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DECLARATION IN SUPPORT OF EX PARTE APPLICATION FOR ORDER SHORTENING TIME TO HEAR MOTION TO REMOVE FERTITTA ENTERPRISES, INC. AS MEMBER OF OFFICIAL COMMITTEE OF HOLDERS OF EXECUTORY CONTRACT RIGHTS

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DECLARATION IN SUPPORT OF EX PARTE APPLICATION FOR ORDER SHORTENING TIME TO HEAR MOTION TO REMOVE FERTITTA ENTERPRISES, INC. AS MEMBER OF OFFICIAL COMMITTEE OF HOLDERS OF EXECUTORY CONTRACT RIGHTS Powered By Docstoc
					                                                                                    Case 06-10725-lbr                       Doc 567              Entered 06/09/06 15:29:30                    Page 1 of 2



                                                                               1   Annette W. Jarvis, Utah Bar No. 1649                                                                      E-FILED ON JUNE 9, 2006
                                                                                   RAY QUINNEY & NEBEKER P.C.
                                                                               2   36 South State Street, Suite 1400
                                                                                   P.O. Box 45385
                                                                               3   Salt Lake City, Utah 84145-0385
                                                                               4   Telephone: (801) 532-1500
                                                                                   Facsimile: (801) 532-7543
                                                                               5   Email: ajarvis@rqn.com

                                                                               6   and
                                                                                   Lenard E. Schwartzer
                                                                               7   Nevada Bar No. 0399
                                                                               8   Jeanette E. McPherson
                                                                                   Nevada Bar No. 5423
                                                                               9   Schwartzer & McPherson Law Firm
                                                                                   2850 South Jones Boulevard, Suite 1
                                                                              10   Las Vegas, Nevada 89146-5308
                                                                                   Telephone: (702) 228-7590
SCHWARTZER & MCPHERSON LAW FIRM




                                                                              11
                                                                                   Facsimile: (702) 892-0122
                                                                              12   E-Mail: bkfilings@s-mlaw.com
                                  Tel: (702) 228-7590 · Fax: (702) 892-0122




                                                                                   Attorneys for Debtors
                                    2850 South Jones Boulevard, Suite 1




                                                                              13
                                       Las Vegas, Nevada 89146-5308




                                                                                                                     UNITED STATES BANKRUPTCY COURT
                                                                                                                            DISTRICT OF NEVADA
                                                                              14
                                                                                                                                                                                Case Nos. BK-S-06-10725 LBR
                                                                              15   In re:
                                                                                                                                                                                Case Nos. BK-S-06-10726 LBR
                                                                                   USA COMMERCIAL MORTGAGE COMPANY,                                                             Case Nos. BK-S-06-10727 LBR
                                                                              16
                                                                                                                                                                      Debtor.   Case Nos. BK-S-06-10728 LBR
                                                                              17   In re:                                                                                       Case Nos. BK-S-06-10729 LBR
                                                                                   USA CAPITAL REALTY ADVISORS, LLC,
                                                                              18                                                                                      Debtor.   Chapter 11
                                                                                   In re:
                                                                              19                                                                                              DECLARATION IN SUPPORT OF
                                                                                   USA CAPITAL DIVERSIFIED TRUST DEED FUND, LLC,
                                                                              20                                                                                              EX PARTE APPLICATION FOR
                                                                                                                             Debtor.
                                                                                                                                                                              ORDER SHORTENING TIME TO
                                                                                   In re:
                                                                              21                                                                                              HEAR MOTION TO REMOVE
                                                                                   USA CAPITAL FIRST TRUST DEED FUND, LLC,                                                    FERTITTA ENTERPRISES, INC. AS
                                                                              22                                                                                      Debtor. MEMBER OF OFFICIAL
                                                                                   In re:                                                                                     COMMITTEE OF HOLDERS OF
                                                                              23   USA SECURITIES, LLC,                                                                       EXECUTORY CONTRACT RIGHTS
                                                                              24                                                                                      Debtor.
                                                                                   Affects:
                                                                                                                                                                                (AFFECTS USA COMMERCIAL
                                                                              25        All Debtors
                                                                                                                                                                                MORTGAGE COMPANY)
                                                                                        USA Commercial Mortgage Company
                                                                              26        USA Securities, LLC                                                                     Date: OST Requested for June 21, 2006
                                                                                        USA Capital Realty Advisors, LLC                                                        Time: OST Requested for 9:30 a.m.
                                                                              27
                                                                                        USA Capital Diversified Trust Deed Fund, LLC
                                                                              28        USA First Trust Deed Fund, LLC


                                                                                                                                                               1
                                                                                   P:\USA Commercial Mortgage\Pleadings\Remove Committee Member Motion\OST Declaration.doc
                                                                                    Case 06-10725-lbr                       Doc 567              Entered 06/09/06 15:29:30            Page 2 of 2



                                                                               1               Jeanette E. McPherson, Esq. of Schwartzer & McPherson Law Firm, attorney for the above
                                                                               2   captioned debtors and debtors in possession (the “Debtor”), under penalties of perjury, hereby
                                                                               3   declares on this 9th day of June, 2006 that:
                                                                               4               1.           A Motion To Remove Fertitta Enterprises As Member of Official Committee of
                                                                               5   Holders of Executory Contract Rights (the “Motion”) has been filed. This Motion respectfully
                                                                               6   requests that the Court order the U.S. Trustee to change the composition of the Executive
                                                                               7   Contracts Committee (“ECC”) by removing Fertitta Enterprises, Inc., acting through its corporate
                                                                               8   secretary and treasurer William J. Bullard, as a member of the ECC and appointing a replacement.
                                                                               9               2.           Notice can be shortened pursuant to Bankruptcy Rule 9006(c)(1) and LR 9006(a).
                                                                              10               3.           The Motion is requested to be heard on shortened time because the presence of
SCHWARTZER & MCPHERSON LAW FIRM




                                                                              11   Fertitta Enterprises, Inc. on the Committee may greatly affect the negotiations concerning a plan
                                                                              12   of reorganization which should take place in July, 2006. Omnibus hearings are currently
                                  Tel: (702) 228-7590 · Fax: (702) 892-0122
                                    2850 South Jones Boulevard, Suite 1




                                                                              13   scheduled in this matter on June 21, 2006 at 9:30 a.m. and the Debtor respectfully requests that the
                                       Las Vegas, Nevada 89146-5308




                                                                              14   Motion be heard on June 21, 2006. Holding a hearing on the Motion at the same time would serve
                                                                              15   the interests of judicial economy. Further, the next hearing scheduled in this case is not until July
                                                                              16   25, 2006, well after the time negotiations concerning a plan are anticipated to occur.
                                                                              17               Dated: June 9, 2006
                                                                              18                                                                                /s/    JEANETTE E. MCPHERSON
                                                                                                                                                                Lenard E. Schwartzer, Nevada Bar No. 0399
                                                                              19                                                                                Jeanette E. McPherson, Nevada Bar No. 5423
                                                                                                                                                                SCHWARTZER & MCPHERSON LAW FIRM
                                                                              20
                                                                                                                                                                2850 South Jones Boulevard, Suite 1
                                                                              21                                                                                Las Vegas, Nevada 89146

                                                                              22                                                                                and
                                                                              23                                                                                Annette W. Jarvis, Utah Bar No. 1649
                                                                              24                                                                                RAY QUINNEY & NEBEKER P.C.
                                                                                                                                                                36 South State Street, Suite 1400
                                                                              25                                                                                P.O. Box 45385
                                                                                                                                                                Salt Lake City, Utah 84145-0385
                                                                              26
                                                                              27
                                                                              28


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                                                                                   P:\USA Commercial Mortgage\Pleadings\Remove Committee Member Motion\OST Declaration.doc

				
DOCUMENT INFO
Description: These are documents detailing the corruption of a company under the label of USA Capital. The main "culpable insider" named in these documents is Joseph D. Milanowski, who is about to start serving a 12-year term for pleading guilty to 1 count of wire fraud and agreeing to pay nearly $90 million in restitution to the victims. (http://www.justice.gov/usao/nv/press/april2010/milanowski04092010.htm) Fertitta Enterprises and the company's main front man William J. Bullard were implicated in these documents in serious impropriety related to the looting of USA Capital to the point of forcing it into bankruptcy.