Case Doc 257 Filed 10/26/12 Entered 10/26/12 16:08:09 Desc Main Document Page 1 of 7

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1 Document Page 1 of 7 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION In re: Chapter 7 PEREGRINE FINANCIAL GROUP, INC., Case No Honorable Judge Carol A. Doyle Debtor. Hearing Date: October 31, 2012 Hearing Time: 10:00 a.m. NOTICE OF ROUTINE MOTION PLEASE TAKE NOTICE that on October 31, 2012 at 10:00 a.m., the undersigned shall appear before the Honorable Judge Carol A. Doyle, in Courtroom 742, 219 South Dearborn Street, Chicago, Illinois, and then and there present the TRUSTEE S ROUTINE MOTION TO AUTHORIZE EXAMINATION OF JEANNIE VERAJA-SNELLING, HALYARD CAPITAL ADVISORS, LLC AND OUT STRUCTURE, LLC PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 2004 AND LOCAL RULE (A(10, at which time you may appear if you deem fit. The proposed order may be entered by the Judge without presentment in open court unless a party in interest notifies the Court of its objection. Dated: October 26, 2012 Respectfully submitted, Ira Bodenstein, not personally, but as chapter 7 trustee for the estate of Peregrine Financial Group, Inc. Robert M. Fishman (# Gordon E. Gouveia (# Shaw Fishman Glantz & Towbin LLC 321 North Clark Street, Suite 800 Chicago, IL Phone: ( Fax: ( By: /s/ Gordon E. Gouveia One of his attorneys { MOT A DOC}

2 Document Page 2 of 7 CERTIFICATE OF SERVICE Gordon E. Gouveia certifies that he caused to be served a true copy of the above and foregoing NOTICE OF ROUTINE MOTION and TRUSTEE S ROUTINE MOTION TO AUTHORIZE EXAMINATION OF JEANNIE VERAJA-SNELLING, HALYARD CAPITAL ADVISORS, LLC AND OUT STRUCTURE, LLC PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 2004 AND LOCAL RULE (A(10 upon the attached Electronic Mail Notice List through the ECF System and on the attached Service List in the manner so indicated on this 26 th day of October, /s/ Gordon E. Gouveia Mailing Information for Case Electronic Mail Notice List The following is the list of parties who are currently on the list to receive notice/service for this case. Kimberly A Bacher kbacher@shawgussis.com, bharrington@shawgussis.com Salvatore A Barbatano sbarbatano@shawgussis.com, jhampton@shawgussis.com Lawrence M. Benjamin lbenjamin@ngelaw.com, rwills@ngelaw.com Stephen T. Bobo sbobo@reedsmith.com Ira Bodenstein iratrustee@shawgussis.com, IL29@ecfcbis.com;sdelamora@shawgussis.com Ira Bodenstein ibodenstein@shawgussis.com, sdelamora@shawgussis.com David E Cohen dcohen@fishercohen.com Brooke E Conner bconner@vedderprice.com, ecfdocket@vedderprice.com;ecarlson@vedderprice.com Michael M. Eidelman meidelman@vedderprice.com, ecfdocket@vedderprice.com Robert M Fishman rfishman@shawgussis.com Geoffrey S. Goodman ggoodman@foley.com, egreen@foley.com;khall@foley.com Ava Gould agould@cftc.gov Joshua M Grenard jgrenard@mayerbrown.com, courtnotification@mayerbrown.com Allen J Guon aguon@shawgussis.com, sdelamora@shawgussis.com John W Guzzardo jguzzardo@shawgussis.com, mcarter@shawgussis.com David Paul Holtkamp dholtkamp@wfactorlaw.com, nb@wfactorlaw.com Stephanie K. Hor-Chen shor@vedderprice.com, ecfdocket@vedderprice.com Kevin M Hyde khyde@shawgussis.com, jhampton@shawgussis.com Thomas S Kiriakos tkiriakos@mayerbrown.com, Courtnotification@mayerbrown.com James C. Koutoulas jk@typhoncap.com Vincent E. Lazar vlazar@jenner.com, lyap@jenner.com;mmatlock@jenner.com;docketing@jenner.com Randall M Lending rlending@vedderprice.com, trobinson@vedderprice.com;ecfdocket@vedderprice.com Michael C. Moody mmoody@orourkeandmoody.com, firm@orourkeandmoody.com,morourke@orourkeandmoody.com Jennifer M. Muchoney jmuchoney@pfgbest.com Michael J O'Rourke morourke@okmlaw.com Mark L Radtke mradtke@shawgussis.com, bharrington@shawgussis.com Rene S Roupinian RSR@outtengolden.com Richard A. Saldinger rsaldinger@shawgussis.com Jessica M Scheller jscheller@shawgussis.com, kdevries@shawgussis.com Sean T Scott stscott@mayerbrown.com { MOT A DOC} 2

3 Document Page 3 of 7 Scott A Semenek scott.semenek@faegrebd.com, melanie.senesac@faegrebd.com Anne W Stukes astukes@cftc.gov William W Thorsness wthorsness@vedderprice.com, ecfdocket@vedderprice.com John Edward Waters john.waters@iowa.gov Thomas C. Wolford twolford@ngelaw.com Via Electronic Mail and U.S. Mail CRT Special Investments LLC Attn: Joseph Sarachek 262 Harbor Drive Stamford, CT Gaivesville Coins, Inc. c/o Stephanie C. Lieb, Esq. 101 E. Kennedy Blvd., Ste Tampa, FL rcolton@trenam.com slieb@trenam.com Joseph M. Russell JP Morgan Chase Bank NA 10 S. Dearborn Street Chicago, IL Joe.russell@jpmchase.com Gilbert B. Weisman Becket & Lee LLP 16 General Warren Blvd. Malvern, PA Notices@becket-lee.com Alicia Martin Attn: Steven R. Lehr, Esq. Steven R. Lehr, P.C. 33 Clinton Road, Ste. 100 West Caldwell, NJ slehr@lehrlaw.com Via Electronic Mail Rosemary Hollinger rhollinger@cftc.gov Robert W. Wasserman rwasserman@cftc.gov Scott Williamson swilliamson@cftc.gov Pat DiMaria pdimaria@pfgbest.com Vivian Drohan vdrohan@dlkny.com rickmedley@aol.com roythompson@comcast.net mark.sherrill@sutherland.com John B. Connor John B. Connor, P.L.C N. Fairfax St., Ste. 310 Alexandria, VA jack@johnbconnor.com Outten & Golden LLP 3 Park Ave., 29 th Floor New York, NY Attn: Jack Raisner Rene Roupinian Stephen Mertz Michael Stewart Faegre Baker Daniels LLP 90 South 7 th St., Ste Minneapolis, MN stephen.mertz@faegrebd.com Michael.stewart@faegrebd.com William L. Wallander John Paul K. Napier Vinson & Elkins L.L.P Ross Avenue, Ste Dallas, TX jnapier@velaw.com bwallander@velaw.com Lazonia Clark Chase Paymentech Solutions, LLC Dallas Parkway Building II Dallas, TX Lazonia.clark@chasepaymentech.com Andrea M. Momnie Philip J. Hendel Hendel & Collins, P.C. 101 State Street Springfield, MA amomnie@hendelcollins.com { MOT A DOC} 3

4 Document Page 4 of 7 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION In re: Chapter 7 PEREGRINE FINANCIAL GROUP, INC., Case No Honorable Judge Carol A. Doyle Debtor. Hearing Date: October 31, 2012 Hearing Time: 10:00 a.m. TRUSTEE S ROUTINE MOTION TO AUTHORIZE EXAMINATION OF JEANNIE VERAJA-SNELLING, HALYARD CAPITAL ADVISORS, LLC AND OUT STRUCTURE, LLC PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 2004 AND LOCAL RULE (A(10 Ira Bodenstein, not personally, but as chapter 7 trustee (the Trustee for the estate of Peregrine Financial Group, Inc. d/b/a PFG Best (the Debtor, requests that this Court enter an order, pursuant to Fed. R. Bankr. P and Local Rule (A(10, authorizing the Trustee to serve subpoenas on Jeannie Veraja-Snelling, Halyard Capital Advisors, LLC, and OUT Structure, LLC to compel attendance for examination and production of documents relating to the acts, conduct, property, liabilities and financial condition of the Debtor and to matters that affect the Trustee s administration of the Debtors estate. In support of this motion, the Trustee respectfully states as follows: I. BACKGROUND 1. On July 10, 2012 (the Petition Date, the Debtor filed a voluntary petition for relief under chapter 7 of the Bankruptcy Code, 11 U.S.C. 101, et. seq. commencing the above captioned case (the Case. Ira Bodenstein is the duly appointed chapter 7 trustee of the Debtor s estate. { MOT A DOC}

5 Document Page 5 of 7 2. This Court has jurisdiction to hear this matter and enter a final order granting the relief requested herein pursuant to 28 U.S.C. 157 and 1334 and Internal Operating Procedure 15(a of the United States District Court for the Northern District of Illinois. Venue is proper in this District pursuant to 28 U.S.C and Prior to the Petition Date, the United States Commodity Futures Trading Commission ( CFTC filed a lawsuit in the United States District Court for the Northern District of Illinois ( District Court alleging that the Debtor and its founder, Russell Wasendorf Sr., committed fraud, customer-funds violations and made false statements (the Lawsuit. In connection with the Lawsuit, on July 10, 2012, the District Court entered an Order Appointing a Temporary Receiver. Shortly thereafter, the Debtor commenced the Case. 4. The Debtor s headquarters are located in Cedar Falls, Iowa. The Debtor also operates out of an office in Chicago, Illinois. 5. The Debtor s bankruptcy petition reflects that its assets total approximately $500,000,001 to $1 billion and that its liabilities total approximately $100,000,001 to $500 million. 6. Given the allegations in the Lawsuit, the Trustee is investigating the Debtor s financial affairs and transactions. In connection with that investigation, the Trustee seeks to obtain documents and, if necessary, conduct examinations of Jeannie Veraja-Snelling of Veraja- Snelling & Company, Halyard Capital Advisors, LLC, and OUT Structure, LLC. Jeannie Veraja-Snelling served as the Debtor s auditor during the relevant timeframe and has been named as a defendant in certain class action lawsuits brought by former customers of the Debtor. Halyard Capital Advisors, LLC, and OUT Structure, LLC had significant business dealings with the Debtor which the Trustee intends to investigate. { MOT A DOC} 2

6 Document Page 6 of 7 II. RELIEF REQUESTED 7. Pursuant to Fed. R. Bankr. P. 2004(a, the Court may order the examination of any entity on the motion of a party in interest, such as the Trustee. The examination of an entity may relate only to the acts, conduct, or property or to the liabilities and financial condition of the debtor, or to any matter which may affect the administration of the debtor s estate. Fed. R. Bankr. P. 2004(b. The attendance of an entity for examination and for the production of documents may be compelled by the Court. Fed. R. Bankr. P. 2004(c. 8. Pursuant to Rule 2004, the Trustee seeks authority to issue subpoenas to Jeannie Veraja-Snelling, Halyard Capital Advisors, LLC, and OUT Structure, LLC to obtain documents and, if necessary, compel attendance for examination relating to the acts, conduct, property and financial affairs of the Debtor, as described above. NOTICE 9. Notice of this Application has been served upon the United States Trustee and the parties on the attached service list. The Trustee submits that the notice provided is sufficient and appropriate under the circumstances and that no further notice is required. To the extent that this Court determines otherwise, the Trustee requests that further notice be waived and that notice be limited to that already provided. WHEREFORE, the Trustee requests the entry of the attached proposed order and such other and further relief as may be appropriate. { MOT A DOC} 3

7 Document Page 7 of 7 Dated: October 26, 2012 Respectfully submitted, Ira Bodenstein, not personally, but as chapter 7 trustee for the estate of Peregrine Financial Group, Inc. Robert M. Fishman (# Gordon E. Gouveia (# Shaw Fishman Glantz & Towbin LLC 321 North Clark St. Suite 800 Chicago, Il Phone: ( Fax: ( By: /s/ Gordon E. Gouveia One of his attorneys { MOT A DOC} 4