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UNITED STATES DISTRICT COURT

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.

 / 

ORDER PRELIMINARILY APPROVING SETTLEMENT AMONG 

RECEIVER, PUTATIVE CLASS PLAINTIFFS, AND ECKERT SEAMANS 

THIS CAUSE comes before the Court upon Motion for (i) Approval of Settlement among 

Receiver, Putative Class Plaintiffs, and Eckert Seamans Cherin & Mellott, LLC and John Pauciulo, 

Esq.;

1 (ii) Approval of Form, Content, and Manner of Notice of Settlement and Bar Order; 

(iii) Setting Deadline to Object to Approval of the Settlement and Entry of Bar Order; and 

(iv) Scheduling a Hearing (“Motion”), [ECF No. 1861], filed by Ryan K. Stumphauzer, Esq., as 

Court-appointed receiver (“Receiver”) of the Receivership Entities2 in the above-captioned civil 

1

 Eckert Seamans Cherin & Mellott, LLC and John Pauciulo, Esq. are collectively referred to as “Eckert 

Seamans.” As used in this Order, the “Parties” means the Putative Class Plaintiffs; the Receiver; and Eckert 

Seamans. Terms used but not defined in this Order have the meaning ascribed to them in the Settlement 

Agreement, [ECF No. 1861-1]. To the extent there is any discrepancy between a defined term in the 

Settlement Agreement and the same defined term herein, the definition in the Settlement Agreement shall 

control.

2

 The “Receivership Entities” are Complete Business Solutions Group, Inc. d/b/a Par Funding; Full 

Spectrum Processing, Inc.; ABetterFinancialPlan.com LLC d/b/a A Better Financial Plan; ABFP 

Management Company, LLC f/k/a Pillar Life Settlement Management Company, LLC; ABFP Income 

Fund, LLC; ABFP Income Fund 2, L.P.; United Fidelis Group Corp.; Fidelis Financial Planning LLC; 

Retirement Evolution Group, LLC; RE Income Fund LLC; RE Income Fund 2 LLC; ABFP Income Fund 

3, LLC; ABFP Income Fund 4, LLC; ABFP Income Fund 6, LLC; ABFP Income Fund Parallel LLC; ABFP 

Income Fund 2 Parallel; ABFP Income Fund 3 Parallel; ABFP Income Fund 4 Parallel; ABFP Income Fund 

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enforcement action (“SEC Action”). The Motion concerns the Receiver’s request for approval of 

a proposed settlement among a group of investors that filed class actions (defined below as the 

“Putative Class Plaintiffs”); the Receiver; and Eckert Seamans, which is memorialized in the 

settlement agreement attached to the Motion as Exhibit 1 (“Settlement Agreement”), [ECF No. 

1861-1]. By way of the Motion, the Receiver seeks an order preliminarily approving the 

Settlement Agreement and establishing procedures to provide notice of the settlement and an 

opportunity to object, setting a deadline to object, and scheduling a hearing. 

After reviewing the terms of the Settlement Agreement, reviewing the Motion and its 

exhibits, and considering the arguments and proffers set forth in the Motion, the Court 

preliminarily approves the Settlement Agreement and hereby establishes procedures for final 

approval of the Settlement Agreement and entry of the Final Approval and Bar Order attached as 

Exhibit B to the Settlement Agreement (“Bar Order”), as set forth herein.

I. Preliminary Approval

Based upon the Court’s review of the Settlement Agreement, the Motion and its 

attachments, and the arguments and proffers set forth in the Motion, the Court preliminarily finds 

that the settlement is fair, adequate, and reasonable; is a prudent exercise of the business judgment 

by the Receiver, the Putative Class Plaintiffs and Eckert Seamans; and is the product of good faith, 

6 Parallel; ABFP Multi-Strategy Investment Fund LP; ABFP Multi-Strategy Investment Fund 2 LP; MK 

Corporate Debt Investment Company LLC; Fast Advance Funding LLC; Beta Abigail, LLC; New Field 

Ventures, LLC; Heritage Business Consulting, Inc.; Eagle Six Consultants, Inc.; 20 N. 3rd St. Ltd.; 118 

Olive PA LLC; 135-137 N. 3rd St. LLC; 205 B Arch St Management LLC; 242 S. 21st St. LLC; 300 Market 

St. LLC; 627-629 E. Girard LLC; 715 Sansom St. LLC; 803 S. 4th St. LLC; 861 N. 3rd St. LLC; 915-917 

S. 11th LLC; 1250 N. 25th St. LLC; 1427 Melon St. LLC; 1530 Christian St. LLC; 1635 East Passyunk 

LLC; 1932 Spruce St. LLC; 4633 Walnut St. LLC; 1223 N. 25th St. LLC; Liberty Eighth Avenue LLC; 

The LME 2017 Family Trust; Blue Valley Holdings, LLC; LWP North LLC; 500 Fairmount Avenue, LLC; 

Recruiting and Marketing Resources, Inc.; Contract Financing Solutions, Inc.; Stone Harbor Processing 

LLC; LM Property Management LLC; and ALB Management, Inc., and the Receivership also includes the 

property located at 107 Quayside Drive, Jupiter, Florida 33477.

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arm’s length and non-collusive negotiations between the Putative Class Plaintiffs, Eckert Seamans,

and the Receiver. The Court, however, reserves a final ruling with respect to the terms of the 

Settlement Agreement, including the Bar Order, until after the Final Approval Hearing (defined 

below) occurs, or is cancelled pursuant to Section 7 below.

II. Notice

The Court approves the form and content of the notice attached as Exhibit C to the 

Settlement Agreement (“Notice”). Service or publication of the Notice in accordance with the 

manner and method set forth in this paragraph constitutes good and sufficient notice, and is 

reasonably calculated under the circumstances to notify all interested parties of the Motion, the 

Settlement Agreement, and the Bar Order; and of their opportunity to object thereto and attend the 

Final Approval Hearing (defined below) concerning these matters; furnishes all parties in interest 

a full and fair opportunity to evaluate the settlement and object to the Motion, the Settlement 

Agreement, the Bar Order, and all matters related thereto; and complies with all requirements of 

applicable law, including, without limitation, the Federal Rules of Civil Procedure, the Local Rules 

for the Southern District of Florida, and the United States Constitution. Accordingly: 

a. The Receiver is directed, no later than 10 days after entry of this Order, to cause the 

Notice in substantially the same form as attached to the Settlement Agreement to be 

served by email, where e-mail address is known, and first-class U.S. mail,3 postage

prepaid, to:

i. all counsel who have appeared of record in the SEC Action;

3

 All addresses shall be run through the national change of address (NCOA) database maintained by USPS 

prior to mailing. All names and addresses contained in returned mail will be run through the NCOA 

database. If no viable address is provided or available, a skip trace shall be performed. The Receiver shall 

take all commercially reasonable efforts to ensure actual delivery of the notice. 

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ii. all counsel who are known by the Receiver to have appeared of record, or 

entered into a tolling agreement, in any legal proceeding or arbitration 

commenced by or on behalf of any of the Receivership Entities, in the 

Putative Class Actions, or any individual investor or putative class of 

investors seeking relief against any person or entity relating in any manner 

to the Receivership Entities or the subject matter of the SEC Action or the 

Putative Class Actions;

iii. all known investors in each and every one of the Receivership Entities 

identified in the investor lists in the possession of the Receiver at the 

addresses set forth therein; 

iv. all known non-investor creditors of each and every one of the 

Receivership Entities identified after a reasonable search by the Receiver;

v. all parties to the SEC Action;

vi. all owners, officers, directors, and senior management employees of the 

Receivership Entities;

vii. all other persons or entities that previously received notice of the 

Receiver’s filings;

viii. the third-party administrators and/or other control persons for the Pillar 

Entities, the Fallcatcher Entities, and the Atrium Entities; and

ix. counsel for all parties that have filed any actions against Eckert Seamans.

b. The Receiver is directed, no later than 10 days after entry of this Order, to cause the 

Notice in substantially the same form as attached to the Settlement Agreement to be 

published:

i. Once a week for two non-consecutive weeks in the Legal Intelligencer; and

ii. on the website maintained by the Receiver in connection with the SEC 

Action (www.parfundingreceivership.com).

c. The Receiver is directed to promptly provide copies of the Motion, the Settlement 

Agreement, and all exhibits and attachments thereto, to any person who requests such 

documents via email. The Receiver may provide such materials in the form and manner 

that the Receiver deems most appropriate under the circumstances of the request.

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d. The Receiver is directed, no later than 5 days before the Final Approval Hearing 

(defined below), to file with this Court written evidence of compliance with the 

subparts of this paragraph, which may be in the form of an affidavit or declaration. 

III. Final Hearing

The Court will conduct an in-person hearing at 10:30 A.M. on July 16, 2024 (“Final 

Approval Hearing”) in Courtroom 11-2, 11th Floor, at the Wilkie D. Ferguson, Jr. United 

States Courthouse, 400 North Miami Avenue, Miami, Florida 33128. The purposes of the 

Final Approval Hearing will be to consider final approval of the Settlement Agreement, entry of 

the Bar Order, and an award of attorneys’ fees as described in paragraph 7 of the Settlement 

Agreement.

IV. Objection Deadline; Objections and Appearances at the Final Approval Hearing

Any person who objects to the terms of the Settlement Agreement, the Bar Order, the 

Motion, or any of the relief related to any of the foregoing, must file an objection, in writing, with 

the Court pursuant to the Court’s Local Rules no later than thirty (30) days before the Final 

Approval Hearing. All objections filed with the Court must: 

a. Contain the name, address, and telephone number of the person filing the objection or 

his or her attorney; 

b. Be signed by the person filing the objection, or his or her attorney; 

c. State, in detail, the factual and legal grounds for the objection; 

d. Attach any document the Court should review in considering the objection and ruling 

on the Motion; and 

e. If the person filing the objection intends to appear at the Final Approval Hearing, make 

a request to do so. 

Subject to the discretion of this Court, no person will be permitted to appear at the Final Approval 

Hearing without first filing a written objection and requesting to appear at the hearing in 

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accordance with the provisions of this paragraph. Copies of any objections filed must be served 

by email and regular mail on: 

Ryan Stumphauzer 

Stumphauzer Kolaya Nadler & Sloman PLLC

One Biscayne Tower

2 S. Biscayne Boulevard

Suite 1600

Tel: (305) 614-1400

Fax: (305) 614-1425

Email: rstumphuazer@sknlaw.com

Timothy A. Kolaya 

Stumphauzer Kolaya Nadler & Sloman PLLC

One Biscayne Tower

2 S. Biscayne Boulevard

Suite 1600

Tel : (305) 614-1400

Fax : (305) 614-1425

Email : tkolaya@sknlaw.com

Gaetan J. Alfano

Pietragallo Gordon Alfano Bosick & Raspanti, LLP

1818 Market Street, Suite 3402

Philadelphia, PA 19103

Tel.: (215) 320-6200 

Fax: (215) 981-0082 

Email: gja@pietragallo.com 

Levine Kellogg Lehman Schneider + Grossman LLP

Jeffrey C. Schneider

Jason K. Kellogg

Victoria J. Wilson

Miami Tower

100 SE 2nd Street, 36th Floor

Miami, FL 33131

Tel.: (305) 403-8788 

Fax: (305) 403-8789 

Email: jcs@lklsg.com

Email: jk@lklsg.com

Email: vjw@lklsg.com

Steven A. Schwartz

Chimicles Schwartz Kriner & Donaldson-Smith LLP

361 West Lancaster Avenue

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Haverford, PA 19041

Tel.: (610) 642-8500

Fax: (610) 649-3633

Email: sas@chimicles.com

Marc H. Edelson

Eric Lechtzin

Edelson Lechtzin LLP

411 S. State Street 

Ste N-300 

Newtown, PA 18940 

Tel.: (215) 867-2399 

Fax: (267) 685-0676 

Email: medelson@edelson-law.com

Email: elechtzin@edelson-law.com

Scott Lance Silver

Silver Law Group 

11780 W. Sample Road 

Coral Springs, FL 33065 

Tel: (954) 755-4799 

Fax: (954) 755-4684 

Email: ssilver@silverlaw.com

Melanie Emmons Damian 

Damian & Valori LLP 

1000 Brickell Avenue 

Suite 1020 

Miami, FL 33131 

Tel.: (305) 371-3960 

Fax: (305) 371-3965 

Email: mdamian@dvllp.com 

Jay A. Dubow 

Troutman Pepper 

3000 Two Logan Square 

Eighteenth and Arch Streets 

Philadelphia, PA 19103-27799 

Tel.: (215) 981-4713

Email: jay.dubow@troutman.com

Catherine M. Recker

Welsh and Recker

306 Walnut Street

Philadelphia, PA 19106

Email: cmrecker@welshrecker.com

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Any person failing to file an objection by the time and in the manner set forth in this paragraph 

shall be deemed to have waived the right to object (including any right to appeal) and to appear at 

the Final Approval Hearing, and such person shall be forever barred from raising such objection 

in this action or any other action or proceeding, subject to the discretion of this Court. 

V. Responses to Objections

Any party to the Settlement Agreement may respond to an objection filed pursuant to this 

Order by filing a response in this Action. To the extent any person filing an objection cannot be 

served by the Court’s CM/ECF system, a response must be served to the email address provided 

by that objector, or, if no email address is provided, to the mailing address provided. 

VI. Attorneys’ Fees

As set forth in the Settlement Agreement, within thirty (30) days of the entry of this Order, 

Class Counsel must advise the Receiver that they have agreed on an allocation of the Attorneys’ 

Fund. The procedures for distribution of the Attorneys’ Fund set forth in the Settlement Agreement 

are hereby approved by this Court.

VII. Adjustments Concerning Hearing and Deadlines

The date, time, and place for the Final Approval Hearing, and the deadlines and other 

requirements in this Order, shall be subject to adjournment, modification, or cancellation by the 

Court without further notice other than that which may be posted by means of the Court’s CM/ECF 

system in the SEC Action. If no objections are timely filed or if the objections are resolved 

before the hearing, the Court may cancel the Final Approval Hearing.

VIII. No Admission

Nothing in this Order or the Settlement Agreement is or shall be construed to be an 

admission or concession of any violation of any statute or law, of any fault, liability, or 

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wrongdoing, or of any infirmity in the claims or defenses of the settling parties with regard to the 

SEC Action, the action brought by the Putative Class Plaintiffs, or any other case or proceeding. 

IX. Jurisdiction

The Court retains jurisdiction to consider all further matters relating to the Motion or the 

Settlement Agreement, including, without limitation, entry of an Order finally approving the 

Settlement Agreement and the Bar Order.

X. Barred Claims

All claims that would be Barred Claims against the Eckert Seamans Released Parties, 

including, but not limited to:

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

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

(S.D. Fla. 2020); 

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

d. Dean Vagnozzi v. Pauciulo, et al., No. 210402115 (Phila Ct. Com. Pl. 2021); 

e. Albert Vagnozzi, et al. v. Pauciulo, et al., No. 210502334 (Phila Ct. Com. Pl. 2021); 

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

Pl. 2021);

g. Westhead, et al. v. Eckert Seamans, et al., No. 240102114 (Phila. C.C.P.); 

h. B and T Supplies, Inc., et al. v. AG Morgan Tax and Accounting LLC, et al., No. 23-cv11241 (S.D.N.Y.); and

i. Caputo, et al. v. Vagnozzi, et al., No. 20-cv-01142 (D. Del),

are STAYED until the Final Hearing or further order of this Court. To the extent reasonably 

necessary for the Receiver or the Investors to pursue claims against others, Eckert Seamans shall 

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produce non-privileged testimony or documents within their custody or control, subject to all 

appropriate objections, but shall be reimbursed for any reasonable expenses or costs incurred in 

doing so.

DONE AND ORDERED in Miami, Florida, this 12th day of May, 2024.

 _________________________________

 RODOLFO A. RUIZ II

 UNITED STATES DISTRICT JUDGE

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