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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

Elizabeth Berke-Dreyfuss (Bar No. 114651) 

WENDEL, ROSEN, BLACK & DEAN LLP 

1111 Broadway, 24th Floor 

Oakland, California 94607-4036 

Telephone: (510) 834-6600 

Fax: (510) 834-1928 

Email: edreyfuss@wendel.com 

Attorneys for Susan L. Uecker, Receiver 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

SECURITIES AND EXCHANGE 

COMMISSION, 

Plaintiff, 

vs. 

SAN FRANCISCO REGIONAL CENTER, LLC; 

THOMAS M. HENDERSON; CALIFORNIA 

GOLD MEDAL, L.P.; CALLSOCKET, L.P.; 

CALLSOCKET II, L.P.; CALLSOCKET III, 

L.P.; COMPREHENSIVE CARE OF 

OAKLAND, L.P.; NA3PL, L.P.; WEST 

OAKLAND PLAZA, L.P.; CALLSOCKET, 

LLC; CALLSOCKET II, LLC; CALLSOCKET 

III, LLC; COMPREHENSIVE CARE OF 

CALIFORNIA, LLC; IMMEDIA, LLC; and 

NORTH AMERICA 3PL, LLC, 

Defendants, 

-andCALLSOCKET HOLDING COMPANY, LLC; 

CALLSOCKET III HOLDING COMPANY, 

LLC; BERKELEY HEALTHCARE 

DYNAMICS, LLC; CENTRAL CALIFORNIA 

FARMS, LLC; and JL GATEWAY, LLC, 

Relief Defendants. 

 Case No. 3:17-CV-00223-RS 

RECEIVER’S FIRST QUARTER 2018 

REPORT (January 1, 2018- March 

31, 2018)

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 1 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

2 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

I. CASE BACKGROUND 

This matter was initially brought before the Court pursuant to a Complaint filed on 

January 17, 2017, by the Securities and Exchange Commission (the “SEC”), alleging that the 

named Defendants had exploited a federal EB-5 visa program by defrauding investors seeking to 

invest in the job creation program, earn a return on their investments and obtain a permanent U.S. 

visa as a way toward United States residency. (Docket No. 1) 

On January 20, 2017, the SEC filed a motion seeking an order appointing a receiver over 

the entity Defendants and Relief Defendants. (Docket No. 10) 

On March 23, 2017, the Court entered the Order Granting Motion for Preliminary 

Injunction and to Appoint a Receiver, pursuant to which the Court, among other things, appointed 

Susan L. Uecker as a receiver over the Receivership Entities and monitor over the Monitor Entities 

(Docket No. 96). Pursuant to the terms of the Order Granting Motion for Preliminary Injunction 

and Motion to Appoint a Receiver, on March 29, 2017, the Court entered the Order Appointing 

Receiver and Monitor (“Appointment Order”). (Docket No. 100). On June 5, 2017, the Court 

entered the Order Extending Scope of Receivership. (Docket No. 171). 

The Receiver’s Quarterly Reports for First Quarter 2017, Second Quarter 2017, Third 

Quarter and Fourth Quarter 2017 were timely filed. (Docket No. 126, Docket No. 200, Docket 

No. 248, and Docket No. 328). 

The Receiver engaged and the Court approved the retention of professionals. (Docket No. 

103) All professionals filed their First and Second Applications for interim fees and costs which 

were approved and orders entered on October 3, 2017 and December 18, 2017 respectively. 

(Docket No. 234 and No. 284-288).1

 

1

 All professionals and Receiver’s Third Applications were recently approved by the Court and an 

Order entered on April 9, 2018 (Docket No. 369), and will be more fully reported in the 

Receiver’s Second Quarter Report. 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 2 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

3 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

II. ACTIVITIES DURING FIRST QUARTER 2018 

A. Turnover Requests for Information and Compliance 

The Receiver continues to request and receive turnover of documents from banks, 

individuals and other entities regarding requested case related information. 

B. Funds to Pay Property Expenses for California Gold Medal, LLC and Central 

California Farms, LLC 

The Receiver required funding and requested to use receivership estate funds to continue 

paying property expenses for the Tipton property for the months of February and March 2018. The 

Receiver’s 9th Administrative Motion for Order Authorizing Receiver to Use Funds from the 

Receivership estate was filed and the Order Granting Receiver’s 9th Administrative Motion was 

granted. (Docket No. 334). The receivership will not be paying any property expenses including 

security after March 31, 2018 and accounts will be closed. 

C. Receivership Forensic Work 

The Receiver had previously filed a Third Administrative Motion for Order Authorizing 

Receiver to Expend Funds for Forensic Accounting which was granted. (Docket No. 198). The 

Order expanded the scope of the Bachecki Crom & Co. LLP, CPA engagement. During the first 

quarter of 2018 the Receiver reviewed preliminary forensic reports for the following entities: 

Comprehensive Care of Oakland, LP, California Gold Medal, LP, and West Oakland Plaza, LP. 

The San Francisco Regional Center, LLC forensic report is pending. 

D. Receiver’s Standardized Fund Accounting Report (SFAR) 

The Standardized Fund Accounting Report (SFAR) for Consolidated SEC vs SFRC 

Receivership Entities for Reporting Periods: July 1, 2017 to September 30, 2017 was filed on 

October 17, 2017 and October 1, 2017 – December 31, 2017 was filed on January 30, 2018. 

(Docket No. 246 and Docket No. 329). The First Quarter 2018 SFAR covering January 1, 2018 – 

March 31, 2018 will be filed in April 2018. 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 3 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

4 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

E. Receiver’s Motion to 1) Sell Personal Property; 2) Approve Agreement with 

Mid-Valley Services, Inc.; and 3) Authorize Retention of Broker and Listing of 

Property for Sale 

As reported in the Receiver’s Second Quarter Report 2017, the Receiver filed the 

Receiver’s Motion for Order 1) Authorizing Sale of Personal Property of Central California 

Farms, LLC; 2) Approving Agreement with Mid-Valley Financial Services, Inc; and 3) 

Authorizing Retention of Broker and Listing of JL Gateway, LLC Property for Sale. (Docket 205). 

The Order Granting Certain Pending Motions approved the sale of the personal property at 417 

and 615 Burnett Road, Tipton, California (“Tipton Property”)and retention of broker and listing of 

the JL Gateway property. (Docket No. 234). 

1. Central California Farms, LLC 

As reported above, the Receiver filed her motion for authority to sell the remaining 

personal property equipment and approve an agreement with the lender, Mid-Valley Financial 

Services, Inc., to accept a deed in lieu of foreclosure for the real property located in Tipton, 

California . The equipment has been sold, however the approval of the deed in lieu of foreclosure 

for the Tipton Property was taken off calendar because the lender and guarantor were negotiating 

the terms of a separate transaction. During the First Quarter, the Receiver was advised that 

negotiations had ceased; however the lender and Receiver are back to discussing the terms of a 

deed in lieu agreement. 

2. JL Gateway, LLC/West Oakland Plaza LLC 

As reported in the Third Quarter Report 2017, the Receiver retained a broker and the 

property, 800- 900 Market Street, Oakland, California (“Market Street Property”) was marketed, 

and a Purchase and Sale Agreement was executed on November 17, 2017. During the fourth 

quarter of 2017, the buyer’s due diligence had been proceeding and all contingencies were 

removed on January 5, 2018. The Order Granting Motion re Sale of Certain Real Property Owned 

by JL Gateway, LLC was entered on February 26, 2018 (Docket No. 345). The Sale Order was 

entered on March 6, 2018 (Docket No. 361). The sale is set to close on May 8, 2018, in the next 

quarter. 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 4 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

5 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

F. Notice of Intent to Deny 

The USCIS has issued a Notice of Intent to Deny (NOID) (I-526) to some of the EB-5 

petitioners/investors for reasons stated in the notice. A copy was sent to the Receiver filed with the 

Court on February 7, 2018. (Docket No. 335). The Receiver has no information available that 

would be useful in refuting the NOIDs. 

G. Relief from Stay of State Court Litigation 

The Receiver’s 8th Administrative Motion for Order Granting Relief from Stay of State 

Court Litigation was filed and the Order Granting Receiver’s 8th Administrative Motion was 

entered. (Docket No. 334). The Receiver requested relief in order to seek release and exoneration 

of the receivership bonds in the two state court actions, Young v. Henderson et al, Case No. 

RG15778891 (“Young Action”), and Thorofare Asset Based Lending Fund III, L.P. v. JL 

Gateway, LLC, Case No. RG17847232 (“JL Gateway Action”) pending before the Superior Court 

of the State of California, County of Alameda (collectively, the “State Court Actions”). 

H. Tax Review 

The Receiver is working with the Bachecki Crom & Co., LLP, the CPA firm to obtain and 

compile the 2017 information in order to complete tax returns for all of the receivership estate 

entities. 

I. Closing of NA3PL, LLC and Retaining Broker for Listing and Sale of 

Berkeley Healthcare Dynamics, LLC Property 

In the Fourth Quarter 2017, The Receiver filed a motion on December 15, 2017 (Docket 

No. 281) to wind-down and close Defendant North America 3PL, LLC (“NA3PL”), one of the 

EB-5 job creating entities. In the First Quarter2018, on February 9, 2018 the Court entered an 

Order Granting Motion for Authorization to Close North America 3PL, LLC. (Docket No. 336). 

By that same motion, the Receiver also sought to retain a broker and list for sale the 20th 

Street Warehouse, owned by Relief Defendant, Berkeley Healthcare Dynamics, LLC. On February 

9, 2018, the Court entered an Order Denying Without Prejudice Motion to Retaining Broker and 

For Listing and Sale of Warehouse. The order indicated that “there may still be some dispute 

between the intervenors . . . and the Receiver and/or the SEC. . . as to how much money flowed 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 5 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

6 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

into BHD from other projects and SFRC. The parties were directed to meet and confer to 

determine if a consensus can be reached . . . .[¶] In the event no consensus can be reached on the 

figures, and/or if the Receiver offers other legitimate reasons for why the intervenors’ proposal is 

unacceptable, . . . [the Receiver] may renew her motion for authority to list and sell the warehouse 

on the open market. The Receiver may also renew her motion if she and/or the SEC can 

demonstrate that it would be legal and appropriate to apply funds from the sale of the warehouse 

to unrelated losses suffered in connection with other EB-5 projects, despite full repayment of all 

funds paid into BHD and the Warehouse from those projects or other defendants. No motion shall 

be filed within the next 45 days, to ensure that there is sufficient time for the parties to meet and 

confer and for intervenors to crystalize their proposal.” (February 9, 2018 Order, p. 3:8-6, Docket 

No. 336). A meet and confer session was held on March 5, 2018. The parties continue to 

negotiate. 

J. Motion Authorizing Receiver to Exercise Option to Repurchase Interest in 

Comprehensive Care of California, LLC and Directing that Repurchase 

Funds be held in Escrow Account. 

During the Fourth Quarter 2017, on December 21, 2017, the Receiver filed a Motion for 

Order (1) Authorizing Receiver to Exercise Option to Repurchase Interest in Comprehensive Care 

of California, LLC, and (2) Directing that Repurchase Funds be held in Escrow in order to protect 

any ownership interests SFRC may have in Comprehensive Care of California, LLC. (Docket 

290). The Receiver requested approval to exercise the repurchase option before it expired. The 

Receiver needed to reserve the Receiver's right to challenge the validity of the Assignment 

transaction while preserving the Receiver's right to repurchase SFRC's ownership interest if the 

transaction and contract are determined to be valid and not part of Defendants’ fraudulent scheme. 

Additionally the Receiver sought an order directing that any sums owed as part of a timely 

exercise of the repurchase option be held in an escrow account until the validity of the assignment 

transaction can be determined. The hearing on the motion was scheduled to be heard on January 

26, 2018, and was granted by order entered on January 23, 2018 (Docket No. 319). The Receiver 

has established a separate bank account with $1,100,000 titled in the name of Shirley 

Ma/Comprehensive Care of California escrow. 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 6 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

7 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

K. Motion Regarding Wendel Rosen’s Disclosure of New Connection to 

Interested Parties and Motion for Order Approving Use of Ethical Wall and 

Authorizing Counsel’s Continued Employment 

The Motion was filed on March 26, 2018 (Docket No. 365) and the hearing is scheduled 

for May 10, 2018. 

L. Motion Regarding Central Escrow Turnover 

The Receiver and her counsel are working on a Motion regarding the funds turned over to 

the Receiver from Central Escrow and being held in reserve. The funds are from some limited 

partners in CallSocket, LP, NA3PL, LP and California Gold Medal, LP in the total amount of 

$16,854,345. 

III. ASSET REVIEW 

A. Cash 

The Standardized Fund Accounting Report includes the Consolidated report on a cash 

basis for the Receivership Entities. Attached to the consolidated report are the individual entity 

Reports with balance sheet and income statement. The individual reports are as follows: 

1. CallSocket, LP

2. CallSocket II, LP

3. JL Gateway, LLC

4. California Gold Medal, LP 

5. Berkeley Healthcare Dynamics 

6. Comprehensive Care of Oakland, LP

7. San Francisco Regional Center, LLC

8. North America 3PL 

The current cash at March 31, 2018 is $46,386,025.73 of which $16,854,345 is held in 

reserve from Central Escrow Funds and $1,100,000 in reserve for Shirley Ma/Comprehensive 

Care of California LLC escrow. 

B. Real Estate 

There are two remaining real estate assets held by the estate as follows: 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 7 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

8 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

(a) Relief Defendant, Central California Farms, LLC holds title to a 

former dairy processing plant located at 615 N Burnett Road in Tipton, CA. The property has been 

valued at $1.1 million by Newark Grubb Knight & Frank. The title report shows a loan of 

approximately $1.5 million and delinquent taxes of approximately $160,000. There appears to be 

no equity in this property and the Receiver is again working to have the lender accept a deed in 

lieu of foreclosure. 

2. Relief Defendant Berkeley Healthcare Dynamics, LLC holds title to the 

warehouse property located at 1700 20th Street in Oakland, CA. As reported above, the Receiver 

had filed a motion to retain a broker and sell the property. The hearing on that motion was held 

January 26, 2018, and the Order entered on February 9, 2018 (Docket No 336). Pursuant to the 

Order, the parties held a meet and confer session and continue to negotiate.

C. Businesses 

The operating businesses are as follows: 

1. North America 3PL, LLC – As reported above, the Receiver filed a motion 

to close the business after the revocation and termination of the CES Agreements by the Port of 

San Francisco/Oakland and Customs and Border Protection. The Order was entered on February 9, 

2018. (Docket No. 336). Since entry of the Order an orderly wind down began at the warehouse. 

The required notice was given to the one remaining customer and staff was reduced. The wind 

down should be complete by the end of April 2018. 

2. Comprehensive Care of Oakland LP/ Comprehensive Care of 

California, LLC– The Receiver engaged consultants and received a valuation report on the 

business and the real estate. However upon receipt of the year end 2017 financial information 

from the Receiver’s CPA firm, it was determined that several cost adjustments that are necessary 

may affect the valuation. The information was sent on to the valuation consultant for review and 

any necessary revisions. The Receiver is responding to requests for additional information from 

the consultant. 

3. San Francisco Regional Center, LLC and Other Affiliated Interests - This Is 

There Restaurant Group, LLC is a restaurant (Tribune Tavern) located in the Tribune Tower of 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 8 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

9 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

which SFRC owns a 75% interest. The other members had proposed a buy-out however due to 

non-payment of taxes, the business has no value. The Receiver negotiated a lease termination and 

release of claims with the landlord, which was approved by order of the Court entered on January 

19, 2018 (Docket No. 313). The Receiver obtained court authority to sell the liquor license and is 

working with a consultant to market and sell the liquor license. (Docket No. 313) An offer was 

received and countered. A sale is pending and requires receipt of taxing authority payoff requests 

to escrow. 

IV. INVESTOR UPDATE 

The Receiver has responded to investor inquiries and has established a website at SFRCEB5.com. The website has the court filings and reports available to the investors and is updated as 

information becomes available. 

V. ASSET RECOVERY 

The Receiver is investigating and reviewing numerous causes of action and claims against 

third parties and when appropriate, will seek Court authority to pursue those claims pursuant to 

Paragraphs 39 and 40 of the Order Appointing Receiver and Monitor. The Receiver continues to 

investigate claims against Aileen Yen and Leeds Disston and will be seeking Court approval to 

bring those claims at the appropriate time. 

VI. ACCRUED PROFESSIONAL FEES 

The accrued professional fees and costs at 100% for the period covering January 1, 2018 -

March 31, 2018 are as follows: 

Uecker & Associates $135,649.26 

Wendel Rosen Black & Dean $267,713.01 

Bachecki, Crom and Co $298,418.06 

Akawie & LaPietra $ 3,578.50 

Baker, Donelson $ 4,415.20 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 9 of 10
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009589.0024\5081488.1 RECEIVER’S FIRST QUARTER REPORT (January 

1, 2018- March 31, 2018) 

10 3:17-CV-00223-RS

Wendel, Rosen, Black & Dean LLP 

1111 Broadway, 24t h Floor 

Oakland, California 94607-4036 

The fee applications have been completed and will be submitted to the SEC. They will be 

filed with the Court in May 2018. 

DATED: April 18, 2018 

By: /s/ Susan L. Uecker 

 Susan L. Uecker, Receiver 

Case 3:17-cv-00223-RS Document 385 Filed 04/27/18 Page 10 of 10