SEC vs. Emilio Francisco, PDC Capital Group, LLC, et al

This website was last updated June 8, 2017.

This web site has been established to foster efficient communications between investors and creditors of PDC CAPITAL GROUP, LLC, et al (the "Companies") and Thomas Seaman, who is serving as its permanent receiver. Mr. Seaman was appointed on January 5, 2017, in an SEC enforcement action known as Securities Exchange Commission (the "SEC" or "Plaintiff") vs. Emilio Francisco; PDC Capital Group, LLC; Caffe Primo International, Inc.; SAL Assisted Living, LP; SAL Carmichael, LP; SAL Citrus Heights, LP; SAL Kern Canyon, LP; SAL Phoenix, LP; SAL Westgate, LP; Summerplace At Sarasota, LP; Summerplace At Clearwater, LP; Summerplace At Correll Palms, LP; TRC Tucson, LP; Clear Currents West, LP; Caffe Primo Management, LP; Caffe Primo Management 102, LP; Caffe Primo Management 103, LP; Caffe Primo Management 104, LP; Caffe Primo Management 105, LP; Caffe Primo Management 106, LP; Caffe Primo Management 107, LP; and Caffe Primo Management 108, LP, et al (collectively, the "Defendants"), Case No. SACV 16-02257-CJC(DFMx) in the United States District Court, Central District of California, Southern Division. The case is heard before the Honorable Cormac J. Carney.

The SEC has alleged in their COMPLAINT [Dkt. No. 1] that the Defendants have engaged in transactions, acts, practices and courses of business that constitute violations of Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a); Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b); and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5. On January 5, 2017, Judge Cormac Carney ordered that the assets of Defendants and their subsidiaries and affiliates be frozen and issued a TEMPORARY RESTRAINING ORDER [Dkt. No. 17] (the "TRO"). The TRO restrains and enjoins the Defendants from violations of the securities laws and orders them to provide an accounting of their assets. The TRO also appointed Thomas A. Seaman as Receiver.

Recent updates appear in reverse chronological order:

On June 7, 2017, the Receiver filed his RECEIVER'S SECOND INTERIM REPORT AND RECOMMENDATIONS AS OF MAY 31, 2017 [Dkt. No. 68] with the Court.

On April 14, 2017, the Receiver published his RECEIVER'S INVESTOR LETTER. Topics covered are the status of the Caffe Primo and assisted living projects. The Receiver will continue to provide updates on the Receiver's PDC website as information becomes available or transactions are proposed that impact the projects. The Receiver will also prepare reports to the District Court with recommendations as to how to proceed with each of the projects. (This letter has now been translated into Chinese and posted on the Chinese home page of this site.)

On January 23, 2017, Judge Carney entered his PRELIMINARY INJUNCTION AGAINST ALL DEFENDANTS [Dkt. No. 36] (the "PI"). The PI continued the freeze of assets, enjoined the Defendants from the sale of securities, prohibited any destruction of assets by the Defendants. The PI also appointed Thomas Seaman as Permanent Receiver and ordered him to continue to marshal assets and make an accounting to the Court and the SEC of the assets and financial condition of the Defendants.

On January 20, 2017, the Receiver filed his TEMPORARY RECEIVER'S FIRST REPORT AND RECOMMENDATIONS [Dkt. No. 32] with the Court.

SEC vs. Emilio Francisco, PDC Capital Group, LLC, et al