Website Last Updated: July 3, 2014
Lawsuits filed by the Receiver. In late 2012 and early 2013, the Receiver filed 3 lawsuits against approximately 60 defendants. The aggregate amount of the claims asserted by the Receiver exceeds $40 million. The lawsuits are still in the early stages. The Receiver makes no reprsentations as to how much the Receiver will collect, when any funds will be collected, and/or the amount of such funds, if any, that will be available for distribution to Westmoore's investors. More information about the lawsuits is available in the "Recent Developments' section of this website.
Purpose of website: not substitute for Court docket. This website is intended to provide certain information to the public concerning the case hereinafter described. It is not an identical copy of the Court's docket, which contains many more documents, but is intended to provide a means of information, notice to creditors of certain things that the court requires be so noticed, and other material that the Receiver considers of possible interest. The court docket can be accessed at the office of the Court Clerk at 411 West Fourth Street, Santa Ana, CA 92701 or electronically by attorneys with PACER access. Inquiries to the Receiver can be transmitted in the manner set forth below. The Receiver does not have a duty to and does not undertake to post all matters in which creditors or parties might be interested.
Complaint Filed by the SEC. On June 15, 2010, the Securities and Exchange Commission (the "SEC") filed its Complaint for Violations of the Federal Securities Laws against (1) Westmoore Management, LLC, (2) Westmoore Investment, L.P., (3) Westmoore Capital Management, Inc., and (4) Westmoore Capital, LLC (the "Westmoore Defendants") and Matthew Jennings ("Jennings"). The Complaint was filed in the Santa Ana Division of the United States District Court for the Central District of California (the "Court") and generally may be referred to as SEC v. Westmoore Management, LLC, et al.
Appointment of Receiver. On August 12, 2011, the Court entered a judgment (the "Judgment") against the Westmoore Defendants, appointing David A. Gill as Permanent Receiver with full powers of an equity receiver over the assets of the Westmoore Defendants and certain of their subsidiaries. A copy of the Judgment may be viewed and/or downloaded by clicking on the appropriate link under the section of this site entitled "Notices and Documents."
Entities Subject to Receivership. Entities subject to the Receivership are the four Westmoore Defendants "and their subsidiaries and entities otherwise majority-owned, managed or controlled, directly or indirectly, by any of them." The following entities, collectively referred to as the "Westmoore Entities," are subject to the Receivership. As the Receiver continues to investigate the assets of these entities he may determine that other affiliated entities also are subject to the Receivership. Absent a further order of the Court, the Receiver will not assume or assert direct operational control over publicly traded companies in which the Westmoore Entities have ownership interests.
(1) Westmoore Capital, LLC
(2) Westmoore Capital Management, Inc.
(3) Westmoore Investment, L.P.
(4) Westmoore Management, LLC
(5) The Brentwood Apartments at Fort Worth, LLC
(6) Fresno Street, LLC
(7) Montana Legend, LLC
(8) The Palms of Lake Jackson, LLC
(9) Westmoore Advisors, LLC
(10) Westmoore Bridge Loan Funds, LLC
(11) Westmoore Business Development, LLC
(12) Westmoore Capital, Inc.
(13) Westmoore Capital Finance, Ltd.
(14) Westmoore Capital Group, LLC
(15) Westmoore Food and Entertainment, LLC
(16) Westmoore Income Properties, LLC
(17) Westmoore International, Inc.
(18) Westmoore International, LLC
(19) Westmoore Lending Opportunity Fund, LLC
(20) Westmoore Lending, LLC
(21) Westmoore Mortgage, LLC
(22) Westmoore Properties, L.P.
(23) Westmoore Real Estate Investment Trust
(24) Westmoore Realty, Inc.
(25) Westmoore Restaurant Group, LLC
(26) Westmoore Securities, Inc.
Rights and Duties of Receiver. Without limiting the provisions of the Judgment, the Receiver is authorized to: take custody and control of all of the Westmoore Entities' assets, including funds, real property, and books and records, with full power to collect, receive and take such assets into possession; take control of and be added as the sole authorized signatory for all of the Westmoore Entities' accounts, including bank and brokerage accounts; conduct such investigation and discovery necessary to locate, account for and recover the Westmoore Entities' assets; employ attorneys, accountants and other persons to assist in his investigation and discovery of the Westmoore Entities' assets; prosecute claims and causes of action which exist as a result of the activities of present or past employees of the Westmoore Entities; take appropriate action to preserve and prevent dissipation of assets owned or managed by the Westmoore Entities; file with the Court as soon as practicable an accounting of the assets and financial condition of the Westmoore Entities; and make appropriate disbursements and enter into agreements necessary for the Receiver to discharge his duties as receiver.
Judgment against Matthew Jennings. On August 12, 2011, the Court entered its Final Judgment as to Defendant Matthew R. Jennings. Article X of the judgment provided, among other things, that Mr. Jennings was required to pay $492,265.06 within sixty days of entry of the judgment (i.e., October 11, 2011). As of September 27, 2012, the Receiver has received payments totaling $244,926.57 on account of the judgment against Mr. Jennings. Having not received any other payment, the Receiver alleges that Mr. Jennings is in default under the terms of the judgment and has advised the SEC accordingly.
Injunction against interference with the Receivership. Article X of the Judgment includes a broad injunction restraining and enjoining all persons and entities from, directly or indirectly:
(a) commencing, prosecuting, continuing or enforcing any suit or proceeding against the Westmoore Entities;
(b) using self-help or executing or issuing or causing the execution or issuance of any court attachment, subpoena, replevin, execution or other process for the purpose of impounding or taking possession of or interfering with or creating or enforcing a lien upon any property or property interests owned by or in the possession of the Westmoore Entities; and
(c) doing any act or thing whatsoever to interfere with taking control, possession or management by the Receiver of the property and assets owned, controlled or managed by or in the possession of the Westmoore Entities, or in any way to interfere with or harass the Receiver or his attorneys, accountants, employees, or agents, or to interfere in any manner with the discharge of the Receiver's duties and responsibilities.