SEC vs. Emilio Francisco, PDC Capital Group, LLC, et al
Home

This website was last updated October 6, 2017.

This web site has been established to foster efficient communications between investors and creditors of PDC CAPITAL GROUP, LLC, et al (the "Companies") and Thomas Seaman, who is serving as its permanent receiver. Mr. Seaman was appointed on January 5, 2017, in an SEC enforcement action known as Securities Exchange Commission (the "SEC" or "Plaintiff") vs. Emilio Francisco; PDC Capital Group, LLC; Caffe Primo International, Inc.; SAL Assisted Living, LP; SAL Carmichael, LP; SAL Citrus Heights, LP; SAL Kern Canyon, LP; SAL Phoenix, LP; SAL Westgate, LP; Summerplace At Sarasota, LP; Summerplace At Clearwater, LP; Summerplace At Correll Palms, LP; TRC Tucson, LP; Clear Currents West, LP; Caffe Primo Management, LP; Caffe Primo Management 102, LP; Caffe Primo Management 103, LP; Caffe Primo Management 104, LP; Caffe Primo Management 105, LP; Caffe Primo Management 106, LP; Caffe Primo Management 107, LP; and Caffe Primo Management 108, LP, et al (collectively, the "Defendants"), Case No. SACV 16-02257-CJC(DFMx) in the United States District Court, Central District of California, Southern Division. The case is heard before the Honorable Cormac J. Carney.

The SEC has alleged in their COMPLAINT [Dkt. No. 1] that the Defendants have engaged in transactions, acts, practices and courses of business that constitute violations of Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a); Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b); and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5. On January 5, 2017, Judge Cormac Carney ordered that the assets of Defendants and their subsidiaries and affiliates be frozen and issued a TEMPORARY RESTRAINING ORDER [Dkt. No. 17] (the "TRO"). The TRO restrains and enjoins the Defendants from violations of the securities laws and orders them to provide an accounting of their assets. The TRO also appointed Thomas A. Seaman as Receiver.

Recent updates appear in reverse chronological order:
NEW!

NOTICE OF SALE OF REAL ESTATE AND REQUEST FOR OVERBIDS
Property located at 5710 Draw Lane, Sarasota, Sarasota County, Florida (owned by Summerplace at Sarasota, LP and Summerplace at Sarasota, LLC)

In the action pending in U.S. District Court for the Central District of California, Case No. SACV 16-02257-CJC (DFMx), Securities and Exchange Commission v. Emilio Francisco, PDC Capital Group, LLC, et al., notice is hereby given that the court-appointed receiver for Summerplace at Sarasota, LP and Summerplace at Sarasota, LLC will seek confirmation of the sale of land located at 5710 Draw Lane, Sarasota, Sarasota County, Florida for $1,425,000, subject to an overbid auction. The minimum bid price at the auction will be $1,525,000, with incremental bids of $15,000. The hearing to confirm the sale and the auction will take place on November 27, 2017, at 1:30 p.m. Pacific Time in the courtroom of the Honorable Cormac J. Carney located at 411 W. Fourth St., Santa Ana, CA, 92701, Courtroom 9B, 9th Floor (or at such time and place as the Court directs.) To qualify as a bidder at the auction, prospective buyers must: 1) execute a non-contingent purchase and sale agreement, a copy of which may be obtained from the Receiver's broker Marcus & Millichap, attention Krone Weidler at (813) 387 4767 or Krone.Weidler@marcusmillichap.com, or Louis Tsunis at (813) 387 4777 or Louis.Tsunis@marcusmillichap.com; 2) make a non-refundable earnest money deposit of $150,000, which is applicable to the sale price and refundable immediately to unsuccessful overbidders; and 3) provide proof of liquid funds sufficient to conclude the sale as soon as practicable following Court approval on or about November 27, 2017. All bidders must be qualified by 4:00 p.m. Pacific Time on November 17, 2017, by submitting the foregoing to Thomas Seaman Company at 3 Park Plaza, Suite 550, Irvine, California, 92614.

FIRST INTERIM FEE APPLICATION OF THE RECEIVER; FEE APPLICATIONS OF RECEIVER'S ATTORNEYS AND PROFESSIONALS
On August 25, 2017, the Receiver filed with the Court his FIRST INTERIM FEE APPLICATION OF THOMAS A. SEAMAN, COURT-APPOINTED RECEIVER, FOR PAYMENT OF FEES [Dkt. No. 103]. From January 5, 2017, through April 30, 2017 (the "First Application Period"), the Receiver and his agents spent 1,520.5 hours executing the duties set forth in the Temporary Restraining Order entered on January 5, 2017 ("TRO"). The Receiver seeks approval of 100% of fees and approval to pay 90% of fees. The Receiver does not seek reimbursement of any expenses.

The Receiver's attorneys, Allen Matkins Leck Gamble Mallory & Natsis, also filed with the Court their FIRST INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS, GENERAL COUNSEL TO THE RECEIVER, FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 104]. During the First Application Period the attorneys worked 678.2 hours on behalf of the receivership estate and request the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 80% of fees incurred and 100% of expenses incurred.

The Receiver's consultants, Berkeley Research Group, LLC, also filed with the Court their FIRST INTERIM FEE APPLICATION OF BERKELEY RESEARCH GROUP, LLC [Dkt. No. 105]. During January 1, 2017, through April 30, 2017 (the "First Application Period"), the consultants worked 117.2 hours on behalf of the receivership estate and request the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 90% of fees and 100% of expenses incurred.

Along with these applications the Receiver filed his NOTICE OF HEARING ON INTERIM FEE APPLICATIONS OF THE RECEIVER AND HIS PROFESSIONALS FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 106]. The hearing for these applications is calendared for 1:30 p.m., October 2, 2017.

ORDER AUTHORIZING THE RECEIVER TO MARKET RECEIVERSHIP ASSETS
On August 23, 2017, Judge Carney entered his ORDER GRANTING RECEIVER'S MOTION FOR ORDER AUTHORIZING THE RECEIVER TO MARKET RECEIVERSHIP ASSETS FOR SALE, ESTABLISH SALE PROCEDURES AND ENGAGE BROKERS [Dkt. No. 269].

RECEIVER'S REPLY TO OPPOSITION TO RECEIVER'S MOTION FOR ORDER AUTHORIZING THE RECEIVER TO MARKET RECEIVERSHIP ASSETS
On July 28, 2017, the Receiver filed his RECEIVER'S REPLY TO DEFENDANTS EMILIO FRANCISCO, MCC US, INC. AND LINCOLN INVESTORS' OPPOSITION TO RECEIVER'S MOTION FOR ORDER AUTHORIZING THE RECEIVER TO MARKET RECEIVERSHIP ASSETS FOR SALE, ESTABLISH SALE PROCEDURES AND ENGAGE BROKERS [Dkt. No. 93]. The motion is calendared for August 14, 2017, at 1:30 pm.

RECEIVER'S OPPOSITION TO MCC U.S. INC.'S MOTION FOR ORDERS AND RELIEF FROM STAY
On July 24, 2017, the Receiver filed his RECEIVER'S OPPOSITION TO MCC U.S. INC.'S MOTION FOR ORDERS AND RELIEF FROM STAY [Dkt. No. 88] and DECLARATION OF THOMAS A. SEAMAN IN SUPPORT OF RECEIVER'S OPPOSITION TO MCC U.S. INC.'S MOTION FOR ORDERS AND RELIEF FROM STAY [Dkt. No. 89]. The motion is calendared for August 14, 2017, at 1:30 pm.

MOTION TO MARKET RECEIVERSHIP ASSETS
On July 7, 2017, the Receiver filed his NOTICE OF MOTION AND MOTION OF RECEIVER, FOR ORDER AUTHORIZING THE RECEIVER TO MARKET RECEIVERSHIP ASSETS FOR SALE, ESTABLISH SALE PROCEDURES AND ENGAGE BROKERS [Dkt. No. 81]. The motion is calendared for August 14, 2017, at 1:30 pm.

RECEIVER'S SECOND INTERIM REPORT AND RECOMMENDATIONS
On June 7, 2017, the Receiver filed his RECEIVER'S SECOND INTERIM REPORT AND RECOMMENDATIONS AS OF MAY 31, 2017 [Dkt. No. 68] with the Court.

RECEIVER'S INVESTOR LETTER
On April 14, 2017, the Receiver published his RECEIVER'S INVESTOR LETTER. Topics covered are the status of the Caffe Primo and assisted living projects. The Receiver will continue to provide updates on the Receiver's PDC website as information becomes available or transactions are proposed that impact the projects. The Receiver will also prepare reports to the District Court with recommendations as to how to proceed with each of the projects. (This letter has now been translated into Chinese and posted on the Chinese home page of this site.)

PRELIMINARY INJUNCTION AGAINST ALL DEFENDANTS
On January 23, 2017, Judge Carney entered his PRELIMINARY INJUNCTION AGAINST ALL DEFENDANTS [Dkt. No. 36] (the "PI"). The PI continued the freeze of assets, enjoined the Defendants from the sale of securities, prohibited any destruction of assets by the Defendants. The PI also appointed Thomas Seaman as Permanent Receiver and ordered him to continue to marshal assets and make an accounting to the Court and the SEC of the assets and financial condition of the Defendants.

TEMPORARY RECEIVER'S FIRST REPORT AND RECOMMENDATIONS
On January 20, 2017, the Receiver filed his TEMPORARY RECEIVER'S FIRST REPORT AND RECOMMENDATIONS [Dkt. No. 32] with the Court.

SEC vs. Emilio Francisco, PDC Capital Group, LLC, et al