EXHIBIT 99.3
Case 1:08-cv-00151-LRR Document 12-1 Filed 02-26-10 Page 1 of 3
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF IOWA
CEDAR RAPIDS DIVISION
__________________________________
UNITED STATES OF AMERICA, )
)
Plaintiff, )
)
v. ) Case No. 08-CIV-151-LRR
)
BERTHEL SBIC, LLC )
)
Defendant, )
__________________________________)
MEMORANDUM OF LAW IN SUPPORT OF RECEIVER'S MOTION
FOR ENTRY OF AN ORDER APPROVING AND CONFIRMING THE FIRST
RECEIVER'S REPORT FOR THE PERIOD FROM JANUARY 7, 2009
THROUGH DECEMBER 31, 2009
In support of its Motion for an Order Approving and Confirming the First
Receiver's Report for the Period January 7, 2009, through December 31, 2009. the
United States Small Business Administration ("SBA"), as Receiver ("the
Receiver"), for Berthel SBIC, LLC ("Berthel"), states as follows:
By order dated January 7, 2009 ("the Receivership Order"), this Court
appointed the Receiver, whose duties include marshaling and liquidating the
assets of Berthel. Through the First Receiver's Report, attached hereto as
Exhibit A to the Motion, the Receiver seeks to inform the Court as to its
progress in carrying out its duties and seeks approval from this Court for the
actions it has undertaken in fulfillment of these duties. As more fully
described in the First Receiver's Report, the Receiver is also requesting that
the Court approve the acts, transactions, receipts and disbursements of the
receivership reported therein. Although there is no requirement that a
Case 1:08-cv-00151-LRR Document 12-1 Filed 02/26/10 Page 2 of 3
Receiver's Report be filed, the SBA, in its capacity as receiver for numerous
small business investment companies ("SBICS") throughout the country, has made
it a standard practice to file these reports with the respective receivership
court on a yearly basis.
The filing of a Receiver's Report, and the Order confirming the Receiver's
actions, allows the Receiver to keep the Court informed as to the status of the
receivership property, which is under the jurisdiction of this Court. The filing
of a Receiver's Report and the confirmation thereof by the Receivership Court
also sanctions the Receiver actions undertaken in fulfillment of its duties as
decreed in the Receivership Order, See generally Clark's on Receiver's, Vol. 2
ss. 382 (W.H. Anderson & Co. 1959 & Supp. 1968).
For the foregoing reasons, the Receiver respectfully requests that this
Court grant its Motion and enter the proposed Order filed simultaneously
herewith,
Respectfully submitted,
STEPHANIE M. ROSE
UNITED STATES ATTORNEY
Dated: 02/26/2010 By: /s/ Lawrence D. Kudej
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LAWRENCE D. KUDEJ
Assistant United States Attorney
401 1St Street SE, Suite 400
Cedar Rapids, Iowa 52401-1825
Telephone No,: (319)363-6333
Fax No,: (319)363-1990
Larry.Kudej@usdoj.gov
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Case 1:08-cv-00151-LRR Document 12-1 Filed 02/26/10 Page 3 of 3
Dated: 02/26/2010 By: /s/ Lawrence D. Kudej for
--------------------------------
ARLENE P. MESSINGER
Assistant General Counsel for SBIC
Enforcement
U.S. Small Business Administration
Office of General Counsel
409 Third Street, SW.. 7th Floor
Washington, D.C. 20416
Telephone No,: (202) 205-6857
Fax No,: (202) 481-0325
Attorneys for U.S. Small Business
Administration as Receiver for Berthel
SBIC, LLC
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