Receiverships

Guttilla Murphy Anderson has been serving as legal counsel to Court appointed Receivers since 1975 in the numerous state and federal receiverships initiated in the state and federal courts of Arizona.

The representation of court-appointed receivers by Guttilla Murphy Anderson has resulted in our firm’s involvement in a multitude of high-profile litigation matters, many of which involve complex financial fraud, Ponzi and other investment schemes with thousands of innocent victims, the operation of political subdivisions subject of government investigation and management of commercial and other real estate developments.

Our expertise in representing Court Appointed Receivers provides its clientele with the legal resources for the successful administration of any receivership engagement. Our success in the representation of receivers stems from our years of experience in the area, our comprehensive understanding of the legal and business issues that arise in any type of receivership, as well as our focus on providing efficient, timely, and cost-effective legal counsel to its clients while preserving the assets that are the subject of the Receivership Estate for distribution to the creditors.

Notable Representations:

• State of Arizona vs. C.P. Direct, Inc., dba Nutritional Supplements Inc.; Michael Consoli; Geraldine Consoli; Vincent Passafiume; Nutritionals Direct Inc.; dba Nutritional Supplements Inc.; Opulent Property Investments, Inc.; MAC Investments, Inc.; VJP Investments, Inc.; Suzanne Rye; Judy Anderson; Michael Kwadecius; and Laura Hughes;, et al, Cause No. CV 2002-011275/CV 2003-021237 Consolidated.  Firm represented the Court Appointed Receiver and after extensive litigation assisted the Receiver in recovery of over $48 million dollars. Receiver has distributed a total of $3,981,676.23 to the consumer victims as compensation for their losses, made payments to payments to certain general creditors totaling $2,467,396.86 and paid $31,778,955.00 to the State of Arizona and the Arizona Attorney General’s Anti-Racketeering Revolving Fund.

• Securities and Exchange Commission, vs.Robert R. Dillie; and Mid-America Foundation, Inc. Cause No. CIV 01-2493 PHX JAT. Guttilla Murphy Anderson represented the Court Appointed Receiver with administering a Ponzi scheme perpetrated by Mid-America Foundation and Robert Dillie that had already collapsed when Mid-America Foundation had closed its doors and stopped making monthly Ponzi payments to its victims. On March 22, 2006, Defendant Robert Dillie was convicted of three counts of wire fraud and money laundering and sentenced to Federal prison. During the course of the Receivership, the Firm pursued various litigation matters and obtained various settlements and judgments resulting in recoveries to the estate of over $4,000,0000. The significant recoveries in this case required the filing and prosecution of a number of lawsuits, including one Federal civil jury trial and two appeals to the Ninth Circuit Court of Appeals.  

• Receivership of Colorado City Unified School District – Represented Receiver of Colorado City Unified School District (“CCUSD”) appointed by the Arizona State Board of Education in first school district receivership in history of Arizona.  The Receivership was established by powersunder A.R.S. § 15-103 and after a government investigation uncovered multiple allegations against gross financial mismanagement. Guttilla Murphy Anderson assisted the Receiver with the independent evaluation of  CCUSD, identified areas of financial and administrative mismanagement, developed and oversaw a series of plans to return CCUSD to financial solvency with proper operational controls.  The Receiver also had a responsibility to maintain, and if possible, improve the quality of education at CCUSD. As a result of the Receivership CCUSD’s operations were certified by the Auditor General’s office certified as solvent and with appropriate operational controls. The Firm has participated in all other Arizona School District Receiverships since 2005.

• MMJ Apothecary, GP vs EOM&D Management, LLC. CV2017-055732.  Represented Receiver of marijuana dispensary. During administration of case, the Firm assisted the Receiver in a relocation of the marijuana dispensary operations from Wickenburg to Phoenix, assisted in the expansion of business operations to include sales of both recreational and medical marijuana and conducted a comprehensive claims process which facilitated the adjudication of creditor claims against the marijuana dispensary.