFIK

EY

DEFUIY CI IHK

UNITED STATES OF AIVIERICA,

Plrlntift

v.

COQUI CAFITAI, PARTNDR-S, LP

r/k/fl Tortugl Cspitrl PirrftGrr, l.p

Civ, Artion No. I 6 '4 t/ - / n-6 f

,/ +\

| 5LtB,4u) 4J

('EtlF di:l

Dcfandnnt

coNsENT oRnER I to t)tntv {

Eefore this Court is the Conrplaint by rhc United Srrtes of Amenco, on bEhalf of rhc

Unihd $utes Srnall Busincss Admini*trarion (..S8A,,), for a pGtimindry and pennsnert

injunctiofl Erd thc dppointmenr ofrhc SllA ar p€rmddenr Rsceiver for Coqui Capirul panncrs,

LP' E/k/a Ton Er cspitat partncft, Lp. 'l'h' court, bcing fully advised in the merir' and hdvins

been informed that Dtfendsnt does not chollenge entry ofthis Order,

HERGBY ORDERS, ADJUDGES AND DECREES THAT:

trl

fr-aa ry

IN THE UNITED $TATES DISTRICT COURT

FORTHE SOIJTHERN DISTRICT OF NEW YORK

Case 2:06-mc-00017-RTD Document 2 Filed 03/16/06 Page 1 of 8 PageID #: <pageID>
L Pursuant to lho pmvi:'ions o[ 15 U,S.C. $ 687c, this Coun shall ttkc etclusivc

jurisdiotion ofCoqui Caphal Portncr$, LP, a/l/r Tortuga Capitel Partncrs, LP (hercinafter

"Coqui"), and all of its asscts, whercver locrted. and the United States Small Busln*s

Administation ("SBA'') is hereby appointed recciver ("the Recciver") of Coqtri to serve without

bond until fufiher ordcr ofthis Court. 'l'hc Rcceivcr is appointcd tbr the purpose of

admiristerirr9, marshalling and, if nccessnry, liquidating all of Cdqui's ssscts to satisfy thc

claims of creditors thcrufrom in the .rrdcr of priority as determined by this Cor.rrt,

2. The Roceiver shall haw all powcrs, uuthorities, rights and privilcgcs hcretofore

pos$€sscd by the Leneral p$rtners, nranager$, officors, qnd dirfttors ofCoqui under epplicablE st8tc

and l'edcml IDw ahd by thc Ccnificatu and Lirnitod Partnership Agrcement of said limited

pdrlncrship, in additlon to all powcrs and truthority confcrrcd upon the Recelver by the provisions

of l5 U.S.C. $ 687c and ZE U.S.C. g 754. Thr general pattncrr, msnugers, dirrclors, of'ficer6,

employees and agenls of Coqui arc hemby dismissed. Such pearns shall have no authorily with

resp€ct to Cdqui's oprrations or usscts, cxcept fi.S ftay herEAfter be exprcssly grantcd by the

Rccciver. The Receiver ehall Essumc rd control thc opcrttion of Coqui and shalt pursue urul

prestrve all of its claimr.

3. 'rhc psst snd./or prcsent ofticcn, dircctorB, agenB, managers, gencral purtners,

accountants' anomeys and employees ofcoqui, as $rcll as n!l those acting in thcir place, are hereby

ordcrcd and dirccted to ttlffi ovcr to llle Receiver fonhwith oll books, records, doc$ments, iccount$

qnd dl other instruments and papers of&1id limited pertncrship and all othet asscls afld Holrcrty of

the paql.rship, whether r"ul or perv,rnal ulnn noticc from the Reccivcr rcgurding the tin* dd

place ofsuch prodrrcrion. c'oqul's (icnerd parmer, Tortuga cdpitar Managemcflt, LLC, and/or

Coqui's managemenr compflty, 'lbrtuga Cnpital Advisors, LLC, shsll fumish a wrirren statemcnr

Case 2:06-mc-00017-RTD Document 2 Filed 03/16/06 Page 2 of 8 PageID #: <pageID>
to thc Receiver within fivc (5) busint'ss dayc rfter thc entry of this Order, listing the identity'

location qnd eBtimated valuo ofall nsseis of Coqui, as wtll as the names, addrcsses snd amounts of

claims of all creditors ofCoqui ofruhich Coqui, Tortq Capital Managemcnt, l-LC orTonuga

Capittrl Advisor$, LLC have knowlctlge. All pusons lraving ccntrol, custody or possession ofony

rssels or propcrly ofCoqui, inchrding 'l'urluga Capital M8ragc(hEnt, LLC rnd Tonuga Capital

Advlsors, LLC are hereby dirccted h) lurn such propcrty ov€t td the Recsiver.

4, The Reccivcr shatl promptly givc notice of its appointrfl€nt to all known general

Bnd limited psrtncrs. officert, dirtctolt, flgcnts, managersr emptoyces, sharuholdcrs, crtditors.

debtors and agents ofCoqui. All pslrJons ubd enlitics owing any obligations or debts to Coqui

rhall, rmtit furthcr ordcred by this Court, pay all such obligatio s in dccordlncc with the tcrms

thueof to thr Receiver, and i ts re+ei1lt for such payments shflll hEve thc samc forcc and ef]ict as i f

Coqui had receivcd such payments.

5. The Rcceiver is herelry mrthorizod to opcn nrch Rccciver,s bank accounls, at

banking or other finsncial instirutiorq to extcnd credit on brhalfofCoqui, to utilize SBA

pcrsonnel, and to cmploy such other pcrsonnEl as rcressary to clTcctuatc thE operEtion ofrhe

Receivershipncludirg, but not limited to, a$onreys and accountants, and is further authorized ro

expend Receivership funds to mrnpcnsEtc such perEoffiel in such aftounts ard upon strch lerms as

the Receiver shgll d€cm rcasonable in light of thc usual fees and bitling practicrs and proceduts of

such p€rsonnel. The Rccciver ir noi rcquired ro obtain coun approval prior to the di$buncmenr of

Rcceivership funds for paymcnts to pcrsoonel emptoycd by thc Recriver or paymcnts for expenses

incidentsl to sdministration ofthe Recrivership. In Eddition, the Receivcr is authorized ro

rcimburse the SBA or its employeen Ibr travcl €xpEnscs incrrrrcd by SBA peruonnEl ln the

csublishment and administration of thc Recdwrship. Thc Rccciver may, withour furrher order of

Case 2:06-mc-00017-RTD Document 2 Filed 03/16/06 Page 3 of 8 PageID #: <pageID>
tbis Court, transt'er, compromii€, or r'.tbcrwist dhposc ofany claim or 6s3et, other than real cst6te,

which would rcsull in net procerds to the Rccciwr.

6. Coqui's part and/or prcsunt ollicers, directors, agent$, rnao{gers, gencnl partners,

shoreholders, employ€es, flod othcr rpprupriate persors (including, without limitatior! the

defbndant's portfolio of gmall busincss concems arul banks or othcr financial institutiors doing

busincss with defondant aod/or defcndtntrri portfolio of$hEll business concems) +hall answtr

cnderoatlq pursuanf to a Receiver's .{oticc ot Subpoena, to thc Receiver, atl queslions which it

rnay pr* to them regading thc brrrinr.rs of said limited pErtncrship, or afly other maner Nlevflnt to

the operation or administrEtion of th(, Rcr;eivership orthe cotlecrion of funds duc to Coqui. ln thc

evcnl that thc Receiver dcems it nece$sorJ,to tcquirE the dppearance of the aforcmrntioned

pcrsons' the prcducrion of docum€nt$, infonrution, or any ottrer form ofdiscovcry conccrning the

assets, property or busincss tsets of Coqui or sny olhcr mEner telcvffit to the operqtion or

qdminiskation oflhe Receiveehip or rhc coltection offunds due to coqui, the Receiver shall direct

notica tbr any such appeorance by c,;rtlfierr mail, and said perso$s sh6tl appear &nd givc snswer t0

th€ Rcc€iv€r, pmduce documents or subrnit to any ortrcr form of discovery in a{,imrdsnce wirh ,.

Federal Rrrler of Civil Procedure.

7. Ihe pattie$ or pfospejtive parties to any and dl civil le8al procecdings whcrevcr

located, including, but not limited ro srbirrnrion proc€cdiflgs, bdnkruptcy or td*closurc acrions,

det'ault prdcftdings, or sny othcr $o{Jc€dirrgs involving Coqui or sny Esscts ofCoqui, invulvinE

coqui or its prEsent or pegt officels, dircctrxs, msnsgers, or genelal panners or the Rcoeiver, which

panies have brought suit or have been sred for, or in connection with, any action taken by coq'i,s

ofTlccrs, directors, manugets, or gencml punucrs whilt actiug in such iapacity whether as plaintiff,

dcfendant,hird-psny plaintiff, third-pnrry dcfendant, or otherwise, or wilh respe* ro any assers of

Case 2:06-mc-00017-RTD Document 2 Filed 03/16/06 Page 4 of 8 PageID #: <pageID>
Coqui, arc cnjoincd fmm takinE dny ilctiorr, includinB discovery, commencint or continuing Hny

legal pmceeding ofany naturc in conneptiou with any proceeding,

8. All pcnrling civil legnl proce.edings wherever located, including a$itntion

proccedingg, foreclosurc activities, bnnkruptcy uctioru, or defauh pmceedings, but cxcludidB the

in$lanl procaddin8, involving Coqui dr nny o[it3 sss.ts or sny action of any nature taken by

Coqui's ptesent or pdst offrceff, difq,c$r$, ru.snageHr, 0f gcncr{l psr|dcrs which panies huve brought

luit or havc becn rued for, or in conrrection with, afly lction taken by th€m while acting in thcir

o{ficial capdcity whcther as plaintiff" defcndanr, hird-party plaintiff, rhird-pdriy dctbndant, or

otfurwise, ar€ $ttryed in iheir entirery, arul all Couns having any jurisdicrion thcrcofarc enjoined

from taking or permiting any action until turth€r Order of thir Court.

9, Coqui stld ils past sftyor prc$cnt dlrectorE, offiE€rs, ffEnaBers, gcnffal pannfis,

agents, employcos and orhcr lrcrsonr acting in corrcen or participation theGwith shr[ b$, arrd thcy

hereby are, enjoined tmm eirher dircctly or indLecrly raking any action$ or causing 0ny Buch {ction

lo bc takcn which would dissipare the assers and Froperty ofcoqui to the detrimenr of rhc Rcceiyer

appointcd in this causE, including but not limlied to d*tructhn of pErtnerfiip rccordc, or which

world violatc the srnall Businus Investmr,nt Act of lg5g, as amendcd, (the "sBIA"), l5 u.s.c.

Sections 6d l, 91seq.. or the rcguldtiorls Fromulgatcd hercunder (thc nRegulariors"), l3C.F.R.

S€ctions I 07. l, g! !9q.

10. Thc Rcceiver is ourhdri?Fd to borrow on behalfofCoqui, fmm thc SBA, up to

S 1,000,000, and is ourhoriecd to causc Coqui to irsuc ReceivcCs Ccrtificates of Indebtedness in rhe

princip'l arnounts of thc 6ums boffowed, rvhich conificates wilL bear inreresr ar or Ebour tcn ( l0)

perccnt pcr annurn and will havc o r"ralurlty dEt€ no l er lhan 18 rnonths aftcr the datc o[issue,

$uid ReceiveCs Ceniflrcates ofIndebtcdness rhatl have priority ovrr atl other debts antl obligations

Case 2:06-mc-00017-RTD Document 2 Filed 03/16/06 Page 5 of 8 PageID #: <pageID>
ofCoqui, cxcluding adrninisEEtive ertEns€:r ofthe ReceiveEhip, r\fiethcr pfcaefltly cxisti gor

hereinafler incured, including without limitation any claims ofstockholders ofCoqui.

I I, This Coun determines and adjrrdicatcs that Coqui has violated th€ cspital

impairment provisions of the SBIA ord tho Regulations as alleged in the Complaint filed in this

matter. After compledng its activities iD accordancc with rhis Ordff, thc Rcceivff may subrnit a

rcpon to this Court r€comnrending rhat Coqul's licen$e aE En SBIC be rcvokcd.

lZ. The Uniled Stats5 Sm{ll Business Adminisrrarion is further entirled ro ajudgmcnt

against Coqui Capirdl Parlrters, LP. dk/E Tonu8r Cdpit8l partrlors, Lp, in the total sum of

$5'71?'721.39, including pdncipal of$5,45?,031.3i and nccrued inrcrcsr and fces in (he amount

of $?80,6E8.06 as of Janusry t 9, 2006 wirh s F€r diem mte of $ l.t I3. gl, plus post judgn€nt

inrerest pursuant to 2E U.S.C, $ lg6l as ofthc datr ofentry ofthis Order.

13. The election ofTonuga Capital MftHgerhent, LLC not to challcnge this Order

shall not aflcct, altcr or waive an:" rights, claims or defcn$es of the linritcd ponners of coqui

Capital Panners. LP, a/lt/a Totuga Llapiral pafiners, Lp,

AGREED TO AND ACKNOWLEDGEDI

llnitcd States $mall Busines: Administration

By'

By,

_-€.r=A Fl7*H _ Thomas Q. Monir, Pl'rcctor . r-:n] - a.4;

Office ofLiquidation

Coqui Capital P8nflers, LIr, r-llcla Torruga Capiul partnrrs. Lp

Tonuga Capiral Managemenl. LLC,-

its general partner, through

Case 2:06-mc-00017-RTD Document 2 Filed 03/16/06 Page 6 of 8 PageID #: <pageID>
Jcffr$y Il|vidton

It! Mrmbut.

$O {IRIIERED this _ day of

UNITED STATES DISTRICT JUDGE

,2006.

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Inrc Khr

sO0RnEREDrhi"Sd Oayor_lUArtJr,zOOO.

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