Page 1 - MOTION TO INTERVENE (UNITED RECOVERY GROUP FOR EQUALITY)

MILLER NASH GRAHAM & DUNN LLP ATTORNEYS AT LAW

TELEPHONE: 503.224.5858

3400 U.S. BANCORP TOWER

111 S.W. FIFTH AVENUE

PORTLAND, OREGON 97204

Dennis P. Rawlinson, P.C., OSB No. 763028

dennis.rawlinson@millernash.com

Teresa H. Pearson, P.C., OSB No. 953750

teresa.pearson@millernash.com

Joshua M. Sasaki, P.C., OSB No. 964182

josh.sasaki@millernash.com

Justin C. Sawyer, P.C., OSB No. 014057

justin.sawyer@millernash.com

Jeanne Kallage Sinnott, OSB No. 075151

jeanne.sinnott@millernash.com

MILLER NASH GRAHAM & DUNN LLP

3400 U.S. Bancorp Tower

111 S.W. Fifth Avenue

Portland, Oregon 97204

Telephone: 503.224.5858

Facsimile: 503.224.0155

Attorneys for United Recovery Group for 

Equality

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

PORTLAND DIVISION

SECURITIES AND EXCHANGE 

COMMISSION,

Plaintiff,

v.

AEQUITAS MANAGEMENT, LLC; 

AEQUITAS HOLDINGS, LLC; AEQUITAS 

CV No. 3:16-cv-00438-PK

UNITED RECOVERY GROUP FOR 

EQUALITY'S MOTION TO 

INTERVENE 

Case 3:16-cv-00438-PK Document 49 Filed 03/18/16 Page 1 of 6
Page 2 - MOTION TO INTERVENE (UNITED RECOVERY GROUP FOR EQUALITY)

MILLER NASH GRAHAM & DUNN LLP ATTORNEYS AT LAW

TELEPHONE: 503.224.5858

3400 U.S. BANCORP TOWER

111 S.W. FIFTH AVENUE

PORTLAND, OREGON 97204

COMMERCIAL FINANCE, LLC; AEQUITAS

CAPITAL MANAGEMENT, INC.; AEQUITAS 

INVESTMENT MANAGEMENT, LLC; 

ROBERT J. JESENIK; BRIAN A. OLIVER; and 

N. SCOTT GILLIS,

Defendants.

KEITH L. BARNES; BLACKNER STONE AND 

ASSOCIATES DEFINED BENEFIT PLAN; 

PAUL GULICK; TOM MULFLUR; STEVE 

SHARP; PAUL E. SYLVAN; AMAR GUPTA, 

as trustee of the Starbright Trust dated 

January 30, 1997; and ZHONG JIU GUO,

Proposed Intervenors.

LR 7-1 CERTIFICATION

Counsel was unable to confer pursuant to Local Rule 7-1 before filing based on 

the timing of retention and the Court's deadline. Counsel for the proposed intervenors intends to 

complete the conferral process at the beginning of next week. 

MOTION 

Miller Nash Graham & Dunn LLP represents certain holders of promissory notes 

that were issued by Aequitas-affiliated companies and purchasers of ownership interests in 

Aequitas-related funds. These investors collectively refer to themselves as the United Recovery 

Group for Equality ("URGE"). This is a group that will grow in size in the coming days and 

weeks. Present members of URGE have collectively invested more than $12 million in or 

through various Aequitas investment vehicles. URGE has claims against the defendants in this 

action that arise from many of the facts alleged in the Complaint. URGE may also have claims 

against third party individuals and entities that share common questions of law and fact with the 

claims and allegations asserted in this action.

Case 3:16-cv-00438-PK Document 49 Filed 03/18/16 Page 2 of 6
Page 3 - MOTION TO INTERVENE (UNITED RECOVERY GROUP FOR EQUALITY)

MILLER NASH GRAHAM & DUNN LLP ATTORNEYS AT LAW

TELEPHONE: 503.224.5858

3400 U.S. BANCORP TOWER

111 S.W. FIFTH AVENUE

PORTLAND, OREGON 97204

Pursuant to Fed R Civ P Rule 24(b), URGE moves to permissively intervene so 

that it can adequately protect its interests in this proceeding, as well as its interest in preserving 

and prosecuting claims that cannot be asserted by a receiver.1 For example, a receiver would not 

have standing to assert certain claims on behalf of Aequitas investors like URGE members, 

including claims against third parties for violations of Oregon securities laws. See, e.g., Johnson 

v. Chilcott, 590 F Supp 204, 208-209 (D Colo 1984) (citing Rochelle v. Marine Midland Grace 

Trust Co., 535 F2d 523 (9th Cir 1976) and holding that federally-appointed receiver did not have 

standing to assert securities and state-law fraud claims based on misrepresentations similar to 

those existing in this case); Baker v. Heller, 571 F Supp 419, 420 (SD Fl 1983) (holding that a 

receiver did not have standing to assert securities claims on behalf of injured investors). 

As drafted, however, the proposed Stipulated Order Appointing Receiver (Dkt. 

No. 3) (the "Order") could be interpreted to unduly restrict the pursuit and development of such 

claims by investors against entities and individuals that are not defendants in this proceeding. 

The Order could also be construed to restrict the pursuit of claims against property that would 

not become part of the receivership estate. Accordingly, URGE seeks intervention, in part, to 

file objections to paragraphs of 17, 20, 21, and 22 of the Order, which should be modified or 

otherwise clarified to allow the pursuit of such claims and related discovery. 

 1

 URGE reserves any potential right to intervene as of right under Fed R Civ P Rule 24(a). 

Case 3:16-cv-00438-PK Document 49 Filed 03/18/16 Page 3 of 6
Page 4 - MOTION TO INTERVENE (UNITED RECOVERY GROUP FOR EQUALITY)

MILLER NASH GRAHAM & DUNN LLP ATTORNEYS AT LAW

TELEPHONE: 503.224.5858

3400 U.S. BANCORP TOWER

111 S.W. FIFTH AVENUE

PORTLAND, OREGON 97204

With investments that exceed $12 million and expected to grow much larger,

URGE has a significant stake in the prosecution and outcome of this proceeding. URGE

respectfully asks that its motion to intervene be granted.

DATED this 18th day of March, 2016.

MILLER NASH GRAHAM & DUNN LLP

/s/ Dennis P. Rawlinson

Dennis P. Rawlinson, P.C., OSB No. 763028

dennis.rawlinson@millernash.com

Phone: 503.224.5858

Fax: 503.224.0155

Attorneys for United Recovery Group for Equality

Case 3:16-cv-00438-PK Document 49 Filed 03/18/16 Page 4 of 6
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Page 1 - CERTIFICATE OF SERVICE

MILLER NASH GRAHAM & DUNN LLP ATTORNEYS AT LAW

T: 503.224.5858 | F: 503.224.0155

3400 U.S. BANCORP TOWER

111 S.W. FIFTH AVENUE

PORTLAND, OREGON 97204

I hereby certify that I served the foregoing motion to intervene (United Recovery 

Group for Equality) on:

• Robert S. Banks , Jr

bbanks@samuelslaw.com,aclark@samuelslaw.com,

darlenep@samuelslaw.com 

• Daniel J. Colaizzi , IV

danielj.colaizzi@dechert.com 

• Sara C. Cotton 

scotton@schwabe.com,bankruptcynotices@schwabe.com,

docket@schwabe.com,dgibson@schwabe.com 

• Brad S. Daniels 

bsdaniels@stoel.com,dmholland@stoel.com,docketclerk@stoel.com 

• Jeffrey S. Eden 

jeden@schwabe.com,centraldocket@schwabe.com,scrawford@schwabe.com 

• Troy D. Greenfield 

tgreenfield@schwabe.com,bbratton@schwabe.com 

• Brian E. Greer 

brian.greer@dechert.com 

• Mary J Heston 

hestonm@lanepowell.com,campbelld@lanepowell.com,

docketing-sea@LanePowell.com 

• Ivan B. Knauer 

knaueri@pepperlaw.com 

• Brian M. Nichilo 

nichilob@pepperlaw.com 

• Sheila E. O'Callaghan 

ocallaghans@sec.gov,stearnsj@sec.gov,langitg@sec.gov,roeselerk@sec.gov 

• Joel A. Parker 

jparker@schwabe.com,ron.greenspan@fticonsulting.com,

lream@schwabe.com,gblaser@schwabe.com,brad.foster@fticonsulting.com,

larissa.gotguelf@fticonsulting.com,docket@schwabe.com,

dgibson@schwabe.com 

• Milo Petranovich 

petranovichm@lanepowell.com,pettingerk@lanepowell.com,

docketing-pdx@lanepowell.com 

• Jeff S. Pitzer 

jpitzer@pitzerlaw.net,spatel@pitzerlaw.net,psullivan@pitzerlaw.net 

• Wade M. Rhyne 

rhynew@sec.gov,smythb@sec.gov,ocallaghans@sec.gov,combst@sec.gov,

buchholzs@sec.gov,stearnsj@sec.gov,austinh@sec.gov 

• Brent D. Smyth 

smythb@sec.gov,combst@sec.gov,buchholzs@sec.gov,stearnsj@sec.gov,

Case 3:16-cv-00438-PK Document 49 Filed 03/18/16 Page 5 of 6
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Page 2 - CERTIFICATE OF SERVICE

MILLER NASH GRAHAM & DUNN LLP ATTORNEYS AT LAW

T: 503.224.5858 | F: 503.224.0155

3400 U.S. BANCORP TOWER

111 S.W. FIFTH AVENUE

PORTLAND, OREGON 97204

Ocallaghans@sec.gov,roeselerk@sec.gov,austinh@sec.gov,Rhynew@sec.gov

,lamarcas@sec.gov,langitg@sec.gov 

• John M. Timperio 

john.timperio@dechert.com 

• David A. Wender 

david.wender@alston.com

by the following indicated method or methods on the date set forth below:

 CM/ECF system transmission.

 E-mail. As required by Local Rule 5.2, any interrogatories, requests for 

production, or requests for admission were e-mailed in Word or WordPerfect 

format, not in PDF, unless otherwise agreed to by the parties.

 Facsimile communication device.

 First-class mail, postage prepaid.

 Hand-delivery.

 Overnight courier, delivery prepaid.

and on the following by first-class mail, postage prepaid: 

Mr. Ronald F. Greenspan

FTI Consulting

633 W. 5th Street

16th floor

Los Angeles, California 90071

DATED this 18th day of March, 2016.

/s/ Dennis P. Rawlinson

Dennis P. Rawlinson, P.C., OSB No. 763028

Attorneys for United Recovery Group for 

Equality

Case 3:16-cv-00438-PK Document 49 Filed 03/18/16 Page 6 of 6