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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.

______________________________________/ 

RECEIVER’S STATUS REPORT REGARDING MEDIATION 

IN CONNECTION WITH SETTLEMENT WITH ECKERT SEAMANS 

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

Entities, pursuant to the Court’s Order Granting Receiver’s Motion to Establish Additional 

Procedures for Mediation in Connection with Motion to Approve Settlement with Eckert Seamans 

[ECF No. 2036] (“Mediation Order”), files this status report regarding the outcome of the 

mediation involving the proposed settlement agreement with Eckert Seamans Cherin & Mellott, 

LLC (“Eckert Seamans”), and states:

1. On May 6, 2024, the Receiver filed a motion to approve a settlement among the 

Receiver, a putative investor class, and Eckert Seamans [ECF No. 1861] (the “Eckert Settlement 

Motion”). 

2. Following the entry of the United States Supreme Court’s recent opinion in 

Harrington v. Purdue Pharma L.P., 603 U.S. ----, 144 S. Ct. 2071, 219 L. Ed. 2d 721 (2024), due 

to the filing of several objections to the Eckert Settlement Motion, and as a result of the likelihood 

that there would be an appeal of any order on the Eckert Settlement Motion, the Receiver asked 

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the Court to stay its consideration of the Eckert Settlement Motion and to order the Receiver, 

counsel for the putative investor class (“Class Counsel”), Eckert Seamans and its insurers, and the 

objectors to participate in a mediation. [ECF No. 2004]. 

3. The Court agreed, stayed its consideration of the Eckert Settlement Motion, and 

directed the following “Mediation Participants” to participate in a mediation (the “Mediation”) 

with the Honorable Michael A. Hanzman (Ret.): (i) the Receiver; (ii) Eckert Seamans and its 

insurers; (iii) Class Counsel; (iv) Defendant Dean Vagnozzi and non-parties Alec Vagnozzi, Albert 

Vagnozzi, and Terry Kohler (the “Vagnozzi Objectors”); (v) the Plaintiffs in the case of Parker, 

et al. v. Pauciulo, et al., No. 20-00892 (Phila. Ct. Com. Pl. 2020) (the “Parker Plaintiffs”);

1 and 

(vi) B & T Supplies, Inc. d/b/a B and T Supply d/b/a Biggest Book.com; Tzvi Odzer; Ruben Azrak; 

RKDK Inc. d/b/a Haagen Dazs; Gelato on Hudson LLC d/b/a Haagen Dazs; Asia Star 

Broadcasting Inc.; Daniel Shah; Perfect Impression Inc.; Susan Abrahams; Kara Dipietro; Carl 

Dorvil; Pamela Fleetwood; Robert Fleetwood; Fleetwood Services LLC; Michael Joseph Foti; 

Chad Frost; Gex Management Inc; HMC, Inc; Johnny Harrison, Sr; Michael Heller; Julie Paula 

Katz; MH Marketing Solutions Group, Inc; Petropangea Inc; Radiant Images Inc; Sunrooms Group 

Inc; TourMappers NorthAmerica LLC; Volunteer Pharmacy, LLC; Sean Whalen; Giane Wolfe; 

and Iris Chen Yngyin (the “Merchant Objectors”). [ECF No. 2006]. 

4. On September 12, 2024, the Court entered the Mediation Order, which confirmed 

the date when the Mediation would commence, and instructed the Mediation Participants to file a 

status report upon the conclusion of the Mediation, indicating the outcome of the Mediation,

1 Counsel for the Parker Plaintiffs also represents Shannon Westhead in connection with claims 

she and her agent fund, Pisces Income Fund, LLC (“Pisces”), intended to pursue against Eckert 

Seamans. Westhead and Pisces participated in the Mediation and, for purposes of this status report 

and the settlements in principle described herein, are considered part of the “Parker Plaintiffs.”

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whether the Court’s stay of the Eckert Settlement Motion should remain in effect or be lifted, and 

whether the Final Approval Hearing on the Eckert Settlement Motion—which the Court had 

previously scheduled but then cancelled due to the Receiver’s request for mediation—should be 

rescheduled.

5. The Mediation Participants attended a multi-day mediation with Judge Hanzman. 

Over the course of several days prior to October 7, 2024, Judge Hanzman conducted separate 

caucus sessions with each of the Mediation Participants. Thereafter, on October 7, 8, and 15, 2024, 

Judge Hanzman conducted in-person mediation sessions with the various Mediation Participants.

6. The Receiver is extremely pleased to announce that, over the course of the 

Mediation: (a) Eckert Seamans agreed in principle to separate settlements with the two primary 

objectors (the Vagnozzi Group and the Parker Plaintiffs); (b) the Receiver agreed in principle to a 

settlement with the Parker Plaintiffs; (c) the Receiver agreed in principle to a settlement with the 

third objector, the Merchant Objectors; and (d) the Receiver, Class Counsel, and Eckert Seamans 

reached a new global settlement for the balance of Eckert Seamans’ eroding insurance policy 

limits, which will result in a gross recovery (i.e., prior to the payment of Class Counsel fees) to the 

Receivership Estate of Thirty-Eight Million Dollars ($38,000,000.00). The Receiver expresses his 

sincere appreciation to Judge Hanzman for his tireless effort and diligence in assisting the 

Mediation Participants to achieve these agreements in principle.

7. These various agreements are all contingent on the Court’s final approval of the 

new global settlement among the Receiver, Class Counsel, and Eckert Seamans. 

8. The Mediation Participants are now in the process of documenting these 

agreements and, when those settlement agreements have been finalized, the Receiver intends to 

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file a motion to approve the new global settlement among the Receiver, Class Counsel, and Eckert 

Seamans.

9. Because the settlement terms with Eckert Seamans have now changed, the Receiver 

intends to withdraw the Eckert Settlement Motion when he files his motion to approve the new 

global settlement. As a result, the Receiver suggests that the Court’s stay of the Eckert Settlement 

Motion should remain in effect for the time being, and it is unnecessary for the Court to reschedule 

the Final Approval Hearing on the current Eckert Settlement Motion. The new agreement with 

Eckert Seamans will be contingent on the entry of an opt-out (i.e., consensual) bar order and 

require Court approval. As such, a new notice and objection period, as well as a final approval 

hearing, will need to be scheduled at the appropriate time on the Receiver’s forthcoming motion 

to approve the new Eckert Seamans settlement. 

CERTIFICATION REGARDING PRE-FILING CONFERENCE

The undersigned counsel conferred with counsel for each of the other Mediation 

Participants regarding this matter and certifies that all Mediation Participants have confirmed their 

agreement to the status report detailed herein. 

Dated: October 18, 2024 Respectfully Submitted, 

STUMPHAUZER KOLAYA 

NADLER & SLOMAN, 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@sknlaw.com 

Co-Counsel for Receiver 

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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 October 18, 2024, 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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