Securities and Exchange Commission v. Beasley

• Court: District Court, D. Nevada
• Decided: July 9, 2025
• Docket: 2:22-cv-00612
• Status: Unknown

Opinion

1 || Lance A. Maningo MANINGO LAW 2||Nevada Bar No. 6405 3 ||400 South 4" Street, Suite 650 Las Vegas, Nevada 89101 4||702.626.4646 lance@maningolaw.com 5||Attomey for Defendants SEYBERT and 6 ROCKING HORSE PROPERTIES, LLC 7 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA SECURITIES AND EXCHANGE 10 Plaintiff STIPULATION AND ORDER 11|Iv. UNFREEZING CERTAIN ASSETS AND BANK ACCOUNTS OF DENNY 12|| MATTHEW WADE BEASLEY, et. al., SEYBERT AND ROCKING HORSE

3 : B Defendants PROPERTIES, LLC OF) 2s 3 14/\THE JUDD IRREVOCABLE TRUST, etal., [ECF No. 818]

4% ¢ 5 15 Relief Defendants

16 BA 17 18 This stipulation and order unfreezing all assets and all bank accounts of Denny 19|| Seybert (“Seybert”) and Rocking Horse Properties, LLC (“Rocking Horse”) is made by and 20|| between Geoff Winkler, the Court-appointed receiver (the “Receiver”), the Securities and 21]| Exchange Commission (the “Commission”), Seybert, and Rocking Horse, by and through all 22] respective legal counsel. 23 >A WHEREAS, on April 12, 2022, Plaintiff United States Securities and Exchang 5 Commission (“SEC”, “Commission”, or “‘Plaintiff’) filed a Complaint in this matter, allegin %6 violations of the registration and/or antifraud provisions of the federal securities laws by 27 28

1|| Defendants, and the receipt of ill-gotten proceeds of such violations by Relief Defendants. 2|| (ECE No. 1.) 3 WHEREAS, on April 13, 2022, the Commission filed an Ex Parte Application for 4|| Entry of a Temporary Restraining Order and other equitable relief as to Defendants and an 5|| asset freeze as to Defendants and Relief Defendants (ECF No. 2), which was granted by the 6}| Court on April 13, 2022. (ECF No. 3.) 7 WHEREAS, on April 21, 2022, the Court issued its Order Entering Preliminary 8|| Injunction, Asset Freeze, and other Equitable Relief as to Defendants and Relief Defendants, 91] which, inter alia, continued the asset freeze imposed by the Court on April 13, 2022. (ECF 10]| No. 56.) The Court’s Order provided that “any allowance for necessary and reasonable living 11]]| expenses will be granted only upon good cause shown by application to the Court with notice

12}| and an opportunity for the Commission to be heard.” § 13 WHEREAS, on or about May 4, 2022, the Commission and Seybert/Rocking Horse 14]| reached agreement as to an allowance for living expenses up to and including September 30, a 2022, and jointly submitted a stipulation, which was approved by this Court. (ECF No. 71.) 16 WHEREAS, on or about June 3, 2022, the Receiver was appointed by order of th 17|| Court (ECF No. 88) which was amended on July 28, 2022 (ECF No. 207) (collectively tk 18]] “Appointment Order’). 19 WHEREAS, the Receiver has received the total sum of $560,323.35 (“Deposit”) from 20]| Seybert and Rocking Horse as a good faith deposit toward any financial liability resulting from 21}] this matter. 22 WHEREAS, the Receiver filed a lis pendens on Seybert’s property located at 1098 23|| Lake Pointe Drive, Bigfork, MT 59911 believed to have equity estimated at or above eight 24|) hundred thousand ($800,000) dollars and Seybert agreed to maintain and not sell the property 25|| pending a resolution of this matter. 26 WHEREAS, the Receiver has undertaken a detailed forensic accounting analysis of 27|| 179 accounts belonging to the 16 named defendants and/or the 75 entities through which they 28

1}| collectively conducted the affairs of the alleged Ponzi scheme at the heart of this litigation. See, 2|| ECF No. 792. The 179 accounts were identified after the review and analysis of a total of 716 3]|| bank accounts that had investor flows, transfers between defendants, and/or internal transfers 4]| related to the alleged Ponzi scheme. 5 WHEREAS, based on the Receiver’s forensic accounting, Seybert raised $8.8 million 6|| from 54 investors (“Seybert Investors”) of which $5.2 million went directly through his 7|| business and personal accounts. The forensic accounting indicates Seybert received $1.4 8}| million from related defendants, paid $3.8 million to mvestors, and personally benefitted by 9}| $355,000 as a result of the alleged Ponzi scheme. 10 WHEREAS, the Receiver believes that the Seybert Investors will have $5.6 million : 11}| allowed claims and that there is $192,875 potentially recoverable from Seybert Investors thé 12]| the Receiver has classified as net winners. § 13 WHEREAS, Seybert has agreed to continue to cooperate and work with the Receiver 14|| to assist the Receiver in recovering the $192,875 from the Seybert Investors that the Receiver 2 a 15]| classified as net winners, with such funds to be utilized by the Receiver for the benefit of the 3 16|| creditors of the Receivership Estate. - 17 WHEREAS, the Commission believes, based on available information, that the total 18]|| remaining estimated disgorgement, preyudgment interest, and civil penalties (over and above 19]| the Deposit) that the Commission will seek in this action from Seybert and Rocking Horse is 20|| less than $15,000. 21 WHEREAS, the Commission and Seybert have reached a bifurcated settlement 22|| pursuant to which Seybert consents to judgment on lability, without admitting or denying the 23}| allegations, with the issues of disgorgement, prejudgment interest, and civil penalties reserved 24|| for later determination (Dkt. No. 817). 25 WHEREAS, the parties hereto agree that nothing herein limits the Receiver’s duties 26|| and obligations under the Appointment Order nor does this stipulation restrict or preclude the 27|| Receiver from taking additional action relating to or against Seybert should additional information become available.

1 WHEREFORE, based on the forgoing the Commission, the Receiver, and Seybert/ 2|| Rocking Horse have reached agreement: 1) that $15,000 will remain in the trust account 3|| (OLTA) of Maningo Law and remain there until this matter is resolved, 2) that all assets and 4|| bank accounts of Seybert and/or Rocking Horse will be unfrozen, and 3) that the Receiver will 5|| release the lis pendens on Seybert’s property located at 1098 Lake Pointe Drive, Bigfork, MT 6|| 59911. 9||Dated this 9th day of July 2025 Dated this 9th day of July 2025 10 MANINGO LAW GREENBERG TRAURIG, LLP 11

121! By:/s/ Lance A. Maningo By: /s/ Kara B. Hendricks B LANCE A. MANINGO, Bar No. 6405 KARA B. HENDRICKS, Bar No. 077 3 5 § Attorney for Defendant Sevbert and KYLE A. EWING, Bar No. 014051 2s 14 Rocking Horse Attorney for Receiver Geoff Winkler § 5

15/|Dated this 9th day of July 2025

24 16 SECURITIES & EXCHANGE = 17||COMMISSION 18 19 By:/s/ Pat Huddleston PAT HUDDLESTON, ESQ. 20 21 22 23 24 25 26 27 28

1 BASED ON THE FORGOING, IT IS HEREBY ORDERED that: 2 a. $15,000 will remain in the trust account (IOLTA) of Maningo Law (to remain 3}| until this matter is resolved); 4 b. all assets and bank accounts of Denny Seybert and Rocking Horse Properties, 5|| LLC be unfrozen; and 6 c. that lis pendens on Seybert’s property located at 1098 Lake Pointe Drive, 7|| Bigfork, MT 59911 be released. } 8 Dated: July 9, 2025 9 ; 10 H ristina D. Silva Wl States District Court

432 224 1

1 16 SH = 17 18 19 20 21 22 23 24 25 26 27 28