Receiver’s Pending Motion For Approval Of Various Settlements

The Court recently granted preliminary approval of the motion filed jointly by the Receiver and Investor Plaintiffs regarding their settlement with Paul Wassgren and law firms DLA Piper and Fox Rothschild. (Doc. 787) This approval also pertained to various settlements reached with a number of sales agents and various bar orders related to these settlements. (Doc. 788) Pursuant to the Court’s Orders, the Receiver was ordered to mail a legal notice regarding the Court’s handling of the motion to all interested parties. You can read the full notice here. Please note the requirements for objecting to the relief sought.

Claims Process

On January 20, 2023, the Receiver filed his Motion to (1) Approve Determination and Priority of Claims, (2) Approve Plan of Distribution, and (3) Establish Objection Procedure (“Claims Determination Motion”).  A copy of the motion is available here. This motion contains the Receiver’s recommendations on the 1,877 claims received and reviewed by the Receiver and his team. The Claims Determination Motion and Exhibits do not reference specific Claimant names. Rather, the Receiver has assigned each claim a number and has submitted a separate cross-reference list to the Court under seal so that the Court may match claimants to their claims while protecting the privacy of investors and their financial repercussions. Only the Court and a limited number of attorneys will have access to the cross-reference list.

After the Court rules on the Claims Determination Motion, the Receiver will send individual letters for each claim, which will identify the claim number assigned to that claim. The letter will allow the claimant to review the pertinent claim determination. You will not be able to determine the Receiver’s recommendation of your specific claim until you receive this letter. TO MINIMIZE EXPENSES TO THE RECEIVERSHIP AND CONSERVE RESOURCES, PLEASE DO NOT CONTACT THE RECEIVER’S TEAM TO ASK QUESTIONS ABOUT YOUR DETERMINATION WHILE THE MOTION IS PENDING. No information on the recommended determinations, including the assigned claim number, will be provided until after the Court enters an order on the motion. For more information:

Introduction

Welcome to the website of Receiver, Burton W. Wiand. Mr. Wiand has been appointed Receiver in a civil enforcement action, styled Securities and Exchange Commission v. Equialt, LLC. et al., Case No. 8:20-cv-00325-T-35AEP in the United States District Court for the Middle District of Florida, Tampa Division.

We designed this website to provide convenient access to information about the Receivership, including important updates and select District Court documents. As our work progresses, we will add information to this website, including information regarding a plan of distribution to creditors of any assets that are recovered and all forms required by the District Court for participation as a claimant in the distribution process. If you require further information not contained in this website, you may contact us.

Brief Summary of the Case

The Securities and Exchange Commission (SEC) filed a civil enforcement action in The United States District Court for the Middle District of Florida against defendants: Equialt, LLC (Equialt); Equialt Fund, LLC (Fund 1); Equialt Fund II, LLC (Fund 2); Equialt Fund III, LLC (Fund 3); EA Sip, LLC (EA); Brian Davison (Davison) and Barry Rybicki (Rybicki) (collectively, defendants). The defendants are charged with running a real estate Ponzi scheme that raised over $170 million from over 1,100 investors and misappropriating millions of dollars for their own personal gain, buying luxury cars, fine jewelry, chartering private jets and other lavish expenditures. The complaint also lists seventeen relief defendants that received proceeds of the fraud without any legitimate entitlement to the money: 128 E. Davis Blvd, LLC; 310 78th Ave, LLC; 551 3rd Ave S, LLC; 604 West Azeele, LLC; 2101 W. Cypress, LLC; 2112 W. Kennedy Blvd, LLC; 5123 E. Broadway Ave, LLC; Blue Waters TI, LLC; BNAZ, LLC; BR Support Services, LLC; Bungalows TI, LLC; Capri Haven, LLC; EA NY, LLC; Equialt 519 3rd Ave S., LLC; McDonald Revocable Living Trust; Silver Sands TI, LLC; TB Oldest House Est. 1842, LLC.

Where, as in this case, the SEC seeks the return of funds to investors, the SEC frequently appoints a receiver to assist in marshalling assets on behalf of creditors, including injured investors. SEC-initiated receiverships frequently arise in connection with alleged fraudulent investment schemes.

The District Court entered an order on February 14, 2020, appointing Burton W. Wiand as Receiver. The Court directed the Receiver to (i) administer and manage the business affairs, funds, assets, and any other property of the defendants and relief defendants; (ii) marshal and safeguard the assets of the defendants and relief defendants; (iii) investigate the manner in which the affairs of the defendants and relief defendants were conducted and institute such legal proceedings for the benefit of the defendants and relief defendants and their investors and creditors as the Receiver deems necessary; and (iv) take whatever actions are necessary for the protection of the investors. The Receiver intends to fulfill his duties and responsibilities in an expedient and efficient manner. The District Court overseeing this Receivership has broad powers and wide discretion to determine the appropriate relief.

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