UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

UNITED STATES SECURITIES

AND EXCHANGE COMMISSION,

Case No.

Plaintiff, 2:14-cv-13902-MOB-MKM

v. Hon. Marianne O. Battani

The Estate of VINCENT JAMES SAVIANO

and PALMETTO INVESTMENTS, LLC,

Defendants.

/

MOTION FOR ORDER APPROVING RECEIVER’S COMBINED (1) 

NINTH AND FINAL STATUS REPORT AND FINAL ACCOUNTING FOR 

PALMETTO INVESTMENTS, LLC, (2) FINAL FEE APPLICATION, 

(3) REQUEST FOR AUTHORIZATION TO DESTROY BOOKS 

AND RECORDS AND ABANDON ANY REMAINING 

COMPUTER EQUIPMENT AND FURNITURE, AND (5) 

REQUEST TO BE DISCHARGED FROM HIS DUTIES 

Earle I. Erman, Receiver of Palmetto Investments, LLC, states for his 

Motion for Order Approving Receiver’s Combined (1) Ninth and Final Status 

Report and Final Accounting for Palmetto Investments, LLC, (2) Final Fee 

Application, (3) Request for Authorization to Destroy Books and Records and 

Abandon any Remaining Computer Equipment and Furniture, and (5) Request to 

be Discharged from his Duties as follows:

1. On October 9, 2014, the United States Securities and Exchange 

Commission (the “SEC”) commenced a lawsuit in this Court against the Estate of 

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Vincent James Saviano (the “Saviano Estate”) and Palmetto Investments, LLC 

(“Palmetto”). In its Complaint, the SEC alleges that Mr. Saviano acting through 

Palmetto, engineered and executed a scheme to defraud investors in violation of 

the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment 

Advisers Act of 1940, and various regulations promulgated under that legislation.

2. On October 9, 2014, this Court entered its Order for Temporary 

Restraining Order, Other Emergency Relief, Appointment of Receiver, and Setting 

Preliminary Injunction Hearing [Docket No. 7] (the “Receivership Order”), which 

appointed a Receiver to take exclusive possession of the assets of Palmetto, and 

granted to the Receiver the powers, authorities, rights and privileges described 

within the order necessary to marshal and preserve the same.

3. On November 5, 2014, this Court entered its Order [Docket No. 15] 

appointing Earle I. Erman of the law firm Erman, Teicher, Zucker & Freedman, 

P.C. as Receiver for Palmetto pursuant to the terms and conditions of the 

Receivership Order. 

4. Among other things, the Receivership Order requires the Receiver to 

file Quarterly Status Reports, and at the close of the receivership, to file a final fee 

application, and file a final accounting. 

5. On September 25, 2017, the SEC filed its Motion for Entry of Final 

Judgments by Consent [Docket No. 98], which requested entry of Final Judgments 

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as to Defendants, the Estate of Vincent James Saviano and Palmetto Investments, 

LLC.

6. The Receiver has now filed his Combined (1) Ninth and Final Status 

Report and Final Accounting for Palmetto Investments, LLC, (2) Final Fee 

Application, (3) Request for Authorization to Destroy Books and Records, and (4) 

Request to be Discharged from his Duties (the “Final Report and Fee Application”)

[Docket No. 99], which is intended to comply with the directives of the 

Receivership Order. 

Receiver’s Final Status Report and Final Accounting

7. Prior to filing the Final Report and Fee Application, the Receiver filed 

eight Interim Quarterly Reports and Accountings for Palmetto Investments, LLC 

(the “Interim Reports”) [Docket No.’s 30, 58, 67, 72, 77, 83, 88, and 93]. 

8. The Final Report and Fee Application and the Interim Reports all 

provide the Court with the following information:

a. A Summary of the Operations of the Receiver.

b. The Amount of Cash on Hand, the Amount and Nature of 

Accrued Administrative Expenses, and the Amount of Unencumbered Funds 

in the Estate.

c. A Schedule of the Receiver’s Receipts and Disbursements. 

d. A Description of all Known Receivership Property.

 

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e. A Description of Liquidated and Unliquidated Claims Held by 

the Receivership Entity.

f. A List of all Known Creditors with their Addresses and the 

Amounts of their Claims.

g. The Status of Creditor Claims Proceedings.

h. The Receiver’s Recommendations for a Continuation or 

Discontinuation of the Receivership.

9. As set forth in the Final Report and Fee Application, the Receiver is 

satisfied that all of the assets of the Receivership Estate and viable third party 

claims have been identified and liquidated, and the proceeds have been disbursed 

pursuant to various orders of this Court. 

10. A total of $1,084,000.00 has been distributed to investors of Palmetto 

having allowed general unsecured claims, representing a 24.53% distribution. A 

total of $253,900.00 in fees has been awarded and distributed to the Receiver thus 

far, not including the amounts requested in the Final Report and Fee Application 

for the time period September 16, 2016 through the present. A schedule of the 

Receiver’s receipts and disbursements reflecting these distributions is attached to 

the Final Report and Fee Application.

11. Because all of the assets of the Receivership Estate have been 

administered and their proceeds have been distributed, and the Receiver has 

otherwise completed all of his duties under the Receivership Order, the Receiver 

requests that this Court approve the Final Report and Fee Application as the final 

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accounting required by the Receivership Order and that he be discharged from his 

duties. 

Final Fee Application of Receiver

12. Attorneys from the Receiver’s firm, Erman, Teicher, Zucker & 

Freedman, P.C., have assisted the Receiver in administering the Palmetto 

Receivership Estate. During the course of this Receivership, the Receiver has filed 

seven interim fee applications pursuant to which fees totaling $253,900.00 for the 

time period through September 16, 2016 have been approved. Total fees incurred 

in this matter, inclusive of the fees requested in the Final Report and Fee 

Application for the time period September 16, 2016 through September 26, 2017

are $276,300.00. 

13. Paragraph VI(N)(6) of the Receivership Order provides that the 

Receiver’s interim fee applications may be subject to a holdback in the amount of 

20%, with the total amount of holdbacks to be paid out at the discretion of the 

Court as part of the final fee application. However, the Court approved each of the 

interim fee applications in full and did not order hold back of any of the requested 

fees. 

14. As set forth in the Final Report and Fee Application, the services 

performed by the Receiver greatly enhanced the value of the Receivership Estate. 

As a result of the Receiver’s efforts, the Receivership Estate has recovered a total 

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of $1,370,334.97 and has disbursed a total of $1,084,000.00 to investors of 

Palmetto having allowed general unsecured claims. A large portion of the 

recovered funds resulted from the Receiver’s investigation, pursuit, and settlement 

of claims against third parties. 

15. All of the work done by the Receiver in this matter was necessary for 

the proper administration of this case and the benefit of the Receivership Estate 

and its creditors. 

16. Attached to the Final Report and Fee Application is the Receiver’s 

Billing Ledger which sets forth the total compensation requested, the total hours 

billed, and the activities billed by each person who billed time during the period 

September 16, 2016 through September 26, 2017. Billing ledgers relating to the 

fees requested in the interim fee applications are attached to those applications. 

17. The Receiver requests that the Court approve the Final Report and Fee 

Application as the final fee application required by the Receivership Order. 

Destruction of Books and Records and 

Abandonment of Remaining Equipment and Furniture

18. The Receiver is in possession of certain books and records of 

Palmetto and has also accumulated his own files and records relating to Palmetto 

and the Receivership Estate.

19. Since the Receiver has discharged all of his duties under the 

Receivership Order and there are no other receivership assets to administer, there 

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should not be a need to keep the books and records of Palmetto for an extended 

period of time.

20. The Receiver requests that this Court authorize destruction of all of 

the books and records of Palmetto in the possession of the Receiver, as well as 

authorization to destroy his own files and records relating to Palmetto and/or the 

Receivership Estate at such time as the Receiver deems appropriate. The Receiver 

anticipates that destruction of files and records relating to Palmetto and/or the 

Receivership Estate will take place six months from the termination of the 

Receivership. 

21. In addition, the Receiver is in possession of certain of Mr. Saviano’s 

computer equipment and furniture which was utilized in Palmetto’s trading 

operations. In accordance with Paragraph VI (I)(3) of the Receivership Order, the 

Receiver seeks authority to abandon or dispose of this equipment and furniture in 

the ordinary course at the conclusion of his activities.

22. The SEC has reviewed this Motion and the Final Report and Fee 

Application and concurred in the relief requested on March 20, 2017. 

WHEREFORE, the Receiver requests that this Court grant the following 

relief:

a. Approve and allow the Receiver’s Final Report and Accounting;

b. Approve and allow payment of the total fees of the Receiver through 

termination of the Receivership in the amount of $276,300.00.

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c. Find that all of the Receiver’s acts, actions and transactions including 

the acts and actions of his representatives, attorneys, employees and agents, as 

Receiver for the receivership period be ratified, confirmed and approved as being 

correct and proper and in the best interests of the Receivership Estate and its 

creditors;

d. Release the Receiver, his representatives, attorneys, employees, 

agents, and the Receivership Estate from all liability or obligation for any and all 

claims, demands or causes of action that may have directly or indirectly arisen 

from the Receivership Estate prior to, during or after the receivership period if not 

brought to the attention of this Court by the time of hearing on this Motion; 

e. Authorize the termination of the receivership; 

f. Discharge the Receiver, his representatives, attorneys, employees and 

agents of and from any and all further duties, liabilities, responsibilities and 

obligations under the Receivership Order, providing, however, that nothing in the 

Order shall be construed to limit, modify or terminate the provisions of the 

Receivership Order, which shall survive the termination of this Receivership;

g. Authorize the Receiver to abandon or destroy all books and records of 

the Receivership Estate under his control or instruct the Receiver as to whom they 

should be delivered;

h. Authorize the Receiver to abandon or otherwise dispose of any of the 

remaining equipment and furniture of the Receivership Estate;

i. Grant such other and further relief as may be required under the 

circumstances.

Respectfully submitted,

By: /s/ Earle I. Erman

Earle I. Erman (P24296)

Receiver

400 Galleria Officentre, Suite 444

Southfield, MI 48034

Tel: (248) 827-4100

Fax: (248) 827-4106

DATED: September 28, 2017 eerman@ermanteicher.com

Case 2:14-cv-13902-MOB-MKM ECF No. 100, PageID.1204 Filed 09/28/17 Page 8 of 17
UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

UNITED STATES SECURITIES

AND EXCHANGE COMMISSION,

Case No.

Plaintiff, 2:14-cv-13902-MOB-MKM

v. Hon. Marianne O. Battani

The Estate of VINCENT JAMES SAVIANO

and PALMETTO INVESTMENTS, LLC,

Defendants.

/

BRIEF IN SUPPORT OF MOTION FOR ORDER APPROVING 

RECEIVER’S COMBINED (1) NINTH AND FINAL STATUS REPORT

AND FINAL ACCOUNTING FOR PALMETTO INVESTMENTS, LLC, (2) 

FINAL FEE APPLICATION, (3) REQUEST FOR AUTHORIZATION TO 

DESTROY BOOKS AND RECORDS AND ABANDON ANY REMAINING 

COMPUTER EQUIPMENT AND FURNITURE, AND (5) 

REQUEST TO BE DISCHARGED FROM HIS DUTIES 

Case 2:14-cv-13902-MOB-MKM ECF No. 100, PageID.1205 Filed 09/28/17 Page 9 of 17
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ISSUES

1. DOES THE COURT HAVE THE AUTHORITY TO APPROVE THE 

RECEIVER’S NINTH AND FINAL STATUS REPORT AND ACCOUNTING, 

APPROVE THE RECEIVER’S FINAL FEE APPLICATION, AUTHORIZE THE 

DESTRUCTION OF BOOKS AND RECORDS AND ABANDONMENT OF 

FURNITURE AND EQUIPEMENT, DISCHARGE THE RECEIVER, AND 

GRANT OTHER RELIEF?

MOVANT STATES THAT THE ANSWER IS “YES”.

Case 2:14-cv-13902-MOB-MKM ECF No. 100, PageID.1206 Filed 09/28/17 Page 10 of 17
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RELEVANT AUTHORITIES

SEC v. Elliott, 953 F.2d 1560, 1577 (11th Cir. 1992) . . . . . . . . . . . 2

Federal Savings and Loan Insurance Corporation v. PSL Realty Co.,

630 F.2d 515, 521 (7th Cir. 1980) . . . . . . . . . . . . . . . . . . . . . . . . 2

Case 2:14-cv-13902-MOB-MKM ECF No. 100, PageID.1207 Filed 09/28/17 Page 11 of 17
ARGUMENT

The Receiver filed his Motion for Order Approving Receiver’s Combined (1) 

Ninth and Final Status Report and Final Accounting for Palmetto Investments, 

LLC, (2) Final Fee Application, (3) Request for Authorization to Destroy Books 

and Records and Abandon any Remaining Computer Equipment and Furniture, 

and (5) Request to be Discharged from his Duties (the “Motion”) concurrently

with the filing of this Brief. 

Paragraph VI(N)(8) of the Receivership Order provides that “[a]t the close 

of the Receivership, the Receiver shall submit a Final Accounting...as well as the 

Receiver’s final application for compensation and expense reimbursement.”

As set forth in the Motion and in the Final Report and Fee Application the 

Receiver is satisfied that all of the assets of the Receivership Estate and viable 

third party claims have been identified and liquidated. A total of $1,084,000.00 

has been distributed to investors of Palmetto having allowed general unsecured 

claims, representing a 24.53% distribution. A total of $253,900.00 in fees has been 

awarded and distributed to the Receiver thus far, not including the amounts 

requested in the Final Report and Fee Application for the time period September 

16, 2016 through the present. 

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At this time, the purpose of the receivership has been satisfied. The 

Receiver has completed and discharged all of his duties under the Receivership 

Order and there are no other receivership assets to administer. 

The Receiver is an officer of this Court and acts under the supervision of this 

Court. See SEC v. Elliott, 953 F.2d 1560, 1577 (11th Cir. 1992). All of the duties, 

responsibilities and obligations of the Receiver have been performed and the 

grounds for the Receivership no longer exist. (See Federal Savings and Loan 

Insurance Corporation v. PSL Realty Co., 630 F.2d 515, 521 (7th Cir. 1980). 

“When the receiver in obedience to a court order has so disposed of the property in 

receivership, his liability and responsibility as receiver to that property ceases. 

Since the property is no longer in custodia legis, the receivership is terminated.” 

Id. at 521.) As such, the Receivership should be terminated and the Receiver 

should be discharged and relieved of all of his duties, responsibilities and 

obligations under the Receivership Order. Incident to termination of the 

Receivership, it is appropriate for the Court to accept the Receiver’s Ninth and 

Final Status Report and Accounting at this time.

The Receivership Order also provides at paragraph VI(N)(6):

Quarterly Fee Applications may be subject to a holdback in the 

amount of 20% of the amount of fees and expenses for each 

application filed with the Court. The total amounts held back during 

the course of the receivership will be paid out at the discretion of the 

Court as part of the final fee application submitted at the close of the 

receivership.

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As set forth in the Motion and the Final Report and Fee Application, the services 

performed by the Receiver greatly enhanced the value of the Receivership Estate. 

As a result of the Receiver’s efforts, the Receivership Estate has recovered a total 

of $1,370,334.97 and has disbursed a total of $1,084,000.00 to investors of 

Palmetto having allowed general unsecured claims. A large portion of the 

recovered funds resulted from the Receiver’s investigation, pursuit, and settlement 

of claims against third parties. 

Furthermore, as part of the administration of the Receivership Estate, the 

Receiver has been in possession of the books and records of Palmetto, and has also 

accumulated his own files and records relating to Palmetto and the Receivership 

Estate. Since the Receiver has discharged all of his duties under the Receivership 

Order and there are no other receivership assets to administer, the Receiver has no 

need for such books, records and files and should have authority to destroy them.

Finally, the Receiver is in possession of certain of Mr. Saviano’s computer 

equipment and furniture which was utilized in Palmetto’s trading operations. The 

Receiver seeks authority to dispose of this equipment and furniture in the ordinary 

course at the conclusion of his activities or otherwise abandon the same as 

worthless. 

Based upon the foregoing, the Receiver’s Ninth and Final Report and Final 

Accounting should be approved, final fees should be awarded as requested, the 

Case 2:14-cv-13902-MOB-MKM ECF No. 100, PageID.1210 Filed 09/28/17 Page 14 of 17
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Receivership should be terminated and the Receiver should be discharged and 

relieved of all of his duties, responsibilities and obligations under the Receivership 

Order, and the Receiver should be authorized to destroy the Palmetto’s books and 

records that are in his possession and abandon any remaining computer equipment 

and furniture. 

Respectfully submitted,

By: /s/ Earle I. Erman

Earle I. Erman (P24296)

Receiver

400 Galleria Officentre, Suite 444

Southfield, MI 48034

Tel: (248) 827-4100

Fax: (248) 827-4106

DATED: September 28, 2017 eerman@ermanteicher.com

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

UNITED STATES SECURITIES

AND EXCHANGE COMMISSION,

Plaintiff, No. 2:14-cv-13902-MOB-MKM

v. Hon. Marianne O. Battani

The Estate of VINCENT JAMES SAVIANO

and PALMETTO INVESTMENTS, LLC,

Defendants.

/

CERTIFICATE OF SERVICE

The undersigned certifies that on September 28, 2017, the Motion for Order 

Approving Receiver’s Combined (1) Ninth and Final Status Report and Final 

Accounting for Palmetto Investments, LLC, (2) Final Fee Application, (3) Request 

for Authorization to Destroy Books and Records and Abandon Any Remaining 

Computer Equipment and Furniture, and (5) Request to be Discharged from his 

Duties, Brief in Support of Motion and Certificate of Service were electronically 

filed with the Clerk of the Court for the United States District Court, Eastern 

District of Michigan, Southern Division using the CM/ECF System, which will 

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send notification of such filing to all attorneys and parties of record registered 

electronically. 

 Respectfully submitted,

By: /s/ Earle I. Erman

Earle I. Erman (P24296)

Receiver

400 Galleria Officentre, Suite 444

Southfield, MI 48034

Tel: (248) 827-4100

Fax: (248) 827-4106

DATED: September 28, 2017 eerman@ermanteicher.com

Case 2:14-cv-13902-MOB-MKM ECF No. 100, PageID.1213 Filed 09/28/17 Page 17 of 17