Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

GILL v. O'Callaghan

November 30, 2010

DAVID A. GILL, SOLELY IN HIS CAPACITY AS PERMANENT RECEIVER IN THE MATTER OF SECURITIES AND EXCHANGE COMMISSION v. DIVERSIFIED LENDING GROUP, INC.; APPLIED EQUITIES, INC.; BRUCE FRIEDMAN AND TINA M. PLACOURAKIS, U.S.D.C.
PLAINTIFF,
v.
KAREN O'CALLAGHAN, DEFENDANT.



The opinion of the court was delivered by: Manuel L. REALUnited States District Judge

NOTE: CHANGES MADE BY THE COURT

FINDINGS OF FACTS AND CONCLUSIONS OF LAW; AND ORDER GRANTING SUMMARY ADJUDICATION ON PLAINTIFF'S FIRST CLAIM FOR RELIEF FOR AVOIDANCE AND RECOVERY OF ACTUALLY FRAUDULENT TRANSFER AGAINST KAREN O'CALLAGHAN

F.R.Civ.P. 52

[No hearing required]

This Court has received and considered Plaintiff David A. Gill, Receiver's, (1) Notice of Motion and Motion of Receiver for Summary Adjudication against Defendant Karen O'Callaghan on First Claim for Relief in the First Amended Complaint or in the Alternative, for an Order Adjudicating Facts Existing without Substantial Controversy; and Memorandum of Points and Authorities; and Declarations of R. Todd Neilson and David A. Gill ("Motion) [ECF Doc. No. 149], (2) Declaration of David Callaghan in support of the Motion [ECF Doc. No. 150], (3) Declaration of George E. Schulman in support of the Motion [ECF Doc. No. 151], (4) Declaration of R. Todd Neilson in support of the Motion [ECF Doc. No. 152], (5) Request for Judicial Notice in support of the Motion [ECF Doc. No. 153], (6) Statement of Uncontroverted Facts and Conclusion of Law [ECF Doc. No. 154], and (7) Transcripts of depositions of Karen O'Callaghan dated December 23, 2009, and January 14, 2010 [ECF Doc. 155]. Having considered all documents identified above, and having received no opposition, ruled in chambers on the Motion.

Based on the foregoing, the Court makes the following findings of fact and conclusions of law:*fn1

FINDINGS OF FACT

1. Ms. O'Callaghan was the chief executive officer of Diversified for the year 2004.

2. Ms. O'Callaghan was the chief financial officer of Diversified for the year 2004.

3. Ms. O'Callaghan was the sole director of Diversified for the year 2004. 4. Ms. O'Callaghan was the chief executive officer of Diversified for the year 2005.

5. Ms. O'Callaghan was the chief financial officer of Diversified for the year 2005.

6. Ms. O'Callaghan was the sole director of Diversified for the year 2005.

7. Ms. O'Callaghan was the chief financial officer of Diversified for the year 2006.

8. Ms. O'Callaghan was a director of Diversified for the year 2006.

9. Ms. O'Callaghan was the chief financial officer of Diversified for the year 2007.

10. Ms. O'Callaghan was a director of Diversified for the year 2007.

11. Ms. O'Callaghan was the chief financial officer of Diversified for the year 2008.

12. Ms. O'Callaghan was a director of Diversified for the year 2008. 13. Ms. O'Callaghan was the chief financial officer of Diversified for the year 2009.

14. Ms. O'Callaghan was a director of Diversified for the year 2009.

15. On or about July 15, 2008, Ms. O'Callaghan, wholly funded by Diversified, purchased a single family residence commonly known as 5034 Mecca Avenue, Tarzana, CA 91356 ("Property").

16. The legal description of the Property is: The West 197 Feet of the North 97.33 Feet of Lot 77, in the City of Los Angeles, County of Los Angeles, State of California, as per map recorded in Book 64, Pages 35 and 36 of Maps, in the office of the County Recorder of Los Angeles County.

17. On or about June 4, 2008, Diversified transferred $40,000.00 on behalf of and for the benefit of Ms. O'Callaghan to Sherwood Escrow for the purchase of the Property.

18. On or about July 10, 2008, Diversified transferred $1,314,985.00 on behalf of and for the benefit of Ms. O'Callaghan to Orange Coast Title Company for the purchase of the Property.

19. On or about July 15, 2008, title to the Property was recorded only in the name of Ms. O'Callaghan.

20. Diversified did not receive any consideration in exchange for the payment of $40,000 and $1,314,985 on behalf of and for the benefit of Ms. O'Callaghan (collectively, hereinafter referred to as the "Transfers").

21. At all relevant times, Diversified was the accountholder of a checking account having account number ending "3233" at Wells Fargo Bank.

22. Ms. O'Callaghan admitted that the reason for a separate bank account at Diversified to which she had access to was to hide money she allegedly earned from her ex-husband and from the taxing authorities.

23. At the time the Transfers totaling $1,314,985.00 were made for the benefit of Ms. O'Callaghan, Diversified was being operated as a Ponzi scheme.

24. The Transfers were made from Investor Funds (defined in Paragraph 59, infra).

25. On December 23, 2009, and January 14, 2010, the Receiver took the deposition of Ms. O'Callaghan in her individual capacity.

26. In two days of depositions, Ms. O'Callaghan refused to provide a single substantive response and instead invoked her Constitutional right against self-incrimination.

27. In her deposition on December 23, 2009, Ms. O'Callaghan refused on Fifth Amendment grounds to answer the question "Were you ever employed by Diversified Lending Group?"

28. In her deposition on December 23, 2009, Ms. O'Callaghan refused on Fifth Amendment grounds to answer the question "Have you ever been an officer of Diversified Lending Group?"

29. In her deposition on December 23, 2009, Ms. O'Callaghan refused on Fifth Amendment grounds to answer the question "Other than the income reported on this Form 1099, $22,500, did you receive any other income in 2005 ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.