12:47 P.M.: Court in session. 14 Matters before the Court. 12:50 P.M.: Attorney introductions starting. 12:51 P.M.: Gordon Silver and Greenberg Traurig for TelexFree. One GT lawyer is out in hall working on late developments. 12:52 P.M.: SEC wants to approach bench to discuss late developments and provide Court with documents. SEC will consent to District Court entering final orders and judgments for motions except to First Day Motions (if it gets that far). 12:54 P.M.: Late development appears to be related to SECs belief that this case should not be Chapter 11 case. Reading between the lines, could be Chapter 7 case (liquidation). 12:54 P.M.: Attorneys for at least two sets of victims making appearances. 12:55 P.M.: Late-breaking developments have emerged. Attorneys to brief court. 12:55 P.M.: Debtors attorney handed civil forfeiture action appearing to be commenced by U.S. Attorneys Office. His attorneys belief is that not appropriate to talk about at the moment. Party that sought civil forfeiture action does not appear to be before court, so TelexFree attorney says is not appropriate to discuss. 12:57 P.M.: TelexFree counsel says papers appear to be subpoenas and warrants in connection with civil forfeiture action commenced by U.S. Attorneys Office. Concern is over evidentiary nature of papers. Counsel doesnt believe it impacts todays proceedings. Thinks it is unfair to have SEC say this impacts motions before the Court. Or this collective effort by the Government to shut us down will kill us. 12:59 P.M.: SEC counsel says Court can take judicial notice. Says there was civil and criminal forfeiture action. 26 warrants in support of forfeiture acts, have all been filed. 1:00 P.M.: SEC says they are asset forfeiture actions, do not violate automatic stay under Chapman (cited by TelexFree). These actions seized all known assets for debtors, including cashiers checks. 1:01 P.M.: Anything subject to debtors estate has been seized by U.S. Attorneys Office. 1:02 P.M.: Court will not consider papers in connection with rulings on pending matters, and not inclined to take papers into evidence. Judge now reviewing papers. 1:03 P.M.: Warrants were apparently under seal. Court says record will not include this, and wont be considered as evidence. Reviewed simply to be mindful of actions going on in Massachusetts court. 1:04 P.M.: Court will take short break - about 15 minutes - to review documents. Court will hear SECs Motion for Change of Venue first. Notice of Hearing regarding abstention second. Debtors motion for scope of TRO next. Then U.S. Trustees Motion for Appointment of Trustee will be heard. If there is time, First-Day Motions will be heard. Court doubtful to be able to rule today. But will rule on all matters that will be appropriate to resolve by Monday at the latest. Debtor needs to know, as well as other people. Court will not delay in resolving issues. Resolution thus likely at beginning of next week. 1:06 P.M.: Massachusetts sheriffs deputy is present by phone, Court says he does not need to appear unless there are plans to cross-examine deputy. Court will adjourn and reconvene at 1:25 P.M. EST. 1:25 P.M.: Looks to be getting underway shortly. 1:27 P.M.: Court in session. Court reviewed documents, issued in Massachusetts District Court on April 24, 2014 and unsealed recently (today?). Copies are not certified or authenticated. Court does not take judicial notice, and wont consider as evidence today. 1:30 P.M.: TelexFree counsel says that, if you transfer this case, stay motion has to be heard to decide whether debtor lives or dies. 1:31 P.M.: Court will proceed first with motion to transfer venue. 1:34 P.M.: TelexFree wants to have evidence heard first, Court agrees as does SEC. SEC wants to call TelexFree officers first, U.S. Trustee wants to have sheriffs deputy heard first. 1:38 P.M.: TelexFree counsel complaining of non-compliance with local rules regarding witnesses and evidence by SEC.
Posted on: Fri, 02 May 2014 17:40:33 +0000
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