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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’S STATUS REPORT REGARDING WHETHER

THE LITIGATION STAY SHOULD REMAIN IN PLACE FOR 

CLAIMS AGAINST ECKERT SEAMANS AND/OR JOHN PAUCIULO

The Receiver respectfully submits this status report in response to the Court’s Paperless 

Order dated August 26, 2022 [ECF No. 1383], in which the Court denied 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 [ECF No. 1348].

As an initial matter, the Receiver agrees that the litigation stay should now be lifted in any case 

against Eckert Seamans and/or John W. Pauciulo in which a Receivership Entity is not a party. On 

this basis, the Receiver agrees that the litigation stay, currently in place in the following cases, 

should be lifted insofar as the parties have not named or will not seek to join as a party any 

Receivership Entity:

• Caputo, et al. v. Vagnozzi et al., No. 1:20-cv-01042 (D. Del. 2020);

• Melchior v. Vagnozzi, et al., No. 20-5562 (E.D. Pa. 2020);

• Montgomery, et al. v. Eckert Seamans Cherin & Mellott, LLC et al., No. 1:20-cv-23750 

(S.D. Fla. 2020);

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• Parker, et al. v. Pauciulo et al., No. 20-00892 (Phila. Ct. Com. Pl. 2020);

• Dean Vagnozzi v. Pauciulo, et al., No. 210402115 (Phila Ct. Com. Pl. 2020);

• Albert Vagnozzi, et al., v. Pauciulo, et al., No. 210502334 (Phila Ct. Com. Pl. 2020); and

• Legacy Advisory Group, Inc. et al. v. Pauciulo, et al., No. 211001003 (Phila Ct. Com. Pl. 

2021).

To the extent that discovery is sought of any Receivership Entity in the cases listed above, 

the Receiver will cooperate in a reasonable manner, while taking into consideration the cost to the 

Receivership Estate of any such discovery and its proportionality to the needs of the case. The 

Receiver reserves the right to seek appropriate relief from the forum court or this Court if he 

reasonably believes that the discovery is unduly burdensome, expensive, or disproportionate to the 

needs of the case.

With respect to the Receiver’s contemplated action against Eckert Seamans and/or Mr. 

Pauciulo, the Receiver previously has reported that counsel for Eckert Seamans and Mr. Pauciulo 

have declined to discuss resolution at this time. They have indicated that it would be important 

for their clients to know the total amount of disgorgement and penalties the Court assesses against 

the Defendants in this action before their clients would be in a position to discuss a potential 

resolution of the Receiver’s claims against Eckert Seamans and Mr. Pauciulo. On this basis, the 

Receiver respectfully requests that the litigation stay between any Receivership Entity and 

Eckert/Pauciulo remain in place for sixty (60) days following entry of the disgorgement/penalties 

Order. This period will allow the Receiver and Eckert/Pauciulo an opportunity to attempt to 

resolve the Receiver’s claims without the expense of a suit. At the end of this period, the Receiver 

anticipates that he will either report that he has resolved the Receivership Estate’s claims against 

Eckert/Pauciulo, or move the Court for permission to lift the litigation injunction to pursue claims 

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against Eckert/Pauciulo at that time, and, if the motion is granted, to file suit contemporaneously 

with entry of the Order.

Dated: September 2, 2022 Respectfully Submitted, 

STUMPHAUZER FOSLID SLOMAN

ROSS & KOLAYA, PLLC

Two South Biscayne Blvd., Suite 1600

Miami, FL 33131

Telephone: (305) 614-1400

Facsimile: (305) 614-1425

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

Facsimile: (215) 981-0082

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 

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CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on September 2, 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

Case 9:20-cv-81205-RAR Document 1392 Entered on FLSD Docket 09/02/2022 Page 4 of 4