DM Bankr # 203 - Motion Re Sale of Assets To Flynn - 2-10-bk-18510-BB - 203

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Thomas H. Casey- Bar No. 138264

Kathleen M. Goldberg - Bar No. 132637
LAW OFFICE OF THOMAS H. CASEY, INC.
A PROFESSIONAL CORPORATION
22342 Avenida Empresa, Suite 200
Rancho Santa Margarita, CA 92688
Telephone:
(949) 766-8787
Facsimile:
(949) 766-9896
Email: TomCasey@tomcaseylaw.com
KGoldberg@tomcaseylaw.com
Attorneys for Jason M. Rund

Chapter 7 Bankruptcy Trustee
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA I LOS ANGELES DIVISION
9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---10
In re
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MONTGOMERY, DENNIS LEE,

MONTGOMERY, BRENDA KATHLEEN,
) Case No. 2:10-bk-18510-BB

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) Chapter 7
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) CHAPTER 7 TRUSTEE'S MOTION
) FORORDER:
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(1) APPROVING SALE AGREEMENT

WITH MICHAEL FLYNN REGARDING
THE SALE AND PURCHASE OF THE
ESTATE'S INTEREST IN CERTAIN
PROPERTY;
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Debtors.
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(2) APPROVING OVERBID PROCEDURE;

(3) DEEMING BUYER TO BE A GOOD
FAITH PURCHASER PURSUANT TO 11
U.S.C. 363(m);
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) (4)WAIVING14DAYSTAYIMPOSEDBY
) FEDERAL RULE OF BANKRUPTCY
) PROCEDURE 6004(h);
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) Hearing:
) Date: January 2, 2013
- - - - - - - - - - - - - - ) Time: 10:00 a.m.
Ctrm: 1475
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MEMORANDUM OF POINTS AND

AUTHORITIES; AND, DECLARATIONS
OF TRUSTEE JASON M. RUND,
THOMAS H. CASEY, AND PROPOSED
BUYER MICHAEL FLYNN IN SUPPORT
THEREOF
Ill
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TABLE OF CONTENTS
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Chapter 7 Trustee's Motion For Order: Approving (1) Sale Agreement With
Michael Flynn Regarding The Sale And Purchase Of The Estate's Interest In Certain
Property; (2) Approving Overbid Procedure; (3) Deeming Buyer To Be A Good
Faith Purchaser Pursuant To 11 U.S.C. Section 363(m); (4) Waiving 14 Day
Stay Imposed By Federal Rule Of Bankruptcy Procedure 6004(h) ........................ 1
Summary .............................................................. 1
Background Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Scheduled Assets Of The Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
A.ssetsCla1meci-Exempt ............................................. 2-- - -
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Assets Purchased By Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 3
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Assets Abandoned By Trustee ........................................ 3
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Assets To Be Sold Include Documents Currently Held By The Trustee ........ 4
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Description Of Assets To Be Sold And Fair Market Value Of The Assets ...... 5
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The Proposed Sale Of The Saleable Assets Is For Fair Market Value ............... 7
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Sale Terms ............................................................. 8
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The Overbid Procedure ................................................... 9
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Determination of Good Faith Purchaser ..................................... 10
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Waiver Of Stay Is Appropriate ............................................ 10
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Memorandum of Points and Authorities ........................................... 12

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I..
The Court May Authorize The Sale Of Property ......................... 12
II.
The Bankruptcy Court Has The Authority To Implement

The Overbidding Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
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III.
Waiver Of The Stay Is Appropriate ................................... 13
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IV.
Conclusion ...................................................... 14
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Declaration Of Jason M. Rund ................................................... 15

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Declaration of Thomas H. Casey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 25
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Declaration Of Michael Flynn, Proposed Buyer ..................................... 27
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TABLE OF AUTHORITIES
Page(s)
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CASES
In re Industrial Valley Re.frig. & Air Cond Supplies, Inc.
77 B.R. 15, 21 (Bankr. E.D. Pa. 1987) ............................................ 12

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In re Crown Corf.oration,
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679 F.2d 774 (91 Cir. 1982) ..................................................... 13
Montgomery v. eTreppid Technologies,
2009 U.S. Dist. LEXIS 35543 ............................................. 10, 24, 27

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STATUTES
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11 U.S.C. 105(a) ............................................................ 13
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11 U.S.C. 363(m) .............................................. 1, 10, 11, 15, 23, 25
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11 U.S.C. 703.140(b)(2) .................................................... 3, 16
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11 U.S.C. 703.140(b)(4) .................................................... 3, 16
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u.s.c. 363(b)(l)
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u.s.c. 703.140(b)(l)
u.s.c. 703.140(b)(3)
.................................................... 3, 16
.................................................. 2, 3, 16
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u.s.c. 703.140(b)(5)
11 u.s.c. 703.140(b)(6)
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11 U.S.C. 703.140(b)(10)(E) ................................................. 3, 16
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31U.S.C.3129 ............................................................ 3,17
.................................................... 3, 16
.................................................... 2, 16
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OTHER AUTHORITIES
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Federal Rule of Bankruptcy Procedure 6004(h) .................... 1, 10, 11, 13, 15, 24, 25
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CHAPTER 7 TRUSTEE'S MOTION FOR ORDER: (1) APPROVING

SALE AGREEMENT WITH MICHAEL FLYNN REGARDING THE
SALE AND PURCHASE OF THE ESTATE'S INTEREST IN CERTAIN
PROPERTY; (2) APPROVING OVERBID PROCEDURE; (3) DEEMING
BUYER TO BE A GOOD FAITH PURCHASER PURSUANT TO 11 U.S.C.
363(m); (4) WAIVING 14 DAY STAY IMPOSED BY FEDERAL RULE
OF BANKRUPTCY PROCEDURE 6004(h)
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TO THE HONORABLE SHERI BLUEBOND, UNITED STATES BANKRUPTCY JUDGE;
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THE OFFICE OF THE UNITED STATES TRUSTEE, AND ALL INTERESTED PARTIES:
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Jason M. Rund, the duly appointed, qualified and acting Chapter 7 Trustee ("Trustee") for
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the bankruptcy estate of Dennis Lee Montgomery and Brenda Kathleen Montgomery ("Debtors"), ____ _
brings this Motion ("Motion") for Order Approving the Trustee's Sale Agreement with Michael
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Flynn regarding the Trustee's sale of certain assets and in support of the Motion, the Trustee
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respectfully represents as follows:

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SUMMARY
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The Trustee has received and accepted an offer from Michael Flynn ("Proposed Buyer") for
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the purchase of certain assets of the estate not previously claimed exempt, purchased by the Debtors,
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or previously abandoned by the Trustee for the amount of $20,000 subject to overbid. By this
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Motion, the Trustee is requesting approval of his proposed Sale Agreement, approval of overbid
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procedures and a waiver of the 14 day stay imposed by FRBP 6004(h). The specific assets subject
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to the Sale Agreement are discussed below. The Trustee's Motion should be approved. Fair market
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value is being realized for the assets subject to the Sale Agreement and the approval of the Motion
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will benefit the bankruptcy estate.

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BACKGROUND INFORMATION
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1.
On June 26, 2009 ("Petition Date"), the Debtors filed a voluntary petition for relief
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under Chapter 7 of the Bankruptcy Code.

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2.
Jason M. Rund is the duly appointed, qualified and acting Chapter 7 Trustee
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("Trustee") for the bankruptcy estate.
The Trustee conducted several very lengthy 34l(a)
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examinations in this case.

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SCHEDULED ASSETS OF THE DEBTORS

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3.
Listed assets ofthe bankruptcy estate on the Debtors' Schedules include the following
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real property: real property located at 6 Toscana Way, Rancho Mirage, California valued at
$952,000; real property located at 3812 94th Ave NE, Yarrow Point, Washington, valued at
$2,150,000; and real property located at 12720 Buckthorn Lane, Reno, Nevada, valued at $605,000
(collectively, "Real Properties"). A copy of the Debtor's Schedule A is attached hereto as Exhibit
"1" and incorporated herein by this reference.
4.
The Debtors' Schedules also include the following personal property assets: Certain
bank accounts valued at a total of $10,036.89; household goods and furnishings valued at $8,000;
books and pictures, including a CD Juke Box, valued at $1, 100; wearing apparel valued at $4,540;
9- jewelry valued ar$98~902~80; a term lifeinsurance policy valuea af$U:UO; an IRA valueffaf$2o~4U2;
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1,000 shares of Nevada Security Bank Stock valued at $859; Accounts Receivable valued at
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$526,204; certain patents valued at $10,000,000; three automobiles - a 2006 Silverado valued at
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$9,845; a 2005 Cadillac CTS valued at $13,850; and a 2003 Tahoe valued at $8,915; office
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equipment valued at $875; other personal property listed as "per Court Order entered in this
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proceeding in the US Federal Court, Reno, NV - Case #306-cv-00056-PMP-VPC valued at
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$2,104,600.12; and claims against various parties valued $38,809,011.12, scheduled as follows: (a)
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the Claims against the Liner Firm, Teri Pham, and Deborah Klar for indemnification regarding
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sanction order in Federal Court Reno, NV Case No. 306-cv-0056-PMP-VPC valued at $204,411.00;
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(b) Claims for legal malpractice against Liner firm, Terri Pham, Deborah Klar, Tuneen Chisolm,
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Shannon Anderson, Robert Oliver, Richard Mooney, Ryan Lapine, Robert Shore, Stuart A. Liner,
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Peter Bransten, Ellen Garofalo, and Randal Sunshine in Federal Court Reno, NV Case No. 306-cv-
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0056-PMP-VPC valued at $10,000,000.00; and (c) Claims for misrepresentations against Edra
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Blixseth and the Liner Law Firm for settlement agreement with Warren Trepp and Etreppid
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Technologies on 09/08 valued at $26,500,000.00 (collectively, "Personal Property Assets"). A copy
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of the Debtors' Schedule B is attached hereto as Exhibit "2" and incorporated herein by this
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reference.
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Assets Claimed Exempt

5.
The Debtors have claimed fully exempt the following Personal Property Assets:
household goods and furnishings in the amount of $21,065 per Section 703.140(b)(3) and (b)(6);
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books and pictures in the amount of $3,188 per Section 703.140(b)(3); wearing apparel in the
amount of $4,540 under Section 703.140(b)(3); and the Debtors' IRA in the amount of $26,402
per Section 703. l 40(b)(1 O)(E).
6.
The Debtors have claimed partially exempt the following Personal Property
Assets: jewelry in the amount of $19,900 per Section 703.140(b)(4), (1) and (5); and 2006 Chevy
Silverado in the amount of $2,97 5 per Section 703. l 40(b)(2).
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Assets Purchased By The Debtors

7.
The following Personal Property Assets were sold to the Debtors per Court Order
-------------- - - g - - enterec:i-June rr;-20TO:cD-JuRe Box; Jewelry; r;OOOSliares ofNevaaaSecurity Ban:KStock; ana------10
three automobiles - a 2006 Silverado; a 2005 Cadillac CTS; and a 2003 Tahoe valued at $8,915.
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Assets Abandoned By The Trustee

8.
The following scheduled Personal Property Assets were abandoned by the Trustee
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pursuant to Court Order entered November 10, 2010: (a) the Claims against the Liner Firm, Teri
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Pham, and Deborah Klar for indemnification regarding sanction order in Federal Court Reno, NV
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Case No. 306-cv-0056-PMP-VPC valued at $204,411.00; (b) Claims for legal malpractice
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against Liner firm, Terri Pham, Deborah Klar, Tuneen Chisolm, Shannon Anderson, Robert
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Oliver, Richard Mooney, Ryan Lapine, Robert Shore, Stuart A. Liner, Peter Bransten, Ellen
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Garofalo, and Randal Sunshine in Federal Court Reno, NV Case No. 306-cv-0056-PMP-VPC
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valued at $10,000,000.00; and (c) Claims for misrepresentations against Edra Blixseth and the
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Liner Law Firm for settlement agreement with Warren Trepp and Etreppid Technologies on
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09/08 valued at $26,500,000.00. Attached hereto as Exhibit "3" and incorporated herein by this
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reference is the November 10, 2010 Order.
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9.
The following unscheduled Personal Property Asset was abandoned by the
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Trustee pursuant to Court Order entered March 24, 2010: Complaint for violation of the False
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Claims Act 31 U.S.C. Section 3129, et seq. and conspiracy to violate the False Claims Act filed
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by the Debtor on behalf of himself and the United States Government in camera and under seal in
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the District Court of Nevada. Attached hereto as Exhibit "4" and incorporated herein by this
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reference is the March 24, 2010 Order.

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Assets To Be Sold Include Documents Currently Held By The Trustee
10.
The Trustee is currently holding a large number of documents at All Aboard Mini
Storage, 1705 S. State College Boulevard, Unit #19, Anaheim, California, ("Documents In
Storage"), including but not limited to, documents delivered from the Liner Firm obtained in
their representation of the Debtor and from discovery documents received by the Liner Firm in
connection with litigation in which they represented the Debtor; and documents relating to
litigation in Nevada, wherein upon the request of the United States Department of Justice
("DOJ"), the Nevada District Court entered several protective orders including an Order entered
9-un .A:ugust-:29;-2007-("E>{)J-Protective Oroer")~Tne NevaclaE>istricrCouftalso entered a

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protective order regarding discovery matters between the Debtor and eTreppid on September 11,
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2007 ("eTreppid Protective Order").

11.
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The DOJ reviewed and redacted all of the Documents In Storage prior to their
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receipt by the Trustee so as to comply with the Protective Order. The Trustee has caused the
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review of the Documents In Storage and has verified that all of the documents appear to have
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been reviewed by the DOJ. The Trustee is informed and believes that the Documents In Storage,
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since they are fully redacted, are no longer subject to the DOJ Protective Order.
12.
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With regards to the eTreppid Protective Order and the Documents In Storage
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marked by eTreppid as "Confidential"or "Restricted Confidential", the Trustee entered into an
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additional stipulation with eTreppid, which was approved by the Bankruptcy Court on August
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30, 2010. Pursuant to this additional stipulation with eTreppid, the Trustee may seek and obtain
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an order from the Bankruptcy Court allowing the release of these documents, after providing
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eTreppid with the opportunity to collect the documents. A copy of the Trustee's stipulation with
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eTreppid approved by Order entered August 30, 2010 is attached hereto as Exhibit "5" and is
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incorporated herein by this reference. The Trustee has requested direction from eTreppid as to
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their desire to collect the documents and has not received a response. As part of the motion to
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approve this Agreement, the Trustee will also seek confirmation that the documents marked by
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eTreppid as "Confidential"or "Restricted Confidential" may be released to the Buyer.
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Description Of Assets To Be Sold And Fair Market Value Of The Assets.

13.
The Proposed Buyer, Michael Flynn, wishes to purchase the Bankruptcy Estate's
interest, if any, the remaining assets not claimed exempt, purchased by the Debtors or previously
abandoned by the Trustee, for the purchase price of $20,000 ("Offer") as follows:
a.
98004, and legally described as:
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That certain real property located at 3 812 9th Ave. NE, Yarrow Point, WA,
THE SOUTH 25 FEET OF LOT 21, AND ALL OF LOT 22, BLOCK 1,
REPLAT OF PORTIONS OF YARROW, ACCORDING TO THE PLAT
THEREOF, RECORDED IN VOLUME 21 OF PLATS, PAGE 11, IN
KING COUNTY, WASHINGTON
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(herein after referred to as the "Yarrow Point Property"). The Yarrow Point Property is over
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encumbered. A Relief from Stay Order was entered by the Bankruptcy Court on May 26, 2010.
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In addition, the Debtors' Schedules indicate that Warren Trepp may have a judgment lien
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encumbering this property.
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b.
Certain real property located at 6 Toscana Way, Rancho Mirage,
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California ("Rancho Mirage Property"). The Rancho Mirage Property is over encumbered. A
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Relief from Stay Order was entered by the Bankruptcy Court on October 27, 2009. In addition,
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the Debtors' Schedules indicate that Warren Trepp may have a judgment lien encumbering this
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property.
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c.
Certain real property located at 12720 Buckthorn Lane, Reno, Nevada
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("Nevada Property"). The Nevada Property is over encumbered. Relief from Stay Orders were
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entered by the Bankruptcy Court on October 28, 2009 and November 18, 2009. In addition, the
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Debtors' Schedules indicate that Warren Trepp may have a judgment lien encumbering this
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property.
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d.
Certain bank accounts scheduled by the Debtors. The evidence indicates
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that on the Petition Date, the Debtors had no non-exempt funds in their scheduled bank accounts.
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e.
Accounts Receivable - Blxware Payroll in the scheduled amount of
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$526,204.00. According to a previous Declaration executed by the Debtor, judgment creditors
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executed on Blxware's assets in Washington State. Accordingly, Blxware is no longer operating
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and the scheduled receivable has no value.
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Patents as provided on Debtors' Schedule B valued at $10,000,000. The
Debtors' scheduled interest in patents has no value. The Debtor's alleged patents and technology
were part of an investigation of the Debtor by the U.S. Government for, among other things,
fraud. Considering the allegations of fraud against the Debtor involving the Debtor's alleged
technology, the estate's interest in the patents have no value. Moreover, the alleged patents are
subject to a judgment lien in favor of eTreppid Technologies in the approximate amount of $26
million.
g.
Any and all claims and/or causes of action derived from or arising out of
9- assets iaenttfiec:l on tne Deotors'-Scnec:lUles notclaimea exempt, purcliasea-oy tlie Deotors or
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previously abandoned by the Trustee. The Trustee is unaware of any claims or causes of action
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"derived from or arising out of the assets identified on the Debtors' schedules".
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h.
Any and all proceeds derived from or arising out of assets identified on the
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Debtors' Schedules which are not claimed exempt, purchased by the Debtors or previously-
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abandoned by the Trustee. The Trustee is unaware of any proceeds derived from or arising out of
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assets identified on the Debtors' Schedules which are not claimed exempt, purchased by the
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Debtors or previously abandoned by the Trustee;
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1.
Any and all claims and/or causes of action against Edra D. Blixseth. The
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Trustee is unaware of any claims or causes of action he may have against Edra Blixseth. Further,
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Edra Blixseth filed a chapter 11 bankruptcy petition in U.S. Bankruptcy Court for the District of
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Montana on March 26, 2009, under case number 09-60452. Accordingly, the estate's interest in
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any and all claims and/or causes of action against Edra D. Blixseth has no value. Furthermore,
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some claims against Edra Blixseth have already been abandoned by the Trustee. See, Exhibit
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"3 ".
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J.
Any and all claims and/or causes of action against the original lender,
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mortgage broker, subsequent loan holder, loan assignee, loan related certificate holder, loan
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servicer, mortgage servicer, or similar lender or loan entity associated with the purported loan
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and purported security instruments which encumber or use as security for repayment, the Yarrow
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Point Property. Such entities may include, but are not limited to, Bank of New York Mellon,
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Bank of America, N.A., Countrywide Home Loans, Inc., NV Mortgage, Inc. dba SOMA
Financial, Fannie Mae, Freddie Mac, Mortgage Electronic Registration Systems, Inc.,
Certificateholders CWMBS, Inc., CHL Mortgage Pass-Through Trust 2006-17, Mortgage Pass-
Through Certificates, 2006-17, and all successors and assigns thereto (hereinafter referred to as
"Yarrow Point Claims"). The Trustee is unaware of any claims and/or causes of action he may
have against these entities.

k.
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Documents In Storage. The Documents In Storage have no value and the
continuing storage fees represent a liability to the estate. Per the Sale Agreement, the Proposed
------------9- --Buyer must assume tlle future storage fees for tlie Documents lllStorage.
1.
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Any and all claims against Blxware, LLC; Opspring, LLC; Blxware, Inc.;
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and Opspring, Inc. These claims were subject to pre-petition litigation and have no value to the
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estate.
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14.
All assets to be sold include only those assets which existed on the Debtors'
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bankruptcy Petition Date. Collectively, the above described assets are hereinafter referred to as
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the "Saleable Assets". An asset scheduled by the Debtor is: "Per court order entered in this
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proceeding in the US Federal Court, Reno, NV - Case #306-cv-00056-PMP-VPC. Debtor is
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entitled to reimbursement of legal fees from the United States of America for wrongful conduct
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of the Federal Bureau oflnvestigation" ("Potential Claim Against The U.S. Government"). The
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Saleable Assets do not include any potential causes of action against the United States
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Government, including but not limited to, the Potential Claim Against The U.S. Government.
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The understanding of the Trustee and the Buyer that these potential causes of action are not
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included as saleable assets is confirmed by the email of Trustee counsel dated December 4, 2012
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and the confirming email of counsel for the Buyer dated December 4, 2012, attached hereto as
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collective Exhibit "6" and incorporated herein by this reference.
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THE PROPOSED SALE OF THE SALEABLE ASSETS IS FOR FAIR MARKET VALUE
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15.
Subject to Court approval, the Trustee has accepted an offer from Proposed
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Buyer, Michael Flynn, to purchase the Saleable Assets for the amount of $20,000 ("Offer"). A
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copy of the sale agreement entered into between Michael Flynn and the Trustee ("Sale
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Agreement") is attached hereto as Exhibit "7" and incorporated herein by reference.
16.
Fair market value for the Saleable Assets will be realized through the utilization
of the requested overbid procedure, which will ensure fair market value of the Saleable Assets is
achieved. Further, the Saleable Assets appear to have a value less than the $20,000 purchase
price.
SALE TERMS
17.
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Subject to Court approval, the Trustee proposes to sell the Saleable Assets to the
Proposed Buyer for the amount of $20,000. Pursuant to the terms of the Sale Agreement, the
9- -proposeci-Buyer nas remittea-$20~000-lOllie Trustee for tlie purcliase ofllieSaleaEle Assets.
18.
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The Sale Agreement provides in pertinent part as follows:

a.
Proposed Buyer acknowledges that Proposed Buyer is purchasing the
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Saleable Assets from the bankruptcy estate subject to any and all liens,
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secured interests and encumbrances of any kind.
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b.
Proposed Buyer further acknowledges that immediately upon entry of an
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Order approving a sale of the Estate's interest in the Saleable Assets, the
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costs to store the Documents In Storage immediately becomes the
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responsibility of the Proposed Buyer.
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c.
Proposed Buyer acknowledge that he is purchasing the Saleable Assets
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from the Bankruptcy Estate "as is" without warranties of any kind,
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expressed or implied, being given by the Trustee, concerning the condition
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of the property or the quality of the title thereto, or any other matters
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relating to the Saleable Assets.
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d.
Proposed Buyer is aware the Offer is contingent upon Bankruptcy Court

approval.
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e.
Any and all disputes which involve in any matter the bankruptcy estate or
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the Trustee arising from the Sale Agreement shall be resolved only in the
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U.S. Bankruptcy Court.
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THE OVERBID PROCEDURE
19.
In order to obtain the highest and best offer for the benefit of the creditors of the
estate, the Trustee proposes that the foregoing Offer be subject to overbid. Notice is being
provided of the opportunity for overbidding to all interested parties in this matter.
20.
The Trustee requests that the Court approve the following overbid procedure:
a.
Only Qualified Bidders may submit an overbid. A "Qualified Bidder" is
one who provides a financial statement and such business and banking references as are required
in Trustee's reasonable discretion, sufficient to assure Trustee of the bidder's ability (based on
- ----- - - - 9 - - availa15ilicyoCfinancing, experience or otlier conoifions) to consummate tlie purcliase
on~--------
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Personal Property, AND one who can consummate the purchase of the Saleable Assets on the
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same terms and conditions, other than price, as those proposed in the Offer.
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b.
Each bid must be received by the Trustee and the Trustee's counsel no
later than three (3) business days prior to the hearing on the Motion.
14
c.
The initial overbid must exceed the Purchase Price by a minimum of Five
15
Hundred U.S. dollars ($500.00). For instance, the first bid must be at least Twenty Thousand
16
Five Hundred U.S. dollars ($20,500.00). Each subsequent bid must then be in increments of Five
17
Hundred U.S. dollars ($500.00). For instance, the first subsequent bid must be at least Twenty
18
One Thousand U.S. dollars ($21,000.00).
19
20
d.
Each bid must be all cash, non-contingent, and on the same terms and
conditions, other than price, as those proposed in the Offer.
21
e.
Each bidder must match all terms and conditions of the original bid. Thus,
22
the payment of the full $20,000 Purchase Price must be made to the Trustee. Said payment must
23
be received by the Trustee by no later than three (3) business days prior to the hearing on this
24
Motion. Said Payment must be in cash. cashier's check. or certified check, and must be
25
deposited with the Trustee so that the Trustee will have access to said funds no later than three
26
(3) business days prior to the hearing on the Motion.
27
28
21.
The foregoing procedures will provide for an orderly completion of the sale of the
Saleable Assets by permitting all bidders to compete on similar terms, and will allow interested
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parties and the Court to compare competing bids in order to realize the highest benefit for the
estate.
3
4
DETERMINATION OF GOOD FAITH PURCHASER

22.
The Trustee further seeks an Order determining that the Proposed Buyer is a
"good faith purchaser" within the context of 11 U.S.C. Section 363(m) such that any appeal of
the Order granting this Motion, even if successful, will not affect the validity of the sale unless a
stay pending appeal is obtained.
23.
The Proposed Buyer is Michael Flynn. The Proposed Buyer is not an "insider" as
------- -----9- --manerm isaefinecrinlTU:s-:-c:-smion roT(3T)-;-in tliat lie is not a relative or general partner of-- -10
11
12
13
the Debtor, nor is the Debtor his partner, director, officer or person in control of him.
24.
Proposed Buyer, Michael Flynn, previously represented the Debtors in the matter
of Montgomery v. eTreppid Technologies, 2009 U.S. Dist. LEXIS 35543.

25.
Proposed Buyer, Michael Flynn is an attorney licensed in the State of
14
Massachusetts and is a judgment creditor of the Debtors by virtue of an alleged breach of the
15
Debtors' contractual obligation to pay attorneys fees due pre-petition.
16
17
18
19
26.
amount of $833,223.15.
27.
The proposed sale is in good faith and the Sale Agreement was an arms-length
transaction negotiated in good faith between the Parties.
WAIVER OF THE STAY IS APPROPRIATE
20
21
The Proposed Buyer, Michael Flynn, filed a claim in the bankruptcy estate in the
28.
The waiver of the stay imposed by Rule 6004(h) is appropriate. Time is of the
22
essence on the Sale Agreement, the Proposed Buyer cannot take possession of the Saleable
23
Assets and a waiver of the stay is a condition of the proposed sale. Accordingly, the Trustee
24
requests that the Court waive the stay imposed by Rule 6004(h).
25
26
WHEREFORE, based on the foregoing, the Trustee requested that the Court grant the
Motion and enter an Order:
27
1.
Authorizing the Trustee to enter into the Sale Agreement;
28
2.
Approving the above referenced Sale Agreement, which does not include the sale
lO
Case 2:10-bk-18510-BB
Desc
of any potential causes of action against the United States Government, and the Potential Claim
Against The U.S. Government.
3
4
5
6
7
8
---------

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910
3.
Authorizing the release of the Documents In Storage marked by eTreppid as
"Confidential"or "Restricted Confidential" to the Buyer per the terms of the Sale Agreement;
4.
Deeming Buyer to be a good faith purchaser pursuant to 11 U.S.C. Section
363(m);
5.
Waiving the 14-day stay imposed by Federal Rule of Bankruptcy Procedure
6004(h); and
o.
For sucn otner anci-runner rehefastne Court may deem just and proper.
Date: December --'2.__, 2012
Respectfully submitted,
11
THE LAW OFFICE OF THOMAS H. CASEY, INC.,

PRO SSIONAL CORPORATIO
12
13
By:
14
15
d, Chapter 7
Thomas H. Casey, Attorney for Jason M.
Trustee for the bankruptcy estate of De s Lee
Montgomery and Brenda Kathleen Montgomery
16
17
18
19
20
21
22
23
24
25
26
27
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ll
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MEMORANDUM OF POINTS AND AUTHORITIES
THE COURT MAY AUTHORIZE THE SALE OF PROPERTY
Desc
11 U.S. C. Section 363(b)(l) provides that "[t]he trustee, after notice and a hearing, may
use, sell, or lease, other than in the ordinary course of business, property of the estate." The sale
proposed is outside the ordinary course of business in that it is the sale of a significant asset of
the estate. A trustee must show that: (1) a "sound business purpose justified the sale"; (2)
"accurate and reasonable notice" of the sale was provided; (3) the "price to be paid is adequate,
----- -------9- --i.e., fair and reasonafile";(4J"good-faitU,-i.e., tlie aosence of any lucrative deals witninsiaers, is___ -- -
10
present." See In re Industrial Valley Refrig. & Air Cond Supplies Inc., 77 B.R. 15, 21 (Bankr.
11
E.D. Pa. 1987). As discussed below, the proposed sale of the Saleable Assets to the Buyer as
12
proposed in the Sale Agreement conforms with each of these requirements.
13
There is a sound business purpose, in that this is a Chapter 7 liquidation case and the sale
14
of the Saleable Assets will allow liquidation of an estate asset for the benefit of the estate and its
15
creditors.
16
17
18
19
20
Notice of the Sale and of the hearing is being provided to all creditors and interested
parties.
The Trustee believes that, under the circumstances, the proposed sale represents the best
purchase price that can be expected by the estate.
The Trustee has fully investigated the value of the Saleable Assets and believes that the
21
proposed sale of the Saleable Assets, which includes the possibility of overbids is for fair market
22
value. Thus, the sale is in good faith.
23
IL
24
THE BANKRUPTCY COURT HAS THE AUTHORITY TO
25
IMPLEMENT THE OVERBIDDING PROCEDURES
26
Implementation of the bidding procedures is an action outside of the ordinary course of
27
business. Bankruptcy Code Section 363(b)(1) provides that a trustee "after notice and hearing,
28
may use, sell or lease, other than in the ordinary course of business, property of the estate."
12
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Further, under Bankruptcy Code Section 105(a), "[t]he court may issue any order, process, or
judgment that is necessary or appropriate to carry out the provisions of this title." Thus, pursuant
to Bankruptcy Code Sections 363(b)(l) and 105(a), this Court may authorize the implementation
of overbidding procedures.
The Ninth Circuit, in a case under the Bankruptcy Act, recognized the power of a
5
6
bankruptcy court to issue orders determining the terms and conditions for overbids with respect
to a sale of estate assets. In re Crown Corporation, 679 F .2d 77 4 (91h Cir. 1982). The Crown
Corporation court entered an order specifying the minimum consideration required for an
-- ---- --- ---9- - overl5i0 as well as tlie partiCtilar contractual terms requirefftooe offerea-oy overoiooers. Ia.----ar--- 10
777. The Crown Corporation decision also approves of an order requiring and setting the
11
amount of potential overbidder's deposits and authorized courts to determine the disposition of
12
such deposits. Id.
13
The overbid procedures proposed in this matter will ensure that the Saleable Assets will
14
generate the greatest possible value to the estate. The procedure also places appropriate checks
15
upon overbidders to ensure that only qualified bids are considered.
16
III.
17
WAIVER OF THE STAY IS APPROPRIATE
18
7.
Under Rule 6004(h), an order authorizing the sale of property is stayed for 14 days
19
after the entry of the order, unless the Court orders otherwise. Fed. R. Bankr. P. 6004(h). The
20
Advisory Committee Note states that the Court may, in its discretion, order that the stay is
21
inapplicable so that the sale or assumption may take place immediately upon entry of the order.
22
Fed. R. Bankr. P. 6004(g) Advisory Committee's Note.

8.
23
Here, the waiver of the stay imposed by Rule 6004(h) is appropriate. Time is of
24
the essence on the Sale Agreement as the Proposed Buyer is unable to take possession of the
25
Saleable Assets until the proposed sale takes place and in addition, a waiver of the stay is a
26
condition of the proposed sale. Accordingly, the Trustee requests that the Court waive the stay
27
imposed by Rule 6004(h).
28
///
13
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IV.
CONCLUSION
Desc
Based upon the foregoing, the Trustee respectfully requests that the Motion be granted.
Respectfully submitted,
THE LAW OFFICE OF THOMAS H. CASEY, INC.,A

PROFESSIO AL CORPORATION
Date: December
_f_, 2012
By:
Thomas H. Casey, Attorney for Jas
. Rund,
---- -----9- - - - - - - - - - - - - - - - - e n . a p t e r TTrustee f6f1lie Baiilmip cy estate of _ _ _ ,
10
Dennis Lee Montgomery and Brenda Kathleen

Montgomery
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
14
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DECLARATION OF JASON M. RUND
I, Jason M. Rund, declare as follows:
1.
I am the duly appointed, qualified and acting Chapter 7 Trustee for the
Bankruptcy Estate of In re Dennis Lee Montgomery and Brenda Kathleen Montgomery. The
facts contained herein are based upon information which I have acquired in my capacity as
Trustee and upon my review of the pleadings, records and files in this matter, and are true and
correct to the best of my knowledge, information and belief.
2.
I make this declaration in support of my Motion For Order: Approving (1) Sale
-- ----------- ------9- --A:greement-WitllMicllael-Flynn Regaraing Tlie SaleAna-Purcliase o-f-TlieEstate'Slnterest In____ - 10
Certain Property; (2) Approving Overbid Procedure; (3) Deeming Buyer To Be A Good Faith
11
Purchaser Pursuant To 11 U.S.C. Section 363(m); (4) Waiving 14 Day Stay Imposed By Federal
12
Rule Of Bankruptcy Procedure 6004(h) ("Motion").
13
14
15
3.
relief under Chapter 7 of the Bankruptcy Code.

4.
I conducted several very lengthy 341(a) examinations in this case.
SCHEDULED ASSETS OF THE DEBTORS
16
17
On June 26, 2009 ("Petition Date"), the Debtors filed a voluntary petition for
5.
Listed assets of the bankruptcy estate on the Debtors' Schedules include the
18
following real property: real property located at 6 Toscana Way, Rancho Mirage, California
19
valued at $952,000; real property located at 3812 94th Ave NE, Yarrow Point, Washington,
20
valued at $2,150,000; and real property located at 12720 Buckthorn Lane, Reno, Nevada, valued
21
at $605,000 (collectively, "Real Properties"). A copy of the Debtor's Schedule A is attached
22
hereto as Exhibit "1" and incorporated herein by this reference.
23
6.
The Debtors' Schedules also include the following personal property assets:
24
Certain bank accounts valued at a total of $10,036.89; household goods and furnishings valued at
25
$8,000; books and pictures, including a CD Juke Box, valued at $1,100; wearing apparel valued
26
at $4,540; jewelry valued at $98,902.80; a term life insurance policy valued at $0.00; an IRA
27
valued at $26,402; 1,000 shares of Nevada Security Bank Stock valued at $859; Accounts
28
Receivable valued at $526,204; certain patents valued at $10,000,000; three automobiles - a 2006
15
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Silverado valued at $9,845; a 2005 Cadillac CTS valued at $13,850; and a 2003 Tahoe valued at
$8,915; office equipment valued at $875; other personal property listed as "per Court Order
entered in this proceeding in the US Federal Court, Reno, NV - Case #306-cv-00056-PMP-VPC
valued at $2, 104,600.12; and claims against various parties valued $38,809,011.12, scheduled as
follows: (a) the Claims against the Liner Firm, Teri Pham, and Deborah Klar for indemnification
regarding sanction order in Federal Court Reno, NV Case No. 306-cv-0056-PMP-VPC valued at
$204,411.00; (b) Claims for legal malpractice against Liner firm, Terri Pham, Deborah Klar,
Tuneen Chisolm, Shannon Anderson, Robert Oliver, Richard Mooney, Ryan Lapine, Robert
--9-. -snore, StuarcA-:-1.:mer, Peter Bransten, Ellen Garofalo, ana-RanaarSunsliine inFederal-C-ou_rt_._ -- -.

10
Reno, NV Case No. 306-cv-0056-PMP-VPC valued at $10,000,000.00; and (c) Claims for
11
misrepresentations against Edra Blixseth and the Liner Law Firm for settlement agreement with
12
Warren Trepp and Etreppid Technologies on 09/08 valued at $26,500,000.00 (collectively,
13
"Personal Property Assets"). A copy of the Debtors' Schedule Bis attached hereto as Exhibit
14
"2" and incorporated herein by this reference.
15
16
Assets Claimed Exempt

7.
Based on my review of the Debtors' Schedules, I have determined that the
17
Debtors have claimed fully exempt the following Personal Property Assets: household goods
18
and furnishings in the amount of $21,065 per Section 703.140(b)(3) and (b)(6); books and
19
pictures in the amount of$3,188 per Section 703.140(b)(3); wearing apparel in the amount of
20
$4,540 under Section 703.140(b)(3); and the Debtors' IRA in the amount of $26,402 per Section
21
703.140(b)(1 O)(E).
22
8.
23
24
Silverado in the amount of $2,975 per Section 703.140(b)(2).

Assets Purchased By The Debtors
25
26
9.
By Court entered June 11, 2010, in my capacity as Trustee, I sold the following
27
Personal Property Assets to the Debtors: CD Juke Box; Jewelry; 1,000 shares ofNevada Security
28
Bank Stock; and three automobiles - a 2006 Silverado; a 2005 Cadillac CTS; and a 2003 Tahoe
16
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valued at $8,915.
Assets Abandoned By The Estate
2
3
Desc
10.
Pursuant to Court Order entered November 10, 2010, I abandoned the following
scheduled Personal Property Assets: (a) the Claims against the Liner Firm, Teri Pham, and
Deborah Klar for indemnification regarding sanction order in Federal Court Reno, NV Case No.
306-cv-0056-PMP-VPC valued at $204,411.00; (b) Claims for legal malpractice against Liner
firm, Terri Pham, Deborah Klar, Tuneen Chisolm, Shannon Anderson, Robert Oliver, Richard
Mooney, Ryan Lapine, Robert Shore, Stuart A. Liner, Peter Bransten, Ellen Garofalo, and Randal
--------- --- ---g---sunslime m FeaeratCourrReno, NV-Case N0-:-306-cv-00-50-=-PMP=VPC valuea at

10
$10,000,000.00; and (c) Claims for misrepresentations against Edra Blixseth and the Liner Law
11
Firm for settlement agreement with Warren Trepp and Etreppid Technologies on 09/08 valued at
12
$26,500,000.00. Attached hereto as Exhibit "3" and incorporated herein by this reference is the
13
November 10, 2010 Order.
14
11.
I further abandoned the following unscheduled Personal Property Asset pursuant
15
to Court Order entered March 24, 2010: Complaint for violation of the False Claims Act 31
16
U.S.C. Section 3129, et seq. and conspiracy to violate the False Claims Act filed by the Debtor
17
on behalf of himself and the United States Government in camera and under seal in the District
18
Court of Nevada. Attached hereto as Exhibit "4" and incorporated herein by this reference is the
19
March 24, 2010 Order.
2O
21
Assets To Be Sold Include Documents Currently Held By The Estate

12.
I am currently holding in storage a large number of documents at All Aboard Mini
22
23
24
25
26
27
28
on August 29, 2007 ("DOJ Protective Order"). The Nevada District Court also entered a
17
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2007 ("eTreppid Protective Order").
13.
receipt by the estate so as to comply with the Protective Order. I have caused the review of the
Documents In Storage and have verified that all of the documents appear to have been reviewed
by the DOJ. I am informed and believe that the Documents In Storage, since they are fully
redacted, are no longer subject to the DOJ Protective Order.
14.
--------------9-- marK.ea-oy eTreppio as ''Confioential"or ''RestricteCITonfiaential"~I enterea-into an aauitional_____ 10
stipulation with eTreppid, which was approved by the Bankruptcy Court on August 30, 2010.
11
Pursuant to this additional stipulation with eTreppid, I may seek and obtain an order from the
12
Bankruptcy Court allowing the release of these documents, after providing eTreppid with the
13
opportunity to collect the documents. A copy of my stipulation with eTreppid approved by Order
14
entered August 30, 2010 is attached hereto as Exhibit "5" and is incorporated herein by this
15
reference. I am informed and believe that my counsel, on behalf of the estate, has requested
16
direction from eTreppid as to their desire to collect the documents and has not received a
17
response. As part of the motion to approve this Agreement, I will also seek confirmation that the
18
documents marked by eTreppid as "Confidential"or "Restricted Confidential" may be released to
19
the Buyer.
20
21
Description Of Assets To Be Sold And Fair Market Value Of The Assets.

15.
The Proposed Buyer, Michael Flynn, wishes to purchase the Bankruptcy Estate's
22
interest, if any, the remaining assets not claimed exempt, purchased by the Debtors or previously
23
abandoned by the estate, for the purchase price of $20,000 ("Offer") as follows:
24
a.
25
98004, and legally described as:
26
27
That certain real property located at 3 812
9th
Ave. NE, Yarrow Point, WA,
THE SOUTH 25 FEET OF LOT 21, AND ALL OF LOT 22, BLOCK 1,
28
S:IWordperfect\Montgomery\Pleadings\Mtn.Approve.Sale.Agreement.Flynn. wpd
18
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(herein after referred to as the "Yarrow Point Property"). Based on my review of the Debtors'
Schedules, I am informed and believe that the Yarrow Point Property is over encumbered. A
Relief from Stay Order was entered by the Bankruptcy Court on May 26, 2010. In addition, the
Debtors' Schedules indicate that Warren Trepp may have a judgment lien encumbering this
property.
b.
California ("Rancho Mirage Property"). Based on my review of the Debtors' Schedules, I am
informed and believe that the Rancho Mirage Property is over encumbered. A Relief from Stay
-------- - - 9 - --erderwmrenteTI!ll-by the Bankruptcy eourt on October 27;-2009-:-In aclattion, tne DelJtors------ 1O
Schedules indicate that Warren Trepp may have a judgment lien encumbering this property.
11
c.
Certain real property located at 12720 Buckthom Lane, Reno, Nevada
12
("Nevada Property"). Based on my review of the Debtors' Schedules, I am informed and believe
13
that the Nevada Property is over encumbered. Relief from Stay Orders were entered by the
14
Bankruptcy Court on October 28, 2009 and November 18, 2009. In addition, the Debtors'
15
Schedules indicate that Warren Trepp may have a judgment lien encumbering this property.
16
17
d.
that on the Petition Date, the Debtors had no non-exempt funds in their scheduled bank accounts.
e.
18
19
$526,204.00. According to a previous Declaration executed by the Debtor, judgment creditors
20
executed on Blxware's assets in Washington State. Accordingly, Blxware is no longer operating
21
and the scheduled receivable has no value.
22
f.
Patents as provided on Debtors' Schedule B valued at $10,000,000. The
23
Debtors' scheduled interest in patents has no value. The Debtor's alleged patents and technology
24
were part of an investigation of the Debtor by the U.S. Government for, among other things,
25
fraud. Considering the allegations of fraud against the Debtor involving the Debtor's alleged
26
technology, the estate's interest in the patents have no value. Moreover, the alleged patents are
27
subject to a judgment lien in favor of eTreppid Technologies in the approximate amount of $26
28
million.
19
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assets identified on the Debtors' Schedules not claimed exempt, purchased by the Debtors or
previously abandoned by the estate. I am unaware of any claims or causes of action "derived
from or arising out of the assets identified on the Debtors' schedules".
h.
Debtors' Schedules which are not claimed exempt, purchased by the Debtors or previously-
abandoned by the estate. I am unaware of any proceeds derived from or arising out of assets
identified on the Debtors' Schedules which are not claimed exempt, purchased by the Debtors or
-- ----g-- - previously aoanoonea-oy tlie estate;

10
1.
Any and all claims and/or causes of action against Edra D. Blixseth. I am
11
unaware of any claims or causes of action the estate may have against Edra Blixseth. Further,
12
Edra Blixseth filed a chapter 11 bankruptcy petition in U.S. Bankruptcy Court for the District of
13
Montana on March 26, 2009, under case number 09-60452.
14
any and all claims and/or causes of action against Edra D. Blixseth has no value. Furthermore,
15
some claims against Edra Blixseth have already been abandoned by the estate. See, Exhibit "3".
16
J.
Accordingly, the estate's interest in
17
18
19
20
21
22
23
Certificateholders CWMBS, Inc., CHL Mortgage Pass-Through Trust 2006-17, Mortgage Pass-
24
Through Certificates, 2006-1 7, and all successors and assigns thereto (hereinafter referred to as
25
"Yarrow Point Claims"). I am unaware of any claims and/or causes of action the estate may have
26
against these entities.
27
28
k.
Documents In Storage. The Documents In Storage have no value and the
continuing storage fees represent a liability to the estate. Per the Sale Agreement, the proposed
20
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Buyer must assume the future storage fees for the Documents In Storage.
1.
and Opspring, Inc. These claims were subject to pre-petition litigation and have no value to the
estate.
16.
9- --entitled-to reiml:mrsementoilegai-fees from tne tJmtecfStates ofA.merica for wrongfiil conauct

10
of the Federal Bureau of Investigation" ("Potential Claim Against The U.S. Government"). The
11
12
13
My understanding with the Buyer is that these potential causes of action are not included as
14
saleable assets and is confirmed by the email of my counsel dated December 4, 2012 and the
15
confirming email of counsel for the Buyer dated December 4, 2012, attached hereto as collective
16
Exhibit "6" and incorporated herein by this reference.
17
THE PROPOSED SALE OF THE SALEABLE ASSETS IS FOR FAIR MARKET VALUE
17.
18
Subject to Court approval, I have accepted an offer from Proposed Buyer, Michael
19
Flynn, to purchase the Saleable Assets for the amount of $20,000 ("Offer"). A copy of the sale
20
agreement entered into between myself and Michael Flynn ("Sale Agreement") is attached hereto
21
as Exhibit "7" and incorporated herein by reference.

18.
22
Fair market value for the Saleable Assets will be realized through the utilization
23
of the requested overbid procedure, which will ensure fair market value of the Saleable Assets is
24
achieved.
25
pnce.
SALE TERMS
26
27
28
Further, the Saleable Assets appear to have a value less than the $20,000 purchase
19.
Subject to Court approval, I propose to sell the Saleable Assets to the Proposed
Buyer for the amount of $20,000. Pursuant to the terms of the Sale Agreement, the Proposed
21
m-- -
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Buyer has remitted $20,000 to the estate for the purchase of the Saleable Assets.
20.
The Sale Agreement provides in pertinent part as follows:
a.
Proposed Buyer acknowledges that Proposed Buyer is purchasing the
Saleable Assets from the bankruptcy estate subject to any and all liens,
secured interests and encumbrances of any kind.
b.
Proposed Buyer further acknowledges that immediately upon entry of an
Order approving a sale of the Estate's interest in the Saleable Assets, the
costs to store the Documents In Storage immediately becomes the
respons10ility of the Buyer.
c.
10
Proposed Buyer acknowledge that he is purchasing the Saleable Assets
11
from the Bankruptcy Estate "as is" without warranties of any kind,
12
expressed or implied, being given by me, concerning the condition of the
13
property or the quality of the title thereto, or any other matters relating to
14
the Saleable Assets.
d.
15
16
Proposed Buyer is aware the Offer is contingent upon Bankruptcy Court

approval.
e.
17
Any and all disputes which involve in any matter the bankruptcy estate or
18
myself as Trustee arising from the Sale Agreement shall be resolved only
19
in the U.S. Bankruptcy Court.
THE OVERBID PROCEDURE
20
21
21.
In order to obtain the highest and best offer for the benefit of the creditors of the
22
estate, I am proposing that the foregoing Offer be subject to overbid. Notice is being provided of
23
the opportunity for overbidding to all interested parties in this matter.
24
25
22.
I am requesting that the Court approve the following overbid procedure:

a.
26
27
in my reasonable discretion, sufficient to assure me of the bidder's ability (based on availability
28
of financing, experience or other conditions) to consummate the purchase of the Saleable Assets,
22
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AND one who can consummate the purchase of the Saleable Assets on the same terms and
3
4
b.
Each bid must be received by me and my counsel no later than three (3)
business days prior to the hearing on the Motion.

c.
Five Hundred U.S. dollars ($20,500.00). Each subsequent bid must then be in increments of Five
--9- --one TJ:iousanci-D~S-:clollars ($2T;UOU:UO).
d.
10
11

e.
12
13
the payment of the full $20,000 Purchase Price must be made to the estate. Said payment must
14
be received by me by no later than three (3) business days prior to the hearing on this Motion.
15
Said Payment must be in cash. cashier's check. or certified check, and must be deposited with me
16
so that I will have access to said funds no later than three (3) business days prior to the hearing
17
on the Motion.
23.
18
The foregoing procedures will provide for an orderly completion of the sale of the
19
Saleable Assets by permitting all bidders to compete on similar terms, and will allow interested
20
parties and the Court to compare competing bids in order to realize the highest benefit for the
21
estate.
DETERMINATION OF GOOD FAITH PURCHASER
22
23
24.
I am further seeking an Order determining that the Proposed Buyer is a "good
24
faith purchaser" within the context of 11 U.S.C. Section 363(m) such that any appeal of the
25
Order granting this Motion, even if successful, will not affect the validity of the sale unless a stay
26
pending appeal is obtained.
27
28
25.
The Proposed Buyer is Michael Flynn. I am informed and believe that the
Proposed Buyer is not an "insider" as that term is defined in 11 U.S.C. Section 101(31), in that
23
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Page 27 of 79
Desc
he is not a relative or general partner of the Debtor, nor is the Debtor his partner, director, officer
or person in control of him.
26.
I am further informed and believe that Proposed Buyer, Michael Flynn, previously
represented the Debtors in the matter of Montgomery v. eTreppid Technologies, 2009 U.S. Dist.
LEXIS 35543.
27.
I am informed and believe that Proposed Buyer, Michael Flynn is an attorney
licensed in the State of Massachusetts and is a judgment creditor of the Debtors by virtue of an
alleged breach of the Debtors' contractual obligation to pay attorneys fees due pre-petition.
9
10
11
12
28.
amount of$833,223.15.
29.
I am informed and believe that the proposed sale is in good faith and the Sale
Agreement was an arms-length transaction negotiated in good faith between the Parties.
WAIVER OF THE STAY
13
14
The Proposed Buyer, Michael Flynn, filed a claim in the bankruptcy estate in the
30.
Time is of the essence on the Sale Agreement, the Proposed Buyer cannot take
15
possession of the Saleable Assets and a waiver of the stay is a condition of the proposed sale.
16
Accordingly, I am requesting that the Court waive the stay imposed by Rule 6004(h).
17
31.
18
the estate.
19
20
In my business judgment, approval of the Sale Agreement is in the best interest of
I declare under penalty of perjury that the foregoing is true and correct and that
r-fh
this Declaration was executed on December_:;; , 201
21
22
23
24
25
26
27
28
S :\Wordperfec1\M oolgomry\Pleod lngs\M tn.Approve.Solc.Aarmnt.Flynn.wpd
24
Case 2:10-bk-18510-BB
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2

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DECLARATION OF THOMAS H. CASEY

I, Thomas H. Casey, declare as follows:
1.
I am the attorney for the Chapter 7 Trustee of the estate of In re Dennis Lee
Montgomery and Brenda Kathleen Montgomery ("Debtors"). The facts contained herein are
based upon information which I have acquired in my capacity as attorney for the Trustee and
upon my review of the pleadings, records and files in this matter, and are true and correct to the
best of my knowledge, information and belief.
2.
I make this declaration in support of the Trustee's Motion For Order: Approving
-9--crrsale .Agreement WilllIVIicliaerFiynn Regaraing TlieSaleA.llcl Purcliase OITlie Estate's

10
Interest In Certain Property; (2) Approving Overbid Procedure; (3) Deeming Buyer To Be A
11
Good Faith Purchaser Pursuant To 11 U.S.C. Section 363(m); (4) Waiving 14 Day Stay Imposed
12
By Federal Rule Of Bankruptcy Procedure 6004(h) ("Motion").
13
3.
14
15
16
17
entitled to reimbursement of legal fees from the United States of America for wrongful conduct
18
of the Federal Bureau oflnvestigation" ("Potential Claim Against The U.S. Government"). The
19
20
21
The Trustee's understanding with the Buyer is that these potential causes of action are not
22
included as saleable assets.
23
Ill
24
Ill
25
Ill
26
27
28
S
2
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4.
This is confirmed by my email to counsel for the Proposed Buyer on December 4,
2012 and a confirming email from counsel for the Proposed Buyer to me dated December 4,
3
2012, attached hereto as collective Exhibit "6" and incorporated herein by this reference.
4
I declare under penalty of perjury that the foregoing is true and correct and that this
5
Declaration was executed on December
_l__, 2012, at Rancho Santa Margarita, California.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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DECLARATION OF MICHAEL FLYNN
I, Michael Flynn, declare.as follows:
1.
I am the Pr0posecl Buyer of the Saleable Assets referred to in the foregoing
Motion. I executed the Sale Agreement attached hereto and incorporated herein by reference as
Exhibit "7".
2.
6
7
Technologies, 2009 U.S. Dist. L:f:XIS 35543.

3.
8
9
10
I previously represented the Debtors in the matter of Montgomery v. eTreppid
I am an attorney licensed in the State of Massachusetts and a judgment creditor of ___ _
the Debtors by virtue of an alleged breach of the Debtors t contractual obligation to pay attorneys
fees due pre~petition.
4.
11
On or about September 7, 2010, I filed a claim in the bankruptcy estate fur the
12
amount of $834,891.24 representing a judgment and sanction order against the Debtor. This
13
claim is docketed as Claim Number 15 on the Court's claims register ("Claim 15"). On the same
14
day, I filed an amendment to Claim 15, revising the claim amount to $833,223.15.
5.
15
To the best of my knowledge,. information and belief, I am not considered an
16
"insider'' as that term is defined in 11 U.S.C. 101(31), in that I am not a relative or general
17
partnerof the Debtor. Further, I have no relationship with the Trustee, his employees or agents,
1B
other than the negotiation of the purchase of the Saleable Assets.
19
20
21
22
6.
My offer is en arms-length transaction. negotiated in good faith between the
parties.
I decJare under penalty of perjury under the laws of the United States of America that the
foregoing is true and correct. Executed at
/<. ,'J,.,<.~ /,, P .~~ ..~- c" : C...eJ on December.., 2012.
23
24
Michael Fl .
25
26
27
28
S:\W onlporfoollM onljoutory\Ploadlnp\M tn.Approve.Salo.Alll'Wtllnt..Plynu.,.pd
2?
---
r-::::-- ----
,,
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Exhibit 1
Desc
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B6A (Official Form 6A) (12/07)
In reDennis L Montgomery & Brenda K Montgomery,
Case No. 6:09-bk-24322

(If known)
Debtor
SCHEDULE A- REAL PROPERTY

Except as directed below, list all real property In which the debtor has any legal, equitable, or future interest, including all property owned a." a cotenant, community property, or in which the debtor has a life estate. Include any property in which the debtor holds rights and powers exercisable for the
debtor's own benefil If the debtor is married, state whether the husband, wife, both, or the marital community own the property by placing an ''H,"
"W," "J," or "C" in the column labeled "Husband, Wife, Joint, or Community." If the debtor holds no interest in real property, write ''None" under
"Description and Location of Property."
Do not Include interests in executory contracts and unexpired leases on this schedule. Ust them In Schedule G - Executory Contracts and
Unexpired Le11ses.
If an entity claims to have a lien or hold a secured interest in any property, state the amount of the secured claim. See Schedule D. If no entity claims
to hold a secured interest in the property, write "None" in the column labeled "Amount of Secured Claim."
If the debtor is an individual or if a joint petition is filed, state the amount of any exemption claimed in the property only in Schedule C - Property
Claimed as Exempt.
DF.SCRIPTION AND
LOCATION OF
PROPERTY
~e:
NATURE OF DEBTOR'S
INTEREST IN PROPERTY
Oz
"'OJ
~::E
~:E
c8
a~
CURRENT VALUE
OF DEBTOR'S
INTEREST IN
PROPERTY, WITHOUT
DEDUCTING ANY
SECURED CLAIM
OR EXEMPTION
AMOUNT OF
SECURED
CLAIM
i
Primary Residence - 6 Toscana Way
Rancho Mirage, CA 92270
Fee
952,000.00
1,095,471.70
House-3812 94th Av NE
Yarrow Point, WA 98004
Fee
2, 150,000.00
2,477,813.65
House 12720 Buckthom Lane

Reno, NV 89511
Fee
605,000.00
661,556.21
* In addition, Warren Trepp may have

Judgment liens encumbering one or
more of these real properties
3,707,000.00
Total>
(Report also on Summary ol Schedules.)
, ..
.
EXHIBIT 1, P
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Exhibit 2
Desc
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B6B (Official Form 6B) (12/07)

In re Dennis L Montgomery & Brenda K Montgomery,
Debtor
Case No. 6:09-bk-24322

(Uknown)
SCHEDULE B - PERSONAL PROPERTY

Except as directed below, list all personal property ofdle debtor of whatever kind. lfthe debtor has no property In one or more of the categories,
place an "x" in the appropriate position in the column labeled "None." If additional space is needed in any category, attach a separate sheet properly
identified with the case name, case number, and the number of the category. [f the debtor is married, state whether the husband, witi:, both, or the marital
community own the property by placing an "H,'' "W," "J," or "C" in the column labeled "Husband, Wife, Joint, or Community." If the debtor is an
individual or a joint petition is filed, state the amount of any exemptions claimed only in Schedule C Property Claimed a.~ Exempt.
Do not list Interests In executory contracts and unexpired leases on this schedule, List them In Schedule G - Executory Contracts and
Unexpired Leases.
If the property is being held for the debtor by someone else, state that person's name and address under "Description and Location of Property."
If the property is being held for a minor child, simply state the child's initials andthe name and address of the child's parent or guardian, such as
"A.B., a minor child, by John Doe, guardian." Do not disclose the child's name. See, 11 U.S.C. 112 and Fed. R. Bankr. P. I007(m).
TYPE OF PROPERTY
I. Cash on hand.
0
N
E
DF..SCRIPTION AND LOCATION

OF PROPERTY
2. Checking, savings or other fman-
ii
CURRENT VALUE OF
DEBTOR'S INTf:REST
IN PROP'f:RT\', WITll
OUT DlmUC..'TING ANY
SECURED CLAIM
OR EXEMPTION
Nominal
See Attached Rider
10,036.89
Ordinary and necessary household goods and

furnishings
8,000.00
CD Juke Box
1,100.00
Ordinary and necessary wearing apparel
4,540.00
See Attached Rider
98,902.80
Term Life
0.00
cial accounts, certificates of deposit

or shares in banks, savings and loan,
thrin.. building and loan, and homestead associations, or credit unions,
brokerage houses, or coopera~ves.
3. Security deposits with public util-
itles, telephone co~anies, landlords,

and others.
4. Household goods 111d furnishings,
including audio, video, and computer

equipment.
5. Books; pictures lll!d other art
objects; antiques; stamp, coin,

record, tape, compact disc, and other
collections or collectibles.
6. Wearing 11pparel.
7. Furs and jewelry.
8. Firearms and sports, photo-
graphic, and other hobby equipment.

9. Interests in insunmce policies.
Name insurance company of each
policy and itemize surrender or refund
value of each.
I0. Annuities. Itemize and name

each issuer.
11. Interests in an education IRA as
defined in 26 U.S.C. S30(b)(I} or under
a qualified State tuition plan as defined in
26 U.S.C. S29(b)(I ). Give particulars.
(File separately the record(s) of any sudi
interest(s). 11 U.S.C. S2l(c); Rule
1007(b)).
Aviva Life and Annuity Company

Policy#2250801
x
x
American LegalNel, Inc.

www.FormsWotfrtTow.com
EXHIBIT 2, PAGE 29
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Desc
B6B (Official Form 68) (12/07) Cont.

Debtor
Case No. 6:09-bk24322

(If known)
SCHEDULEB-PERSONALPROPERTY
(Continuation Sheet)
TYPE OF PROPERTY
N
0
N
E
DESCRIPTION AND LOCATION

OF PROPERTY
12. Interests in IRA, BRISA, Keogh, or

other pension or profit sharing plans.
Give partlculars.
IRA
13. Stock and interests in incorporated

and unincorporated businesses.
Itemize.
14. Interests in partnerships or joint
ventures. ltcmrae.
IS. Government and corporate bonds
and o1her negotiable and nonnegotiable instruments.
18. Other liquidated debts owed to

debtor including tllll refunds. Give
particulars.
19. Equitable or future interests, life
estates, and rights or powers exercisable
for the benefit of lhe debtor other than
those listed in Schedule A - Real
Property.
20. Contingenl and noncontlngent
interests in estate of a decedent, death
benefit plan, life insurance policy, or ll'UsL
21. Other contingent and unliquidated
claims of eveiy nature, including l8X
refunds, counterclaims of the debtor, and
rights to setoff claims. Oive estimated value
of each.
26,402.00
Nevada Security Bank Stock, 1000 shares
859.00
Blxware Payroll
42765 Dunes View Road
526,204.00
x
x
16. Accounts receivable.

17. Alimony, maintenance, support,
and property settleironts to which the
debtor is or may be cnlitled. Give
particulars.
II
CURRENT VALUE OF
DEBTOR'S INTEREST
IN PROPERTY, WITH
OUT DEDUCTING ANY
SECURED Cl.AIM
OR EXEMPTION
x
x
x
x
x
American LegalNeL Inc.

www.Fann1W01/c/low.com
EXHIBIT 2, PAGE 30
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Desc
868 (Official Form 68) (12/07) - Cont.

Debtor
Case No. 6:09-bk-24322

(If known)
SCHEDULE B - PERSONAL PROPERTY

(Continuation Shcel)
TYPF. OF PROPERTY
N
0
N
E
See Attached Rider
22. Patents, copyrights, and other

Intellectual property. Oive particulars.
23. Licenses, ftanchiscs, and other general
intangibles. Give particulars.
24. Customer lists or other compilations
containing personally identifiable
information (as defined in I l U.S.C.
10!(41 A)) provided to the debtor by
individuals in connection with obtaining a
product or service from the del1or
primarily for personal, family, or
household purposes.
27. Aircraft and accessories.
28. Office equipment, furnishings,

and supplies.
II
H
I 0,000,000.00
32,610.00
x
x
See Rider
25. Automobiles, trucks, trailers,

and other vehicles and accessories.
26. Boats, motors, and accessories.
DESCRIPTION AND LOCATION

OF PROPERTY
CURRENT VALUE OF
DEBTOR'S INTEREST
IN PROPERTY, WITH
OUT DEDUCTING ANY
SECURED CLAIM
OR EXEMPTION
x
x
x
875.00
HP Printer, All in One Fax, Desk and Lamp
x
29. Machinery, fixtures, equipment,
and supplies used in business.
JO. Inventory.
31. Animals.
32. Crops growing or harvested.
Give particulars.
33. Fam1ing equipment and implements.
34. Farm supplies, chemicals, and feed.
35. Other personal property of any kind
not already tisted. ltemi1:e.
x
x
x
x
x
x
38,809,011.12
See Attached Rider
continuation sheets attached Total>

(Include amolOlts from any continuation
sheets attached. Report total also on
Summary of Schedules.)
49,518,540.81
American LegalNot, Inc.

www.FonnaWorkllow.com
EXHIBIT 2, PAGE 31
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SCHEDULE B - PERSONAL PROPERTY RIDER
TYPE OF PROPERTY
2. Checking, Savings or
other financial accounts,
certificates of deposit or
shares in banks, savings,
and loan, thrift, building
and loan, and homestead
associations, or credit
CURRENT vALUE or DP.BTOR'S

INTEREST IN PROPERTY.
WITl-IOUT DEDUCTING ANY
SECURED CLAIM OR EXEMPTION
DESCRIPTION AND LOCATION OF PROPERTY
Wells Fargo - 0933 ~ Checking
$2,027.22
P.O. Box 6995

Portland, OR 97228
$430.67
Wells Fargo - 2525 - Checking

P.O. Box 6995
Portland, OR 97228
--------un1ons,brok~agefi~ou~s~es',~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
and cooperatives.
Wells Fargo - 5878 - Checking

P.O. BoK 6995
Portland, OR 97228
$240.10
Bank of America - 6796 Checking

P.O. BoK 25118
Tampa, Fl 33622
$856.67
Bank of America - 9911 Checking

P.O. Box 25118
Tampa, Fl 33622
$3,275.56
Chase Bank 4273 - Checking

3 610 I Bob Hope Drive Ste G- I
$3.206.67
$10,036.89
EXHIBIT 2, PAGE 32
Case 2:10-bk-18510-BB

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Page 38 of 79
Desc
SCHEDULE B PERSONAi, PROPERTY RIDER
TYPE OF PROPERTY
7. Furs and Jewelery
CURRENT VALUE Of DEBTOR'S

INTEREST IN PROPERTY,
WITHOUT DEDUCTING ANY
DESCRIPTION AND LOCATION OF PROP.BRTY
LOS 18K Y/G DIAMOND EARRINGS STUD

LDS DIAMOND NECKlACE WITH 66 BAUGETTE
LOS DIA BRACLT W/66 RBC DIAS OF 3.00CT TW
LOS DIAMOND BRACELET CONTAINING 35 ROUND
LOS DIAMOND WEDDING RING ONE 2.0ICT
LOS DIA EARRINGS, PIERCED-POST-STUD
GIORGIO ARMANI WATCH
w
w
w
w
w
w
$8,087.40
$19,605.60
$2,586.00
$1J,822.20
$22,915.20
$25,883.40
~6.003.00
$98,902.80
22. Patents, copyright,
and other intellectual
property.. Give partculars.
US Copyright Registrations Published by

Dennis Montgomery 1982 - 2006
$I 0,000.000.00
Source Code IBM PC CORTEX

#V3536D36 I Updated 2006
Source Code IBM PC BLOOD GAS

#V3536D58 I Updated 2006
Sou!'ce Code Anatomic Pathology

TX0002095009 Publish 1987
Source Code MIND for IBM PC

TX000200234 Publish 1986
Source Code Anatomic Pathology

TX0002095009 Publish 1987
Source Code MIND for IBM PC

TX000200234 Publish 1986

#TU000098727 Publish 1982

#TU000098728 Publish 1982

#TU000098018 Publish 1982

#TU000098713 Publish 1982
Source Code IBM PC MICROBIOLOGY

#TU0002083750 Publish 1987
EXHIBIT 2, PAGE 33
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SCHEDULE B PERSONAL PROPERTY RIDER
TYPE OF PROPERTY
22. Patents, copyright,

and other intellectual
property. Give partculars.
CURRENT VALUE OF DEBTOR'S

INTEREST lN PROPERTY,
WITHOUT DEDUCTING ANY
DESCRIPTION AND LOCATION OF PROPERTY
US Copyright Registrations Published by

Dennis Montgomery 1982 2006
Source Code IBM PC CLINICAL MIND
#TU0002034758 Publish 1986
Source Code IBM PC CORTEX

#ITU0001983147Publish 1986
~--------~----------------
25. Automobiles, Trucks, Trailers,

and other vehicles and accessories.
All vehicles are located at 6 Toscana Way W.

Rancho Mirage, C~ 92270
2006 KI SOO Chevy Silvcrado Pickup
2003 Chevy Tahoe
2005 Cadillac STS
35. Other personal property of any

kind not already listed. Itemize.
Per court order entered in this proceeding in the US

Federal Court, Reno, NV Case #306-cv-00056-PMP-VPC.
J
J
J
$9,845.00
$8.915.00
$13.850.00
$32,610.00
$2,104,600.12
Debtor is entitled to reimbursement of legal fees from the

United States of America for wrongful conduct of the
Federal Bureau of Investigation.
Claim against the Liner Firm, Teri Pham, and Deborah Klar
for indemnification regarding sanction order in
Federal Court Reno, NV Case No. 306-cv-0056-PMP-VPC
$204,411.00
Claims for legal malpractice against Liner linn, Terri Pham,

Deborah Klar, Tuneen Chisolm, Shannon Anderson,
Robert Oliver, Richard Mooney, Ryan Lapine, Robert Shore,
Stuart A. i.iner, Peter Bransten, Ellen Garofalo,
and Randal Sunshine in Federal Court Reno, NV
Case No. 306-cv-0056-PMP-VPC
$10,000,000.00
Claims for misrepresentaions against Edra Blixseth and

the Liner Law Pinn for settlement agreement with
Warren Trepp and Etreppid Technologies on 09/08.
$26,500,000.00
Montgomery Parties still do not have a signed settlement

agreement from Warren Trepp, Etreppid Technologies,
and Edra Blixseth with signatures.
$38,809.011.12
IN ADDITION, DENNIS MONTGOMERY IS THE HOLDER OP CERTAIN INTELLECTUAL
PROPERTY RIGHTS WHICH ARE SUBJECT TO THE NATIONAL SECURITY ACT OF 194i
11 U.S.C. SECTION 401(a) et seq., AND IS, BY SUCH ACT, PROHIBITED, WITHOUT THE
EXPRESS CONSENT OF THE UNITED STATES DEPARTMENT OP JUSTICE AND
CERTAIN OTHER AGENCIES OF THE UNITED STATES OF AMERICA
FROM MAKING ANY DISCLOSURES WITH RESPECT THERETO. ANY REQUESTED
INFORMATION WITH RESPECT THERETO MUST BE DIRECTED TO RAPHAEL
0. GOMEZ, US DEPARTMENT OF JUSTICE CIVIL DIVISION
SENIOR TRIAL COUNSEL 9SO PENNSYLVANIA AVENUE, NW
WASHINGTON, D.C. 20530. (202) 5I4-1318.
EXHIBIT 2, PAGE 34
Case 2:10-bk-18510-BB Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06 Desc
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of 79 11/10/10 12:57:13 Des<
Case 2:10-bk-18510-BB Main
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Filed 11/10/10
Entered
Main Document Page 1 of 5
FILED & ENTERED

1
2
3
4
5
6
7
Thomas H. Casey - Bar No. 138264

Tele_phone:
(949) 766-8787
Facsimile:
(949) 766-9896
Email:
TomCasey@tomcaseylaw.com
Email:
CLERK U.S. BANKRUPTCY COURT
Central District of California

BY beauchanOEPUTY CLERK
Attorney for Jason M. Rund,

8
9-
NOV 10 2010

l----cENTRA:C-DISTRICT-oF-C.ACTFORNIA-rtos-ANGEtES-DIVTSTON_ _ _ _,______ _
10
11
In re
Case No.: 2:10-bk-18510-BB
12

Chapter 7
13
ORDER AUTHORIZING CHAPTER 7

TRUSTEE'S ABANDONMENT OF
POTENTIAL CAUSES OF ACTION
AGAINST THE LINER FIRM AND
VARIOUS INDIVIDUALS
14
Debtor.
15
16
17
[Order Without Hearing Requested

Pursuant to Local Rule 9013-l(o)]
18
19
20
21
22
23
24
Jason M. Rund's, Chapter 7 Trustee's Motion for Order Authorizing Abandonment of

Estate's Interest in Certain Potential Causes of Action Against the Liner Firm and Various
Individuals ("Motion") was filed with the Clerk of the Court, and the Notice of Chapter 7
Trustee's Motion for Order Authorizing Abandonment of Estate's Interest in Certain Potential
Causes of Action Against the Liner Firm and Various Individuals (the "Notice") was served on
creditors and parties in interest on September 29, 2010.
25
26
27
28
The Court having considered the Motion, proper notice having been given and good
cause having been shown,
Ill
Ill
EXHIBIT 3, PAGE 35
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Filed 11/10/10
Entered
IT IS HEREBY ORDERED that the Trustee's Motion is granted;
IT IS FURTHER ORDERED that the Trustee is authorized to abandon the estate's interest in
the Debtor's potential causes of action as follows: (1) Against the Liner Firm, Teri Pham and
Deborah Klar, for indemnification regarding a sanction order in District Court in Nevada case
number 3:06-cv-0056; (2) For legal malpractice against the Liner Firm, Teri Pham, Deborah
Klar, Tuneen Chisolm, Shannon Anderson, Robert Oliver, Richard Mooney, Ryan Lapine,
Robert Shore, Stuart A. Liner, Peter Bransten, Ellen Garolfalo, and Randal Sunshine in
connection with District Court in Nevada case number 3:06-cv-0056; and, (3) For
------------910
misrepresentations againsnhe tiner Firm anc:l-Etlra Blixsetnfor in connection w1tntheDeotor's

settlement agreement with Warren Trepp and eTreppid on 09/08.
11
###
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
DATED: November 10, 2010

28
United States Bankruptcy Judge
EXHIBIT 3, PAGE 36
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Case 2:10-bk-18510-BB Doc
Filed 11/10/10
Entered
NOTE: When using this form to indicate service of a proposed order, DO NOT list any person or entity in
Category I.
Proposed orders do not generate an NEF because only orders that have been entered are placed on the
CM/ECF docket.
PROOF OF SERVICE OF DOCUMENT
5
6
I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business
address is:
22342 Avenida Empresa, Ste. 260
The foregoing document described Order Authorizing Chapter 7 Trustee's Abandonment of Estate's
Interest in Certain Potential Causes of Action Against the Liner Firm and Various Individuals will be
served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d);
-------9- -and-(b)-in-the-manner-indicated-below'~:- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8
10
11
12
I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF"l - Pursuant to

controlling General Order(s) and Local Bankruptcy Rule(s) ("LBR"), the foregoing document will be served
by the court via NEF and hyperlink to the document. On
I checked the CM/ECF docket
for this bankruptcy case or adversary proceeding and determined that the following person(s) are on the
Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below:
13
0Service information continued on attached pag

14
15
16
II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indicate method for each person or entity served):
On October 28. 2010 I served the following person(s) and/or entity(ies) at the last known address(es) in
this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed
envelope in the United States Mail. first class. postage prepaid, and/or 'J.<itll an overnigllt mail service
addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be
17
completed no later than 24 hours after the document is filed.
18
United States Bankruptcy Court

Attn: Hon. Sheri Bluebond
255 E. Temple St., Ste. 1482
Los Angeles, CA 90012
19
20
21
Ill. SERVED BY PERSONAL DELIVERY. FACSIMILE TRANSMISSION OR EMAIL (indicate method for
I served the
each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on
following person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such
service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a
22
23
24
declaration that personal delivery on the judge will be completed no later than 24 hours after the
document is filed.
25
26
27
28

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true
and correct.
October 28, 201 O
Date
Isl Marissa Silva

Signature
Marissa Silva
Type Name
EXHIBIT 3, PAGE 37
Main159
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Filed 11/10/10
Entered
NOTICE OF ENTERED ORDER AND SERVICE LIST

2
4
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8
----9-
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Notice is given by the court that a judgment or order entitled (specify) Order Authorizing Chapter 7
Trustee's Abandonment of Estate's Interest in Certain Potential Causes of Action Against the Liner Firm
and Various Individuals was entered on the date indicated as "Entered" on the first page of this judgment
or order and will be served in the manner indicated below:
I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF") - Pursuant to controlling
General Order(s) and Local Bankruptcy Rule(s), the foregoing document was served on the following
person(s) by the court via NEF and hyperlink to the judgment or order. As of October 28. 2010 the
following person(s) are currently on the Electronic Mail Notice List for this bankruptcy case or adversary
proceeding to receive NEF transmission at the email address(es) indicated below.
Robert Aisenstein aisenstein@msn.com

Robert W Beck robert.beck@beckandbrowning~.c=om~-----------------------Thomas H Casey msalustro@tomcaseylaw.com
Arturo M Cisneros arturo@mclaw.org
Christopher Conant cconant@conantlawyers.com
Joseph A Eisenberg jae@jmbm.com
Angela M Fontanini ecfcacb@piteduncan.com
Ellyn S Garofalo egarofalo@linerlaw.com
Thomas M Geher tmg@jmbm.com
Kathleen M Goldberg msilva@tomcaseylaw.com
John H Kim jkim@cookseylaw.com
Vy Pham vpham@mileslegal.com
Jason M Rund (TR) trustee@srlawyers.com, jrund@ecf.epiqsystems.com
Ramesh Singh claims@recoverycorp.com
Steven R Skirvin srs@dkclaw.com
Richard C Spencer rspencer@rspencerlaw.com
Balpreet Thiara ecfcacb@piteduncan.com
United States Trustee (LA) ustpregion16.la.ecf@usdoj.gov
Kristin A Zilberstein bknotice@mccarthyholthus.com
II. SERVED BY THE COURT VIA U.S. MAIL: A copy of this notice and a true copy of this judgment or
order was sent by United States Mail, first class, postage prepaid to the following person(s) and/or
entity(ies) at the address(es) indicated below:
21
22
23
24
25
26
Debtors
Dennis Lee Montgomery
6 Toscana Way
Brenda Kathleen Montgomery

6 Toscana Way
Ill. TO BE SERVED BY THE LODGING PARTY: Within 72 hours after receipt of a copy of this judgment
or order which bears an "Entered" stamp, the party lodging the judgment or order will serve a complete
copy bearing an "Entered" stamp by U.S. Mail, overnight mail, facsimile transmission or email and file a
proof of service of the entered order on the following person(s) and/or entity(ies) at the address( es),
facsimile transmission number(s) and/or email address( es) indicated below:
27
[g]Service information continued on attached pag
28
EXHIBIT 3, PAGE 38
Case 2:10-bk-18510-BB
Case 2:10-bk-18510-BB
2
3
4
5
6

Main159
Document
Page 44
of 79 11/10/10 12:57:13
Doc
Filed 11/10/10
Entered
Desc
Interested Parties
Raphael 0. Gomez
Carlotta P. Wells
Senior Trial Counsel
Federal Programs Branch
US Department of Justice
Civil Division - Room 6114
20 Massachusetts Ave., N.W.
PO Box 883
Washington, DC 20044
Randall Sunshine, Esq.

Stuart Liner, Esq.
Teri Pham, Esq.
8
Deborah Klar, Esq.
Tuneen Chisolm, Esq.
- - - - - - -9---Ryan tapine, E'=-sq~.---------------------------------7
10
11
12
13
14
15
16
17
18
19
Robert Shore, Esq.

Shannon Anderson, Esq.
Robert Oliver, Esq.
Liner Grode Stein Yankelevitz Sunshine Regenstreif & Taylor LLP
1100 Glendon Ave., 141h Floor
Los Angeles, CA 90024-3503
Richard Mooney, Esq.
Liner Yankelevitz, et al
199 Fremont Street, 20 1h Floor
San Francisco, CA 94105
Peter Bransten, Esq.
1 Bush Street, Ste. 600
San Francisco, CA 94104
Edra Blixseth
42-765 Dunes View Road

Rancho Mirage, CA 92270-4311
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22
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25
26
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28
EXHIBIT 3, PAGE 39
Case 2:10-bk-18510-BB

Main Document
Page 45 of 79
Exhibit 4
Desc
Main104
Document
Page 46
of 7903/24/10 15:40:35 Desc
Case 2:10-bk-18510-88 Doc
Filed 03/24/10
Entered
FILED & ENTERED

1
2
3
4
6
7

Telephone:
(949) 766-8787
Facsimile:
(949) 766-9896
Email:
Email:
MAR 24 2010
Central District of California
BY wesley DEPUTY CLERK
Attorney for Jason M. Rund,

----9-
CENTRAL---UTSTR1CT-O-PTA.TIFORNfA/TOS-ANGECES-DTVTSION
10
11
In re
Case No.: 2:10-bk-18510-BB
12

Chapter 7
13
ORDER AUTHORIZING CHAPTER 7

TRUSTEE'S ABANDONMENT OF
PENDING LITIGATION
14
Debtor.
15
16
[Order Without Hearing Requested

Pursuant to Local Rule 9013-l(o)]
17
18
19
Jason M. Rund's, Chapter 7 Trustee's Motion for Order Authorizing Abandonment of
20
Estate's Interest in Certain Pending Litigation ("Motion") was filed with the Clerk of the Court,
21
and the Notice of Chapter 7 Trustee's Motion for Order Authorizing Abandonment of Estate's
22
Interest in Certain Pending Litigation (the ''Notice") was served on creditors and parties in
23
interest on March 1, 2010.
24
25
26
27
Ill
28
Ill
EXHIBIT 4, PAGE 40
Main
Document
Page 47
of 7903/24/10 15:40:35 Des
104
Filed 03/24/10
Entered
IT IS FURTHER ORDERED that the Trustee is authorized to abandon the estate's
interest in the Complaint for Violation of the False Claims Act 31 U.S.C. 3129, Et Seq., and
Conspiracy to Violate the False Claims Act filed by Dennis Montgomery in the District Court of
Nevada, Case Number 3-06-CV-691-FMP.
###
7
8
_ _ _g _ l - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 - - - - - -
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DATED: March 24, 2010

28
EXHIBIT 4, PAGE 41
Main104
Document
Page 48
of 79 03/24/10 15:40:35 Des
Case 2:10-bk-18510-88 Doc
Filed 03/24/10
Entered
Category I.
CM/ECF docket.
5
6
address is:
The foregoing document described Order Authorizing Chapter 7 Trustee's Abandonment of Estate's
Interest in Certain Pending Litigation will be served or was served (a) on the judge in chambers in the
9- form-and-manner-required-by-tBR-5005-2(d);-and-(b)-in-the-manner-indicated-below~.- - - - - - -
8
1O
11
12

13

14
15
16
17
18
19
II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indicate method for each person or entity served):
On March 18, 2010 I served the following person(s) and/or entity(ies) at the last known address(es) in this
bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope
in the United States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as
follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no late
than 24 hours after the document is filed.
20
21
22
23

Ill. SERVED BY PERSONAL DELIVERY FACSIMILE TRANSMISSION OR EMAIL indicate method for
I served the
each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on
document is filed.
24
25
26
27
28

and correct.
March 18, 2010
Date
Isl Marissa Silva
Marissa Silva
Type Name
Signature
EXHIBIT 4, PAGE 42
Main104
Document
Page 49
of 79 03/24/10 15:40:35 Des
Filed 03/24/10
Entered
NOTE TO USERS OF THIS FORM:

1) Attach this form to the last page of a proposed Order or Judgment. Do not file as a separate document.
2) The title of the judgment or order and all service information must be filled in by the party lodging the order.
3) Category I. below: The United States trustee and case trustee (if any) will always be in this category.
4) Category II. below: List ONLY addresses for debtor (and attorney), movant (or attorney) and person/entity (or
attorney) who filed an opposition to the requested relief. DO NOT list an address if person/entity is listed in category I.

5
6
7
Notice is given by the court that a judgment or order entitled (specify) Order Authorizing Chapter 7
Trustee's Abandonment of Estate's Interest in Certain Pending Litigation was entered on the date
indicated as "Entered" on the first page of this judgment or order and will be served in the manner
indicated below:
I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF"l - Pursuant to controlling
- - - - 9 - . -person(s)-by-the-court-via-NEi:-.and-hyperlink-to-the-judgment-or-order.-As-of-Marcl'l-18.-20jQ_theJollowing ,_ _ __
person(s) are currently on the Electronic Mail Notice List for this bankruptcy case or adversary proceeding
10
to receive NEF transmission at the email address(es) indicated below.
8
11
12
13
14
15
16
17
18
19

Robert W Beck robert.beck@beckandbrowning.com
Thomas H Casey msalustro@tomcaseylaw.com
John H Kim jkim@cookseylaw.com
Jason M Rund trustee@srlawyers.com, jrund@ecf.epiqsystems.com
Kristin A Zilberstein bknotice@mccarthyholthus.com
20
21
22
23
24
order was sent by U.S. Mail to the following person(s) and/or entity(ies) at the address( es) indicated
below:
Debtors
6 Toscana Way

6 Toscana Way
25
26
27
proof of service of the entered order on the following person(s) and/or entity(ies) at the address( es),
facsimile transmission number(s) and/or email address( es) indicated below:
28
EXHIBIT 4, PAGE 4
Case 2:10-bk-18510-BB

Main Document
Page 50 of 79
Exhibit 5
Desc
Case 2:10-bk-18510-BB

Main Document
Page 51 of 79
Ca.se 3:06-cv-00056-PMP-VPC Document 1164
Filed 04/28/10 Page 1of19
Case 3:06-cv-00056-PMP-VPC Document 1153
,-..
:~,.
1-~~11.1 ..:.0
Desc
-r.::.:fJI
~., f.1
r. u
r11 1 11~,.,-;;---- "' \

Thomas H. Casey Bar No. 138264
I
rr----.:.:::.::.:_.;
-"'".~,(I
.;ii,:i)d:J '
t
-. .. ,..,,, ,,,
Kathleen M. Goldberg. Bar No. 132637
'
LAW OPFICB OF THOMAS H. CASEY, INC.
I
. 2 8 20i0
22342 Avenida Bmpresa, Suite 260
"-~-
(.;.
'I - . --:----r .. J
Telephone: (949) 766-8787
.... . . . . .. : : :: ;lif
Facsimile:
(949) 766-9896
"" l,J1, ,If:;...,:, ~I\
. :y.
Email: TomCasey@tomcaseylaw.com
. ::-.:.::::..:.. ..... .. ...:.=-.~::::.:. ::~:~
I
3
4
5
--1
6
1-
Attorney for Jason M. Rund

-ehapter-'7-Bankruptcy-'l'rustee----------------------1----
UNITED STATBS DISTRICT COURT
FOR THE DISTRICT OF NEVADA
10
11
DENNIS LEE MONTGOMERY, an individual; )

and, MONTGOMERY FAMll..Y TRUST, a) Case No. 3:06-CV-00056-PMP-VPC
California Trust,
)
Plaintiff,
)
12
13
14
15
16
vs.
STIPULATION TO AMEND.
PROTECTIVE ORDER ENTERED ON
SEPTEMBER 11, 2007

ETRBPPID TECHNOLOOIBS, L.L.C., a
Nevada Limited Liability Company; WARREN
TREPP, an individual; DEPARTMENT OF
DEFENSE of the United States of America, and
Does I through 10,
)
Defendants.
)
~~~~~~~~~~~~-)
17
18
This Stipulation (the 1'Stipulation") is entered into by and between Jason M. Rund, in his
19
capacity as Chapter 7 Trustee ("Trustee") of the estate of Dennis Lee Montgomery and Brenda
2O
Kathleen Montgomery and eTreppld Technologies, L.L.C. and Warren Trepp ("eTreppid")
21
(together referred to as the "Parties").
FACTS
22
WHEREAS, Michael Flynn ("Flynn") represented Dennis Lee Montgomery ("Debtor'')
23
24
in the above entitled case, among other litigation matters pending in the U.S. District Court of
25
Nevada, including case numbers 3:06cv-00691-PMP-VPC, 3:06-cv-002SOBES-VPC, and 3:06-
26
27
cv-00263-PMPVPC ("Nevada Actions").
28
2007.
WHEREAS, Flynn's representation of the Debtor in the Nevada Actions ended in July of
Si'IWorlp1rlo1llM0Di,oaoeyll'lol4ll111SllpA01dP1o'"cll,.01lenT"ppld.wpd
EXHIBIT 5, PAGE 44
Case 2:10-bk-18510-BB

Main Document
Page 52 of 79

Filed 04/28/1
Desc
Page 2 of 19
Filed 04/22/1 O Page 2 of 19
WHEREAS, upon the withdrawal of Flynn as counsel, Liner, Grode, Stein, Yankelevitz,
l
2
Sunshine, Regenstreif & Taylor (the "Liner Finn") began to represent the Debtor In the Nevada
Actions.
WHEREAS, upon the request of the United States Department of Justice ("DOJ") the
Court in the Nevada Actions entered several protective orders including an Order entered on
August 29, 2007 ('4USA Protective Orders'~. Pursuant to the USA Protective Orders, the Debtor
- -and-e'Freppid-arebarred-from-seeking-discoveryor-disclosure-fromany_party_which_couldcause
8
damage to the national security of the United States, However, specific areas of inquiry were
delineated as allowed areas of inquiry Including any contract or agreement regarding the
10
technology claimed to be owned by either the Debtors or eTreppid, facts relating to the issue of
11
ownership of the technology, and the revenue or income of the Debtor.
12
WHEREAS, the Nevada District Court In the Nevada Actions entered a protective order
13
regarding discovery matters between the Debtor and eTreppid. The Order, entered on September
14
11, 2007, is attached hereto as Exhibit "1" ("Protective Order").
15
WHEREAS, the Protective Order provides that documents produced between the Debtor
16
and eTreppid could be labeled as "Confidential" or "Restricted Confidential" and that such
17
designated documents could not be disclosed or communicated in any fashion and could not be
18
used for any purpose other then preparing for the litigation of the Nevada Actions.
19
WHEREAS, in the Nevada Actions eTreppid may have produced documents to Flynn
20
pursuant to document requests from the Debtor, and eTreppid may have marked certain,
21
produced documents as "Confidential"or "Restricted Confidential".
22
WHEREAS, in the Nevada Actions eTreppid did produced approximately I00 boxes of
23
documents to the Liner Firm pursuant to a document requests from the Debtor, and eTreppid did
24
mark certain, produced documents as "Contidential"or "Restricted Confidential".
25
WHEREAS, Lhe Debtor, along with his wife, Brenda Kathleen Montgomery, filed a
26
voluntary petition under Chapter 7 of the Bankruptcy Code on June 26, 2009 ("Petition Date").
27
WHEREAS, Jason M. Rund is the duly appointed trustee ("Trustee'~ of the bankruptcy
28
estate of Dennis Lee Montgomery and Brenda Kathleen Montgomery ("Bankruptcy Bstate'l
S:Wlordptrltclv.lot1om1111tldla11\81lpAm11dP1011e1lv10tdroTnppld.,.,pd
EXHIBIT 5, PAGE 45
Case 2:10-bk-18510-BB

Main Document
Page 53 of 79

Case 3:06-cv00056-PMPVPC Document 1153
Desc

"
.1
WHEREAS, in Ms capacity as Chapter 7 Trustee of the Bankruptcy Estate the Trustee
steps into the shoes of the Debtor and pursuant to 11 U.S.C. Section S4 I is vested with all right,
title and interest in all property of the Debtor as of the Petition Date.
WHEREAS, in order to properly fUlfill his statutory and fiduciary duties to investigate
and administer the assets of the Bankruptcy Estate, the Trustee requires the turnover of any and
all documents regarding the Debtor from Flynn and the Liner Finn.
-----'/
WHEREAS,such-a-tumove~otdocuments-fromElynnand-the-Liner_Einn_toJhc_Im_atce___, _ _ __
would include documents marked as "Confidential"or "Restricted Confidential" by eTreppid
prior to their delivery to Flynn or the Liner Firm,
10
11
12
13
14
15
WHEREAS, eTreppid wishes to maintain the restrictions on the documents marked as
"Confidential"or "Restricted Confidential" by eTreppid pursuant to the Protective Order.

WHEREAS, the Trustee has no objection to continuing to abide by such restrictions
placed upon any documents pursuant to the Protective Order,
WHEREAS, the Parties enter into this Stlpulatlon to resolve issues concerning the
Protective Order and the Liner Finn's turnover of documents to the Trustee.
16
17
STIPULATION
IT IS HEREBY STIPULATED that, except for the Trustee and his professionals, the
18
documents turned over to the Trustee by Flynn or the Liner Finn shall remain subject to the
l9
Protective Order, pending further order of the Court.
20
IT IS FURTHER STIPULATED, that upon entty of the orders of the Nevada U.S.
21
District Court and the U.S. Bankruptcy Court approving this Stipulation, Btreppid has no
22
objection to Flynn or the Liner Firm turning over all documents in its possession, custody and
23
control to the Trustee.
24
lT IS FURTHER STJPULATED, the Trustee will not release any document marked as
25
"Contldential''or "Restricted Confidential" by eTreppid to any party unless prior written approval
26
is obtained by eTreppid.
27
28
IT IS FURTHER STIPULATED, that such approval by eTreppid will not be withheld
unreasonably.
l:IWordpAlct\Moa19omol)'IPln4lns11S1lp/\11oadPIOl..1l1'00rdo1tTHpPfd.wpd
EXHIBIT 5, PAGE 46
Case 2:10-bk-18510-BB

Main Document
Page 54 of 79

..,.
Filed 04/28/1
Desc
Page 4 of 19
Flied 04/22/10 Page 4of19
IT IS FURTHER STIPULATED, if eTreppid withholds approval for the Trustee to
release any document marked as "Confidentlal"or "Restricted Confidential" by eTreppid
pursuant to the Protective Order, the United States Banknlptcy Court for the Central District of
California, Riverside Division, presiding over the Debtors' bankruptcy case may hear and rule on
the Trustee's request to except a particular document ftom the Protective Order.
IT IS FURTHER STIPULATED, that when the Bankruptcy Estate is fully administered
- - - - - - ' 1 - -Or-if-the-Tmstee_obtains_Bankmptcy~urtapproval to abandon an)' document marked as
"Confidentlal"or "Restricted Confidential" by eTreppid pursuant to the Protective Order such
documents will be destroyed or returned to eTreppid pursuant to eTreppid'a written designation
lo
11
12
13
ofoption.
IT IS FURTHER STIPULATED, that the Parties to this Stipulation agree to continue to
abide by the USA Protective Orders.

JT IS FURTHER STIPULATED, this Stipulation shall become effective only upon
14
entry of an order of the United States Bankruptcy Court authorizing the Trustee to enter Into this
15
Stipulation and approving the tenns set forth herein. Absent entry of an order of the United
16
States Bankruptcy Court approving this Stipulation, this Stipulation shall be null and void.
17
IT IS FURTHER STIPULATED, should any dispute arise regarding this Stipulation,
18
the United States Bankruptcy Court for the Central District of California, Riverside Division
19
shall have jurisdiction to determine the dispute.
20
21
22
DATED: March
:.<$, 2010 LAW OFFICE 0

APR
By:
23
24
25
26
27
28
B:IW01dp01r111\Mooqiomo11'\Ploadloa1\ltlpAmoIProt..1IT10rdmTrtppld.wpd
Case 2:10-bk-18510-BB

Main Document
Page 55 of 79

C se 3:06-cv-00056-PMP-VPC Document 1153
Desc
Filed 04/28/10 Page 5 of 19

Filed 04/22/1 O Page 5 of 19
l
2
IT IS SO ORDERED:
DATED:
7
8
9
10
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18
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S:\Wordpo.rfcct\Montgo1nol}\l'lcedln;a\SllpA1nondProtccllvcOrdcrcTrvppid.wpd
S
"'1
EXHIBIT 5, PAGE 48
Main148
Document
Page 56
of 79 08/30/10 08:40:35 Des<
Case 2:10-bk-18510-88 Doc
Filed 08/30/10
Entered
2
3
4
5
6
7
FILED & ENTERED

Telephone: (949) 766-8787
Facsunile:
(949) 766-9896
Email:
Email:
-----9-
CENTRAL DISTRICTUF CALIFURNIA7LUSANUECE~fDIVISION

In re
) Case No.: 2:10-bk-18510-BB
11
) Chapter 7
12
13
DENNIS LEE MONTGOMERY,

BRENDA KATHLEEN MONTGOMERY,
14
15

Central District of Callfomla
BY mllano DEPUTY CLERK
Attorney for Jason M. Rund

10
AUG 30 2010
Debtors.
) ORDER GRANTING CHAPTER 7

) TRUSTEE'S MOTION FOR ORDER
l APPROVING STIPULATION WITH
) ETREPPID TECHNOLOGIES, LLC TO
l AMEND PROTECTIVE ORDER
l ENTERED ON SEPTEMBER 11, 2007
)
16
17
l
l
[ Order Without Hearing Requested

Pursuant to Local Rule 9013-l(o))
18
)
)
19
)
~~~~~~~~~~~~~~~
20
21
22
23
24
25
26
27
Jason Rund, Chapter 7 Trustee's Motion for Order Approving Stipulation with Etreppid
Technologies, LLC to Amend Protective Order Entered on September 11, 2007 ("Motion") was
filed with the Clerk of the Court, and the Notice of Chapter 7 Trustee's Motion for Order
Approving Stipulation with Etreppid Technologies, LLC to Amend Protective Order Entered on
September 11, 2007 was served on creditors and parties in interest on June 25, 2010.
28
EXHIBIT 5, PAGE 49
Case 2:10-bk-18510-BB
Case 2:10-bk-18510-88
Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06 Desc

Doc
148
Filed 08/30/10
Entered
Main
Document
Page 57
of 79 08/30/10 08:40:35 Des
2
3
4
IT IS FURTHER ORDERED that the Stipulation with Etreppid Technologies, LLC to
Amend Protective Order Entered on September 11, 2007 is approved.
###
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
DATED:August30,2010
EXHIBIT 5, PAGE 50
Case 2:10-bk-18510-BB
Case 2:10-bk-18510-BB
Category I.
CM/ECF docket.
3
4
6
7
10
11

Doc
148
Filed 08/30/10
Entered
Main
Document
Page 58
of 79 08/30/10 08:40:35 Desc

address is:
The foregoing document described Order Granting Chapter 7 Trustee's Motion for Order Approving
Stipulation with eTreppld Technologies. LLC to Amend Protective Order Entered on September 11. 2007
will be served or was served (a} on the judge In chambers In the form and manner required by LBR 50052(d); and (b) in the manner indicated below:
12
0Service information continued on attached page
13
14
15
16
21
22
23
II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indlcate method for each person or entitv served):
On August 24. 2010 I served the following person(s) and/or entity(ies) at the last known address(es) in
this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed
envelope in the United States Mail. first class. postage prepaid, and/or with an overnight mail service
addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be
completed no later than 24 hours after the document is filed.
Ill. SERVED BY PERSONAL DELIVERY. FACSIMILE TRANSMISSION OR EMAIL (indicate method for
each person or entitv served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on
I served the
document is filed.
24
0Service information continued on attached page

25
26
and correct.
27
2a
August 24, 2010

Date
Marissa Silva
Type Name
Isl Marissa Silva

Signature
EXHIBIT 5, PAGE 51
Case 2:10-bk-18510-BB
Case 2:10-bk-18510-BB
2
3
NOTE TO USERS OF THIS FORM:

1) Attach this form to the last page of a proposed Order or Judgment. Do not file as a separate document.
2) The title of the judgment or order and all service information must be filled in by the party lodging the order.
3) Category I. below: The United States trustee and case trustee (if any) will always be in this category.
4) Category II. below: List ONLY addresses for debtor (and attorney), movant (or attorney) and person/entity (or
attorney) who filed an opposition to the requested relief. DO NOT list an address if person/entity is listed in category I.
5
6

Main
Document
Page Entered
59 of 7908/30/10 08:40:35 Des
Doc
148
Filed 08/30/10

Notice is given by the court that a judgment or order entitled (specify) Order Granting Chapter 7 Trustee's
Motion for Order Approving Stipulation with eTreppid Technologies. LLC to Amend Protective Order
Entered on September 11. 2007 was entered on the date indicated as "Entered" on the first page of this
judgment or order and will be served in the manner indicated below:
I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF") - Pursuant to controlling
-- - - - - 9 - -persen(s)-by-the-Gourt-via-NEF-ana-hypeFlink-to-the-judgment-or-order.-As-of-August-24,20to-the------following person(s) are currently on the Electronic Mail Notice List for this bankruptcy case or adversary
10 proceeding to receive NEF transmission at the email address(es) Indicated below.
8
11
12
13
14
15

Thomas H Casey msalustro@tomcaseylaw.com
16
17
18
order was sent by United States Mail, first class, postage prepaid, to the following person(s) and/or
entity(ies) at the address(es) indicated below:
19
Debtors
20
6 Toscana Way
6 Toscana Way
21

22
23
24
25
proof of service of the entered order on the following person( s) and/or entity(ies) at the address(es),
facsimile transmission number(s) and/or email address(es) indicated below:
26
27
18]Service information continued on attached pag
28
EXHIBIT 5, PAGE 52
Filed 08/30/10
Entered
Main148
Document
Page 60
of 79 08/30/10 08:40:35 Desc
4
5
6
7
SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF"):

Kathleen M Goldberg
msilva@tomcaseylaw.com
John H Kim jklm@cookseylaw.com
Jason M Rund (TR) trustee@srlawyers.com, jrund@ecf.epiqsystems.com
Kristin A Zilberstein
bknotice@mccarthyholthus.com
8
----
10
11
12
13
14
15
16
17
SERVED BY THE LODGING PARTY:
Interested Parties
Michael Flynn, Esq.
PO Box690
6156 La Flecha
Rancho Santa Fe, CA 92067
eTreppid Technologies, LLC
755 Trademark Drive
Reno, NV 89521-5920
%Timothy Lukas, Esq.
Holland & Hart LLP
5441 Kietzke Ln., 2hd Floor
Reno, NV 89511-3026
18
19
20
21
22
23
24
25
26
27
28
EXHIBIT 5, PAGE 53
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Exhibit 6
Desc
Case 2:10-bk-18510-BB
From:
To:
Cc:
Subject:
Date:

Main Document
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Desc
Christopher Conant
Tom casey
Linda Miiier
RE: Montgomery
Tuesday, December 04, 2012 4:52:28 PM
Tom,
Not a problem, I hereby confirm with this reply email. Have you been communicating with
Carlotta Wells with the DOJ about this motion?
Christopher J. Conant
Conant Law LLC
730 17th Street
Suite 200
Denver, CO 80202
(303) 298-1800
cconant@conantlawyers.com
THlS
EHAIL HESSAGI!
rs FOR
THE
sou
use OF THE IN'l'ENOED RECIPIEHT(s} AND HAY INCLUDE CONFlOEH11AL AND PRIVIUiGEO IHFORHAnON.
IF YOU ARE NOT
THE INTJ!NOEO RECIPIENT, PLEASE CONTAcr THI! SENOl!R BY Rl!PLY llHAIL, ANO OfSTllOY AU COPIES OF THI! ORIGINAL HESSAG
THlS
CORRlisPONOENCE, INCl.UOING ANY ATTACNHEHTS,
rs HOT lN'l'ENOEO OR WRITTEN
AVOlOING PBNALnl!S THAT HAY IHPGSl!D UNDER FEDERAL TAX LAWS.
J.O.
1'0 /IE USED, ANO CANNOT /II! USED, llY AHY PERSON FOR THI! PURPOSE OF
rs HAOI! IN
CONANT LAW LLC.
THrs STATEHENT
FoR ANY QU/ES110NS REGARDING THlS STATEHENT, PLEASll CONTAcr
IF THEllE ARE ANY TYFOS IN THIS [ O/SCUUH ALL RESl'ONSIBIUTY AND ATTR/81111! IT
THANK YOU.
COHPUANCE
WlTN
CIRCULAR
230, 3J.
C.F.R. PART
ro USER ERROR,
From: Tom casey [mallto:tomcase,y@tomcaseylaw.com]

Sent: Tuesday, December 04, 2012 5:18 PM
To: cconant@conantlawyers.com
Cc: Linda Miller
Subject: Montgomery
CJ,
We are in the process of finalizing and filing the Trustee's motion to approve the sale for our
January 2, 2013 sale hearing date and I must clarify one remaining item before filing the sale
motion. The Debtors scheduled as an asset of the estate a potential claim against the US
Government for the reimbursement of legal fees based on wrongful conduct by the FBI. As I
communicated by a prior e-mail, the Trustee is not including in the sale agreement the sale of any
potential causes of action against the U.S. Government. The definition of Saleable Assets in the Sale
Agreement does not include potential causes of action, if any, against the U.S. Government but it is
important that the Sale Motion be very clear. Therefore I revised the Sale Motion to expressly
exclude such potential causes of action from the definition of "Saleable Assets" as follows:
"An asset scheduled by the Debtor is: "Per court order entered in the US Federal Court,
Reno, NV - Case #306-cv-00056-PMP-VPC. Debtor is entitled to reimbursement of legal fees
from the United States of America for wrongful conduct of the Federal Bureau of
Investigation" ("Potential Claim Against U.S. Government"). The Saleable Assets do not
include any potential causes of action against the United States Government, including but
not limited to, the Potential Claim Against U.S. Government. "
EXHIBIT 6, PAGE 54
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CJ, please confirm your understanding of the above by a reply e-mail. Thank you.
Tom
Thomas H. Casey
The Law Offices of Thomas H. Casey, Inc.
Phone: (949) 766-8787, ext. 102
Fax:
(949) 766-9896
Confidentiality Notice: The Information in this e-mail message, Including any files or documents
attached hereto, Is confidential and intended only for the use of the addressee(s) named above.
If the reader of this message is not the intended recipient, or the employee or agent responsible
to deliver It to the Intended recipient, you are hereby notified that dissemination, distribution or
----copylng-of-thls-communlcatlon-/s-strict/y-prohibited;-/f-you-have-rece/ved-thls-communlcatlon-fn----error, please notify us immediately by telephone at (949)7668787 and return the original
message to the sender at the above address. Nothing in this communication Is Intended to
operate as an electronic signature under applicable law.
EXHIBIT 6, PAGE 55
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Exhibit 7
Desc
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ASSET PURCHASE AGREEMENT
This Sale Agreement (the "Agreement") is between Michael Flynn as purchaser

("Buyer"), on the one hand, and Jason Rund, the duly appointed Trustee ("Trustee") for the
bankruptcy estate of Dennis Lee Montgomery and Brenda Kathleen Montgomery ("Debtors") as
seller on the other hand (together "Parties"). This Agreement is entered into based upon the
following facts:
FACTS
1.
The Debtors filed a voluntary petition under Chapter 7 of the Bankruptcy Code on
June 26, 2009 ("Petition Date").

2.
Jason M. Rund is the duly appointed trustee of the bankruptcy estate of Dennis
Lee Montgomery and Brenda Kathleen Montgomery ("Bankruptcy Estate").

3.
The proposed Buyer, Michael Flynn, filed a claim in the bankruptcy estate in the
amount of $833,223.15.
4.
Listed assets of the Bankruptcy Estate on the Debtors' Schedules include the
following real property: real property located at 6 Toscana Way, Rancho Mirage, California
valued at $952,000; real property located at 3812 941h Ave NE, Yarrow Point, Washington,
valued at $2,150,000; and real property located at 12720 Buckthorn Lane, Reno, Nevada, valued
at $605,000 (collectively, "Real Properties").
5.
The Debtors' Schedules also include the following personal property assets:
certain bank accounts valued at a total of $10,036.89; household goods and furnishings valued at
$8,000; books and pictures, including a CD Juke Box, valued at $1,100; wearing apparel valued
at $4,540; jewelry valued at $98,902.80; a term life insurance policy valued at $0.00; an IRA
EXHIBIT 7, PAGE 56
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valued at $26,402; 1,000 shares of Nevada Security Bank Stock valued at $859; Accounts
Receivable valued at $526,204; certain patents valued at $10,000,000; three automobiles - a 2006
Silverado valued at $9,845; a 2005 Cadillac CTS valued at $13,850; and a 2003 Tahoe valued at
$8,915; office equipment valued at $875; other personal property listed as "per Court Order
entered in this proceeding in the US Federal Court, Reno, NV -Case #306-cv-00056-PMP-VPC
valued at $2,104,600.12; and claims against various parties valued at $38,809,011.12, scheduled
.__as_follows:_(a)_the_Claims_againsUhe..LinerEinn, Teri Pham,~a~nd~D~eb~o~ra~h~K~l~ar~fi~o~r_ _ _ _ _ _ __
indemnification regarding sanction order in Federal Court Reno, NV Case No. 306-cv-0056PMP-VPC valued at $204,411.00; (b) Claims for legal malpractice against Liner firm, Terri
Pham, Deborah Klar, Tuneen Chisolm, Shannon Anderson, Robert Oliver, Richard Mooney,
Ryan Lapine, Robert Shore, Stuart A. Liner, Peter Bransten, Ellen Garofalo, and Randal
Sunshine in Federal Court Reno, NV Case No. 306-cv-0056-PMP-VPC valued at
$10,000,000.00; and (c) Claims for misrepresentations against Edra Blixseth and the Liner Law
Firm for settlement agreement with Warren Trepp and Etreppid Technologies on 09/08 valued at
$26,500,000.00 (collectively, "Personal Property Assets").
6.
The Debtors have claimed fully exempt the following Personal Property Assets:
household goods and furnishings in the amount of $21,065 per Section 703.140(b)(3) and (b)(6);
books and pictures in the amount of $3, 188 per Section 703. l 40(b)(3); wearing apparel in the
amount of $4,540 under Section 703.140(b)(3); and the Debtors' IRA in the amount of $26,402
per Section 703.140(b)(10)(E).
7.
2
EXHIBIT 7, PAGE 57
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Silverado in the amount of $2,975 per Section 703.140(b)(2).

8.
The following Personal Property Assets were sold to the Debtors per Court Order
entered June 11, 2010: CD Juke Box; Jewelry; 1,000 shares of Nevada Security Bank Stock; and
three automobiles - a 2006 Silverado; a 2005 Cadillac CTS; and a 2003 Tahoe valued at $8,915.
9.
The following unscheduled Personal Property Asset was abandoned by the
Trustee pursuant to Court Order entered March 24, 2010: Complaint for violation of the False
Claims Act 31 U.S.C. Section 3129, et seq. and conspiracy to violate the False Claims Act filed
by the Debtor on behalf of himself and the United States Government in camera and under seal in
the District Court of Nevada.
10.
The following scheduled Personal Property Assets were abandoned by the Trustee
pursuant to Court Order entered November 10, 2010: (a) the Claims against the Liner Firm, Teri
Pham, and Deborah Klar for indemnification regarding sanction order in Federal Court Reno, NV
Case No. 306-cv-0056-PMP-VPC valued at $204,411.00; (b) Claims for legal malpractice
against Liner firm, Terri Pham, Deborah Klar, Tuneen Chisolm, Shannon Anderson, Robert
Oliver, Richard Mooney, Ryan Lapine, Robert Shore, Stuart A. Liner, Peter Bransten, Ellen
Garofalo, and Randal Sunshine in Federal Court Reno, NV Case No. 306-cv-0056-PMP-VPC
valued at $10,000,000.00; and (c) Claims for misrepresentations against Edra Blixseth and the
Liner Law Firm for settlement agreement with Warren Trepp and Etreppid Technologies on
09/08 valued at $26,500,000.00.
11.
The Trustee is currently holding a large number of documents at All Aboard Mini
3
EXHIBIT 7, PAGE 58
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on August 29, 2007 ("DOJ Protective Order". The Nevada District Court also entered a
2007-(''eTTeppid-Protective-Qrder!!_),.--.- - - - - - - - - - - - - - - - - - - - - - 12.
receipt by the Trustee so as to comply with the Protective Order. The Trustee has caused the
review of the Documents In Storage and has verified that all of the documents appear to have
been reviewed by the DOJ. The Documents In Storage, since. they are fully redacted, are no
longer subject to the DOJ Protective Order.
13.
marked by eTreppid as "Confidential"or "Restricted Confidential", the Trustee entered into an

additional stipulation with eTreppid, which was approved by the Bankruptcy Court on August
30, 2010. Pursuant to this additional stipulation with eTreppid, the Trustee may seek and obtain
an order from the Bankruptcy Court allowing the release of these documents, after providing
eTreppid with the opportunity to collect the documents. The Trustee has requested direction
from eTreppid as to their desire to collect the documents and has not received a response. As
part of the motion to approve this Agreement, the Trustee will also seek confirmation that the
documents marked by eTreppid as "Confidential"or "Restricted Confidential" may be released to
the Buyer.
4
EXHIBIT 7, PAGE 59
Case 2:10-bk-18510-BB
14.

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The Buyer, Michael Flynn, wishes to purchase the Bankruptcy Estate's interest, if
any, the remaining assets not claimed exempt, purchased by the Debtors or previously abandoned
by the Trustee, for the purchase price of $20,000 ("Offer") as follows:
a.
All assets identified on the Debtors' Schedules not claimed exempt,
purchased by the Debtors or previously abandoned by the Trustee, including, without

limitation, that certain real property located at 3812 9th Ave. NE, Yarrow Point, WA, 98004, and
legally-described-as:----------------------------THE SOUTH 25 FEET OF LOT 21, AND ALL OF LOT 22, BLOCK 1,
(herein after referred to as the "Yarrow Point Property"). A Relief from Stay Order was entered
by the Bankruptcy Court on May 26, 2010. In addition, the Debtors' Schedules indicate that
Warren Trepp may have a judgment lien encumbering this property.
b.
California. A Relief from Stay Order was entered by the Bankruptcy Court on October 27, 2009.
In addition, the Debtors' Schedules indicate that Warren Trepp may have a judgment lien
encumbering this property.

c.
Certain real property located at 12720 Buckthorn Lane, Reno, Nevada. A
Relief from Stay Order was entered by the Bankruptcy Court on October 28, 2009 and November
18, 2009. In addition, the Debtors' Schedules indicate that Warren Trepp may have a judgment
lien encumbering this property.
d.
EXHIBIT 7, PAGE 60
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that on the Petition Date, the Debtors had no funds in their scheduled bank accounts.
e.
f.
Patents as provided on Debtor's Schedule B valued at $10,000,000;
e.
$526,204.00;
assets identified on the Debtors' Schedules not claimed exempt, purchased by the Debtors or
previously al:>anaonecrDy tne Trust'Piee"';__________________________
f.
Debtors' Schedules which are not claimed exempt, purchased by the Debtors or previously
abandoned by the Trustee;
g.
Any and all claims and/or causes of action against Edra D. Blixseth;
h.
Certificateholders CWMBS, Inc., CHL Mortgage Pass-Through Trust 2006-17, Mortgage PassThrough Certificates, 2006-17, and all successors and assigns thereto (hereinafter referred to as
"Yarrow Point Claims");
i.
Documents In Storage; and

6
EXHIBIT 7, PAGE 61
Case 2:10-bk-18510-BB
j.

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and Opspring, Inc.
Collectively, the above described assets are hereinafterreferred to as the "Saleable Assets".
15.
bankruptcy Petition Date.

SALE AGREEMENT
16-.-'Fhe-'Frustee-will-move-the-Bankrupt(7y-Gourt-for-approval-of'-this-Sale-Agreement.---.- - - - - - -
17.
This Sale Agreement shall become final upon entry of an order of the United
States Bankruptcy Court authorizing the Trustee to enter into it and approving the terms set forth
herein. Absent entry of a final order of the United States Bankruptcy Court approving this Sale
Agreement, this Sale Agreement shall be null and void.
18.
Should any dispute arise regarding this Sale Agreement, the United States
Bankruptcy Court for the Central District of California, Los Angeles Division shall have
jurisdiction to determine the dispute.
19.
Upon execution of the Sale Agreement, the Buyer hereby agrees to remit the sum
of$20,000 for the purchase of the Bankruptcy Estate's interest, if any, in the Saleable Assets.
20.
The Trustee's Motion for approval of this Agreement shall include a request for
approval of an overbid procedure for the purchase of the Saleable Assets as follows:
a.
in Trustee's reasonable discretion, sufficient to assure Trustee of the bidder's ability (based on
availability of financing, experience or other conditions) to consummate the purchase of the
7
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Personal Property, AND one who can consummate the purchase of the Saleable Assets on the
same terms and conditions, other than price, as those proposed in the Offer.
b.
Each bid must be received by the Trustee and the Trustee's counsel no
later than three (3) business days prior to the hearing on the Motion.
c.
--
-----------Five-Hundred-B~S-;--dollars-f$2.0 1500;00);-Each-subsequent-bid-must-then-be-in-inerements-of-Five------
One Thousand U.S. dollars ($21,000.00).
d.

e.
the payment of the full Purchase Price must be made. Said payment must be received by the
Trustee by no later than three (3) business days prior to the hearing on this Motion. Said
Payment must be in cash, cashier's check, certified check or irrevocable letter of credit, and must
be deposited with the Trustee so that the Trustee will have access to said funds no later than three
(3) business days prior to the hearing on the Motion.
21.
Promptly following the executed of the Sale Agreement, the Trustee will file a
motion before the Bankruptcy Court seeking approval of the Sale Agreement with a finding that
the Buyer is a good faith purchaser within the meaning of Section 363(m) of the Bankruptcy
Code and a waiver of the 14-day stay set forth in Bankruptcy Rule 6004(h).
22.
In the event that there is a successful overbidder who is not the proposed Buyer, or
8
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if the Bankruptcy Court fails to approve a sale of the Saleable Assets, the bankruptcy estate will
promptly refund the $20,000 remitted to the estate by the Buyer.
23.
Limitations of Sale: The Parties acknowledge that the operation of the law has
placed the Bankruptcy Trustee in a unique role as the Seller of the Saleable Assets, which are the
subject of this Agreement. Due to the nature of the Trustee's role in administering the
bankruptcy estate, there are limitations as to the extent, type and character of the agreement under
---whieh-the-1'rustee-ean-eenvey-the-Saleable-Assets.-1'he-1'rustee-proposes-to-sell-these-assets
subject to certain limitations. The Parties hereby acknowledge that they understand the terms
under which the Saleable Assets are to be conveyed may vary substantially from the normal
customs and trade within the real estate industry. Except where expressly mandated by operation
of law, the Buyer consents to any such modifications and amendments.
24.
Buyer acknowledges that Buyer is purchasing the Saleable Assets from the
bankruptcy estate subject to any and all liens, secured interests and encumbrances of any kind.
25.
Buyer further acknowledges that immediately upon entry of an Order approving a
sale of the E~tate's interest in the Saleable Assets, the costs to store the Documents In Storage
immediately becomes the responsibility of the Buyer.
26.
Purchase without Warranties: Buyer acknowledges that he is purchasing the
Saleable Assets from the Bankruptcy Estate "AS IS" without warranties of any kind, expressed or
implied, being given by the Trustee, concerning the condition of the property or the quality of the
title thereto, or any other matters relating to the Saleable Assets. Buyer represents and warrants
that he is purchasing the Saleable Assets as a result of his own investigation and is not buying the
Saleable Assets pursuant to any representation made by any Broker, Agent, Accountant, Attorney
9
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or Employee acting at the direction, or on the behalf of the Trustee. Buyer acknowledges that
Buyer has inspected the Saleable Assets, and Buyer forever waives, for himself, his heirs,
successors and assigns, any and all claims against the Debtors, their attorneys, agents and
employees, the bankruptcy estate of Dennis L. Montgomery and Brenda Kathleen Montgomery,
Case No. 2:10-bk18510-BB, Jason M. Rund, as Bankruptcy Trustee and individually, and his
Attorneys, Agents and Employees, arising or which might otherwise arise in the future
----concerning-the-Saleable-Assets.~.----------------------------
27.
Trustee's Liability: Buyer acknowledges that the Trustee is acting in his official
capacity only. No personal liability shall be sought or enforced against the Trustee with regard to
this Agreement, the sale of the Saleable Assets, or the physical condition of the Saleable Assets.
In the event that the Trustee fails or refuses to complete the transaction for any reason, then the
limit of the Trustee's liability is only to return any money paid to the Trustee by the Buyer,
without deduction.
28.
Hold Harmless: Buyer understands the terms and conditions of this entire Sale
Agreement and holds the Estate, its agents, the Law Office of Thomas H. Casey, Inc., attorneys,
agents and employees harmless from any liabilities arising from this contract.
29.
Attorneys Fees and Costs. In the event that any action, suit or other proceeding is
hereafter instituted to remedy, prevent or obtain relief from a breach of this Agreement, arising
out of a breach of this Agreement, the prevailing party shall recover all of such reasonable
attorneys' fees and costs incurred in each and every such action, suit or other proceedings,
including any and all appeals, writs or petitions therefrom.
30.
Buyer is aware that this offer is contingent upon Chapter 7 Bankruptcy Trustee
10
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...
.:
Case No. 2:l0-bk18510-BB; Jason M. Rund, as Bankruptcy Trustee and individually, and his
Attorneys, Agents and Employees, arising or which might otherwise arise in the future concerning
the SaleableAssets.
27.
Trustee's Liability: Buy~r acknowledges that the Trustee is acting in his official
I
I
I
--1-
capacity only. Nopersorial liability shallbe sought 01 enforced against the Trnste.e with regard to
thisAgreem,eht~ the sale of the Saleable Assets, oi: thephysic;9l conditiohofth'e.Saleable Assets.
111 the event that the Trustee fails or refuses to complete the transact~on for any r_e_as_o_n~,t_h_en_th_e_ _ _ __
.I
limit of the Trustee's liability is only to return any money paid to the Trustee by the Buyt}r, without .
deduction.
28.
Hold Hann1ess: Buyer understands the tenns and conditions of this entire Sale
Agl"eement and holds the Estate, its agents, .the l,aw Office of Thomas H. Casey, Inc., attorneys,
agents and'. employees harmless from arty liabilities arising from this contras~t.
29. Attorneys Fees and Costs.
In the event that any action, suit or other proceeding is
hereafter instituted to remedy, prevent or obtain relief from a breach of this Agreement, arising out
of a breach of this Agreement, the prevailing patty shall recover all of such reasonable attorneys'
fees aiid costs incutTed in etlch and every such action, suit or other proceedings, including any and
all appeals, writs or petitions therefrom.
DATED: November __, 2012

Jason Rund, in his capacity as Chapter? Trustee for
the estate of Dennis Lee and Brenda Kathleen
10
EXHIBIT 7, PAGE 66
'.
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f\pprovedJis
to. 01'1n
tlnd 9ontenf
.
...
. . . .
... .
'.
. '
'
DATED: Novernber'la-;-2012
DATED: Nove.mber __, 2012
LAWOFFlC.~ OF.TBOMAS H. CASEY;.rNC.,
.A PRQFESSIONAL.CQRPORATlON
. ...
_____ ;
By:
---~------~~---;:;;T;;:-fio::;tn=as=.:;:H;.-.:..-;::C,....as=e==y,=Ai":t~to=m-=:e=y;:;;-fo=r4:J=as"='on=:-;::M7~;:;::R"':=un=a:;=,:-';--in===-~----
. his. q~pac.ity,J1s~Ch.~pter:7T1:11~~e.e .f~t th est~~~'.of

Denrtis~Lee arid.Brenda K.athl~n Montgom~ry . .
11
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approval, Bankruptcy Court confirmation and overbid procedures.
DATED: November__, 2012

Michael~~/
DATED: November I ,i.., 2012

on Rund, in his capacity as Chapter 7 Trustee for
the estate of Dennis Lee and Brenda Kathleen
Montgomery
Approved as to form and content:
CONANT LAW LLC
DATED: November__, 2012
Christopher J. Conant, counsel for Michael Flynn
DATED: November
I ~.2012
By:
und, in
his capacity as Chapter 7 Trustee fl
e estate of
Dennis Lee and Brenda Kathleen Montgomery
11
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I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:
22342 Avenida Empresa, Suite 200, Rancho Santa Margarita, CA 92688

A true and correct copy of the foregoing document entitled (specify): Chapter 7 Trustee's Motion for Order: (1)
Approving Sale Agreement with Michael Flynn Regarding the Sale and Purchase of the Estate's Interest in
Certain Property; (2) Approving Overbid Procedure; (3) Deeming Buyer to be a Good Faith Purchaser Pursuant to
11 US.C. Section 363(ml; (4) Waiving 14 Day Stay Imposed by Federal Rule of Bankruptcy Procedure 6004(h);
Memorandum of Points and Authorities; and. Declarations of Trustee Jason M. Rund. Thomas H. Casey, and
Proposed Buyer Michael Flynn in Support Thereof will be served or was served (a) on the judge in chambers in the
form and manner required by LBR 5005-2(d); and (b) in the manner stated below:
1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General
Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On (date)1
-----[)ecember6.-201-21l-checked-the-eM/EeF-docket-forthis-bankruptcy-case-or-adversary-proceeding-and-determined-that----the following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated
below:

Thomas H Casey lmiller@tomcaseylaw.com, msilva@tomcaseylaw.com
Thomas M Geher tmg@jmbm.com, we1@jmbm.com;fc3@jmbm.com
John H _Kim jkim@cookseylaw.com
Elmer D Martin elmermartin@gmail.com
Roshni V Patel bknotice@mccarthyholthus.com
Jason M Rund (TR} trustee@srlawyers.com, jrund@ecf.epiqsystems.com
Steven R Skirvin srs@dkclaw.com
Craig S Sternberg craig@stoslaw.com, scher@schernet.com
United States Trustee (LA} ustpregion16.la.ecf@usdoj.gov
Kristin A Zilberstein bknotice@mccarthyholthus.com, kzilberstein@mccarthyholthus.com
2. SERVED BY UNITED STATES MAIL:

On (date) December 6, 2012, I served the following persons and/or entities at the last known addresses in this
bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United
States mail, first class, postage prepaid, and addressed as follows. Listing the judge here constitutes a declaration that
mailing to the judge will be completed no later than 24 hours after the document is filed.
~ Servic~ information continued on attached page
I declare under penalty of perjury under the laws of the United States that the fo egoin is true and correct.
December 6, 2012
Date
Kathy Driggers
Printed Name
Sig
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of C ifornia.
June 2012
F 9013-3.1.PROOF.SERVICE
Case 2:10-bk-18510-BB

Main Document
Page 79 of 79
Desc
SERVED BY U.S. MAIL:

Counsel for eTreppid Technologies, LLC

Timothy A Lukas, Esq.
Holland & Hart LLP
5441 Kietzke Lane, 2nd Floor
Reno, NV 89511-2094
Debtors
6 Toscana Way
Counsel for eTreppid Technologies, LLC

Reid H. Weingarten, Esq.
Brian M. Heberlig, Esq.
Robert A Ayers, Esq.
Steptoe & Johnson LLP
1330 Connecticut Avenue, N.W.
Washington, D.C. 20036-1795

6 Toscana Way
Interested Parties
----RaphaeLO.-Gomez _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Carlotta P. Wells
Senior Trial counsel
Federal Programs Branch
US Department of Justice
Civil Division - Room 6114
20 Massachusetts Ave., N.W.
P.O. Box 883
Washington, DC 20044
Counsel for Michael Joseph Flynn
Christopher J. Conant
Conant Law LLC
730 1?'h Street, Suite 200
Denver, CO 80202
Michael Joseph Flynn
P.O. Box690
Rancho Santa Fe, CA 92067
Counsel for Scott D. Hill
Craig S. Sternberg
Sternberg Thomson Okrent & Scher, PLLC
500 Union Street, Suite 500
Seattle, WA 98101
Counsel for Scott D. Hill
Craig S. Sternberg
Sternberg Thomson Okrent & Scher, PLLC
600 University Street, Suite 2401
One Union Square
Seattle, WA 98101
Scott D. Hill
3760 Carillon Point
Kirkland, WA 98033
755 Trademark Drive
Reno, NV 89521-5920
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
June 2012
F 9013-3.1.PROOF.SERVICE

DM Bankr # 203 - Motion Re Sale of Assets To Flynn - 2-10-bk-18510-BB - 203

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Case 2:10-bk-18510-BB

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

Thomas H. Casey- Bar No. 138264

Attorneys for Jason M. Rund

MONTGOMERY, DENNIS LEE,

) Case No. 2:10-bk-18510-BB

(1) APPROVING SALE AGREEMENT

(2) APPROVING OVERBID PROCEDURE;

MEMORANDUM OF POINTS AND

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

Scheduled Assets Of The Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

A.ssetsCla1meci-Exempt ............................................. 2-- - -

Assets Purchased By Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 3

Assets Abandoned By Trustee ........................................ 3

Assets To Be Sold Include Documents Currently Held By The Trustee ........ 4

Sale Terms ............................................................. 8

The Overbid Procedure ................................................... 9

Determination of Good Faith Purchaser ..................................... 10

Waiver Of Stay Is Appropriate ............................................ 10

Memorandum of Points and Authorities ........................................... 12

The Court May Authorize The Sale Of Property ......................... 12

The Bankruptcy Court Has The Authority To Implement

Waiver Of The Stay Is Appropriate ................................... 13

Declaration Of Jason M. Rund ................................................... 15

Declaration of Thomas H. Casey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 25

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

In re Industrial Valley Re.frig. & Air Cond Supplies, Inc.

77 B.R. 15, 21 (Bankr. E.D. Pa. 1987) ............................................ 12

679 F.2d 774 (91 Cir. 1982) ..................................................... 13

Montgomery v. eTreppid Technologies,

2009 U.S. Dist. LEXIS 35543 ............................................. 10, 24, 27

11 U.S.C. 105(a) ............................................................ 13

11 U.S.C. 363(m) .............................................. 1, 10, 11, 15, 23, 25

11 U.S.C. 703.140(b)(2) .................................................... 3, 16

11 U.S.C. 703.140(b)(4) .................................................... 3, 16

11 U.S.C. 703.140(b)(10)(E) ................................................. 3, 16

31U.S.C.3129 ............................................................ 3,17

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

CHAPTER 7 TRUSTEE'S MOTION FOR ORDER: (1) APPROVING

respectfully represents as follows:

will benefit the bankruptcy estate.

under Chapter 7 of the Bankruptcy Code.

("Trustee") for the bankruptcy estate.

The Trustee conducted several very lengthy 34l(a)

examinations in this case.

SCHEDULED ASSETS OF THE DEBTORS

S:\Wordperfect\Montgomery\Pleadings\Mtn.Approve. Sale.Agreement.Flynn. wpd

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

"1" and incorporated herein by this reference.

proceeding in the US Federal Court, Reno, NV - Case #306-cv-00056-PMP-VPC valued at

Technologies on 09/08 valued at $26,500,000.00 (collectively, "Personal Property Assets"). A copy

Assets Claimed Exempt

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

per Section 703. l 40(b)(1 O)(E).

Silverado in the amount of $2,97 5 per Section 703. l 40(b)(2).

Assets Purchased By The Debtors

-------------- - - g - - enterec:i-June rr;-20TO:cD-JuRe Box; Jewelry; r;OOOSliares ofNevaaaSecurity Ban:KStock; ana------10

Assets Abandoned By The Trustee

reference is the November 10, 2010 Order.

The following unscheduled Personal Property Asset was abandoned by the

reference is the March 24, 2010 Order.

Doc 203 Filed 12/06/12 Entered 12/06/12 16:23:06

Assets To Be Sold Include Documents Currently Held By The Trustee