4885-5619-0747.v1.03500.94603 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

ZHU ZHAI HOLDINGS LIMITED and 

PETER PUI TAK LEE 

Plaintiffs, 

v. 

STEVEN IVANKOVICH, 

 Defendant. 

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 Case No. 20-cv-4985 

THE ATLAS LLCs’ MOTION FOR LEAVE TO FILE COMBINED MOTION TO 

DISMISS AND QUASH CITATION, AND RESPONSE TO PLAINTIFFS’ AMENDED 

MOTION FOR TURNOVER 

NOW COME non-parties Atlas Apartments Acquisition LLC, Atlas Apartment Homes 

LLC, Atlas Multifamily Three LLC, Atlas MF Mezzanine Borrower LLC, Premier Orlando 

Portfolio Two LLC, Atlas Alexandria & Parcvue LLC, Atlas Crowntree Lakes LLC, Atlas 

Apartment Holdings LLC, P2 Portfolio Managing Member LLC, Atlas Birchwood LLC, and 

Ivankovich Family LLC (collectively, the “Atlas LLCs”), by and through their counsel, Chuhak 

& Tecson, P.C., and for their Motion for Leave to File Combined Motion to Dismiss and Quash 

Citation, and Response to Plaintiffs’ Amended Motion for Turnover, pursuant to Northern 

District of Illinois Local Rule 5.6, or alternatively, Motion to Intervene pursuant to Federal Rule 

of Civil Procedure 24, states as follows: 

INTRODUCTION 

The Atlas LLCs are various LLCs that are not judgment debtors but have been subjected 

to an erroneous Citation to Discover Assets issued to third-party Stifel Financial Corp. (“Stifel”). 

In short, Stifel incorrectly and improperly identified and disclosed investment accounts 

belonging to the Atlas LLCs, and not to Steven Ivankovich (the “Judgment Debtor”), in its initial 
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Answer to the Citation issued to Stifel relating to assets of the Judgment Debtor. Stifel realized 

its mistake and filed an Amended Answer to the Citation, which admits to its mistake, but does 

not correct it in the Answer itself. See Doc. Nos. 13 and 160. Seemingly relying on the incorrect 

information provided by Stifel, and now known to the parties to be incorrect, Plaintiffs seek 

turnover of funds from Stifel that do not belong to the Judgment Debtor. As such, the Atlas 

LLCs request leave to file a motion to dismiss the Stifel Citation, as Stifel does not have property 

belonging to the Judgment Debtor (i.e., the accounts at Stifel belong to the Atlas LLCs, not the 

Judgment Debtor) and because the Plaintiffs have moved for turnover of the Atlas LLCs’ 

property, or alternatively, for leave to intervene pursuant to Fed. R. Civ. P. 24. 

BACKGROUND 

1. On July 10, 2020, Plaintiffs Zhu Zhai Holdings Limited and Peter Pui Tak Lee 

(collectively, “Plaintiffs”) filed their Complaint against sole Defendant Steven Ivankovich 

(“Ivankovich” or the “Judgment Debtor”). See Docket No. 1. 

2. On August 17, 2021, this Court entered a Default Judgment in favor of the 

Plaintiff and against Ivankovich, only. See Docket No. 91. 

3. On November 2, 2021, Ivankovich filed his Notice of Appeal with this Court 

regarding the Court’s Order entering Default Judgment against him, see Doc. No. 91, and the 

Court’s Order Denying Ivankovich’s Motion to Vacate and Reconsider Entry of Default 

Judgment, see Doc. No. 100. See Docket No. 101. 

4. This matter is currently pending appeal in the Seventh Circuit Court of Appeals. 

5. On January 11, 2022, this Court granted Plaintiffs’ Motion for Leave to Issue 

Citations to Discover Assets of Ivankovich. See Docket No. 111. 
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6. On January 14, 2022, Plaintiffs issued Citations to Discover Assets (collectively 

the “First Citations”) to: 1) Steven Ivankovich; 2) JP Morgan Chase Bank; 3) Wells Fargo & 

Company, Inc.; 4) Walker & Dunlop; 5) Cushman & Wakefield; and, 6) Stifel. See Docket No. 

118. 

7. On January 22, 2022, Plaintiffs issued additional Citations to Discover Assets 

(collectively with the First Citations, the “Citations,” individually a “Citation”) to J & S Family 

LLC and A & O Family LLC. See Docket Nos. 149 and 151. 

8. Plaintiffs did not issue or serve the Citations on the Atlas LLCs. 

9. On March 24, 2022, Stifel filed its Answer to the Citation, incorrectly indicating 

that it held personal property of the Judgment Debtor. See Docket Nos. 153 and 160 (partially 

correcting its initial erroneous Answer). In reality, Stifel does not (and did not) hold personal 

property of the Judgment Debtor. See Docket No. 160. However, as part of its erroneous Answer, 

Stifel disclosed the names of the Atlas LLCs who are not the Judgment Debtor, the last four 

numbers of their respective investment accounts (the “Atlas LLCs’ Investment Accounts”), and 

the balances of each of the Atlas LLCs’ Investment Accounts. Id. Further, Stifel incorrectly 

placed a “freeze” on all the Atlas LLCs’ Investment Accounts. 

10. Neither Plaintiffs nor Stifel notified the Atlas LLCs of the Citations or the 

investment accounts “freeze.” 

11. Stifel “froze” accounts not belonging to the Judgment Debtor but belonging to 

non-parties Ivankovich Family LLC and P2 Portfolio Managing Member LLC with balances of 

$8,356,534.29 and $946,552.39, respectively. 

12. Judgment Debtor does not have an interest or otherwise own the Atlas LLCs’ 

Investment Accounts. 
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13. Upon belief and information, Stifel does not have personal property belonging to 

Judgment Debtor. See Document No. 160. 

14. Despite this, on April 1, 2022, Plaintiffs filed their ex-parte motion for turnover 

for funds in the Atlas LLCs’ Investment Accounts it alleged belonged to Judgment Debtor and 

held by Stifel in the amount of $4,279,746.51 (the “Turnover Motion”). See Docket No. 154. 

15. On April 5, 2022, this Court entered and continued the Turnover Motion to April 

19, 2022, and gave Judgment Debtor leave to file a response to the Turnover Motion. See Docket 

No. 157. 

16. On the same day, April 5, 2022, Plaintiffs filed their Amended Motion for 

Turnover, amending the Turnover Motion only as to “correct a clerical error in the original 

motion regarding the amount of the judgment.” See Docket No. 158. 

17. On April 6, 2022, Stifel filed an Amended Answer to the Citation, in which 

question 2a is altered. See Docket No. 160. The question now asks: 

On the date of service of the Citation, do you have any money, accounts, or assets 

in which the debtor or an entity in which the debtor has ownership or control 

in or any other personal property, investment accounts, real property, or other 

assets belonging to the debtor, or in which the debtor has an interest? 

Id. (emphasis supplied). 

18. However, in its Amended Answer, Stifel admits that it does not have any 

personal property belonging to Judgment Debtor. See Docket No. 160 (“Stifel’s Answer, 

filed with the Clerk of Court on March 24, 2022, mistakenly answered Interrogatory 2.a. to the 

original Citation. Set forth below is Stifel’s Answer to the Amended Citation, including Stifel’s 

answer to amended Interrogatory 2.a.”). 
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STATUTORY PREDICATES 

A non-party may file a pleading or motion in a case to which it is not a party only when 

approved by the Court. N.D.I.L. L.R. 5.6. Similarly, on timely motion, the Court must permit 

anyone to intervene who claims an interest relating to the property or transaction that is the 

subject of the action, and is so situated that disposing of the action may as a practical matter 

impair or impeded the movant’s ability to protect its interest, unless existing parties adequately 

represent that interest. Fed. R. Civ. P. 24. 

The procedure on execution—and in proceedings supplementary to and in aid of 

judgment or execution—must accord with the procedure of the state where the court is located. 

Fed. R. Civ. P. 69. Pursuant to Illinois law, a judgment creditor may issue Citation to Discover 

Assets to ascertain assets or income of the judgment debtor. 735 ILCS 5/2-1402. If the Court 

determines that the judgment debtor or third party does not possess any non-exempt income or 

assets of the judgment debtor, then the citation shall be dismissed. See 735 ILCS 5/2-1402(d-5). 

ARGUMENT 

The Atlas LLCs seek leave to file a Combined Motion to Dismiss the Citation issued to 

Stifel, and a Response to the Plaintiffs’ Motion for Turnover of Funds, substantially in the form 

attached hereto as Exhibit 1. Alternatively, if the Court would prefer that the Atlas LLCs file an 

intervenor complaint pursuant to Fed. R. Civ. P. 24, the Atlas LLCs request leave to file an 

intervenor complaint within twenty-eight (28) days. Stifel admits that it does not possess 

property belonging to Judgment Debtor and so the Citations must be dismissed. See Exhibit 1. 

Further, the Atlas LLCs interests and rights in its property are directly impacted by Plaintiffs’ 

Turnover Motion and no current party adequately represents the Atlas LLCs’ Interest. 
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Stifel incorrectly and improperly identified and disclosed investment accounts belonging 

to the Atlas LLCs, and not to Judgment Debtor, in its initial Answer to the Citation issued to 

Stifel relating to assets of Judgment Debtor. Although Stifel realized its mistake and filed an 

Amended Answer to the Citation, which admits to its mistake, it does not correct it in the 

Answer itself. See Doc. Nos. 13 and 160. Seemingly relying on the incorrect information 

provided by Stifel, and now known to the parties to be incorrect, Plaintiffs improperly seek 

turnover of funds from Stifel that do not belong to Judgment Debtor. As a result, the Atlas LLCs 

request that they be given leave to file a Combined Motion to Dismiss the Citations and 

Response to the Turnover Motion, as Stifel does not have property belonging to Judgment 

Debtor (i.e., the accounts at Stifel belong to the Atlas LLCs, not Judgment Debtor) and because 

Plaintiffs have moved for turnover of the Atlas LLCs’ property, or alternatively, for leave to 

intervene pursuant to Fed. R. Civ. P. 24. 

WHEREFORE, the Atlas LLCs respectfully request that this Court enter an order 

granting this motion, permitting the Atlas LLCs to file its Combined Motion to Dismiss the 

Citation and Response to Plaintiffs’ Motion for Turnover, or alternatively, to intervene in the 

pending action and file its intervenor complaint within twenty-eight (28) days, and granting such 

further relief as the Court deems just. 

Respectfully submitted, 

Atlas Apartments Acquisition LLC, Atlas 

Apartment Homes LLC, Atlas Multifamily Three 

LLC, Atlas MF Mezzanine Borrower LLC, Premier 

Orlando Portfolio Two LLC, Atlas Alexandria & 

Parcvue LLC, Atlas Crowntree Lakes LLC, Atlas 

Apartment Holdings LLC, P2 Portfolio Managing 

Member LLC, Atlas Birchwood LLC, and 

Ivankovich Family LLC 
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By: /s/ Michael W. Debre 

 One of their Attorneys 

Michael W. Debre (#6296197) 

Chuhak & Tecson, P.C. 

120 S. Riverside Plaza, Suite 1700 

Chicago, Illinois 60606 

T: 312-855-4603 

mdebre@chuhak.com