Lawsuits Relating to the ABC Viaticals Receivership

中文 - Chinese

Cause No. 3:07-CV-0421

On March 7, 2007, the Receiver filed his Complaint to recover damages exceeding $45 million from the Defendants.

On April 15, 2007, the Receiver filed his Ex Parte Motion for Temporary Restraining Order and Preliminary Restraining Order along with his Declaration and Supporting Exhibits (Exhibit A - Exhibit B - Exhibit C - Exhibit D - Exhibit E - Exhibit F). On April 17, 2007, the Court entered its Temporary Restraining Order and Order Setting Preliminary Injunction Hearing, which froze numerous bank accounts held by Defendant David Goldenberg and several entities under his control.

On May 3, 2007, the Court entered an Agreed Preliminary Injunction and then a First Amended Preliminary Injunction that froze the entities' accounts for the remainder of this case or until further orders by the Court.

On March 18, 2008, the Receiver filed his Unopposed Motion to Approve Compromise and Settlement Agreement (Exhibit 1). That agreement would give the Receiver authority to claim the $3 million death benefit on David Goldenberg's life insurance policy. The Court entered an Order approving the settlement agreement on March 24, 2008. In connection with that settlement agreement, the Court also entered a Second Amended Preliminary Injunction that day, which unfroze the accounts of David Goldenberg's family.

Receiver's Actions with Respect to Defendants Located in the United States

On April 16, 2007, the Receiver filed his Motion to Dismiss Without Prejudice as to Defendant Linda Wolok. On April 18, 2007, the Court entered its Order of Dismissal Without Prejudice as to Defendant Linda Wolok.

On May 1, 2007, Defendant David Goldenberg filed his Answer to the Receiver's Complaint denying liability and demanding a jury trial. Since filing his answer, however, Goldenberg has committed suicide. His attorneys filed a Motion to Withdraw as Counsel on November 14, 2007.

On May 1, 2007, separate Answers were filed to the Receiver's Complaint by Defendant Surety Marketing Source, LLC, Defendant DAG Investments, LLC, Defendant LPG Investments, LLC, Defendant WED Marketing, LLC. Those entities were all owned and controlled by David Goldenberg. After his death, their attorneys filed a Motion to Withdraw as Counsel on November 14, 2007. The Court entered an Order granting that motion on March 24, 2008.

On July 18, 2007, the Receiver filed his Motion for Default Judgment against Defendant Mark Wolok. On July 20, 2007, the Court entered Final Default Judgment against Wolok in the amount of $48,811,500.00. Since Wolok is now in bankruptcy, the Receiver's judgment will be filed as a claim against his bankruptcy estate.

On July 18, 2007, the Receiver filed his Motion for Default Judgment against Defendant International Consultants & Management Ltd. On July 20, 2007, the Court entered Final Default Judgment against International Consultants & Management Ltd. in the amount of $48,811,500.00. The Receiver has since determined that International Consultants & Management Ltd. was a fraud that only existed on paper and has no assets.

On March 18, 2008, the Receiver filed his Unopposed Motion to Approve Compromise and Settlement Agreement (Exhibit 1). That agreement would give the Receiver authority to claim the $3 million death benefit on David Goldenberg's life insurance policy. The Court entered an Order approving the settlement agreement on March 24, 2008. In connection with that settlement agreement, the Court also entered a Second Amended Preliminary Injunction that day, which unfroze the accounts of David Goldenberg's family.

On April 16, 2008, the Receiver filed his Motion for Partial Summary Judgment against Surety Marketing Source, LLC (Brief in Support - Exhibits). The Court entered Final Partial Judgment against Surety Marketing Source, LLC on July 10, 2008.

On July 18, 2008, the Receiver filed his Motion to have David Goldenberg's $3 million life insurance benefit paid into the court's registry. The Court entered an Order on July 21, 2008, granting that motion. The Receiver then filed a Motion to have those funds distributed to the Receiver in partial satisfaction of his judgment against Surety Marketing Source, LLC and in accordance with the Compromise and Settlement Agreement. The Court entered an Order granting that motion on July 28, 2008. In all, the Receiver collected $3,127,412.48 from David Goldenberg's life insurance proceeds.

On September 4, 2008, the Receiver filed a Motion to Dismiss Remaining Claims he had against David Goldenberg, DAG Investments LLC, LPG Investments LLC, and WED Marketing LLC. Dismissing those claims was in the recievership estate's best interest because the Reciever already reached a settlement with Goldenberg's widow, collected a substantial recovery from Goldenberg's life insurance, and those remaining defendants no longer exist or have any assets. The Court entered its Order of Dismissal on September 12, 2008.

Receiver's Actions with Respect to Defendants Located in Vanuatu

On May 22, 2007, the Receiver filed his Motion for Default Judgment against Defendant International Fidelity & Surety Limited. On May 24, 2007, the Court entered Final Default Judgment against International Fidelity & Surety Limited in the amount of $48,811,500.00. The Receiver has since determined that International Fidelity & Surety Limited was a fraud that only existed on paper and has no assets.

On October 23, 2007, the Court entered an Order Requiring Status Report that directed the Receiver to update the Court on his efforts to serve Defendant KPMG Vanuatu and Defendant Hawkes Law. On November 15, 2007, the Receiver filed his Status Report notifying the Court that the U.S. State Department is working with authorities in Vanuatu to oversee service of process upon KPMG Vanuatu and Hawkes Law at their last known address.

On May 5, 2008, the Receiver filed his Status Report notifying the Court that he intends to dismiss KPMG Vanuatu and Hawkes Law if he obtained a recovery from David Goldenberg's life insurance policy.

After obtaining a recovery from David Goldenberg's life insurance policy, the Receiver filed a Notice of Dismissal on September 4, 2008. The Court entered its Order of Dismissal on September 12, 2008.

Receiver's Actions with Respect to Defendants Located in the United Kingdom

On October 23, 2007, the Court entered an Order to Show Cause that directed the Receiver to update the Court on his efforts to serve Defendant Galax Holdings and Defendant Boswell, Dermott, and Pawlett, LLP. On November 15, 2007, the Receiver filed his Response to Show Cause Order notifying the Court that his local counsel in London, England, has determined that those entities no longer exist and are not at located at their last known addresses. Accordingly, the Court entered its Order of Dismissal relating to those entities on December 14, 2007.

Receiver's Actions with Respect to the Defendant Located in Israel

On July 16, 2007, Defendant Arie Kotler filed his Motion to Dismiss. On August 6, 2007, the Receiver filed his Response to Defendant Arie Kotler's Motion to Dismiss. On August 21, 2007, the Defendant Arie Kotler filed his Reply Brief. On September 26, 2007, the Court entered its Order granting in part and denying in part the Motion to Dismiss. The Court ordered the Receiver to file an amended complaint by October 16, 2007. On October 16, 2007, the parties filed a Motion to Approve Agreed Order expanding the time to file an amended complaint. On October 17, 2007, the Court entered the Agreed Order giving the Receiver until November 30, 2007, to work out a settlement agreement or otherwise file an amended complaint. During that time, Kotler personally appeared in Dallas to meet with the Receiver and the Examiner's counsel and answer all questions posed to him. The Receiver has determined that Kotler's role in IFS was limited and that pursuing this action against him was not in the receivership estate's best intersts. Accordingly, on December 14, 2007, the Court entered an Agreed Order of Dismissal and Final Judgment.

Receiver's Actions with Respect to the Defendant Located in Switzerland

On August 28, 2007, the Receiver filed his Motion for Default Judgment against KPMG International. On October 3, 2007, the Court entered its Final Default Judgment against Defendant KPMG International in the amount of $48,811,500.00.

Receiver's Actions with Respect to the Defendant Located in India

On October 23, 2007, the Court entered an Order Requiring Status Report that directed the Receiver to update the Court on his efforts to serve Defendant Mohan & Associates. On November 15, 2007, the Receiver filed his Status Report notifying the Court that the U.S. State Department is working with authorities in India to oversee service of process upon Mohan & Associates at their last known address.

On May 5, 2008, the Receiver filed his Status Report notifying the Court that he intended to dismiss Mohan & Associates if he obtained a recovery from David Goldenberg's life insurance policy.

After obtaining a recovery from David Goldenberg's life insurance policy, the Receiver filed a Notice of Dismissal on September 4, 2008. The Court entered its Order of Dismissal on September 12, 2008.

A recent docket report for this case may be viewed here.

The following documents require Adobe Reader (click here to download).