UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

Case No. 20-CV-81205-RAR

SECURITIES & EXCHANGE COMMISSION, 

Plaintiff, 

 

v.

COMPLETE BUSINESS SOLUTIONS 

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

Defendants. 

_______________________________________/ 

ORDER SETTING SETTLEMENT CONFERENCE

Ryan K. Stumphauzer, Esq., Court-Appointed Receiver (“Receiver”) notified 

the District Court about a dispute between: (a) the Receiver and class counsel for 

various investors (“Class Counsel”) and (b) Defendant Dean Vagnozzi and non-parties 

Alec Vagnozzi, Albert Vagnozzi, and Terry Kohler (the “Vagnozzi Group”) regarding 

the Vagnozzi Group’s potential objections (the “Potential Objections”) to the 

Receiver’s anticipated motion to seek the Court’s approval of a settlement in principle 

that the Receiver and Class Counsel have reached with Eckert Seamans Cherin & 

Mellot, LLC (“Eckert Seamans”), John W. Pauciulo, and Eckert Seamans’ insurance 

carriers to resolve certain claims against Eckert Seamans and Mr. Pauciulo. ECF 

No. 1723. Thereafter, the District Court referred the dispute between the Receiver, 

Class Counsel, and the Vagnozzi Group over the Potential Objections to the 

undersigned for a settlement conference. ECF No. 1725. Accordingly, it is hereby 

ORDERED AND ADJUDGED as follows: 

The Receiver, a representative from Class Counsel, and the Vagnozzi Group

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shall appear before this Court on Tuesday, October 31, 2023, at 9:30 a.m., at the 

United States Courthouse, 701 Clematis Street, West Palm Beach, Florida 

33401, for a settlement conference. 

On the day before the settlement conference, the Court will conduct an ex parte

fifteen (15) minute telephone conference with counsel for each side (without clients). 

Counsel shall email chambers (reinhart@flsd.uscourts.gov) at their earliest 

convenience to advise the Court of their availability on that date and schedule a time 

for their ex parte telephone conference. The following rules shall apply to the 

settlement proceedings:

a.) NO CONTINUANCES. This settlement conference shall not be 

continued unless good cause is shown for another date. Any motions for continuance 

of the settlement conference must be in writing, properly filed with the Court prior to 

the date of the conference, and shall contain a proposed date for rescheduling the 

conference. Counsel moving to continue the conference shall consult with opposing 

counsel in proposing a new date for the conference. 

b.) WRITTEN SUBMISSIONS TO THE COURT. No later than

Thursday, October 26, 2023, counsel shall submit directly to chambers a written 

submission of no more than five (5) pages (single spaced), which shall contain a brief 

explanation of the Potential Objections and a proposal for resolving the Potential 

Objections. The submission shall also indicate the names of the individuals 

attending the settlement conference, including counsel. The Court will inform the 

U.S. Marshal Service that those individuals are permitted to bring mobile phones, 

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tablets, and laptops into the courthouse for the settlement conference. The 

submission shall further indicate whether there are any liens or any third parties 

whose involvement would help facilitate settlement. The parties are instructed not 

to submit such documents to the Clerk of Court. Rather, to facilitate timely 

submission of the documents, each party shall email their submissions to 

reinhart@flsd.uscourts.gov. Such submissions will be kept confidential and will 

not be disclosed to the opposing party without prior approval of the submitting party. 

c.) ATTENDANCE OF PARTIES REQUIRED. The Receiver, a 

representative from Class Counsel, and the Vagnozzi Group shall participate in the 

settlement conference. Except as provided under Local Rule 16.2E, counsel and each 

party, or representatives of each party, with ultimate settlement authority must be 

present at the settlement conference.

d.) STATEMENTS NOT ADMISSIBLE. Statements made by any party 

during the settlement conference shall be confidential and privileged. Accordingly, 

parties are encouraged to be frank in their discussions. The Court expects the 

parties to address each other with courtesy and respect.

DONE and ORDERED in Chambers this 19th day of October, 2023, at West 

Palm Beach in the Southern District of Florida.

____________________________________

BRUCE E. REINHART

UNITED STATES MAGISTRATE JUDGE

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