Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_11-cv-00938/USCOURTS-cand-3_11-cv-00938-15/pdf.json

Parties Involved:
Baystar Capital Management, LLC
Defendant
Lawrence R. Goldfarb
Defendant
Securities And Exchange Commission
Plaintiff

Document Text:

REQUEST FOR ADMINISTRATIVE ORDER 

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JOHN W. COTTON (SBN 54912) 

Email: jcotton@gghslaw.com 

GARTENBERG, GELFAND & HAYTON LLP 

15260 Ventura Blvd. 

Suite 1920 

Sherman Oaks, CA 91403 

(213) 542-2100 

(213) 542-2136 (Direct) 

Receiver for Baystar Capital Management, LLC 

and Lawrence Goldfarb 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SECURITIES AND EXCHANGE 

COMMISSION, 

 Plaintiff, 

v. 

LAWRENCE R. GOLDFARB and 

BAYSTAR CAPITAL 

MANAGEMENT, LLC, 

 Defendants. 

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Case No.: C-11-0938 WHA 

[PROPOSED] ORDER 

GRANTING RECEIVER’S 

MISCELLANEOUS 

ADMINISTRATIVE 

APPLICATION FOR AN 

ORDER PURSUANT TO 

LOCAL RULE 7-11 FOR A 

SALE OF ASSETS AND 

SECOND DISTRIBUTION 

ORDER AUTHORIZING SALE OF ASSETS AND DISTRIBUTION

 Pursuant to Local Rule 7-11 of the Northern District of California, the 

Receiver in the above matter has submitted to the Court a miscellaneous 

administrative application for an Order approving the sale of certain illiquid 

assets, and a distribution of assets to the Defendant’s defrauded investors. Along 

with the administrative application, the Receiver has presented the Court with a 

Case 3:11-cv-00938-WHA Document 179 Filed 01/28/16 Page 1 of 2
REQUEST FOR ADMINISTRATIVE ORDER 

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declaration setting forth his efforts to value the illiquid investments, the 

involvement of the two largest and sophisticated investors in the valuation 

process and the reasons for his recommendation that the illiquid assets be sold for 

the amounts indicated. The Receiver has obtained the non-opposition of all other 

parties to this matter to his recommendation. 

 GOOD CAUSE APPEARING, the Court hereby authorizes the 

Receiver to sell defendant Baystar’s interest in the Island Fund to its general 

partner for the amount of $150,000 and to sell Baystar’s interest in the Yacht 

Fund to its general partner for the amount of $235,630, both in cash at the time of 

closing. 

 GOOD CAUSE APPEARING, the Court also hereby authorizes the 

Receiver to further investigate the entitlement of the few Baystar investors who 

invested solely in the Yacht Fund side pocket, in order to determine their 

entitlement to a distribution solely from the Yacht Fund proceeds, and to make 

such pro rata distributions to them if appropriate and they can be located with 

reasonable effort. 

 GOOD CAUSE ALSO APPEARING, the Court hereby authorizes 

the Receiver to make such cash distributions, as he deems appropriate, in the 

approximate amount of $700,000, to the defrauded Baystar investors in the 

proportionate amounts previously approved by this Court. 

 

SO ORDERED. 

DATED: January __, 2016 

 

 __________________________ 

 Judge William Alsup 

 United States District Court 

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Case 3:11-cv-00938-WHA Document 179 Filed 01/28/16 Page 2 of 2