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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 (1) RESPONSE TO NON-PARTY

TOORAK CAPITAL PARTNERS, LLC’S MOTION TO INTERVENE AND LIFT 

LITIGATION INJUNCTION, AND (2) MOTION TO LIFT LITIGATION 

INJUNCTION TO ALLOW TOORAK CAPITAL PARTNERS, LLC TO PROCEED 

WITH CERTAIN FORECLOSURE ACTIONS IN NEW YORK STATE COURT

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

Entities,

1 by and through undersigned counsel, hereby files his: (1) response in opposition to Non1 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; and ABFP Income Fund 6 Parallel; ABFP Multi-Strategy 

Investment Fund LP; ABFP Multi-Strategy Fund 2 LP; MK Corporate Debt Investment Company 

LLC; Capital Source 2000, Inc.; Fast Advance Funding LLC; Beta Abigail, LLC; New Field 

Ventures, LLC; Heritage Business Consulting, Inc.; Eagle Six Consulting, 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; 500 Fairmount Avenue, LLC; Liberty Eighth Avenue LLC; Blue Valley Holdings, LLC; 

LWP North LLC; The LME 2017 Family Trust; Recruiting and Marketing Resources, Inc.; 

Contract Financing Solutions, Inc.; Stone Harbor Processing LLC; LM Property Management 

Case 9:20-cv-81205-RAR Document 1420 Entered on FLSD Docket 09/25/2022 Page 1 of 7
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Party Toorak Capital Partners, LLC’s Motion to Intervene and Lift Litigation Injunction to Allow 

it to Proceed with Foreclosure Actions in New York State Court [ECF No. 1391] (the “Motion to 

Intervene”); and (2) Motion to Lift Litigation Injunction to Allow Toorak Capital Partners, LLC 

to Proceed with Certain Foreclosure Actions in New York State Court (the “Receiver’s Motion to 

Lift Litigation Injunction”), and states as follows:

1. In the Motion to Intervene, non-party Toorak Capital Partners, LLC (“Toorak”) 

asks the Court to permit it to intervene in this action for the purpose of obtaining relief from the 

litigation injunction contained in the Court’s Amended Order Appointing Receiver [ECF No. 141]

(the “Amended Order”), so that Toorak may proceed with the following two foreclosure actions

that are pending in the Supreme Court of the State of New York, Kings County: (a) Toorak Capital

Partners, LLC v. 145 Stuyvesant Ave Prop LLC et al., Index No. 500868/2021 (the “145 

Stuyvesant Foreclosure Action”), which names Complete Business Solutions Group, Inc. d/b/a Par 

Funding (“CBSG”) as a junior lienholder defendant; and (b) Toorak Capital Partners, LLC v. 347A 

Quincy St Prop LLC, et al., Index No. 501908/2021 (the “347A Quincy Foreclosure Action”), 

which names Fast Advance Funding Inc. (“FAF”) as a junior lienholder defendant.

The 145 Stuyvesant Foreclosure Action

2. Toorak holds a first position lien over certain real property that 145 Stuyvesant 

Ave Prop LLC owns at 145 Stuyvesant Avenue, Brooklyn, NY 11221 (the “145 Stuyvesant 

Property”) through various loan documents and mortgages that 145 Stuyvesant Ave Prop LLC 

executed in favor of Toorak or its successors in interest. These mortgages encumbering the 145 

LLC; and ALB Management, LLC; and the receivership also includes the properties located at 568 

Ferndale Lane, Haverford PA 19041; 105 Rebecca Court, Paupack, PA 18451; 107 Quayside Dr., 

Jupiter FL 33477; 2413 Roma Drive, Philadelphia, PA 19145; 159 26th Street, Avalon, NJ 08202; 

and 164 84th Street, Stone Harbor, NJ 08247.

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Stuyvesant Property were recorded on March 26, 2019 and March 28, 2019 (the “145 Stuyvesant 

Mortgages”).

3. In the 145 Stuyvesant Action, Toorak alleges that 145 Stuyvesant Ave Prop LLC 

defaulted under these loan documents and mortgages and seeks to foreclose on the 145 Stuyvesant 

Property.

4. CBSG, as collateral for a merchant cash advance it provided to Gordon 

Management Group LLC, obtained a Security Agreement against the Stuyvesant Property dated 

as of April 17, 2019, and recorded on May 28, 2019, which is junior to the 145 Stuyvesant 

Mortgages.

5. As a result of CBSG’s interest in the 145 Stuyvesant Property as a junior lienholder, 

Toorak named CBSG as a Defendant in the 145 Stuyvesant Foreclosure Action.

6. The Amended Order, and in particular the litigation injunction contained therein, 

prevents Toorak from proceeding with the 145 Stuyvesant Foreclosure Action.

7. The Receiver has no reason to believe that CBSG’s lien interest on the 145 

Stuyvesant Property is superior to the 145 Stuyvesant Mortgages.

8. According to an appraisal report dated August 24, 2022, the value of the 145 

Stuyvesant Property is $1,530,000.

9. According to representations from Toorak’s counsel, the amount of principal, 

interest, and other amounts 145 Stuyvesant Ave Prop LLC owes under the 145 Stuyvesant 

Mortgages is in excess of $2.1 million, with additional interest continuing to accrue. 

10. Through the Receiver’s investigation, he has determined that a foreclosure sale in 

the 145 Stuyvesant Foreclosure Action is not likely to result in any surplus proceeds beyond the 

amount necessary to satisfy Toorak’s first position lien on the 145 Stuyvesant Property. 

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11. As a result, the Receiver believes that Toorak should be permitted to proceed with 

the 145 Stuyvesant Foreclosure Action and a potential foreclosure sale of the 145 Stuyvesant 

Property, provided that any surplus proceeds to which CBSG may be entitled are promptly 

distributed to the Receiver. 

The 347A Quincy Foreclosure Action

12. Toorak holds a first position lien over certain real property that 347A Quincy St 

Prop LLC owns at 347A Quincy Avenue, Brooklyn, NY 11216 (the “347A Quincy Property”) 

through various loan documents and mortgages that 347A Quincy St Prop LLC executed in favor 

of Toorak or its successors in interest. These mortgages encumbering the 347 Quincy Property 

were recorded on May 8, 2019 (the “347A Quincy Mortgage”).

13. In the 347A Quincy Foreclosure Action, Toorak alleges that 347A Quincy St Prop 

LLC defaulted under these loan documents and the 347A Quincy Mortgage and seeks to foreclose 

on the 347A Quincy Property.

14. FAF, as collateral for a merchant cash advance it provided to Gordon Management 

Group LLC, obtained a Security Agreement against the 347A Quincy Property dated as of May 

13, 2019, and recorded on June 12, 2019, which is junior to the 347A Quincy Mortgage. 

15. As a result of FAF’s interest in the 347A Quincy Property as a junior lienholder, 

Toorak named FAF as a Defendant in the 347A Quincy Foreclosure Action.

16. The Amended Order, and in particular the litigation injunction contained therein, 

prevents Toorak from proceeding with his foreclosure action.

17. The Receiver has no reason to believe that FAF’s lien interest on the 347A Quincy 

Property is superior to the 347A Quincy Mortgage.

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18. According to an appraisal report dated August 24, 2022, the value of the 347A

Quincy Property is $1,460,000.

19. According to representations from Toorak’s counsel, the amount of principal, 

interest, and other amounts 347A Quincy St Prop LLC owes under the 145 Stuyvesant Mortgages

is in excess of $1.8 million, with additional interest continuing to accrue. 

20. Through the Receiver’s investigation, he has determined that a foreclosure sale in 

the Foreclosure Action is not likely to result in any surplus proceeds beyond the amount necessary 

to satisfy Toorak’s first position lien on the 347A Quincy Property. 

21. As a result, the Receiver believes that Toorak should be permitted to proceed with 

its 347A Quincy Foreclosure Action and a potential foreclosure sale of the 347A Quincy Property, 

provided that any surplus proceeds to which FAF may be entitled are promptly distributed to the 

Receiver. 

The Receiver Opposes Toorak’s Proposed Intervention in this Action, But 

Agrees that Toorak Should be Permitted to Proceed with its Foreclosure Actions

22. As this Court is aware, CBSG and its related MCA companies, included FAF, have 

more than 1,000 merchants with outstanding balances on their merchant cash advance agreements. 

The Receiver is negotiating on a daily basis with these merchants to resolve issues relating to their 

accounts. For example, as a result of Orders from this Court granting the Receiver’s prior motions 

to lift the litigation injunction contained in the Amended Order, the Receiver has marked confessed 

judgments as satisfied or dissolved writs of attachment with respect to collections proceedings 

involving hundreds of merchants.

23. Recognizing the challenges that may accompany allowing numerous non-parties to 

intervene in this action for the purpose of seeking to lift the litigation injunction, the Receiver 

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requests the Court to deny the Motion to Intervene.2 At the same time, however, the Receiver, 

through the Receiver’s Motion to Lift Litigation Injunction, hereby requests the Court to lift the 

litigation injunction contained in the Amended Order for the limited purpose of allowing Toorak

to proceed with the 145 Stuyvesant Foreclosure action and the 347A Quincy Foreclosure Action,

and a potential foreclosure sale of the 145 Stuyvesant Property and the 347A Quincy Property.

WHEREFORE, Ryan K. Stumphauzer, as Court-Appointed Receiver, by and through his 

undersigned counsel, respectfully requests this Honorable Court to: (1) deny Toorak’s Motion to 

Intervene; and (2) grant the Receiver’s Motion to Lift Litigation Injunction, on a limited basis as 

set forth above. A proposed order for the Court’s consideration is attached as Exhibit 1.

CERTIFICATION REGARDING PRE-FILING CONFERENCE

The undersigned counsel has conferred with the SEC regarding the relief sought herein and 

certifies that the SEC is in agreement with the Receiver’s opposition to the Motion to Intervene 

and does not oppose the relief requested in the Receiver’s Motion to Lift Litigation Injunction.

Dated: September 25, 2022 Respectfully Submitted, 

STUMPHAUZER KOLAYA

NADLER & SLOMAN, 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@sknlaw.com

Co-Counsel for Receiver 

2 To that end, the Receiver incorporates the SEC’s prior arguments opposing requests by nonparties to intervene in this SEC enforcement action. See, e.g., SEC’s Response in Opposition to 

Lead Funding’s first Motion to Intervene [ECF No. 409].

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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 

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on September 25, 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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