Receivership Litigation

Carl F. Schoeppl, Esq. has developed a unique niche for the firm in the receivership litigation arena both as a court-appointed receiver, and as counsel for businesses in receivership in complex federal securities and franchise litigation proceedings. Over the past several years, Mr. Schoeppl has been appointed by numerous federal district judges to act as a receiver in complex fraud cases initiated by the SEC and the Federal Trade Commission (“FTC”) including: SEC v. Schaefer, et al., Case No. 98-343-CIV-ORL-22A (M.D. Fla.)(a $3.5 million Ponzi scheme case involving in the fraudulent offer and sale of  promissory notes), FTC v. Transworld Enterprises, Inc., et al., Case No. 00-8126-CIV-GRAHAM (S.D. Fla.)($3 million nationwide franchise fraud case involving the sale of ATM business opportunities), SEC v. First Capital Services, Inc., U.S. Capital Funding, Inc., Larry Schwartz, and Raphael “Ray” Levy, Case No. 00-8445-CIV-MIDDLEBROOKS (S.D. Fla.)($48 million securities fraud case involving over 600 investors), FTC v. America’s Shopping Network, Inc., et al., Case No. 02-80540-HURLEY (S.D. Fla.)(a multi-million dollar fraudulent work-at-home scheme), and FTC v. Fidelity ATM, Inc., et al., Case No. 06-81101-CIVHURLEY-HOPKINS (S.D. Fla.)($4.2 million franchise fraud case involving the deceptive sale of ATM business opportunities to more than 100 consumers across the United States). Collectively, Mr. Schoeppl and the firm have been instrumental in recovering millions of dollars for aggrieved investors and consumers in receivership litigation proceedings. 

I. The Schaefer Receivership

In April 1998, Mr. Schoeppl was appointed by the United States District Court for the Middle District of Florida, upon the recommendation of the United States Securities and Exchange Commission, as the Permanent Receiver for Defendants AMPG, Inc. and American Capital & Equity Corporation and Relief Defendants Asset Management & Planning Group, Inc., Bristol Insurance Group, Inc., and Steven R. Schaefer & Associates, Inc. (collectively, the “Schaefer Receivership”) in an enforcement action styled SEC v. Schaefer, et al., Case No. 98-343-CIV-ORL-22A (M.D. Fla.). In Schaefer, the Defendants allegedly orchestrated a multi-million dollar “Ponzi” scheme through the fraudulent offer and sale of promissory notes to investors principally located in the Daytona Beach, Florida area. 

In the Schaefer Receivership, Mr. Schoeppl recovered in excess of $1.3 million, and procured a judgment against a Relief Defendant for an amount in excess of $700,000.00.  Mr. Schoeppl disbursed in excess of $1 million to aggrieved investors in connection with this receivership proceeding.

II. The Transworld Receivership

In February 2000, Mr. Schoeppl was appointed by the United States District Court for the Southern District of Florida, upon the recommendation of the Federal Trade Commission (“FTC”), as the Permanent Receiver for Transworld Enterprises, Inc. d/b/a ATM International in an FTC enforcement action styled FTC v. Transworld Enterprises, Inc., et al., Case No. 00-8126-CIV-GRAHAM (S.D. Fla.).  In Transworld, the Defendants allegedly conducted a nationwide franchise fraud through the sale of ATM business opportunities.

In the Transworld Receivership, Mr. Schoeppl recovered and/or caused the recovery of in excess of half a million dollars.  The Court has approved the proposed plan of distribution, and Mr. Schoeppl has implemented the distribution plan for consumer victims.

III. The U.S. Capital Receivership

In October  2001, Mr. Schoeppl was  appointed by the United States District Court for the Southern District of Florida, upon the recommendation of the United States Securities and Exchange Commission, as the Permanent Receiver for Defendant U.S. Capital Funding, Inc. in an enforcement action styled SEC v. First Capital Services, Inc., U.S. Capital Funding, Inc., Larry Schwartz, and Raphael “Ray” Levy, Case No. 00-8445-CIV-MIDDLEBROOKS (S.D. Fla.).  In U.S. Capital, the Defendants raised an estimated $48 million by allegedly fraudulently offering and selling unregistered securities in the form of promissory notes to over 600 individual investors in violation of the federal securities laws. 

The bulk of potentially recoverable assets for the U.S. Capital Receivership Estate are the subject of bankruptcy litigation in In re First Capital Services, Inc., Case No. 00-32103-BKC-PGH (Bankr. S.D. Fla.).  Through the efforts of Mr. Schoeppl and his staff, First Capital has agreed that it owes U.S. Capital at least $33 million in connection with the corporate notes it issued to U.S. Capital in 1998 and 1999, and that U.S. Capital will receive the majority of the assets held by First Capital in the First Capital Bankruptcy Case.   The proposed plan of initial distribution was approved by the Bankruptcy Court, and Mr. Schoeppl has been actively engaged in the recovery of assets and the implementation of a claims distribution procedure for aggrieved investors.

IV. The ASN Receivership

In June 2002, Mr. Schoeppl was appointed by the United States District Court for the Southern District of Florida, upon the recommendation of the (“FTC”), as the Temporary Receiver for America’s Shopping Network, Inc., Consumer Services, Inc., Karen Zagami, Carianne Sica, Louis Gangi, HME, Inc., and John Epstein (collectively, the “ASN Receivership”) in an FTC enforcement action styled FTC v. America’s Shopping Network, Inc., et al., Case No. 02-80540-CIV-HURLEY (S.D. Fla.).  In ASN, the Defendants allegedly conducted a nationwide fraudulent work-at-home scheme.

The Temporary Restraining Order and other ancillary relief was extended through July 5, 2002 pending the Court’s consideration of the FTC’s Motion for a Preliminary Injunction and Other Relief against the Defendants.  Mr. Schoeppl, in his capacity as Temporary Receiver, suspended the business operations of  America’s Shopping Network, Inc., Consumer Services, Inc., and HME, Inc., seized and secured all known assets and property of the Defendants.

V. The Fidelity ATM Receivership

In November 2006, Mr. Schoeppl was appointed by the United States District Court for the Southern District of Florida, upon the recommendation of the Federal Trade Commission (“FTC”), as the Receiver for Fidelity ATM, Inc. (“Fidelity ATM”) and Steinberg Group, Inc. (“Steinberg Group”) in an FTC enforcement action styled FTC v. Fidelity ATM, Inc., et al., Case No. 06-81101 CIV-HURLEY-HOPKINS (S.D. Fla.). In Fidelity ATM, the FTC alleged that Fidelity ATM fraudulently sold automated teller machines (“ATM’s”) to more than 100 consumers across the United States. The FTC also alleged that Fidelity ATM failed to make disclosures required by the Franchise Rule and made unsubstantiated earnings claims. In total, the victims were allegedly defrauded of approximately $4.2 million in connection with the scheme.

In his capacity as the Receiver for Fidelity ATM and the Steinberg Group, Mr. Schoeppl assisted the U.S. Attorney’s Office for the Southern District of Florida in the parallel criminal investigation and prosecution of Andrew Steinberg, the President of Fidelity ATM and the Steinberg Group, and Stephen Duffie, the of Fidelity ATM. A federal grand jury indicted Steinberg and Duffie in a 16-count indictment for conspiracy, mail fraud, and wire fraud for allegedly conspiring to sell fraudulent automated teller machine (“ATM”) business opportunities to customers nationwide under the name Fidelity ATM. After a jury trial, Steinberg was found guilty of 1 count of conspiracy, 5 counts of mail fraud, and 4 counts of wire fraud, and Duffie was found guilty of 1 count of conspiracy and 1 count of mail fraud.

Fidelity ATM has no relationship to Fidelity Investments.

VI. The ICM Receivership

In 1998, the firm served as counsel for International Capital Management, Inc. (“ICM”), and, with the consent of the principals, caused ICM  to voluntarily consent to being placed into an equity receivership for the benefit of investors in SEC v. International Capital Management, Inc.,  Case No. 98-7062-CIV-DIMITROULEAS (S.D. Fla.).  In connection with its duties as counsel for ICM, the firm recovered in excess of $2 million for ICM customers.      

VII. The Mobley Receivership

This receivership arises out of a massive Ponzi scheme engineered by David M. Mobley, Sr. (“Mobley”) to swindle hundreds of investors in the Naples area, mostly elderly retirees, out of tens of millions of dollars through various Mobley-related entities.   While a few select participants reaped handsome returns in order to induce more and more investors to entrust their money to Mobley’s care, the majority of the Maricopa investors and creditors were faced with the grim prospect of losing, on a collective basis, over $59 million when the Ponzi scheme eventually collapsed.  Since there were never any real profits from Mobley’s scheme, the illusory false profits paid to a fortunate few investors were assets of the Receivership Entities that were improperly and fraudulently distributed solely to perpetuate the illegal Ponzi scheme.  

Otto G. Obermaier, Esq., the former United States Attorney for the Southern District of New York, was appointed to act as the Receiver for Mobley and various Mobley-related entities.  Mr. Obermaier retained the firm to represent him in prosecuting various profiteers from Mobley’s scheme.  The firm has handled numerous profiteer actions on behalf of Mr. Obermaier in state and federal court, and has recovered millions of dollars for the Receivership Estate.