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UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF FLORIDA

CASE NO.: 20-CV-81205-RAR

SECURITIES AND EXCHANGE 

COMMISSION,

Plaintiff,

v.

COMPLETE BUSINESS SOLUTIONS 

GROUP, INC. d/b/a PAR FUNDING, et al.

Defendants.

______________________________________/

RECEIVER, RYAN K. STUMPHAUZER’S RESPONSE IN OPPOSITION 

TO DEFENDANT DEAN VAGNOZZI’S MOTION TO REFER DISPUTE TO

SETTLEMENT CONFERENCE BEFORE MAGISTRATE JUDGE BRUCE E.

REINHART CONCERNING PROSECUTION OF LEGAL MALPRACTICE 

CLAIMS AGAINST ECKERT SEAMANS AND JOHN PAUCIULO

Ryan K. Stumphauzer, Esq., Court-Appointed Receiver (“Receiver”) of the Receivership 

Entities, by and through his undersigned counsel, files this response in opposition to Defendant, 

Dean Vagnozzi’s (“Vagnozzi”) Motion to Refer Dispute to Settlement Conference Before 

Magistrate Judge Bruce E. Reinhart Concerning Prosecution of Legal Malpractice Claims against 

Eckert Seamans and John Pauciulo [ECF No. 1348] (the “Motion”), and states:

1. In the Motion, Vagnozzi requests the Court to order the parties to participate in a 

settlement conference before Magistrate Judge Bruce E. Reinhart regarding two issues: (a) 

Vagnozzi’s request to lift the litigation stay so that Vagnozzi can pursue claims against Eckert 

Seamans and John Pauciulo (“Lifting the Stay”); and (b) a proposed global settlement between 

and among the Receiver, Vagnozzi, Eckert Seamans, and John Pauciulo (the “Global Settlement 

Discussions”).

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2. The Receiver does not believe that the proposed settlement conference would be 

helpful or appropriate at this time. 

3. As for Lifting the Stay, the Receiver does not agree with Vagnozzi that it would be 

in the best interest of the Receivership Estate to lift the Litigation Stay to permit Vagnozzi to 

pursue his proposed claims against Eckert Seamans and Mr. Pauciulo. The Receiver has already 

engaged in extensive discussions with counsel for Vagnozzi regarding this request. Further 

discussions, including a settlement conference, will not change the Receiver’s position.

4. As for the proposed Global Settlement Discussions, the Receiver has discussed this 

proposal with counsel for Eckert Seamans and Mr. Pauciulo. Neither Eckert Seamans nor Mr. 

Pauciulo are parties to this litigation and, therefore, their participation in the proposed Global 

Settlement Discussions would need to be on a voluntary basis. Counsel for Eckert Seamans and 

Mr. Pauciulo have indicated that it would be premature to engage in Global Settlement 

Discussions. As one example, they have indicated that it would be important to know the total 

amount of disgorgement and penalties the Court assesses against the Defendants in this action 

before their clients would potentially be in a position to discuss a potential resolution of the various 

claims against Eckert Seamans and Mr. Pauciulo. Although the Receiver believes that a settlement 

conference could be productive if the appropriate parties were in attendance, because neither 

Eckert Seamans nor Mr. Pauciulo will voluntarily take part in the proposed Global Settlement 

Discussions at the current time, the Receiver does not believe it would be worthwhile for the 

Receiver and Vagnozzi to participate in a settlement conference before Judge Reinhart on this 

issue.

WHEREFORE, the Receiver respectfully requests that the Court deny the Motion, without 

prejudice.

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Dated: August 19, 2022 Respectfully Submitted, 

STUMPHAUZER FOSLID 

SLOMAN ROSS & KOLAYA, PLLC

Two South Biscayne Blvd., Suite 1600

Miami, FL 33131

Telephone: (305) 614-1400

By: /s/ Timothy A. Kolaya

TIMOTHY A. KOLAYA

Florida Bar No. 056140

tkolaya@sfslaw.com

Co-Counsel for Receiver 

PIETRAGALLO GORDON ALFANO 

BOSICK & RASPANTI, LLP

1818 Market Street, Suite 3402

Philadelphia, PA 19103

Telephone: (215) 320-6200

By: /s/ Gaetan J. Alfano

GAETAN J. ALFANO 

Pennsylvania Bar No. 32971

(Admitted Pro Hac Vice)

GJA@Pietragallo.com

DOUGLAS K. ROSENBLUM

Pennsylvania Bar No. 90989

(Admitted Pro Hac Vice)

DKR@Pietragallo.com

Co-Counsel for Receiver 

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on August 19, 2022, I electronically filed the foregoing 

document with the clerk of the Court using CM/ECF. I also certify that the foregoing document is 

being served this day on counsel of record via transmission of Notices of Electronic Filing 

generated by CM/ECF.

/s/ Timothy A. Kolaya

TIMOTHY A. KOLAYA

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