EMERGENCY MOTION FOR TURNOVER OF SALES PROCEEDS PAGE 1

IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF TEXAS

AUSTIN DIVISION

EL CAMPO VENTURES, LLC, §

 §

Plaintiff, §

 §

vs. § Civil Action No. 1:20-CV-00560-RP

 §

STRATTON SECURITIES, INC., §

 §

Defendant. §

EMERGENCY MOTION FOR TURNOVER OF SALES PROCEEDS

Defendant Stratton Securities, Inc. (“Stratton”) and its counsel have 

perpetrated an egregious and intentional fraud upon this Court, Plaintiff El Campo 

Ventures, LLC (“El Campo”), and a third-party, Target Logistics Management, 

LLC (“Target”). 

On March 10, 2023 the Court entered its Order for Writ of Execution and 

Sale of Property (“the Order”, Dkt. 149) for the sale of the property commonly 

known as The Studios at Carrizo Springs, located at 909 Munson Road, Carrizo 

Springs, Texas 78834 (“the Property”). The Order provided that that Property 

would be sold by the United States Marshals Service and the resulting sales 

proceeds would be turned over to El Campo. (Dkt. 149, paragraphs i,k). Stratton 

did not oppose the Writ of Execution. (Dkt. 147). 

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EMERGENCY MOTION FOR TURNOVER OF SALES PROCEEDS PAGE 2

El Campo has discovered that Stratton, in direct violation of the Court’s 

Order, fraudulently conveyed the Property to Target on March 31, 2023 for an 

amount exceeding $4.8 million. Stratton opposes this Emergency Motion for 

Turnover of Sales Proceeds for three ridiculous reasons: its title company allegedly 

was unable to locate El Campo’s judgment lien, the Order for Writ of Execution 

and Sale of Property did not specifically prohibit Stratton from selling the 

Property, and the Property was under contract for sale prior to the time the Order 

was issued. (Ex. 1).

The title company’s alleged inability to locate El Campo’s judgment lien 

harmed Target, not Stratton. The Abstract of Judgment (Dkt. 142) was issued to 

all parties via the Court’s electronic filing system on October 5, 2022. Therefore, 

both Stratton and its counsel had actual notice of the Abstract of Judgment. Texas 

Property Code section 52.007 permits the recording and indexing of an abstract of 

judgment rendered in Texas by a federal court, creating a lien on the real property 

of a defendant located in the county in which the abstract is recorded. El Campo 

perfected its judgment lien against the Property by recording the Abstract of 

Judgment in the Dimmit County property records on October 14, 2022. (Ex. 2). 

Despite having actual knowledge of the Abstract of Judgment, both Stratton and its 

counsel fraudulently concealed the existence of El Campo’s judgment lien and sold 

the Property to Target on March 31, 2023. (Ex. 3). Stratton received sales 

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EMERGENCY MOTION FOR TURNOVER OF SALES PROCEEDS PAGE 3

proceeds in excess of $4.8 million due to this transaction, yet El Campo’s 

judgment lien remains unsatisfied because of the fraud perpetrated by Stratton.

The Order for Writ of Execution and Sale of Property (Dkt. 149) was issued 

on March 10, 2023. The Order specifically states that the United States Marshals 

Service shall sell the Property. (Dkt. 149, paragraph i). There is only one 

Property, so simple logic establishes that the Order by its plain and unambiguous 

language does not permit Stratton to sell the Property. Stratton did not oppose the 

Writ of Execution (Dkt. 147). The Order was issued three (3) weeks prior to the 

fraudulent transfer of the Property to Target on March 31, 2023. Stratton had 

ample opportunity to ask the Court for permission to sell the Property to Target 

and made no such attempt. Even assuming for the sake of argument that the Order 

permitted a sale of the Property by Stratton, it is undisputed that the Order requires 

the resulting sale proceeds to be turned over to El Campo. (Dkt. 149, paragraph k). 

No such proceeds have been turned over to El Campo. Therefore, under any 

circumstance, Stratton’s conduct is in direct violation of the Court’s Order.

Stratton’s final contention, that the Property was under contract for sale prior 

to the time the Order was issued, is an admission of its fraud. Stratton and its 

counsel have a duty of candor to the Court. Stratton did not oppose the Writ of 

Execution (Dkt. 147). Stratton and its counsel committed fraud by nondisclosure 

when they failed to inform the Court that the Property was under contract for sale.

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It is now evident that Stratton intentionally delayed the Writ of Execution by 

repeatedly representing to El Campo that it was in the process of obtaining a 

supersedeas bond. (Ex. 4). Despite being provided the Court’s list of approved 

sureties, Stratton represented that it was working with an unapproved company to 

obtain a bond. (Ex. 4). Over a period of nearly two months, Stratton continued to 

string El Campo along regarding a supersedeas bond until after it sold the Property

to Target. Since it was now flush with millions of dollars in sales proceeds that 

rightfully belonged to El Campo, Stratton abandoned its charade and informed El 

Campo it was no longer pursuing a supersedeas bond on April 5, 2023. (Ex. 5). 

On April 18, 2023, Stratton sent a settlement proposal directly to El Campo. 

(Ex. 6). Stratton did not disclose over $4.8 million in proceeds it received from the 

sale of the Property to Target on March 31, 2023. Furthermore, Stratton did not 

disclose an additional $5,241,893.23 in lease proceeds received from the U.S. 

Government in its settlement calculations. (Ex. 7). Despite these windfalls, 

Stratton fraudulently suggested to El Campo that an unsuccessful appeal would 

result in Stratton’s bankruptcy. (Ex. 7). 

The Court previously ordered the turn over of the Property sales proceeds to

El Campo. (Dkt. 149). Stratton did not oppose the Writ of Execution. (Dkt. 147). 

Given the circumstances, the turn over of the Property sales proceeds to El Campo 

is proper, and will undo Stratton’s fraud against both El Campo and Target.

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EMERGENCY MOTION FOR TURNOVER OF SALES PROCEEDS PAGE 5

Pursuant to Texas Civil Practice & Remedies Code section 31.002, El 

Campo requests that the Court enter an order requiring Stratton to turn over the 

Property sales proceeds to El Campo, award El Campo its reasonable costs and 

attorneys’ fees, and grant all further relief to which El Campo may be entitled. 

 Respectfully submitted,

LAW OFFICE OF BEN GATES, P.C.

7015 SNIDER PLAZA, SUITE 202

DALLAS, TEXAS 75205

TEL: (214) 756-6053

FAX: (214) 989-7305

BY: ___________________________

BENJAMIN P. GATES

TEXAS STATE BAR NO. 24062740

BPG@BENGATESPC.COM

NEVÁREZ LAW GROUP, P.C.

780 E. RIO GRANDE STREET

EAGLE PASS, TEXAS 78852

TEL: (830) 776-7003

FAX: (830) 776-7003

BY: ___________________________

ALFONSO NEVÁREZ C.

TEXAS STATE BAR NO. 24044929

ANC@NEVAREZLAWGROUP.COM

 ATTORNEYS FOR PLAINTIFF

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EMERGENCY MOTION FOR TURNOVER OF SALES PROCEEDS PAGE 6

CERTIFICATE OF CONFERENCE

I certify that I conferred with counsel for Defendant Stratton Securities, Inc.

concerning the relief sought in this Motion on May 11, 2023. Mr. Jones stated 

that the Defendant opposes the relief sought in this Motion.

______________________________

Benjamin P. Gates

CERIFICATE OF SERVICE

I certify that I served this Emergency Motion for Turnover of Sales Proceeds 

on all counsel of record via CM/ECF filing in accordance with the Federal Rules of 

Civil Procedure on May 12, 2023.

______________________________

Benjamin P. Gates

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