Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_11-cv-00938/USCOURTS-cand-3_11-cv-00938-14/pdf.json

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

Document Text:

[PROPOSED] ORDER TO LIQUIDATE ASSET 

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JOHN W. COTTON (SBN 54912) 

Email: JCotton@gghslaw.com GARTENBERG GELFAND HAYTON LLP 

801 S. Figueroa Street, Suite 2170 

Los Angeles, CA 90017 

(213) 542-2136 

Receiver of 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. 

Case No.: C-11-0938 WHA

[PROPOSED] ORDER 

CONCERNING THE 

RECEIVER’S 

MISCELLANEOUS 

ADMINISTRATIVE 

APPLICATION FOR AN 

ORDER PURSUANT TO 

LOCAL RULE 7-11 TO 

LIQUIDATE ASSET

Date: N/A 

Time: N/A 

Judge: William A. Alsup

By this Motion, the Receiver in the above matter, John W. Cotton seeks 

permission to enter into a purchase and sale agreement with Cascade Capital 

LLC (“Cascade”) to sell the Receivership estate’s illiquid interest in a joint 

venture, known as LRG Cascade, between Cascade and defendant Lawrence 

Goldfarb’s solely-owned entity LRG Capital Commercial (“LRGCC”). 

The Receiver recommends the proposed sale after discussing the 

proposed terms with defendant Baystar’s three largest Island Fund side-pocket 

investors, who comprise 93% of the investors defrauded by defendant 

Goldfarb, and receiving their approval for the sale. Likewise, the Receiver has 

Case 3:11-cv-00938-WHA Document 176 Filed 04/21/15 Page 1 of 2
[PROPOSED] ORDER TO LIQUIDATE ASSET 

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discussed the proposed terms with the parties to this litigation, defendant 

Goldfarb and the U.S. Securities & Exchange Commission, both of whom have 

no objection to the proposed sale. The terms for the sale call for an immediate 

cash payment to the Receivership estate of $8,609 in return for a full release 

over diminishing future cash distributions, which are estimated to be $14,360 

over the remaining life of LRGCC. The completion of the sale will eliminate 

the need to keep the Receivership estate open until the end of 2017 when 

LRGC terminates, and thereby reduce significant administrative cost to the 

estate. 

GOOD CAUSE APPEARING, the Court hereby authorizes John W. 

Cotton as Receiver, to enter into the proposed sale to Cascade as supported by 

the Motion and accompanying Declaration of Cotton. 

IT IS SO ORDERED. 

DATED: April_______, 2015 

 

 ______________________________ 

Judge William Alsup 

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Case 3:11-cv-00938-WHA Document 176 Filed 04/21/15 Page 2 of 2