civic development group inc ftc 2010 complaint incuding scott pasch aka j. henry scott

Case 2:07-cv-04593-FSH-PS Document 93 Filed 03/29/10 of 76

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNiTED STATES OF AMERICA,

Plaintiff, v.

Civic Development Group, LLC, CDG Management, LLC, SCOTT PASCH, and DAVID KEEZER;

Defendants.

Civil Action No. 2:07-cv-04593-FSH-PS

STIPULATED ORDER FOR PERMANENT INJUNCTION AND FINAL JunGMENT AS TO DEFENDANTS

SCOTT PASCH, CMC DEVELOPMENT GROUP, LLC, AND CDG MANAGEMENT, LLC

WHEREAS Plaintiff the United States of America ("United States") filed a Complaint in

this matter for civil penalties, consumer redress, injunctive, and other relief (the "Complaint") on

September 24, 2007, pursuant to Sections 5, 13, 16, and 19 of the Federal Trade Commission

Act ("FTC Act"), 15 U.S.C. §§ 45, 53, 56, and 57b, charging violations of a Federal Trade

Conunission ("FTC" or "Conunission") Order and the Telemarketing Sales Rule in connection

with the solicitation of charitable donations; and

WHEREAS the United States, the Conunission and Defendants Civic Development

Group, LLC, CDG Management LLC, and Scott Pasch have consented to the entry of this

Stipulated Order for Permanent Injunction and Final Judgment ("Order") to resolve aU matters of

dispute between them in this action;


NOW, THEREFOR,E, the United States, the Commission, and Defendants, having

requested that the Court enter this Order, and the Court having considered the parties' request, it

is hereby ORDERED, ADruDGED, AND DECREED as follows:

FINDINGS

1. This Court has jurisdiction over the subject matter and the parties pursuant to 28

U.S.C. §§ 1331 and 1337(a), and 15 U.S.C. § 53(b).

2. Venue is proper as to all parties in this District.

3. Defendants' activities are in or affecting commerce, as defined in Section 4 of the

FTC Act, 15 U.S.C. § 44.

4. The Complaint states a claim upon which relief may be granted pursuant to

Sections 5, 13, 16, and 19 of the FTC Act, 15 U.S.C. §§ 45, 53, 56, and 57b, and the

Telemarketing Sales Rule, 16 CFR § 310.

5. Defendants have entered into this Order freely and without coercion. Defendants

further acknowledge that they have read the provisions of this Order and are prepared and able to

abide by them.

6. The parties agree that this Order resolves all allegations in the Complaint. The

parties waive all rights to seek appellate review or otherwise challenge or contest the validity of

this Order. Defendants further waive and release any claims they may have against the United

States, the Commission, and any employees, representatives, or agents of either.

7. Defendants do not admit to the allegations in the Complaint other than the

jurisdictional facts and entry of this Order does not constitute an admission of liability by the

Defendants.

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8. Defendants agree that this Order does not entitle them to seek or to obtain

attorneys' fees as a prevailing party under the Equal Access to Justice Act, 28 U.S.C. § 2412, as

amended by Pub. L. 104-121, 110 Stat. 847, 863·64 (1996), and Defendants further waive any

right to attorneys' fees that may arise under said provision oflaw. The parties agree to bear their

own costs and attorneys' fees.

9. Entry of this Order is in the public interest.

DEFINWONS

For the purpose of this Order, the following defmitions shall apply:

A. "Asset" means any legal or equitable interest in, right to, or claim to, any real and

personal property, including without limitation, goods, instruments, equipment, fixtures, general

intangibles, inventory, checks, and notes (as defined in the Uniform Commercial Code), and all

chattels, leaseholds, contracts, shares of stock, lists of consumer names, mail or other deliveries,

premises, accounts, funds, credits, receivables, checks, money orders, and cash, wherever

located.

B. ''Individual Defendant" means Scott Pasch.

C. "Corporate Defendants" means Civic Development Group, LLC, CDG

Management, LLC, and their successors and assigns.

D. "Defendants" means the Individual Defendant and the Corporate Defendants,

individually, collectively, or in any combination.

E. "Document" is synonymous in meaning and equal in scope to the usage of the

term in Federal Rule of Civil Procedure 34(a), and includes writings, drawings, graphs, charts,

photographs, audio and video recordings, computer records, email, electronic communications,

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webpages, websites, and other data compilations from which information can be obtained and

translated, if necessary, through detection devices into reasonably usable form. A draft or

non-identical copy is a separate document within the meaning of the term.

F. "Investing" means obtaining an ownership interest of more than one percent of a

business entity.

G. "Person" means a natural person, a dealer, an organization or other legal entity,

including a corporation, partnership, sale proprietorship, limited liability company, association,

cooperative, or any other group or combination acting as an entity.

H. ''Telemarketing'' means any plan, program or campaign (whether or not covered

by the Telemarketing Sales Rule, 16 C.F .R. § 310) that is conducted to induce the purchase of

goods or services by means of the use of one or more telephones.

I. "Charitable Solicitation" means the solicitation of money or anything of value for

the direct or indirect benefit, in whole or in part, of any entity which is, or is represented to be, a

non-profit, or which has, or is represented to have, a charitable purpose, including, but not

limited to, any entity that purports to benefit a law enforcement, veterans or firefighting

organization(s); law enforcement, veterans, or firefighting personnel; or law enforcement,

veterans, or frrefighting program(s), regardless of whether the donor receives anything in return .

. ORDER

I. BAN ON.TELEMARKETING

IT IS THEREFORE ORDERED that Defendants are permanently restrained and enjoined

from engaging or participating in telemarketing, directly or through any intermediary, including,

but not limited to, by consulting, brokering, planning, investing. outsourcing, or advertising.

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II. BAN ON CHARITABLE SOLICITATION

IT IS HEREBY ORDERED that Defendants are pennanently restrained and enjoined

from engaging or participating, directly or through any intermediary, including, but not limited

to, by consulting, brokering, outsourcing, or planning, in any charitable solicitation, for which

they, individually or jointly, receive, attempt to receive, or reasonably would be expected to

receive any financial benefit, whether monetary or through the provision of goods or services.

III. INJUNCTION AGAINST MISREPRESENTATION

IT IS HEREBY ORDERED that, in connection with the advertising, marketing,

promotion, offering for sale, sale, or distribution of any product or service, Defendants, their

officers, agents, servants, contractors, and employees, and those persons or entities in active

concert or participation with them who receive actual notice of this Order by personal service or

otherwise, whether acting directly or through any intennediary, are pennanently restrained and

enjoined from making, or assisting others in making, expressly or by implication, any false Of

misleading material representation, including, but not limited to, representations concerning the

cost, perfonnance, efficacy, nature, characteristics, benefits, or safety of any product or service.

IV. CIVIL PENALTY JUDGMENT

IT IS FURTHER ORDERED that judgment in the amount of eighteen million seven

hundred seventy five thousand six hundred and ten dollars ($18,775,610) is hereby entered

against Defendants as a civil penalty pursuant to Section S(m)(l)(A) of the FTC Act, 15 U.S.C. §

4S(m)(1)(A). This judgment is entered as ordered below and in the separate Order entered

against Defendant David Keezer.

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A. Defendant Pasch is ordered to pay five million eight hundred thousand dollars

($5,800,000) to satisfy his portion of the judgment, which shall he deemed paid as follows:

1. Within five (5) days of entry of this order, Defendant Pasch shall

cooperate fully with the Liquidator appointed in Section V of this Order

and take such other steps as the Liquidator may require to transfer all

rights, title, and interest to the Liquidator, or to the Liquidator's

designated trust, the financial accounts listed in Schedule A attached to

this Order. The value of the assets in the accounts shall be in the amount

listed on Schedule A and on Defendant Pasch's sworn financial statement

executed on February 4, 2010, except that the value may differ only to the

extent caused by changes to the market value of those assets or accrued

interest. Except as set forth in Section V.J of this Order, the costs and

expenses of transferring such assets to the Liquidator shall be paid by the

Liquidatorship.

2. Defendant Pasch waives all claims to, unconditionally releases, and

consents to transfer to the Liquidator, or to his designated trust, possession

and legal and equitable title of all personal property listed in Schedule B

attached to this Order (the "Personal Property").

3. Defendant Pasch shall cooperate fully with the Liquidator and take such

other steps as the Liquidator may require to transfer to the Liquidator, or

to his designated trust, possession and legal and equitable title to all such

Personal Property within 10 days of request by the Liquidator, including

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executing any documents, procuring the signatures of any person or entity

under his control, providing access to the Personal Property and any

necessary information, and turning over the property. Except as set forth

in Section V.J of this Order, the costs and expenses of transferring the

Personal Property to the Liquidator shall be paid by the Liquidatorship.

4. Until Defendant Pasch surrenders possession and legal and equitable title

of the Personal Property to the Liquidator:

a. Defendant Pasch and Lisa Pasch shall maintain and take no action

to diminish the value of the Personal Property, including any

structures, fixtures, and appurtenances thereto, in good working

order and in the same condition as on the date he executed his

sworn financial statement dated February 4, 2010;

b. Defendant Pasch shall remain current on all amounts due and

payable on the Personal Property, including but not limited to tax,

insurance, maintenance, and similar fees;

c. Defendant Pasch shall cause existing insurance coverage for the

Personal Property to remain in force until the surrender of

possession and legal and equitable title and shall both notifY the

insurance carrier(s) immediately of the appointment of the

Liquidator and request that the Liquidator and the United States be

added to the insurance policy or policies as additional insureds

thereunder.

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5. Within thirty (30) days of entry ofthis Order, unless otherwise agreed to

in writing by the Liquidator and the United States, Defendant Pasch shall

vacate and transfer possession and legal and equitable title to the

Liquidator, or to his designated trust, the real property located at 7

Kensington Court, Warren, New Jersey (the "Real Property"). Provided,

however, that Defendant Pasch may use and occupy the premises at the

sale discretion of, and in accordance with the terms set by, the Liquidator,

which shall not unduly interfere with the Liquidator's sale of the Real

Property.

6. Defendant Pasch shall cooperate fully with the Liquidator and take such

other steps as the Liquidator may require to transfer to the Liquidator, or

to his designated trust, possession and legal and equitable title to the Real

Property, including executing any documents, procuring the signatures of

any person or entity under his control, providing access to the Real

Property, providing any necessary information, and turning over the Real

Property. Except as set forth in Section V,J of this Order, the costs and

expenses oftransferring"the Real Property to the Liquidator shall be paid

by the Liquidatorship.

7. Defendant Pasch represents that no encumbrances to the Personal Property

or the Real Property have been added since execution of his sworn

financial statement on February 4, 2010. Defendant Pasch represents that

he will not add any such encumbrances after signing this Order.

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Defendant Pasch shall not add any such encumbrances after entry of this

Order.

8. As long as they occupy the Real Property, Defendant Pasch and Lisa

Pasch shall maintain and take no action to diminish the value ofthe Real

Property, including any structures, fixtures, and appurtenances thereto, in

good working order and in the same condition as on the date he executed

his sworn financial statement dated February 4, 2010.

9. Until Defendant Pasch transfers possession of the Real Property to the

Liquidator:

a Defendant Pasch shall remain current on all amounts due and

payable on the Real Property, including but not limited to tax,

insurance, homeowner's assessments, reasonable and necessary

maintenance, and similar fees;

b. Defendant Pasch shall cause existing insurance coverage for the

Real Property to remain in force until the transfer of possession

and shall both notifY the insurance carrier(s) immediately of the

appointment of the Liquidator and request that the Liquidator and

the United States be added to the insurance policy or policies as

additional insureds thereunder.

10. Nothing in this Order requires Defendant Pasch to pay any amount

relating to or concerning the above described Personal or Real Property,

including but not limited to any taxes, insurance, homeowner's

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assessments, maintenance, and similar fees, after Defendant Pasch has

vacated and transferred possession and legal and equitable title of the

Personal and Real Property to the Liquidator. The transfer of possession

of the Real Property occurs when Defendant Pasch vacates the Real

Property in "broom clean condition," delivers all keys and security codes,

if any, to the Liquidator along with written notice that possession is

surrendered, or has transferred legal and equitable title but remains on the

premises pursuant to agreement with the Liquidator as provided in

Subparagraph A.5 of this Section.

II. Defendant Pasch waives all claims to, unconditionally releases, and

consents to the transfer to the Liquidator by the following corporate

entities of possession and legal and equitable title of all their respective

assets: Civic Development Group, LLC; CDG Management, LLC;

Millennium Teleservices, LLC; Fundraising Processing Center, LLC;

National Fundraising Consultants, LLC; National Pharmacy Discounts,

LLC; MTSC Management, Inc.; Millennium Teleservices Canada

Company; and SPDK, LLC (together, the "Corporations"). Defendant

Pasch further assigns to the United States all rights, title, and interest in

any claims he has against any ofthe Corporations and in the membership

interest in or capital stock of the Corporations directly or indirectly owned

by him.

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B. Corporate Defendants are ordered to pay six million six hundred and seventy five

thousand six hundred and ten dollars ($6,675,610) to satisfY their portion of the judgment.

Corporate Defendants shall make partial payment of this amount as follows: .

I. Within five (5) days of entry ofthis order, Corporate Defendants shall

transfer all rights, title, and interest to the Liquidator appointed in Section

V of this Order, or to his designated trust, the fiuancial accounts listed in

Schedule C attached to this Order. The value ofthe assets in the accounts

shall be the amount listed on Schedule C and on Corporate Defendant

Civic Development Group, LLC's sworn financial statement executed on

February 4, 2010, as amended on February 25, 2010, except that the value

may differ only to the extent caused by changes to the market value of

those assets or accrued interest since February 22, 2010.

2. Corporate Defendants shall cooperate fully with the Liquidator and take

such other steps as the Liquidator may require to transfer to the

Liquidator, or to his designated trust, legal and equitable title to (subject to

any interest(s) ofany third party), and possession ofany and all assets

described in Schedule C within 5 days of request by the Liquidator,

including executing any documents, procuring the signatures of any

person or entity under their control, providing any necessary information,

and turning over any property.

3. In the event a petition for relief under the Bankruptcy Code, 11 U.S.C.

§ 101, et seq., is filed by or against the Corporate Defendants or either of

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them before the transfers of assets required by subparagraphs IV.B.I and

IV.B.2 above occur, those subparagraphs shall not take effect unless and

until the bankruptcy court grants relief from the automatic stay pursuant to

11 U.S.C. § 362(d). In the event of such a bankruptcy filing, to the

maximum extent permissible under law, the Corporate Defendants agree

that the United States shall be entitled to seek and obtain relief from the

automatic stay, and that any rights the Corporate Defendants may have to

object to, stay, oppose, or interfere with obtaining such relief, including

any rights under II U.S.C. §§ 105 and 362, are hereby released and

waived. The Corporate Defendants further acknowledge and agree that

the value of the assets listed in Schedule C is less than the amount of the

judgment owing to the Commission.

C. Defendant Pasch's spouse, Lisa Pasch, waives all claims to, unconditionally

releases, and consents to transfer to the Liquidator possession and legal and equitable title of all

assets referenced in this Section IV. Lisa Pasch shall cooperate fully with the Liquidator and

take such other steps as the Liquidator may require to transfer to the Liquidator, or to his

designated trust, any and all ofthe assets referenced in this Section IV, including executing any

documents, procuring the signatures of any person or entity under her control, providing access

and any necessary information, and turning over such assets.

D. . Defendants shall cooperate fully with the United States and the Commission and

their agents in all attempts to collect the amounts due and effectuate the transfer of assets

required pursuant to this Section. If Defendants fail to pay fully the amount due or make the

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required transfers of assets at the time specified herein, then in addition to any other remedies

available, Defendants agree to provide the United States and the Commission with their federal

and state tax returns for the preceding two years, and to complete standard financial disclosure

forms fully and accurately within ten (10) business days of receiving a request from the United

States or the Commission to do so. In such an event, Defendants further authorize the United

States and the Commission to verifY all information provided on their financial disclosure forms

with all appropriate third parties, including but not limited to financial institutions.

E. In accordance with 31 U.S.C. § 7701, Defendants are required, unless already

provided, to furnish to the United States and the Commission with their taxpayer identification

numbers (employer identification number), which shall be used for purposes of collecting and

reporting on any delinquent amount arising out of theirrelationship with the govemment.

F. Defendants relinquish all dominion, control, and title to the assets described in

this Section IV and in Schedules A, B, and C to the fullest extent permitted by law. Defendants

shall make no claim to nor demand return ofthe assets, directly or indirectly, through counselor

otherwise.

G. This judgment represents a civil penalty owed to the United States Government,

and is not compensation for actual pecuniary loss, and, therefore, is not subject to discharge

under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7). For purposes of this Section,

Defendants waive any right to contest any of the allegations in the Complaint in any subsequent

civil litigation filed by or on behalf of the Commission or the United States to enforce their

rights to any payment or money judgment pursuant to this Order.

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H. Proceedings instituted under this Section are in addition to, and not in lieu of, any

other civil or criminal remedies that may be provided by law, including any other proceedings

the United States or the Commission may initiate to enforce this Order.

V. APPOINTMENT AND DUTIES OF LIQUIDATOR RECEIVER

IT IS FURTHER ORDERED THAT Richard Trenk, Esq. ofTrenk, DiPasquale, PC, 347

Mount Pleasant Avenue, Suite 300, West Orange, New Jersey is appointed as Liquidator

Receiver ("Liquidator") with all the rights and powers of an equity receiver, over the Real

Property described in Section IV.A.S of this Order and all property listed in Attached Schedules

A, B, and C (collectively, the "Properly").

A. As soon as reasonably possible, the Liquidator shall, at reasonable cost and in a

commercially reasonable fashion, liquidate the Property. In liquidating the accounts listed in

Schedules A and C, the Liquidator shall pay any necessary brokerage fees and taxes from the

proceeds. After all of the Property has been liquidated, the Liquidator shall account for the net

proceeds derived, and transfer all such net proceeds to the United States. The Liquidator shall

make the transfer required by this paragraph by electronic fund transfer or certified or cashier's

check in accordance with instructions provided by the Office of Consumer Litigation, Civil

Division, U.S. Department of Justice, Washington, D.C. 20530.

B. Upon transfer oflegal and equitable title and possession the Liquidator is

authorized to assume responsibility for management ofthe Property, including but not limited to

making disbursements for operating expenses as may be appropriate, undertaking repairs, and

taking any other actions necessary to efficiently manage the Properly and to maintain its value.

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C. The Liquidator shall take all necessary action to procure appropriate insurance for

the Property, naming the Liquidator and the United States as insureds. The Liquidator may as an

option keep in force the existing insurance coverage(s), each of which shall name the United

States and the Liquidator as additional insureds thereunder.

D. The Liquidator shall have all necessary powers to operate and otherwise manage

the Property including, without limitation, the following powers and responsibilities:

1. to take possession of the Property;

2. to supervise and oversee the management of the Property, including

making payments and paying taxes as and when the Liquidator has funds

available from the Property, or from the liquidation of the Property;

3. to employ such counsel, real estate agents, auctioneers, appraisers,

accountants, contractors, other professionals, and other such persons as

may be necessary in order to carry out his duties as Liquidator and to

preserve, maintain, and protect the Property;

4. to determine or abrogate, in the Liquidator's sole sound business

discretion, any or all agreements, contracts, understandings or

commitments entered into by any Defendant with respect to the Property

to the eldent permitted by applicable law;

5. to open new accounts with, or negotiate, compromise or otherwise modifY

the Defendants' existing obligations with third parties, including utility

companies, other service providers or suppliers of goods and services

related to the Property, and to otherwise enter into such agreements,

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contracts, or understandings with such third parties as are necessary to

maintain, preserve, and protect the Property;

6. to open new bank accounts with respect to the Liquidator's management

and operation of the Property; and

7. to apply to this Court fur further directions and for such further powers as

may be necessary to enable the Liquidator to fulfill his duties.

E. The Liquidator shall keep a true and accurate account of any and all receipts and

expenditures and periodically file with the Court a Liquidatorship Report under oath, accurately

identifYing all such revenues received and expenditures made, including adequately detailed

information concerning income, expenses, payables and receivables. These periodic filings shall

be served by the Liquidator on the Commission, the United States, Defendants, and their

respective counsel.

F. The Defendants and their agents, employees or other representatives are enjoined

from interfering in any manner with the Liquidator'S management and operation of the Property

and the Defendants and their agents, employees or other representatives are enjoined and

restrained from collecting any rents or profits which are now or hereafter become due with

respect to all or any portion of the Property and from interfering in any way with United States'

or the Liquidator's collection of such rents or profits.

G. The Liquidator shall nut be bound by all or any unsecured contracts, agreements,

understandings or other commitments in the nature of service contracts the Defendants had, have

or may have with third parties with respect to the Property, whether oral or written, and the

Liquidator shall be authorized, by affirmative written ratification executed by the Liquidator, to

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agree to become bound by any such contracts, agreements, understandings or other

commitments, or may agree to enter into new or amended contracts, agreements, understandings

or other commitments.

H. Any and all sums collected by the Liquidator over and above those necessary to

manage the Property or those necessary to make payments authorized by this Order shall be paid

to the United States as directed by the United States.

1. The Liquidator is entitled to reasonable compensation for the performance of

duties undertaken pursuant to this Order and for the cost of actual out-of-pocket expenses

incurred by him. The Liquidator's compensation and the compensation of any persons hired by

him are to be paid solely from the Property and the proceeds ofthe sale of the Property, and such

payments shall have priority over all other distributions except for any transfer fees, recording

fees, or other payments owed through the transfer of the Property at the time of its sale.

J. The Liquidator shall file with the Court and serve on the parties a request for the

payment of reasonable compensation at the time of the filing of periodic reports and no less than

every sixty (60) days. The Liquidator shall not increase the fees or rates used as the bases for

such fee applications without prior approval of the United States and the Court. The Defendants

shall have no right to objecHo the Liquidator's fees or compensation. Absent a violation of this

Order that causes the Liquidator to incur fees or expenses, Defendants shall not be liable for the

Liquidator's fees or expenses beyond the amount paid pursuant to Section IV.

K. Upon the final transfer of all funds to the United States pursuant to this Section V

the duties of the liqUidator shall terminate. The Liquidator shall file his final application for

fees, complete liquidation, and terminate his service within 270 days of the execution of this

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Order. unless good cause is shown to extend beyond 270 days. At the termination of

Liquidator's duties, the Liquidator shall transfer any unliquidated right. title. and interest in the

Property to the United States.

VI. CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendants. and their agents, servants, and employees,

and all other persons in active concert or participation with any of them who receive actual

notice of this Order by personal service or otherwise, are pennanently restrained and enjoined

from:

A. disclosing, using, or benefitting from customer information, including the name,

address, telephone number. email address, social security number, other identifYing information,

or any data that enables access to a customer's account (including a credit card, bank account, or

other financial account), ofany person which any Defendant obtained prior to entry of this Order

in connection with any charitable solicitation or for-profit telemarketing in which Corporate

Defendants were wholly or partially involved.

B. failing, within fourteen (14) days after entry of this Order, to transfer possession

of all such customer infonnation related to charitable solicitation to the United States (subject to

any legally valid interests of third parties). This transfer shall be made in accordance with

instructions provided by the Office of Consumer Litigation, Civil Division, U.S. Department of

Justice. Washington, D.C. 20530. Defendants must either destroy or return to the rightful owner

all other customer infonnation in their possession within fourteen (14) days after entry of this

Order.

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VII. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purposes of monitoring and investigating

compliance with any provision of this Order:

A. Within ten (10) business days of receipt of written notice from a representative of

the Commission or the United States, Defendants each shall submit additional written reports,

which are true and accurate and sworn to under penalty of peIjury; produce documents for

inspection and copying; appear for deposition; and provide entry during normal business hours

to any business location in each Defendant's possession or direct or indirect control to inspect

the business operation;

B. In addition, the Commission and the United States are authorized to use all other

lawful means, including but not limited to:

1. obtaining discovery from any person, without further leave of court, using

the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, 4S and 69;

2. having their representatives pose as consumers and suppliers to

Defendants, their employees, or any other entity managed or controlled in

whole or in part by any Defendant, without the necessity of identification

or prior notice; and

C. Defendants each shall permit representatives ofthe Commission and the United

States to interview any employer, consultant, independent contractor, representative, agent, or

employee who has agreed to such an interview, relating in any way to any conduct subject to this

Order. The person interviewed may have counsel present. Provided however. that nothing in

this Order shall limit the Commission's or tbe United States' lawful use of compulsory process,

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pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b·l, to obtain any

documentary material, tangible things, testimony, or information relevant to unfair or deceptive

acts or practices in or affecting commerce (within the meaning of 15 U.S.C. § 45(a)(I)).

VIII. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this

Order may be monitored;

A. For a period offive (5) years from the date of entry of this Order,

1. Individual Defendant shall notifY the Commission of the following;

a. Any changes in such Defendant's residence, mailing addresses,

and telephone numhers, within ten (10) days of the date of such

change;

b. Any changes in such Defendant's employment status (including

self-employment), and any change in such Defendant's ownership

of more than one percent of any business entity within ten (10)

days of the date of such change. Such notice shall include the

name and address of each business that such Defendant is affiliated

with, employed by, creates or forms, or perfonns services for; a

detailed description of the nature of the business; and a detailed

description of such Defendant's duties and responsibilities in

connection with the business or employment; and

c. Any changes in such Defendant's name or use of any aliases or

fictitious names within ten (10) days of the date of such change;

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2. Defendants shall notifY the Commission of any changes in structure of

Corporate Defendants or any business entity that any Defendant directly

or indirectly controls, or has a more than one percent ownership interest

in, that may affect compliance obligations arising under this Order,

including but not limited to: incorporation or other organization; a

dissolution, assigrunent, sale, merger, or other action; the creation or

dissolution of a subsidiary, parent, or affiliate that engages in any acts or

practices subject to this Order; or a change in the business name or

address, at least thirty (30) days prior to such change, provided that, with

respect to any such change in the business entity about which a Defendant·

learns less than thirty (30) days prior to the date such action is to take

place, such Defendant shall notifY the Commission as soon as is

practicable after obtaining such knowledge.

B. One hundred eighty (180) days after the date of entry of this Order and annually

thereafter for a period of eight (8) years, Defendants each shall provide a written report to the

Commission, which is true and accurate and sworn to under penalty of perjury,. setting forth in

detail the manner and form in which they have complied and are complying with this Order.

This report shall include, but not be limited to:

1. For Individual Defendant:

a. Defendant's then-current residence address, mailing addresses, and

telephone numbers;

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b. Defendant's then-current employment status (including self-

employment), including the name, addresses, and telephone

numbers of each business that Defendant is affiliated with,

employed by, or performs services for; a detailed description of the

nature of the business; and a detailed description of Defendant's

duties and responsibilities in connection with the business or

employment; and

c. Any other changes required to be reported under Subsection A of

this Section.

2. For all Defendants:

a. A copy of each acknowledgment of receipt of this Order, obtained

pursuant to the Section titled "Distribution of Order;" and

b. Any other changes required to be reported under Subsection A of

this Section.

C. Each Defendant shall notifY the Commission of the filing of a bankruptcy petition

by such Defendant within fifteen (15) days of filing.

D. For the purposes of this Order, Defendants shall, unless otherwise directed by the

Commission's authorized representatives, send by overnight courier all reports and notifications

required by this Order to the Commission, to the following address:

Associate Director for Enforcement Bureau of Consumer Protection Federal Trade Commission 600 Pennsylvania Avenue, N.W. Washington, D.C. 20580 RE: FTC v. Civic Development Group et aI., C3810

22


- - ---------------

Provided that, in lieu of overnight courier, Defendants may send such reports or

notifications by first-class mail, but only if Defendants contemporaneously send an electronic

version of such report or notification to the Commission at: [email protected].

E. For the purposes of this Order, Defendants and the Liquidator shall, unless

otherwise directed in writing by a representative of the United States, identify all written

notifications or other material required to be sent to the United States, as in reference to 01#

102-3399, and send them by overnight courier to:

Director, Office of Consumer Litigation U.S. Department of Justice - Civil Division 450 Fifth Street, NW, Suite 6400 Washington, DC 20001

F. For purposes of the compliance reporting and monitoring required by this Order,

the Commission and the United States are authorized to communicate directly with each

Defendant.

IX. RECORDKEEPING

IT IS FURTIffiR ORDERED that, in connection with the advertising, marketing,

promotion, offering for sale, sale, or distribution of any product or service, for a period often

(10) years from the date of entry of this Order, Corporate Defendants, and Individual Defendant

for any business for which he, individually or collectively, is the majority owner or directly or

indirectly controls, are hereby restrained and enjoined from failing to create and retain the

following records:

A. Accounting records that reflect the cost of goods or services sold, revenues

generated, and the disbursement of such revenues;

23


B. Personnel records accurately reflecting: the name, address, and telephone number

of each person employed in any capacity by such business, including as an independent

contractor; that person's job title or position; the date upon which the person commenced work;

and the date and reason for the person's termination, if applicable;

C. Customer files containing the names, addresses, phone numbers, dollar amounts

paid, quantity of items or services purchased, and description of items or services purchased, to

the extent such information is obtained in the ordinary course of business;

D. Complaints and refund requests (whether received directly or indirectly, such as

through a third party,) and any responses to those complaints or requests;

E. Copies of all sales scripts, training materials, advertisements, or other marketing

materials; and

F. All records and documents necessary to demonstrate full compliance with each

provision ofthis Order, including but not limited to, copies ofacknowledgments of receipt of

this Order required by the Sections titled "Distribution of Order" and "Acknowledgment of

Receipt of Order" and all reports submitted to the Commission pursuant to the Section titled

"Compliance Reporting."

X. DISTRIBUTION OF ORDER

IT IS FURTHER ORDERED that, for a period oftive (5) years from the date of entry of

this Order, Defendants shall deliver copies of the Order as directed below:

A. Corporate Defendants: Corporate Defendants must deliver a copy of this Order to

(1) all of their principals, officers, directors, and managers; (2) all of their employees, agents,

and representatives who engage in conduct related to the subject matter of the Order; and (3) any

24


business entity resulting from any change in structure set forth in Subsection A.2 ofthe Section

titled "Compliance Reporting." For current personnel, delivery shall be within five (5) days of

service of this Order upon such Defendant. For new personnel, delivery shall occur prior to

them assuming their responsibilities. For any business entity resulting from any change in

structure set forth in Subsection A.2 of the Section titled "Compliance Reporting," delivery shall

be at least ten (10) days prior to the change in structure.

B. Individual Defendant as control person: For any business that Individual

Defendant controls, directly or indirectly, or in which such Defendant has a majority ownership

interest, such Defendant must deliver a copy of this Order to (1) all principals, officers, directors,

and managers of that business; (2) all employees, agents, and representatives of that business

who engage in conduct related to the subject matter ofthe Order; and (3) any business entity

resulting from any change in structure set forth in Subsection A.2 of the Section titled

"Compliance Reporting." For current personnel, delivery shall be within five (5) days of service

of this Order upon such Defendant. For new personnel, delivery shall occur prior to them

assuming their responsibilities. For any business entity reSUlting from any change in structure

. set forth in Subsection A.2 of the Section titled "Compliance Reporting," delivery shall be at

least ten (10) days prior to the change in structure.

C. Defendants must secure a signed and dated statement acknowledging receipt of

the Order, within thirty (30) days of delivery. from all persons receiving a copy of the Order

pursuant to this Section.

25

, I


XI. ACKNOWLEDGMENT OF RECEWT OF ORDER

IT IS FURTHER ORDERED that each Defendant, within five (5) business days of

receipt of this Order as entered by the Court, must submit to the Commission a truthful sworn

statement acknowledging receipt ofthis Order.

XII. SEVERABILITY

IT IS FURTHER ORDERED that if and to the extent that any provision in this Order is

determined to be void or unenforceable as to any Defimdant, then as to that Defendant that

provision shall be deemed severable from the remaining provisions oftbis Order, which shall

remain in full force and effect.

XIII. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for

purposes of construction, modification, and enforcement ofthis Order.

SOORDEREDthis(~dayof mCiCCb 2010.

THE HONORABLE FAITHS. Hocmf UNITED STATES DISTRICT JlJDGE . United States District Court for the District of New Jersey

26


STIPULATED AND AGREED TO:

FOR nlE COMMISSION:

JAMES A. KOHM, Associate DI=tol', Division ofEnforoement

ROBERT S. KAYE, Assistant Director, Division of Enfurcement

'~C¥0---,.~ MATfHEW 1, WlLSHIRB, Attorney Federal Trad. Commission Plvlslon ofBnforcement 600 'Pennsylvania Ave., N.W. NJ-2122 Washlngtot), D.C. 20S80

202-326-2976 (tel) 202·326-2558 (flIx) mwilshire@ftc,gov

WILLARD K. TOM General COllnsel FOR THE PLAINTIFF TIlE UNrl'ED STATES OF AMERICA:

TONY WEST Assistant Altomey Genel'al Civil Division U.S. Department of Justice

PAUL J. FISHMAN United States Attorney for tho District of New Jersey

FOR THE DEFENDANTS:

MATTHEW OLIVER Lowenstein Sand IeI' PC 65 Livingston Ave. Roseland, New Jersey 07068 973-$97·2500 Attorneys for Defendants

Scott~idllallY Rnd as Vice President of Civic Development O''OIIP, LLC alld President of COO Management, LLC

Lisn Pasch, lIS to Sections IV.A, .IV.C and V.F ollly

~~~~ ~~ I~if ""''-1-NiEL GIBBONS (

Assistant U.S. AUomoy

27


EUGENE M. THIROLF Director Office of Consumer Litigation

KENNETH L. JOST Deputy Director Office of Consumer Litigation

ROGER GURAL Trial Attorneys Office of Consumer Litigation U.S. Department of Justice P.O. Box 386 Washington, D.C. 20044 Phone: (202) 305-3630 Fax: (202) 514-8742 E-mail: [email protected]

28 I

I

I

Case 2:07 -cv-04593-FSH-PS Document 93 Filed 03/29/10 of 76

SCHEDULE A (Financial Acconnts - Pasch)

Balance as of 2-04·201 0

I. Wells Fargo Advisors Account $56,510

2. Wells Fargo Advisors Account Number_ $0

3. Wells Fargo Advisors Account $0

4. Wells Fargo Advisors $108,736

5. Wells Fargo $93,024

6. UBSAccount $205,340

7. UBS Account Numbe_ $59,155

8. UBS Account $2,283

9. Additional payment to account for (a) FTC's consent to Defendant Pasch turning over primary residence in settlement rather than secondary residence, as set forth in the Certification executed by the parties on January 28, 2010, and (b) interim withdrawals from accounts $236,084

I

I

I ! ,

I j


SCHEDULE B (pERSONAL PROPERTy)

1. All vehicles identified in Item 21 of Defendant Pasch's sworn financial statement ("financial statemenf') and Exhibit L thereto:

A. 2004 Mercedes Benz model CLK320, VIN: WW200916100004182;

B. 2002 Mercedes Benz model 0500, VIN: WW200933600009523;

C. 2007 Mercedes Benz model B, VIN: J4RV20063040478; and

D. 2006 Bentley model Flying Spur, VIN: WW200928200004375.

2. The net proceeds from the auction sale of the wine collection identified in Item 20 of the financial statement as described in the Auction Proposal attached thereto as Exhibit G and attached to this Schedule as Exhibit 1. Defendant Pasch represents that upon signing this Order he will direct the auction company in writing to hold and transfer the sale proceeds directly to the Liquidator after entry of the Order.

3. The guitar collection identified in Item 20 of the financial statement as described in Exhibits H and I thereto and attached to this Schedule at Exhibit 2.

4. The pieces of jewelry described in numbered paragraphs 1,2,8,9, 10, 11, 12, 13 and 14 in Item 20 ofthe fmancial statement and Exhibit K thereto attached to this Schedule as . Exhibit 3.

5. The artwork or net sale proceeds of the artwork identified in Item 20 ofthe financial statement described in Exhibits D and E thereto and attached to this Schedule as Exhibit 4. Defendant Pasch represents that immediately upon receipt of the proceeds from the auction sale ofthe artwork described in Exhibit D, he will transfer the proceeds to Lowenstein Sandler to hold in escrow, and upon entry of the Order, Lowenstein Sandler will transfer those funds to the Liquidator in accordance with the Order and as directed by the Liquidator. As to the artwork identified in Exhibit E on consignment at the time Defendant Pasch signs this Order, Defendant Pasch represents that if the artwork is sold he will direct the art gallery in writing to hold and transfer the net sale proceeds directly to thl; Liquidator after entry of the Order.

6. All right, title, and interest Derendant Pasch may have in any remaining retainers for legal services, including any retainers held by Lowenstein Sandler, PC, after accounting for work performed prior to the date of entry of the Order.

7. All right, title, and interest Derendant Pasch may have to interest or payments made in . connection with any loan or investment to or in Financial Processing Services, Dolores

Keezer, or both, including any payments or assets received in connection with such loan or investment after Defendant Pasch signs this Order.


Pasch Schedule B Exhibit 1


Item 20. Personal Property

List all personal property, by category, whelh., held for ""nonal use or for inveslment, including but not limited to, furniture and household goods ofve1ue, computer equipment, electronics, GOins, stamps, artwork, gemstones,jewelry, bullion, other collectibl •• , copyrights, patents, and other intellectual property, held by you, your 'pous., or your dependents, or held by others for the benefit of you, your spou,., or your dependents.

Property Category (e.g .. ~rtw0rk. jewelry)

Artwork

Name Qf'Owner Property LgcatiDn

Scott & Lisa Pasch Warren NJ Residence

AcquiSition ~

$ 2,500,000 $ -1 ,400,OOC

Artwork (continued from ebo~ Scott & Lisa Pesoh Consigned in Lon2pn and FL slncludad $ included

Scott & Lisa Pasch Consign.~.to Zachy's

Scott & Lisa Pasch Warren NJ Residence

.."J"'sws=I"'ry'-_______ Scott & lisa pasch Warren NJ Residence

Wine

Guitars

$ Unknown $ -250,000

$ Unknown $ -700,000

$ 700,000 $ -300,000

See Exhibits D·K for lists of ... p",ro",ee",rty",,-,s'!,!n:co __ .!v:!:!al"'u"'at""lon=s"'upt:.tP9=rl _________ $ ___ _

Cars, TrUCks, Motoreyd~, Boao, Airplanes, and Other Vehides

List all cars, trucks, motorcycles, boals, ralrplanes. and other vehicles owned or operated by YOUt your spouse, or your dependents, or held by others for the benefit of you, your spouse, or your dependents.

-Vehicl. Type Car ... _____ M.ke Mercedes Benz Model g~32,,-0 _____ Year 2004

Registered Owner's Name .::S"'c"0,,tt-'-P.::s~5c"'h'-_____ R.&istration State & No. NJ WW2OO9161 00004182

Address of Vehicle's Looation -'W..:.9"'rc.re"n=N=.J.:..R"e:::s::id::e:.;,n"'c9=-___________________ _

Purchase Pric. $ -50,000 _ ._Current Value $-20,000 Retail Account/Loan No . .!N",o",n::e:...... ___ ~ __ _

Lender's Name and f\oar.", ..:.="'-______ . _________ . ____________ _

Original Loan Amount $,..;.N.::./A~ ____ Curr.nt Loan Bal.nce $l!IA'--___ Monthly Payment $ . .:.N"'/Ac:.... __ _

- Vehicle Type -'C"s", ______ Make Mercedes Benz Model 0500 AWD Ye.r 2002

Registered Owner', Name "'S"'co=tt-'-P-'a"'$"'Chc-_____ Registration State & No. NJ WW2OO933600009523

Addr ... crV.hicl.'s Location ..:W=arrc.e"'n=N.:.J.:.R;,:e:.::s:.::ld:.::e"'n"'ce::.-__________________ _

Purchase Price $,..:7...:7.."O"'O"'O'--___ Current Value $ -25,000 Account/Loan No • .!N"'o"'n"'6'--______ _

Lender'. Name and Addre .. ""'='--______ .. ___________________ _ Original Loan Amount $ • ..:N.:;I:.;A'--___ Current Loan Balance ,:.;= ____ Monthly Payment $ . .:.N""A'-'-__ _

Page 9 [nitials ~


ATTACHMENTS

Item 33. Doouments Att.ched to this Financial Slalament

List all documents lhat are being submitted wIth this financial statement.

Item No. Document Description of Document ReiatesTo

9 Supplement Pending Lawsuil!l .. .I!(E=x~h!!:ib~it~A'.L) ___________ _

-,1",2,,-,,13,,,,",-,14,-,", 1.c::9""2",9,--_",-,F",ln",an""c",la,,..' I=nfo!rnatlon (Cash, Securities, etc.) (Exhibit B)

.,:.1=.8 ______ Supplement Life Insurance (Exhibit C)

.=2"'0 ______ Artwork list and valuations (Exhlbit~~D:!:-!..F)L--_____________ _

.=2"'0 ______ Wine list and valuations (Exhibit G)

"'2"'0 ______ Guitar list and valuations (Exhibits H-J)

21 Supplement Car Information (Exhi~

.=22=---______ Home valuations (Exhibits M-N)

27 2006-2008 Personal Income Tax Returns

I am submitting thi' financial statement with tho understanding that it may affect action by the Federal Trad. Commission or a federal court. I have used my best effOrb to obtain the infonnation requested in this statement. The responses I have provided to the items above are true and contaIn all the requested facts and Information of which I have notIce or knowledge. I have provided all requested documents in my custody. possession. or oontrol. I know of the penalties for f.lse statements under 18 U.S.C, § 100 I, 18 U.S.c. § 1621, and 18 U.S.C. § 1623 (five ye.r. imprisonment andlor fines). I certify under penalty of perjury undcr the laws of the United States .that the foregoing is true and correct.

Executed on'

(Date) Signature

Pago 16 Initi'I'~


EXHIBITG


Date: No.ember 211, 10119

SeUor: Scott Dnd U •• l'asoll

Address: 1 K •• slDgtoIl Conn W ...... NJ07G!19

ZACHYS WINE AUCllONS, INC. 39 W ...... onl ... d Ave. WhIte ,lalm, NY 1_

Ph: (914) 448-3026 Far "14) 2_

CONSIGNMENT CONTRACT

'ibis ..... en\ (thi. "Asreomcol"), elated as of tho date set ftmb uIme, is by POd between ZACHYS WINE AUCfIONS, INC. 1'1_ Vork CotpOmtion baving an addt<ss at 39 W-..reImtd Ave, White Plams, Now York 10606 ("ZA" POd tho above .. reronaod SeUer, having an _ as 'etlbrth _ ("Selle(').

1. eo. ....... al Seller appoints ZA as tlte .. Ie and exclnsive $Illes agont to auction tho products listed on Schedule A he!oto (the "Products") wiUch Schedule A may be _1ld<Id or supplemented from tim. to dme as sa ""ted In """graph S below (the ·Prod.cI$"~ SeU ... horeby c:onsitlllS to ZA the Pmdw:t. fur euction by ZA in _ .. ec with thi. Agreement and the Condidollll of s.I .... a Information for 8UYQ in effect at the time of any applicable auotion..

2. CpmmJ'dnDI. Consignment colltmission win be 2% of the i1Da1 h:!rtUDeI'.

J. Pr!!!ldS! DellYtry, Seller sIJaIl doliver the Products 10 suth loenduo as ZA shell des\IlIIate, or shall make tho PmduclS lable fur pickup,oo later lhan 60 doys prior to llIe solIeduled date of llIe initial auction 10 wbidt ZA intel1ds to inclnde the PmduCIS. Seller provide ZAwith itemized iovenlaly of Pmducts to bepicked up by Dr deli......s to ZA. _Inv_ry will be sulUed to ... • by ZA .... Pmduc'" ... m:eived in ZA', w .... ho .... Dellvet)' of Products without itemized Inventory win futfeit any and aU _ by Sen« regarding alleged delivCly of Product in whole or in part. fJpeB request" ZA may reeell!HMM a eaeieffpBekefi .Fe I'ideEl; .hIt: '61.

'!hBllIwo" !t4jI lial1ilH)' ~e" IIIMl aU ,M_ ~ 'alit,dft. earl iasllriRg aldte PM""'. -:nll "8 at Seller's sele ,'''pense w tisk ZA shall atraDp terEftI81 80lnhail £lIBBY PmiluGfs lleU-left"8 '1.A; aM: qJ ae ellpeM8 te Sellar (eneept B5 ,IV Med m pomgF8t1h 9~. f.-Zit ape:es te 8eUer9s ff!EJU8:5l1s ,tell up PNdueb; Sell., ",jQ pe, Y. all eelti ami INEJnm. _aillated thel!e;Jlfilh iaeluliliftl the _51; er all pae~ maltnials. an4 trip eupeftges ~« lPj bA fey 9t\&ke _eetiBMwf.i8Rte:ry. The &est ef'i\iti:eh: wiD he 4:e6u:Mad: hlft payment6 8 ~'8d h3' Zft. 'Ie Seller Baller •• 91:18 RSfleme'B fin all sasis BillBRS Bl!edisg l8lia fllPlsaM fa eOSUN flrep .. fi8Nte as iY _ ZA wUl provide trntupo .... don ofPmd",,1S to thoir war<house{o) at no """ to Seller.

4. MIi¥ pHit" ZA shall hove c:omplele diocretion as the pl_ date and mannetufsale, Ibe Condidons ors .... the UluS1ration, and/or tho description of tho PmdUcts in it. __ orother li_ and Ibe combinolion or diVIsion of lb. Prod_ into stich lots and/or .'P ........ - as ZA shall d_e. ZA may, in lIS sol. dtocrotio .. sell the ProduclS in Los Angel .. with ZA Auctions Inc, ill Hong !::noS or on the Internet. S,lling tho willes In Los Angolos, Hong Koog or on the internet do ... ", cbanp any _t of this .. ntra ...

5. Estimates aDd fig .. iOWltoa. Any appraisal. cstiml4fc or otbcr stamment of value by ZA or its .representatives with resp~t to the estinIated value or selling price of any Product ('EsUmetes"l. whether made orally or in any writiog, "'" oplnin .. of ZA based on ""est market value for Pmduct in &coUent ConOition. Estimate. sholl not be nlied UPOD by Seller or nny third pany as a predlcdon or gu_ ofllleactual seUing price, and inn. evenlsball ZA be I"'blelbr lhe flliIuRJ.fany Product to he sold 01 any $ .... Estimlll!lor tho ........ price Ibmli> ... ZA '"""""" tho.rigllt to ohange Estim .... at any time before. sal' based on any considerations deemed re! •• lUII by ZA. AI ZA', sol. di .... don, foUowing physical inspe<:tion of in_ry, ZA will provide Seller willi notice of any items not previously ,"_ted, items rep ......... but not doRvered to ZA or willlan updated _. A; provided, however, CI!aI any such Estim .... on i ...... not previously represented will be ,ubject to the provisions hereof

6. RM!!!:DI- All Products will b. sold suhject to ........ , which is the _fit pri •• below whicb tho Product will nol b. sold. Reserves are se,.t 80% oflh. tow esti ..... (90% if iD original wooden ca"1 and then rounded down to tho .... """ bidding _emen~ or as otherwise agmd. in any .... , reoerves will not b. ~ than the low estimalll. All """""eo WIll b. beld in c:onftden .. by ZA. If biddiDg does not .... h the .......... on any Prodw;:t, it will he witlulrawn fiom sale by tho auctioneer. ZA. """"""" the rigllt to sell any Product at a price belOW the Reserve; however, in such event ZA will be responsible to Seller for tb~ difference: betvJeeq the hammer pric~ and such Reserve.

Consignor's InitialS@if 1 of 4

RevJscd 1 tt.zor.zOO9


7. No Bidding By Seller Seller shaD not, directly or indirectly by Of through any ofits representatives or agents (other than Zit). enter OT "' ... to be ento""'. bid on any of Seller', Product being ._ fur ole.

3. WIthdrawal of Prodl!s!s. (a) No Withdraw!! by Seller. No Prodnd .. ay be withdrawn by tbe Sell .. aller the data ..... r. If ZA 00 .. _ ., • withdrawal by Seller. the Prodw:t may be withdrawn upon paymOllt of 25% of (il the ....,..,. price, or (iI) irthe """"'" .... not yet be .. set, the valuation bast (as defined iD paragraph 14 bOROI). in either .... plu, all out.otcpoelo:t .. p ...... irtcIumI by ZA for packing, 'hipping ordoli1rery.

(b) Wilbdmyal by ZA. ZA ........ the right., withdraw any Product at any lime bofu ... actual sale if In ZA', solo judgment (i) there I. doubt as to lb. otIribedOD. aulltenticlty. quality or polllbiliJ;y oflbe Product, (Ii) the", is doubt as to the accura<;y ofSeil ..... rep""""!odon. or wamnd .. set _ h"";n i. auy "'IJ"Cl, (iii) Seller bas bretlebed or i. about to b .... ch any p.nIvlsion h .... r. (Iv) there is doubt a. '" Sell ..... tiUe '" the Product, or (v) furother just ...... including. without limitatioa, CI!IlCOltodo. of any_. In aJiy such .... n/, ZA willrelum '" SeD ... the Product withdrnwn at no p .... ty 11> Soller. but at Sell ..... ..,le _ and ""1' ......

9. Up$oId 'raduell. (a) Unsold Pmdgq.. For any Product offered but not sold during dte auction, ZA may. in its sole discretioQ, sell any such l't1>dw:I iD. privalo .... tor ao 1 ... thou the ,......,. .... II1II (~OS provided I. Soedon 6l. provided that loch sale u"""" within ten days otthe aucdon's conclusion. Unless otherwise instrucIed by SeUer in writing as set forth below, any Products not sold in auwDn or pu"".mllO such private ,a1. shall be ....... ed by ZA nod will b. plocod in. f\1tu .. sal •. !my such fu .... sal. (I) mayor may not bq the sale iOlRledlat.\y following the one in which Ibe Product did not "'l~ (Ii) may belivo or Via i ....... ~ (ill) ,ball bq subject to • commill$lon .... of 2%. and (i.) sbell b. at such pri ..... includiDg ........... aDd upon such terms and conditions. as ZA sbalt delermine iD lis .. Ie aDd absolute dis .... ~ ... Th.", will be DO ..... ieo cbeflll' with .... poet '" unsold Product!, and there witl be no charge '" SeIter for the oI<m\IlC of ....,Id Product, ... opt as provided below. Th. p"",""", ofsuch surn.equent "". ,1Nol1 be rendtted 11> SeUer iD ._co with the tomts of this Agreement.

(b) ReeI,im prJ TDmM Ptpduct IfSeUerwirmes to reclaim unsold Product. (i) ZA UWSI receive written nolice &om SeDer within 30 days of tbe medon in which the Product .... olfe"'" fur ,ale, and (.1 .. y such _ must be reelaimed by Seiler and removed from ZA waroltollJe, at Sell .... , sole co" .. d """"""" within 60 days trom the date of such auction. Th_.l't1>dw:I will bq _ \I) a public wine S10rIIge filci1ity. and Seller will be o:spC>lISI'b!e fur whatever _ and illS1ll1lll<e cI!m!Ies incur. Seller shall not bq 0ItIi1led \I) _ ao,y .... ld Product unlil all comtJtissions, """""'" aDd other amounts._ '" ZA Imve ..... paid in filii.

10. k!!lemtpt of Amulpt. ZA will fI"Y Seller the net p.nIceeds of monies ""';ved md colie<:ted llotn beyer from the .... of Sener's Produ .... I ... any oomm.isslons, reimbursable _ .. aDd any other ..... _ due '" ZA 110m Sell ... (wbother arising out of the .... of the Product or otherwi .. ). ZA witt make tlrst such _t to SeUcr within 60 coteodar days afb!r the .. t. unl .... prior '" the expimdon of sucb 60 doy periud. (a) ZA slNoll bave received n.tice of the Buyer's inlo.tiDO tu rescind the .aI. or aoy other <!aim ... t.dog tu the Product or iIs ..... or (b) ZA .bell bnvo tor aoy ...... n nelbnded such JIIllf'O<1ds \I) the Buyer. If """"""'Y. addlijonal paytnelttS will occur on the twentyo-lIlIh day of the !bI1.wing mO!lth with a minimum of !wen", days b._ fl"Ym..... AU paymonts fur ..... _duo!fld in the United S_ shall b .... de ·in US 0.11ar.!. .

For sales condudOd. in Houg Kong, Seller may elect to receive paymenb hl eithet HK. DoUms of US Dollars. The currency exchange nile On date Product is sold will be lIPptioablo to paymeolS.ln Hons Kong....., Ibr.U non Hong I<oog ... id ..... there is .0.5% tax to the SeUet on the hammer price of atl prod"", sold on SalIerbebnlf. This tax will be dedueted 110m SoIIer's pro_ and paid to the Hong Kong Go_t

11. Non-l'Iyment By !I!!..... In the .... en! of no1tpay1ROll! by Ibe BIIY"'. ZA tnl\Y com:eI the sale om! ",turn the PtuducI to Seller. enfon:e p.yment by the auyer. or tlIko any other ac1lmls perndltl:d by law. as ZA shall der.nni.u. in ilS sole eIi_n. In no ."".1 ebnIl ZA be liable fur any i.eldenllJlo .. onoeq"""dal """'- resulting., Seller ... """It .fany breoch or fail ... by tho Buyer.

11. """JIIW of Sale. ZA i. au1borittd to """'I't the rotnm om! resciud the .... of ooy frodnd at any tim. if ZA, in its .. Ie Judgro .. ~ d.terMines thet there is. genuin.lssue as l1> qnality, authenticity or title of the Product, or there oxists aoy other ci_ which, If .. t rernedi<>d,·..,atd. in the sot. opinion of ZA, result in liability '" ZA themfore. In such event, ZA is further authorized to refUnd or cmlit to the Buyer the purcb .. e prlee ursuch .. lumed Product •• nd ifZA has olreedy remitted '" Seller any pro_ oflbe ... eIndod sal., SeRer ebnIl. i .... edlately upon non ... by ZA. pay to l.A an """,unt equal to the rendtled proceed,; however. in no ...... t shan Saller _1UlI0 ZA ~ than the Seller received fiom ZA for the ttscinded sale Product

13. BUYer's Claim. After the .ol" if wilbln :ro days fOllowing receipt of ~n>du,~ • allY'" nodfle.s ZA in writing of a claim thai the lot is .bort or ullaged or th.t "'Y ..... ment of opiDioD iD the catalogue is not weU-fcnmded, ZA in lis soto and absoIur. c!i""";on will decide ,ucb claim .. between the Buyer and Soller. ZA may deeId. that the ..... tam! or be .... luded and that the pu .. base price be r.1lmded in whole or in part. ZA', decision witl be fiDaI and biDding .n Buyer and Seller. om! no action shah be brougllt in c~o with any claim. ex~pt OQ and in IlCCOrdiUlCC with ZA~s decision.

ConsignOr'SInitim& [f 20f <)

_11I20I2009


•

14. Ip,u"qSS IDsuroru:e ""verage of all Product will b. furoished by ZA as fullows: Product will b. iDsunod by ZA fOr 'OY loss or """"""0 ,." ....... ing (.) i. the .... of. pickup by ZA lit. _ designated by Seller. fiOm the"_ of .... h plokup, ami (h) in the ...... of Prod ... received .~ ZA', premis .. or a wmollOus. designated by ZA. fiOm the time of ..... pt end lo ... h .... such coverage will ..... upon Ih.M oflho bmnmer dnring Iho auctioo. blsuranco """'age slmIl be furae _ eat '" exceed (1) it' Iho Prod ... bas been sold, the henoner prico, or (Ii) if the Product has not been ao!d, an _ equal to lb. mean of our ..nmatoo at Iho tim. of I.,.. or """""ge. Either such amount shall b. refOned 10 herein .. the "1saIuatioo base". ZA's liability 10 Seller resulting from loss or """""go of any Product shall oot .. ceod Iho above-menbooed I .............. go of su.b Product omI will ""'Iude any Ineaka&c or los. c.au.ed by earthqu8kc, IOOoI!, !idled cod<: or any olber I ... 1baI coukInonnally happen to • bottle of wine. Seller shall, _ """"Plioo, b. dm.:ged at a rate of oue peroe1lt (1%) ofth. bmnmer total ofth. P_ heing of!eted at allClioo in nospoct oflllSflrll"". """rage. Any claim wiD be I ... Iho deductible required by the i ........... OOIJIIIany I1>r tho POIieY in effect atilt. time. ALL INSUl!.ANCE CLAIMS SHALL BE LIMITEO TO tim PHYSICAL JNVENTORY TAKEN BY ZACHYS, NOTICE OF WHICH WILL BI! PROVIDED TO SatER PROMYlL Y UPON COMPUmoN.

1S. Bigfmt to Im'm of Prmltu;f:! ZA retains tho exclusive rJa:bt to videotape or photograph the Produ1.!t fbr catalope oovertisins purpo .... ZA .. 1oins the e><cIusive eopyrigbllo all catalogue text, iIIustmtions and descrip60ns oflho Produ .... ZA.ha11 aot .... Seller' • ...". In ilS catalogues or advertising, or dI"" ... Seller', n_ or Identity to thild parties lUll ... Sellar bas p_ lIS iIIittal. after this patagraph or notifies us eilher verbally or in writing of Seller's W'ishcs to use Seller's name in ZA's catalogues or advertising I)f dirdoae S.IIcr' ...... or identity to thlrd pariIes.

16.. TutIpg & QulI"U. ZA may taste sample bottles &om the inventoJy received tor oonsigmnent in oroer to a5SQ;s" quality ami auction .. wo!lhi.t1Bos of the Product. ZA may select bnt1lca from Iho oousignm .. t iuvenlory to be opanod fur prospective bIddem at pre-auctlou . _I., day-ot'-sole lasting, or other promotional purposes. ZA may cut capsules in order to inspect cork ami markings 10 ""nfItm Rtbcnticity.

11. Sill .. Tax. ZA shall collect _ Buyers.1I sal .. ""' .. due. ifaOY,."d IV!\I ti .. oly remilto the appropriate agonci .. aII .. Ch ..... tax ...

18. ~R'S REPRllI!!INTATIQNS AND l¥AJUtANTIE§' SELJ..I!R REI'IUlSENTS AND WARRANTS THAT (i) SELLER HAS TIlE RIGHT AND TITLE TO CONSIGN THE PRODUCTS FOil. SALE, (U) 1lIE PRODUCTS AIU!, AND UNTIL COMPLETION OF SALE BY ZA. WIU. Bll, FRBI! AN!) CLEAR OF ALL LIENS, CLAIMS AND .ENCUMBRANCES OF 0'I'HIlRS ("UI!NS") OR RESTRICTIONS ON ZA'S RIGHI" TO OPFllR AND SELL TIlE PRODUCTS AT AUCTION, rili) GOOD 'l1TLE WILL PASS TO THE BUYER OF ALL PRODUCTS FRBI! AN!) CLBAR OF ANY SUCH LIENS OR RESTRICTIONS. THBSIl Rl!PRI!SENTATIONS AND WARRANTIES SHALL SURVIVE THE COMPLETION OF THE 11!ANSACTIONS CON'IllMPLATED HERl!BY. SELLER SHALL NOTIfY ZA PROMPTLY IN WRlTINO OF ANY IlVENll> OR CIllCUMST ANCES THAT MAY CAUSE THE FOREGOING TO BE INACCURATE OR IIRIlAClIIJD IN ANY WAY. IF SJlLLER IS ACTING AS AN AGENT FOR A PRINCIPAL, SIlLlJlR AN!) PRINCIPAL, JOINTLY AN!) SEVBRALLY, ASSUME ALL OF THE OBLIGATIONS UNDER tHIS AQRBEMI!NT. SELJ..I!R AGREI!S T!IA T THE INTI!NDBD BfiNllI'lC!AIUl!S OF tHIS PROVISION INCLUOE ALL BUYERS OF TIlE PRODUCTS.

19. (a) By Soh Seller I'<j1lllmIts and wammfS to ZA that (I) it bas MI power and OIltllOrily Ii entity) or legal capacity (if Seller ill an individual) to enter into this Ag1'Cf!mOI1t tmd porfurm itt. obHg06ons heIOonder, (ii) If S.Uer legal .. diy, this Agreement has been dt!ly authorized omI validly execul<Od anI!, UPOD ... cution by ZA, constitutes • legal, valid and bioding oblill"tion of Seller. _Ie agoinst SeDer i. """,rdonce willi itt. 10_. and (iil) if SoUor is a manuftlttum' of Product, sale by the SeUcr of tbe Product through ZA is for promotional purposes and is not being done 10 circumveot appUctible laws regarding d1S1ribution .fbeverage alcobol.

(b) ~ ZA rep ....... and IVamlJlts to Seller thel (I) il boa Ibll power and to enter ioto this Agree""'nt omI porfurm irs obligatio", benrundcr, (ii). dds Agreement has been duly audtarized and validly executed and, QpOD execution by Seller. constib.ltcs a legal, valid and biDding cbligu60n of ZA, enlbn:eable against ZA In acconlance with its \mIlS, and (iii) it I. U""nsod and pennitred under the laws of the S\\Ite of New York to sell the ProducllI in the Slate of New York.

:w. "4ewulfi<d!!.. Sener shall indemnilY, detmd, and hold hormJ ... ZA and illl offill ..... ood their respecdve ol!lcero, _ .... _Iders, members, _ .... atfbmoys. agents, ..... I .... rs, employees and other rep ...... tati ... (collectively, "indomnities") I'mm and against any and all cb!1Jm. lIabUitics and expenses (including, witl!out Iimilatlon, _~ penal~es and attorney's fi>es and amounts paid in invemgution, defimdlng or settling any of lllelb"'8lllnsJ, wbether 10 an aQlion _n the parties hereto or botweeo or among any Indemnities and any thi!d porty. ariotlog out of or ... ated 10: (a) any adS by or omissions of Sell .. , its a","" ... ploy .... or ~""'" relating to .r _60, the ProdU<lB, (b) l1li)' b_ or inaccur>oy .Cany .flh. __ ns, wamoti ... """"" ... IS or agnoon,_ made by SeU., in collllOOlion with the _done COIlIOI1Iplated h ..... (0) tho claims .fthin! partiM claiming or ohaIlongin.11Ifc to any Produ .. cousigned hereunder, and lor (d) l1li)' claims .fBUY .... person. c\almIng fur BW"'" or for any other parsoJl ,"""ling tiom ZA's otfering fur sale or ""lIog any Product consigned hemndOt, wbothe1' or not the 1!'rodnC\ bas been .ftiored, sold, or _mod to ZA.

Consignor's Initials <:!2 Lf 3of4

Revised II12O/2{]09


• . '

21. M1 ... IIl! ..... (0) This A....,..., _ be II"vllllJ<Jl by the intomollllWS .fth. _ ofNew York; (b) any disputes arisiI1g in \lOIIIIII<lIio. _willi _ be .. cluslvely .... lweI in the _ .rN.., Yoik _ • panel oftltree SJbjImlb,. of Ihe Am";"", AtbitratioJI Asso<:la1ioo (the "AAI\'1 m 0l:cX!Tdtmce willi il$ .. Joson _"",;al SJbjttaliott; (0) the p21ties h""by imMIcab\y ",noon! 10 the eJ<CIusiv..jurisdidion urthe State of New Yorl<, waive any o1!jedion 10 pmouaI jurisdiction, and wai" the ripl to Ilia! by jury. In -1IIem>f, ifSeUer is not. United _ oitWon, Soiler hemby appoinl$ as I" Authorized Agent fur servi", of pt<I<OSS In Ihe Stale .fNew York with respect 10 any mailer arisiI1g oul or or "","",8 II> this A_ .. ~ and "'P ....... that ouch par\\' has agreed to serv ... Soil ... ·s Audlotizod Agent in sud! ~; (d) DbY noti ... bemmder ,hall belD writing and shall be deemed gi_ if delivered either .,......ny. by o .. might dellveoy or -by cettified or registered mai~ postage prepeid. II> a party .tits mpeo!ive address as set furth above; (e) this Agreem .. ~ tngelher with the SehedoJes hereto ... they may be amended 110m time to time as provided he!:cin, .... taint< Ihe entire agreement oflb. pasties <OIlOOming the subject malIor hereof, .. d sup,mod .. any and atl prior ~ oral or wrlllen..,.ng the pasties hereto cooceminr the subjecl matter hereof, which prior......",.ms ... h.",by canceUed, This Agreement may not be ameoded or terminn1ed orally; (I) ZA has the sol' right .. amend .r repl .... any of the 1b_1ns Schedllles, whieh, as so aJJIOIIdod. obaIl be d_ in<:oJporated by _. herein and macJe a pari hereof.

IN WITNESS WlIERE()F. the _gned blwe duly ex_ this A_mon, as of the date aod year rust wrltICII above

AUCfIONS.INC.

:r~ N:une: Paseh

Dale: n l a3l-e'l

By.~1ZJ?-N_UsaPaseh

COll8ignor's Initials @ if 40f 4

Revi50d 1112012009

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 39 of 76

'z8d1VS V124457 Scott Pasch Civic Development Group 425 RariIan CIT l'I<y EdIson, NJ 088377809

5773

Auction Proposal For

SaottPasch

Consignment: 5773

Prepared By: Jp

PrInt Cate: 11l30l2009

Pagelof12

- -- ---~ -----~-----".~-" ------ '--

I.ow_

HlaI>_

39Wes1mo __ .

WhIlB Plain., If'( 10601 Tal; (914)448-3026 FOl<; (914)2Q&.4544 Email;[email protected]

214,83:1 847 B/I8 -320,812 12 B/I8 1.61

3il B/I8 375m! 17 Btfa 31

• 8IIs 61

1 B/I8 51

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 40 of 76

'mlVS V124457 Scott Pasch CMc Development Group 425 Raritan err Pky Edison, NJ 088377809

5778


Scott Pasch

Consignment: 5773

PrepanJd By: jp

Print Data: 1113012009

Page2of12

LowEdmat&: HIgII __

39 WeaImo_Ava il\lhlle Plains, NY 10601 Tel: (914)4_ Fax:(914~ Email: [email protected]

214,832 847 8118 150ml 320,612 72 StIs 1.51

30 8118 Sl'5mI

17B1/S 31

6 BI/S 51

1 BI/S 51

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 41 of 76

"z8dlVS V124457 Scott Pasch CMc Development Group 425 Rarllan Cir Pky Edison, NJ 088377609

5773


Scott Pasch

Conalgnment: 5773

Prepared By: jp

PrInt Date: 11I30I2009

. Page3of12

LowEoll_

High E9Umate:

_._----_ .. _---

39 WesImOreIand Ave. WhIte Plains, NY lDeOl Tot. (914)44e.3Q26 Fax: (914)206-4544 email: [email protected]

214.832 847 BHs 150m!

...... ,2 12 _

1.51 108IfB 31Sml 17 BIIs 31 6 Sils 61

1 SI!s 51

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 42 of 76

. zSdays . ,:', ~

V124457 SoottPasoh Civic Development Group 425 Raritan ClI' Pky Ediwn. NJ 088377S09

5773


SCOitPasch

Conolgnment 5778

Poepated By, jp

PrInt Date, 11l30l2009

Page 4 of 12

Low EstImrde:

Hlgh_a1a:

3!l Weslmareland Ave . While Plains, NY 10601 Tel; (914)~026 Fax; (914)20&4544 Emalt [email protected]

214,m 847 SIlO 7SOm1

320.612 72 SIlO 1.51 30 _

375m1

17 BI1s 31

• SIlO III 1 SIlO 61

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 43 of 76

'mlVS V124457 Scott Pasch Civic Development Group 425 RariIan elf PI<y Edison, NJ 088377809


Scott Pasch

CQnslgrlmMt 5773

Prepared By: jp

Print Dale: 11130/2009

PBge5of12

Low EatImale: HIgIt_

39Weo1more1andAve, WhIle Plains, NY loan1 Tet(914~ Fax: (914)206-4544 EmaIl: [email protected]

214,832 841 8lIa -320.812 72 B/I$ 1.61

30 B/I$ 375ml 17 8lIa 31

6 Blis 61

BJls 51

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 44 of 76

'z8cI1\1Q . ."" :)1: .. :' . '. _ .

V124457 Scott Pasch Civic Development Group 425 Raritan CIT Pky Edison, NJ 068377809

5773


Scott Pasch

Conafgnment: 5773

prepared By: jp

Print Date: 11/3012009

Page 6 of 12

Low_ale,

High EsIImaIo:

~ VV6SlmOl'8JanG iW8.

IMlIle PlaIns. NY 10601 Tel; (914)44&-3026 Fax: (914)2Q6.4e44 Emalk [email protected]

214,832 847 BIIs 150ml

320,812 n BI1s 1.51

30 BIIs 315m1

17 811. 31

8 8I1s 61

1 8I1s &1 17:1 __

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 45 of 76

'zacllYS .' .... ~ V124457 Sco!IPsscb Civic Development Group 425 Raritan CIr Pky Edison, NJ 0883771109

·5773

-~-----... ----"-... -.-..


Scott Pasch

ConlJlgnmenl:5773

Prepared By: jp

PrInt Date: 1113012009

Page 7 0112

Low_

IIfIIh _lIB:

:l9 _",lane! AVB. _ Plalns"NY 10601 Tat (914)448 3026 Fax: (914)206-4544 EmaIl: Auction@Zacl1l"'.oom

214,832 847 _

7 .... ' 320,612 72 BII3 1.51

30 _ 375m!

17 _ aI . - 51

1 811, 51

fI73 Tolale-.

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 46 of 76

2actlVS Vl24457 ScoIIPasch Civic Development Group 425 Rarilan Ctr Pky Edison, NJ 088377809

5773


Scott Pasch

Consignment: 5773

Prepared By: Jp

Print Date: 11130/2009

Page8cf12

Low EotImata:

HJgh EoIImato:

39 WeWno_Ave. Whlla Plains, NY 10601 Tel: (914}448-302B Fslc (914)206-4544 E'mlIil: AUcflQn@zacnys,<:em

214,832 847 SIlo 1S!lmI

320,612 72 BIIo 1.51 30 il!Is S75m1 17 B/ls 51

a IllI$ '" IllI$ 51

m TaIsIS._

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 47 of 76

zac.llYS V124457 Scott Pasch Civic Development Group 425 Rarilan ctr Pky EtHson.NJ 086377809

6713


Scott Pasch

Consignment: 5713

p...,.red By: lP PtInt Date: 11131l12009

Page9af12

u.w ........ .., 111,,_,

39 WaiilmO",1and Ava. lIIihlle Plain •• NY 10601 Tel: (914)44&-3ll26 Fax: (914)206-4544 email: [email protected]

21~"3Z 647 /1tIq. 760mI

$21),612 72 SJJ4 1.61 30 /1tIq. &75m1

17 /1tIq. 3!

S Bfhr $I

BII. SI

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 48 of 76

V124457 ScoftPasch Civic Development Group 426 Rarftan Ct, Pky Edison. NJ OBB377S09

5773

-----~-.-.-------.--.-- -------_.


Scott Pasch

Consignment: 5773

Prepeftld By: Jp

Print Data: 11/30/2009

Pagel0of12

Low BaUmate:

HlahEsUmate,

:l9 Westmoreland Ave. While PIal .... NY 10601 Tot. (914)448-3026 Fax: (914)2Q6.4544 Emalt [email protected]

214,802 847 BIts 7_1

320,812 72 SIlo 1.51 30 SIlo 07SmI 11 SIlo 31 • BIIo eI

1 BIIo 51

.------.-~------

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 49 of 76

ZacllVS V124457 ScottPascb CMc Development Gro", 425 Raritan Ctr Pky Edison, NJ 088377809

5773

------------···--11---· . --_.,", .. -,_.-.-


Scott Pasch

Consignment: 5773

Prepared By, jp

Print Dale: 1113012ll09

Page 110112

Low EstImate<

Hfuh EstImate<

39 Westmoreland Avo. \l\lblle Ptalns, NY 10601 Tel: (914)448-Fa><: (914)206-1544 EmaU; _Ion@%a<:hy$.com

214,8az 847 flIIl1 150m!

32<).612 72 BItS 1.51

30 B/iS 375m! 17 BIts 31 • /lIh; .. 1 /lII$ 51

Case 2:07-cv-04593-F

SH

-PS

Docum

ent 93 Filed 03/29/10 P

age 50 of 76.

>acllVS .. , ::'.' i· ".; :.:

V124457 ScoIIPasch CMc Development Group 425 Raritan Ct. Pky Edison, NJ 088377809

5773

----"._----.. _-_.,--


Scott Pasch

Consignment: 5773

Prepared By: jp

PrInt Date: 11I30I2009

Page 12of12

Low EtUmal&:

High EsIImaIt:

39 WesIm.",randAve. WhlIB Plains. NY 10001 Tel: (914)448-$26 Fax: (814)206-4544 Emalt [email protected]

214,832 847 BIts 75Om!

...".,2 72 BIts 1.51

30 BIts 375m!

17 eo. 31

a BIts <it

1lIIs 51

------------------


Item 20. Perso.al Properly

List all person.1 property, by category, whether held for personal use or for invesunon!, including but not limited to, furniture and household goods of value, computer e:quipmcnt1 electronics, coins, stamps, artwork, gemstones, jewelry, bullion, other collectibles, copyrights, patents. and other intellectual property I held by YOU1 your spouse, or your d~pendents, or held by others for the beneflt of you, your spouse, or your dependents,

Propeov Category Ni!m=2fQ21:~ Property Location ~£gyj§i~ig!J G!!w!l. (See·· artwgrk lewelry) ~ Y.i!lY£

lIrtwork Scott & Lisa Pasch Warren NJ Residence $ 2,500,000 $ ~1,4OO,OOC

Artwork lcon~nued from above) Scott & Lisa Pasch Consillned in Lonj.9n and FL $Includad sincluded

Wine Scott & Lisa Pasch Consi\l~~.d.l0 Zach~'s $ Unknown $ ~250,OOO

Guitars Scott & Lisa Pasch Warren NJ Residence $ Unknown $ ~700,OOO

Jewel~ Scott & Lisa Pasch Warren NJ Residence $700,000 $-300,000

Sea ExhlMs D·K for lists of ~roeerty and valuation su~e0rt $ $

Item 21, Cars, Trucks, Motorcycles, Boats, Airplanes, and Other Vehicles

List all cars, trucks, motorcycles, boats, airplanes, and other vehicles owned or operated by you, your spouse, or your dependents, or held by others for the ben.tit of~ou. your spouse, or ~o"r depend.nls .

• VehicleType Car ... _____ Make Mercedes Benz Model CLI9?"'0_· _____ Year 2004

Registered Owner's Name ~s~c_"ott=P_=a"'sc"'h_'_ _____ Reglst"'tion State & No. NJ WW2009161 00004162

Address or Vehicle's Location Warren NJ ReSi~e"I1.:",ce,,-___________________ _

Purohas. Price $ ~50,OOO •.. _Curtent V.lue$~20,ODO Retail Account/Loan No . .!.:N"'o"'n"'e ___ _

Lend.r's Name and "aaress ..c=""-______________ .. ___________ _

Original Loan Amount $.o.N"'IA"'-____ CulTl!nt Loan aalance _.:.;,." .. , ____ Monthly Payment $ . .!.N"'IA"-__ _

• Vehicle Type -'C"a:.:.r ______ Make Mercedes Benz Model G500 AWD Year 2002

Registered Owner's Name ~S~c"'ott::..;..P.=as::.;c"'h'_ _____ Reglstration State & No. NJ WW200933600009623

Addres. of V.hicle's Location ..:W..ca"'r"'re"'n.:.:.:.N;:.J..:.R"'e:::s:::(d"'e"'n"'c""-________ _

Purchase Price $ . ..:7..:.7..."O"'O"'O'-___ Current Value $ -26,000 AccountlLoan No. -"N!'o"'ne=-______ _

Lender'. Name and Address -"N!'o"'n"'e'-_____ _

Original Loan Amouot • .;.= ____ Current La." Bal.".6 $..:.N"'IA"'-____ Monthly Payment $.",N",/Ac:... __ _

Peg. 9 Initials ~


ATTACHMENTS

Item 33. D •• uments AIt •• bed to this Financial Statement

List all documents that are being submitted with this financial statement.

Item No. Document Relates T9

DeKription of Document

L __ ~ __ Supplement Pending Lawsui~ .. ~(E~x~hl~bi~t A~)L...~ __________ _

.!1~2,,,"1:;:,3'L!.14:;:"J..19~,!::29~_ • .!..JFi~na~n~c~ial~ln~forrTlation (Cash, Securities, eto,) (Exhibit B)

Supplement Lite Insurance (Exhibit C)

20

20

Artwork list and valuations (Exhlbl~,-,D=.:-:!..FL) _____________ _

Wine list and valuations (Exhibit G)

20 Guilar list and valuations (Exhibits H-J)

20 Jewelry Iisl (Exhibij K)

~ ______ Supplement Car Information (§<!Jjblt!...':L:/.) ______________ _

~2=2,--_____ Home valuations (Exhibits M·N)

27 2006·2008 Personal Income Tax Returns

I am submitting this flnoncial slalement wilh the understanding Ihal il may affect aclion by the Federal Trade Commission or a federal court. I have used my best efforts to obtain the informatIon requested in this statement. The responses I have provided to the items above are true and contain all the requested facts and information of which 1 have notice or knowledge, I have provided aU requested documents in my custody, possession. or control. I know of the penalties rar raise statement. under \8 U.s.C, § 100 I, 18 U.S.C. § \621, and 18 U,S.C. § 1623 (five ye.rs imprisonment and/or fines). I certifY under penalty of perjury under the laws of the United States that the foregoing is true and correct.

Executed on:

(Dale) Signature

Page 16 Inltl.,,&_


EXHIBITH


SCOTT AND USA PASCH 7 KENSINGTON COURT WARREN NJ, 07059

SUPPLEMENTAL PROPERTY SCHEDULE - GUITARS

MAKE YEAR! MODEL i SERIAL # FENDER 1965 iSTRATOCASTER SUNBURST L51BI0 FENDER 1957 iSTRATOCASTER SUNBURST i0251S9 FENDER 1965 !STRATOCASTER CANDY APPLE RED 125825 GIBSON 1961 'LES PAUL CUSTOM i 1-0864 §.!j;li?Q~~.~:~.~ :.~::~:::I~mHQQA.£Ql:!§TI~:.~:.~.~::~~~ .. ~:·~ .. ::: .. ~::.~I::::::::::::::::A.~I9.9.1 F.~!~tQE:~ ................. _ ....... gl.!?~.i.~~I\T9fl\S..I~R§!:I.!':!~Y..~ .. !:iI. .... _ .................. j .................... _ .. _~~_a.Q~.l1. GIBSON 1952!LEOS PAUL EBONY BLOCK SG j 99046 FEf;rDeif .. ···· ····-··· .... ·19SS·!STRA'fOCASfEifsuiifauRs'f· .. · .. -····· .. · .. ·······r·· .. · .. ······ .. ··· .. ·-- .. oiis'i7

~~~~~[~::.:: .. ~~]f;J.IL~li~~n:[~~~n~~~!::~-:.:·:=::I~:~~~~:=~:=:i~~i~ FENDER 1968 !TELECASTER CUSTOM ; 236202 i=f@!!fiC::: ···:== .. f958iiAziMA5tEif· .... -...... ·~~~=====:=~::T=·:=:::.::.==)_~QI[ FENDER Y APPLE REP. ... _ .. __ L_._. ____ )5893~ FENDER i 242823 FED~.¥R··:-' =:··:.-L. ______ ._ .. ·Rs;f-.. ·~=.::T~::::====J9692 FENDER 1954 iSTRATOCASTER OLYMPIC WHITE i L46579 GIBSON'--'" ····· .... ·····i9S'9'[L'EiifpAu[BLAci(:TP'ici('l]p--·-···-·· .. ·T·-·-"""---'''9"17B6 GillSON 1957 iLES PAUL BLACK- 3 PICKUP i 78531 FENoER" · .. ···Ei'SS!STRATOCASTEifMAPi::e 'NECi('-"'r"'--'6"2'263i . ___ ,_~ _________ ._ .. __ ... ___ ...... _. ______ ._.L ... ~_. __ ._._ .. ___ ._

FENDER 1958 iJAZZ BASS GOLD PICK GUARD ' 02.6342 f._~ND.!=~_ .. _ .... "'_ Esgl,!.!.I3£.y,lIj!:r.Ei!l!.t\~Q._ ..... __ ._ .. _. ___ •. L .... _ .. _.. __ ._ .. ;P 7~ FENDER 1956 RATOCASTER SUNBURST . 16123 FENDER 1964. TRATOCASTER OLYMPIC WHITE L69757 FENDEOR 1965 iSiRATOCASTER BLONDE L7S897 FENDER 1965'STRATOCASTER CANDY APPLE RED: L85317 FENO·ER·· .. •· ··-· .. ····-Tg·ssh'ECEcASTER .. BLONDE··-·---······-.. -··· .. ···--·\· .. ··--·-····· .. ·-·-.. 33920· FENDER 1953 iTELECASTER CUSTOM SOUND L02146 FENDER 1965:TELECASTER BLACK 202695 FENDER 1968 21B404 FENDER 1 173256


EXHIBIT I


Hoboken Vintage and Classic Guitat's 164 First Street

Hoboken. New Jersey 07030 201-222-8977

Mr. Scott Pasch

Scott: Here are the figures that we came up with to $ell your guitar on a consisnment basis. We will work on a 10% consignment fee after sale for you. This is a discount rate. Prices shown will be our selling price.

T~~ Richard Rybinski

Hobok8n Vintage and Classic Guitars . 1965 Fender Stratocaster Sunburst 1957 Fender Sl:):'atocasrer Sunburst 1965 Fender Stra10caster Candy Apple Red 1961 Gibson les Paul Custom 1955 Gibson J-200 1962 Fender Stratocaster 1962 Gibson SG LP Std, Ebony.Block 1955 Fender Stratocaster Sunburst 1957 Fender Telecaster 1959 fender Telecaster 1968 fender Telecaster Custom 1957 Fender Stratocaster Sunburst 1964 Fender StratocaSter Olympic white 1959 Gibson Les Paul Custom 1957 Gibson Les Paul Custom 1958 Fender Stratocaster 1958 Fender Precision Bass 1957 Fender Esquire 1956 Fender Stratocaster 1964 Fender Stratocaster White 1965 Fender Stratocaster Blonde

513000.00 $28000,00 $23000.00 $65000.00 S10000.00 $20000.00 $20000.00 $30000.00 $23000.00 $24000.00 $13000.00 $28000.00 $24000.00 $70000.00 $70000.00 $25000.00 $18000.00 $16000.00 $35000.00 $24000.00 $25000.00


1965 Fender Stratocaster Candy apple Red 1958 Fender Telecaster Blonde 1963 Fender Custom Telecaster bound 1965 Fender Telecaster Black }968 Fender Telecaster paisley 1966 Fender Telecaster 1968 Fender Custom Telecaster Bound 1966 Fender Telecaster Candy apple Red 1958 fender Ja.zunaster Anodized Guard

$22000.00 $24000.00 $26500.00 $13000.00 $18000.00 . $12500.00. $B500.00 $12500.00 $10000.00

These are full retail prices and this does not constitute an offer to buy, rather, this i$ an offer to consign these instruments at 10010 of the purchase price, in addition to fees incurred.

These are reasonable market prices as the prices of these have dropped significantly within the last 2 years.

Richard Rybinski

Hoboken VUltage and Classic Guitars 201-222·8977

Total: $756,000


Personal Property

List all personal property, by category, whether held for personal use or for Investment, inc1uding but not limited to, furniture and household goods of value, computer equipment, ele:ctronics1 coins,stamps, artwork, gemstones~jewelry, bullion, oth., collectibles, oopyrighll!, patents, IUJd other Intellectual property, held by you, your '!IOu.e, or your dependenll!, or held by olhers for the benefit OfYOll, your spoy,e, or your dependent'.

Property Co.te!!{]ry (e.g" artwork. iewelry)

Artwork

Name o(Owner Property LO£ftlian

Scott 8. Lisa Pasch Warren NJ Residence

Acqujsition l&!l

$ 2,500,000 $ ~1 ,400,00(

Artwork (continued from above) Scott 8. Lisa Pasch C<lnslgned In Land!," and FL $ incllJded $ included

Wine

Gul\a"'r"'s_,..... _____ _

Jewelry

See Exhibits D·K for lists of

Scott 8. Lisa Pasch Consig':lEl.9.to Zachy's

Scott 8. Lisa Pasch Warren NJ Residence

Scott 8. Usa Pasch Warren NJ Residence

property and valuation support

Item 21. Cars, Trucks, Moton:ycles., Boats, Airplanes, and Other Vehicles

$ Unknown $ -250,000

$ Unknown $..:-700,000

$ 700,000 $ ~300,OOO

$_--_$_--

LIst aU cars, trucks. motorcycles, boats, airplanes, and other vehicles owned or operated by you, your spouse, or your dependents, or held by others for the benefit of you, your spouse, or your dependents .

• Vehicle Type Car .... _____ M.ke Mercedes Benz Model CU9?"'O _____ Y •• r 2004

Registered Owner's Name -,S",c.=.ott=P-=a",sc~h,---_____ Registralion Stale & No. NJ WW200916100004182

Address orVehlele's Location .:.W.:..a"r.:..re"'n.:..N=J.:..R:::6"si:::d:::9"'nc::;6'-__________________ _

Purchase Pri .. $ -50,000 •. _CuITOnl Value $ -20,000 Retail Account/Loan No . .:.N,.,o"'n"'s'--__ _

Lender's Name and /\00 ...... c=;: ________________ ...... ___________ _

Original Loan Amount $.;.N.::.IAc:... ____ Current Loan Bal.nce SJ.:!!i\ ____ Monthly Payment $".:.N"'IA"'-__ _

-Vehicle Type"'C"a"r ______ Make Mercedes Benz Model G500 AWD Year 2002

Registered Owner's Name -'S"'c"'ott"-'-P"'as"'c"'h"-_____ Registration State & No. NJ WW200933600009523

Addr ... of Vehicle's Location ~W=a:.:rr.::e:..:n.:.N.::J:...:..:R.::es"'l:::d.::e:.:nc"'e'__ ____________________ _

Purchase Price $,..:7.:.7",O"O"'O'--___ Current Value $ -25,000 AocountiLoen No. "'N"o"n::;e:...... ______ _

Lender's Name and Address .:.N"o::!,n,..,IiI'--____ _

Original Loan Amount w..:.= ____ Current Loan Balan .. w.:.:= ____ Monthly Payment w""= ___ _

Page 9 tnilials &


ATIACHMENIS

Documents Attached to this Financial Slalom •• t

List all documents that are being submitted wilh this "nancial statement.

Item No. Ds!cywent Relates To

Description of Document

Supplement Pending Lawsl!lt~.iE~x~h~lb~lt~AL) ____________ _

..:1""2""1""3,,,,1,,,4,,,,19,,,,=29=-_ Flnanclallnforll1sllon (Cash, Securities, etc.) (Exhibit B)

-"' ___ . __ ._ .. __ ~':'E2lemenl Life Insurance (Exhibit C)

.,,2"'0 ______ Artwork list and valuations (Exhlbl~,-,O",-,-FL) _____________ -----,..

.::2=.0 ______ Wine list and valuations (exhibit G)

20 GUitar list and valuations (Exhibits H-J)

= _______ Jewelry list (exhibit K)

Supplement Car Information (exhibit L)

22 Home valuations (exhibits M-N)

27 2006-2006 Personal Income Tax Retums

I am submitting thl' financial statement with the understanding that It may affect action by the Feder.1 Trade Commission or a federal COurt. I have used my best efforts to obtain the information reque.ted in this statement. The responses I have provided to the items above are true and Q()otain all the requested facts and information of which I have notice or knowledge. [have provided all requested documents in my custody, possession, or control. I know ofthe penalties for fal .. statements und", 18 U.S.C. § 100 I, IS U.S.C. § 1621, and 18 U.S.C. § 1623 (flve years Imprisonment and/or fines). 1 certlfy under penalty or perjury under the laws of the United States that the foregoing is true and correct.

Executed on:

(Date)

Page 16 Initial'~


,EXHIBITK


Scott and Lisa Pasch 7. Kensington Court Warren, NJ 07059

Supplemental Property Schedule

JEWELRY

1. TIFFANY CLASSIC DIAMOND OR GOLD NECKLACE X PATTERN 2. PATEKPHILLIPEWATCHYELLOWGOLDSERIAL4910/10A-010

DIAMONDS 0.45CTS BRACBLET ACIER 3. PATEK PHILLIPE WATCH SBRIAL 11 3940 WHITB GOLD, RUBIES/WATCH

JEWELS 24 CADRAN/DIAL, FOND ARGENT, HUERES RELIES 4. ONE LADIES DIAMOND ENGAGEMENT RING CUSTOM RING SIZE 5 14KT

YELLOW GOLD CAST MOUNTING CONTAINS ONE CENTER PEAR BRILLIANT CUT WEIGHT ICT

5. LADIES ROUND BRILLIANT CUT DIAMOND RING WEIGHT 5.44CTS. 14KT Y SOLITAIRE MOUNTING

6. A TIFFANY CO. PLATINUM AND DIAMOND THREE STONE RING BACH DIAMOND WEIGHING THE FOLLOWING: 1.01eT, ICT,I.02CT, B COLOR. VS1CLARITY

7. ONE TIFFANY &. CO. PLATINUM DIAMOND PENDANT, SET WITH ONE ROUND BRILLIANT CUT DIAMOND WEIGHING 2.62CTS, I COLOR, VSl CLARITY

8. ONE TIFFANY 18 KARAT YELLOW GOLD AND PLATINUM YELLOW SAPHIRH AND DIAMOND RING, SETWITH ONE EMERALD SAPPHIRE WEIGHING 9.97CARATS

9. F.P. ,OURNE RESONANCB 40MM ROSE GOLD CASE 4N MOVEMENT TWO . TIME ZONE WHITE GOLD DIAL

10.H46565 ROGER DUBUIS ROSE GOLD CASE BLACK/GOLD SPPLIED ROMAN NUMERALS

11.570bb129v6 BREGUET "LE REVElL DU TSAR- ALARM 2ND TIME ZONE ON 24 HOUR SUBSIDIARY AT 9 O'CLOCK, WHITE GOLD CASE ON BLACK ALLIGATOR STRAP SN1I7601

12.3710BR929ZE BREGUET TYPB XXI CHRONOGRAPH 18K ROSE GOLD CASE ON BROWN ALLIGATOR STRAP SN#7601

13.3755PRLE9V6 BREGUET BTS SKELETON TOURBILLON. PLATINUM ON ALLIGATOR BANK

14. YELLOW DIAMOND HEART PENDANT - GIA CERTIFIED 1.51 CT FANCY INTENSE YELLOW, Sl1CLARITY, HEART SET IN 18K GOLD RHPOT#14284181


Item 10, Personal Property

List.1I personal propet'ly, by category, whether held for personal use or for investment, including but nOt limited to, furniture and household goods ofva.lue. computer equipment, eleotronics. coina, StamPS, artwork, gemstones,jewelry, bullion, other collectibles, copynghts, palenls, and .therlot.lIe.lUIl! property, held by you, your spouse, or your dependents, or held by others for the benefit of you, your spouse, or your dependents,

Property Cqteggry ~Am~ 2fQ~D~r Property Location 6£gYi§i!ion Current (e.g .. artwgrk. jewelry) !dIl!l ~

Scott & Lisa Pasch Warren NJ Residence $ 2,500,000 $ ~1 ADO,OOC

Artwork (continued from above) Scott & Lisa Pasch Consigned In Lonj~n and FL $ included' $ included

Wine Scott & Lisa Pasch Consi~r"e~to Zachts $ Unk[lOwn $ ~250,OOO

GUitars Scott & Lisa Pasch Warren NJ ResidenCe $ Unknown $ -700,000

Jewell)! Scott & Lisa Pasch Warren NJ ReSidence $700,000 $ -300,000

See Exhibits D-K for lists of ero[!!!rlY snd valuation sueeort $ $

lIem 21, Cars, Trucks, Motorcycles, Boats, Airplanestsnd Other Vehicles

List all cars, trucks, motorcycles, boats~ airplanes, and other vehicles owned or operated by you, your spouse, or your dependents, or held by others for the benefit of you, your spouse, or your dependents .

• Vehicl. Type Car __ , _____ M.ke Mercedes Benz Mode! CU~32:::0,-_____ Year 2004

Registensd Owner's Name "S:.:c::::ott=.P"'s""sc"-h'-_____ Registration State & No. NJ WW200916100004182

Address of Vehicle's l.ocation -,W.!.a"r""r!,:en"""N",J,-,Rc:e",$",i"de~,n,,,c,,,e,--____________________ _

Purch ... Price $ -50,000 __ ,_Current Yalue $ -20,000 Retail AocountiLo •• No . .!.N:.:o"-n:::sC-. ______ _

Lender's Name and Addre" =='-___ " ____ , _______________________ _

Original Loan Amount $.!.N:;;/A"-____ Current Loan Balance $ N/AC-. ___ , Monthly Payment $.:-;N:!:.IA"--__

'Yehicle Type -"C"'a"r ______ Make Mercedes Benz Model G500 AWD Ye.r 2002

Registered Owner', Name "S:;cc=tt"P-'S"S"'C:.ch ______ Reglstration Stale & No. NJ WW200933600009523

Address of V .hiele's Location -,W""a",rre=n!.N=J !.R"'e"'sl::::d"e:.cnce= ____________________ _

Purchase Price Sc.7.:.7J.:,Q:.;:O"'Q ____ Current Value $ -25,000 Account/Loan No . .;.N"o"'n,,9'-______ _

Lender's Name and Address =='-______ , ___________________ _

Origin.I Loan Amount $-'-N~IA"'_ ____ CUJ'rent Loan Balance _.;.;= ____ Monthly Payment w.;..= __ _

Page 9' lnitiBls ~


ATTACHMENTS

Item 33. Documents Attaehed to this Financial Statement

List all documents that are being submitted with this financial statern~nt.

Item No, Document Relates Tg

Descriptipn of Document

Supplement Pending Lawsuit~ (E=:!x:!.h~ib:!!it.!.:A!L) _____________ ~

~12:J,~13:'.!,.!.:14::,.._'_'19"',2""9~_ Financiallnfor:mation (Cash, Securities, etc.) (Exhibit S)

...:.1"'8 ______ Supplement Life Insurance (Exhibit C)

.,,20"--_____ Artwork list and valuations (EXhlbl~,-"D,--,-F),--_____________ ~

=20"--_____ Wine list and valuations (Exhibit G)

20 Guitar list and valuations (Exhibits H-J)

Jewelry list (Exhibit K)

.:2:.,;1 ______ Supplement Car InformaUon (Exhibit L)

.:2:::2 ______ Home valuations (Exhibits M-N)

27 2006-2008 Personal Income Tax Returns

[ am submitting this financial statement with the understanding that it may affect action by the Federal Trade CommiSSion or a federal court. J have used my best efforts to obtain the information requested in this statement. The responses I have prOVided to the items above are true and contain all the requested facts and Information of which I have notice or knowledge. I h.". provided all requested doeuments in my custody, possosslon. or control. I know of the penalties for false ,tatements under 18 U.S.C. § 100 1, t 8 U.s.C. § 1621. and 18 U.S.C. § 1623 (ftve years imprisonment andlor ftnes). I •• rtllY under penalty ofperJul')' undctthe laws of the United States thai the foregoing is tru.and colTect.

Executed on:

(Date)

Page 16 Inili.ls~


EXHIBITD


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EXHIBITE

.- Case 2:07-cv-04593-FSH~PS Document 93 . Filed 03/29/10 of 76

~UlSECK CIILL!I\Y '01 WOR'Itt AVENUE

PALM BEAl".H. ,l1]480

lanuary 3D, 2010

Lisa Pasch 7 Kenllillgllon

Dear Lisa and Scott, sadlyt am unable to get any real offers on }OUr pieces .The only <;Iffefs have been in tl1e $300,000 to $400,000 range, however rest assured that I will continue to hold these works and notify you of any f<;llloWinll offers. Best Regards, Sioane Russeek.

Cl)nslgnment Asl'ecment

Pablo Pi.:asSI)

Minotaur 1937 Gouache and ink on P<lper 10 'h x 8 'Iii inches (26.7 x 21.6 em) Dated uppe~ left

Provenance: Bernard Picasso, Paris leffery Loria, New York R.usseck Gallery, Palm Beach Private Collection, New Jersey

*A certificate from Maya Picasso accompallies this work

TEUVil()NI {!i1\111l.12 4"11 .W:~IMIH !!lotl!) 1J:J..2·lHn:}

,d Wd8~:C' 010e ra 'qej riB~o£819S 'ON Xijj ~31-"D )1:)3SSn~ : WDM.:I


"'. RUSSECK GALLERY

203 WORTH AVENUE MLM 8EACH. FL l)4BO

Pablg Picasso (1881-1973)

Baiglleuse et Cabine de Bains

Executed Sliptember S, 1938 Brush. Ink. and wash on paper 26 II.! X 17 * Inches (67.31 X 44.45 em.) Signed and dated lower center: "1'Ica$SD 8.9.38'

Pl'Ovenanre:

Private Cllllection, Spain (acquired from artist) Ronald Ilmmanuel. London B.T.Bauford. London Harry Winston. DIItroit Russeck Gallery. Palm Beach Private Colleetlon, New York (acqUired from m.! abo'll! in November 2006)

Exhibited,

Detroit, CranbrookArtAcademy, Winston Conection.1951 nQ.13 Michigan. University of Michigan. Twentieth Century Pointing rind Sculpture from the Winston CQl/sCt/OII, 1955. no.55 Detroit, Detroit Institute of Art. Collecting Mode,." Art, 1957, no. 85 DetrOIt, Detroit Institute of Art. The Varied Work$ ufPic/l6SO, 1962 Indiana, The University of I ndlana and WIs~on~ln. University o(Wlsconsin. Reflections, 1971, no. 112., illustrated In catalogue Detroit,. Detroit Institute of Art, Selections from the L,ydifl find Harry L. Winston Collect/OI/, 1972 -73 (onelrtendedloan) New York, The Solomon R. Guggenheim Museum, 1973 - 1974. no.83l11Wltrated in catalogue

Literature!

Christian Zervos. Pablo PiCflSSO, Oeuvres de 1937 a 1939, Paris. 1959, vol. 9. p.l07. no.ZZZ. illustrated Douglas Cooper, Gnnn Private Collectfons, 196:1. p.303.l11ustrated

HI,(PHI,lN[ 15.11 ,,:,2 41111 fACSIMH ~ (:,00 n:4:(dIfU 'i

cd Wd8V:cl 0t0c £0 'qa~


1'#

RUSSECK C""'LERV 20' WOIll'H AYfNUE

MlM eMCH, f. )3400

Gene Baro, Collector: Lydia WlII.\'IOII, In Art in America, September - October 1967. p. 72 illustrated In color The Picasso Project. Picasso's Paintirzgs, WoterC(.lorS; Drawings and Sculpture, SpQl1ish CIvil War 1937.39. Sam FrallClsco, 1991, p. 189, no. 38 -165, lIlostrated

Usa Pasch (Consignor)

II\LLrHONf t~rt1) 1I)}·4n" I Af.SIMIU, '5~J1) U):l "81:1

.,/"

/' ! ..,"

. .::::--Sloane Russeck (Consignee)

;0

~ Wcl611 :I:t IItaG til '''''':I t1911Z£91SS 'ON ~:I Aei31");j!J >I:l35Sfllj WOlI.:I

Case 2:07 -cv-04593-FSH-PS Document 93 Filed 03/29/10 of 76

SCHEDULE C (l1inancial Accounts - Corporations)

Balance as of2/22/10

l. Wachovia $0

2. Ocean First Account Numbe~ $0

3. Ocean First Account Numbe~ $0

4. Ocean First Account Number_ $50,000

5. Ocean First Account $565,679

6. Ocean First $294,376

f

I -I

I

I