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Cause No. DC-23-05065
STEVEN WASKOW, M.D., § IN THE DISTRICT COURT OF
Plaintiff, §
§
vs. §
§ DALLAS COUNTY, TEXAS
ADDISON BROWN, LLC, JUSTIN §
BROWN, RICK LOCKHART, and §
NUECES CAPITAL, LLC. §
Defendants, Jointly & Severally. § 162nd JUDICIAL DISTRICT
ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER
(With Attached List of Items to be Turned Over)
The Court considered Plaintiff’s/Applicant’s application for turnover and appointment of a receiver,
reviewed the documents on file, evidence, all arguments, and finds that Plaintiff/Applicant is entitled to aid
from this Court and the appointment of a receiver is necessary.
Defined Terms. As used in this order, the terms below are defined.
Term Definition
Plaintiff Steven Waskow, M.D.
Defendants Addison Brown, LLC, and Justin Brown.
Receiver Name: Mark Stout
Address: 420 Throckmorton Street, Suite 1210
Fort Worth, Texas 76102
Tel. No.: 817-338-1616
E-Mail: mstout@padfieldstout.com
Judgment Date: December 15, 2022
A. $130,000.00 against Defendant Addison Brown, LLC.
B. $100,000.00, plus statutory 5% interest thereon from the date of Plaintiff’s
investment (April 4, 2015) until the date of entry of this Journal Entry of
Judgment, pursuant to Texas Securities Act § 33, against Defendant
Addison Brown, LLC, and Defendant Justin Brown, jointly and severally.
WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 1 OF 19
C. Rescission of Plaintiff’s investment with Defendant Addison Brown, LLC.
D. On September 20, 2022, this Court entered its Order Granting Motion for
Attorney’s Fees and Punitive Damages. Plaintiff’s Motion for Attorney’s
Fees and Costs and for Punitive Damages has been deemed confessed and
this Court has further found that Plaintiff has demonstrated that
Defendant Addison Brown and Defendant Justin Brown engaged in
conduct constituting (1) fraud; (2) malice, or (3) gross negligence.” Texas
Securities Act § 33 (M). Pursuant to said Order and findings, this Court
hereby enters final judgment against Defendants as follows, all against
Defendant Addison Brown, LLC, and Defendant Justin Brown, jointly and
severally.
E. Punitive damages in the amount of $100,000.00, pursuant to Texas
Securities Act § 33 (M).
F. Attorneys’ fees in the amount of $77,172.50, pursuant to Texas Securities
Act § 33 (D) (7).
G. Costs in the amount of $4,846.99, pursuant to Texas Securities Act § 33
(D) (6).
H. All amounts awarded in this Judgment shall bear interest at the rate set
pursuant to 12 O.S. § 727.1(A). (Exhibit “A”).
Receivership Assets All of Defendants’ non-exempt property
Bond Amount $0
Atty’s Fees for $2,500.00
Motion Requested
FACTUAL FINDINGS. The Court makes the following factual findings:
1. Unsatisfied Judgment. Plaintiff owns an unsatisfied final, valid, and subsisting judgment against
Defendants.
2. Property Not Readily Attachable. Plaintiff has good faith reasons to believe that Defendants own
non-exempt rights to present or future property that cannot be readily attached or levied upon by ordinary
legal process, like bank accounts that are easily moved and constantly changing in balance. Appointing a
receiver to locate, marshal, and administer assets is justified because non-exempt assets exist, as virtually
everyone has a bank account or other non-exempt asset, that Plaintiff believes that Defendants will hide.
Plaintiff believes Defendants own non-exempt property that is not readily attachable through ordinary legal,
process as required by the standard in Tanner v. McCarthy, 274 S.W.3d 311 (Tex.App.–Houston [1st Dist.]
2009, no pet.), so Plaintiff is entitled to a turnover order that does not identify specific property. See Tex.
Civ. Prac. & Rem. Code §31.002(h).
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3. Reasonable Collection Attempts Not Required. Post-judgment discovery is not a prerequisite for the
appointment of a receiver.
4. Necessity of Receiver. Plaintiff is entitled to aid from the Court, and it is necessary to appoint a
receiver to facilitate the collection of the judgment.
5. Attorney’s Fees. The Court takes judicial notice of the time that is reasonable and necessary for the
preparation and prosecution of the motion for turnover and for a receiver.
5.1 Reasonable Receiver Fees. A contingent fee of 25% is a fair, reasonable, customary,
and necessary fee for a receiver. Defendants have not made a reasonable effort to pay the
judgment, and a contingency fee is most likely the only way that Plaintiff can afford a
receiver because the costs of an hourly fee for Receiver are prohibitive.
6. Competent and Experienced Receivers are rare. The time and effort required by a receiver to keep
time, apply for fees, as well as the lag between filing for fees and being paid -- not being paid at the time
of or shortly after rendering of services, would inhibit the recruitment of experienced receivers. Given the
chances of no recovery, contingent fees are the most economical fee schedule, and the costs of proving an
hourly fee will very often exceed the original judgment.
7. Appointment of Receiver. After considering the propriety of receivers previously appointed by the
Court in other cases, and Plaintiff’s recommendations, the Court hereby creates a receivership and
appoints Mark Stout as the Receiver over Defendants’ non-exempt assets, pursuant to the Texas
Turnover Statute, (i.e., Texas Civil Practice and Remedies Code Sec. 31.002). Receiver is to serve without
a bond.
7.1. Purpose of the Receiver. The Receiver is the agent of this Court (not the attorney for
any party) and is to be treated with the same courtesy accorded to the Court.
Receiver shall notify the Court of the parties if Receiver recommends the appointment
of a special master for any reason.
7.2. Constructive Possession of Defendants’ Non-Exempt Property. The Court hereby
assumes jurisdiction over and takes constructive possession of all of receivership assets.
The receivership has a judicial lien on all non-exempt assets of Defendants’ regardless of
whether the Receiver takes actual possession.
7.3. Effect of Order on Defendants and Third Parties. The unique power of a receivership
derives from the doctrine of custodia legis. Once a turnover order containing an appointment
of a receiver is signed, all the judgment debtor’s non-exempt property becomes property in
custodia legis, or “in the custody of the law.” First Southern Properties, Inc. v. Vallone, 533 S.W.2d
339, 343 (Tex. 1976). The judgment Debtor’s property is considered to be in the
constructive possession of the court. During the pendency of a receivership, a receiver has
exclusive possession and custody of the judgment debtor’s property to which the
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receivership relates. First S. Props., 533 S.W.2d at 343; Ellis v. Vernon Ice Co. & Water
Co., 86 Tex. 109, S.W. 858 (1893). No one, not even a lien holder with a prior filed deed of
trust, can sell property held in custodia legis by a duly appointed receiver without first
obtaining approval from the Court in which the receivership is pending. First S. Props. at
533 S.W.2d at 341; Huffmeyer v. Mann, 49 S.W.3d 554, 560 (Tex.Civ.App.–Corpus Christi,
2001). Any unauthorized transfer of property in the custody of a receiver is not
merely voidable, it is void. First S. Props., 533 S.W.2d at 341. Any conveyance of property in
the custody of a receiver without approval by the court has no effect upon the
receivership and the accomplishment of its purposes. T.H. Neel v. W.L. Fuller, 557
S.W. 2d 73, 76 (Tex. 1977). In short, any attempt by Defendants to transfer any of their
non-exempt property after the turnover order has been signed is void and can be called
back by the receiver or subsequent suit to set aside the transfer brought by the receiver.
7.4. No Responsibility to Litigate. Receiver is not required to defend or prosecute any
litigation regarding Defendants. However, D e f e n d a n t s may request an order from this
Court requiring Receiver to take any appropriate or reasonably necessary action to
maintain the value of the receivership assets.
7.5. Immunity of Receiver. To the extent allowed by law, Receiver and his agents shall have
immunity from suit for state law claims and shall not be liable for any loss or damage
Incurred by any person or entity by reason of any act performed or omitted in good faith
in the course and scope of Receiver’s duties and responsibilities for the receivership set
out in this order, including exercising control over receivership assets. “Once an
individual is cloaked with derived judicial immunity because of a particular function
being performed for a court, every action taken with regard to that function-whether
good or bad, honest, or dishonest, well-intentioned, or not is immune from suit. Once
applied to the function, the cloak of immunity covers all acts, both good and bad.”
Davis v. Radoff, 317 S.W.3d 301, (Tex.App-Hou 1st 2009), (citing Ramirez v. Burnside &
Rishebarger, LLC, No. 04-04- 00160-CV, 2005 WL 1812595 (Tex. App .-San Antonio Aug. 3,
2005, no pet.) (mem.op.)).
8. Defendants’ Responsibilities and Obligations to Receiver and the Court. Defendants are ORDERED
to do the following as soon as practicable and no later than 10 calendar days from service of this Order:
8.1. Deliver to Receiver, at Receiver’s address, the items described in Exhibit “A”,
together with all documents and records requested by Receiver.
8.2. Turnover to Receiver all non-exempt funds to the extent required to satisfy the
Judgment. Defendants may not spend non-exempt funds, or sell, transfer, or
encumber non-exempt assets, without Receiver’s prior written consent.
8.3. Make a Complete Disclosure to Receiver of all their assets. Defendants
must disclose all exempt and non-exempt assets, so that the exempt status of each
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asset can be determined. Defendants must disclosure and provide sufficient
specificity to permit a constable to identify and levy upon each asset.
8.4. Supplement all disclosures, in writing, within five (5) days of knowledge of
information required to be disclosed, without being prompted.
8.5. Organize and collate the disclosed information and documents in the formats and
manners directed by Receiver.
8.6. DO NOT interfere with nor impede Receiver, directly or indirectly, in the
performance of Receiver’s duties set out in this Order.
9. Post-Judgment Pleadings and Discovery. All parties are ORDERED to serve Receiver with electronic
copies of all motions, notices, discovery responses, correspondence, and communications among the parties.
9.1. Receiver may propound written discovery requests to the parties, which must
follow the rules of civil procedure, in addition to Receiver’s specific powers set out
in this Order. Upon request, Defendants must provide documents in electronic
format with indices, which may include word processing format, or another format
requested by Receiver.
10. Receiver’s Specific Powers. The Receiver is authorized to do the following:
10.1. Take possession of all non-exempt property of Defendants in their actual or constructive
possession, custody, or control, including the non-exempt items described in Exhibit “A”,
and includes cash, accounts receivable, lease payments, notes receivable, promissory notes,
checks, credit card payments, the accounts in banks, stock brokerage firms, and entities like
E-Trade Clearing, LLC, stocks, bonds, securities, deeds to non-exempt real property, fixtures,
vehicles, vehicle titles, boats, planes, documents, safety deposit boxes, causes of action,
contract rights, equipment, supplies inventory.
10.1.1. Secure control over all non-exempt property and engage in presale
activities including appraisals, evaluations, listing and advertising
agreements. Receiver may transfer title into receivership or place a hold
on the title of personal and intangible property, including intellectual
property, patents, trademarks, service-marks, copyrights, websites, and
domain names.
10.1.2. Enter all non-exempt property and take all actions to gain access to
leased premises, storage facilities, and safe deposit boxes where non-
exempt property, or records of Defendants may be situated, and to seize
the contents.
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10.1.3. Disable or remove non-exempt property belonging to Defendants or
place the property into storage; insure any property taken into his
possession; obtain such writs as Receiver deems necessary to obtain
possession; and change the locks to premises belonging to Defendants.
Receiver has no duty to take these actions, or to maintain, guard, or insure
property taken into custodial egis, or to maintain or pay any lease, nor shall
Receiver be required to pay any mortgage, lien, or assessment, defend
against any lawsuit, pay any tax or fee, file tax returns, maintain any
insurance coverage, or have any obligation except as specifically ordered.
10.1.4. Assume that property is not exempt if it appears to be non-exempt until
the person claiming the exemption states the exemption claimed, the factual
and legal grounds for the exemption, and describes the property with
sufficient specificity that a constable could levy upon it. If there is any
dispute whether an asset is exempt, or property of Defendants, Receiver
is authorized to take custody of the asset until the Court determines the
rights of those claiming an interest in the asset.
10.1.5. Contract or hire any person, firm, or company (including hiring legal counsel
and forensic accountants) reasonably necessary to accomplish any right or
power granted by this Order, including to analyze financial statements,
further remedies available to Receiver, change lock to premises belonging
to Defendants, exclude persons from interfering with Receiver’s custody
of premises, move or store Defendants’ property to collect accounts
receivable.
10.2. Endorse and cash checks and negotiable instruments payable to Defendants, except
paychecks for current wages.
10.3. Lawsuits and Claims. Receiver shall have the right, power, and authority to commence,
maintain, settle, and control any cause of action, including all post-judgment and pre-
judgment remedies and collection techniques that Defendants would have otherwise had
the right to commence, maintain, settle, or control, including to hire counsel to pursue any
such causes of action.
10.3.1. Fraudulent Transfer. Receiver may investigate and bring suit to recover assets transferred
by any Defendant to another person (transferees) as defined in the Uniform
Fraudulent Transfer Act.
10.4. Management, Control and Disposition of Entities. All legal right, title and ownership of any
limited partnership interest, partnership interest, stock interest in any corporation or
membership interest Defendants have in any business entity is divested from Defendants and
is placed in custodia legis with Receiver. Chitex Commication v. Kramer, 168 B.R. 587, 590 (S.D.
WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 6 OF 19
Tex. 1994) (“the president of an insolvent corporation had no authority to affect the
corporation’s property interests once a state court had placed it into receivership”). To the
extent that the debtor is the sole owner of, or has control over that entity or business, all
management authority is vested in Receiver as if Receiver were the owner of that entity.
10.4.1. Management of Business Interest. Receiver shall have the authority and
power, but not the obligation, to manage all businesses and business
affairs of Defendants.
10.4.2. Vote. Receiver shall have the exclusive right, power, and authority to vote any
shares of stock, partnership interests, or other business interests of Defendants.
Where Defendants has an interest in a legal business entity, Receiver shall have the exclusive
power and authority to make, vote or sign any orders or minutes or resolutions of directors
authorizing any action of Defendants requiring such resolution or signed minutes by
Defendants operating agreement, partnership agreement, bylaws, or other such agreements.
10.5. Obtain Property and Information from Third Parties and require the attendance of third
parties and, with this Court’s prior approval issue subpoenas to third parties, or those who
may possess knowledge or information concerning Defendants’ non-exempt assets.
Receiver may require the attendance of Defendants and, with this Court’s prior approval
issue subpoenas to Defendants, third parties, or witnesses, including employment records
from the Texas Workforce Commission, for the production of documents, things, and
information, including matters concerning the employment of Defendants or a witness, the
existence, location, or value of Defendants’ assets. Receiver may schedule and issue
notices for stenographic or non-stenographic examinations of anyone who may know
of relevant facts concerning Defendants’ non-exempt assets.
10.5.1. Obtain Defendants’ driver’s license contact information and confidential
personal identifier records from the Texas Department of Public Safety, and all
similarly named entities. Those entities are ordered to release Defendants’
contact information and confidential personal identifier records to Receiver,
including Defendants’ photograph.
10.5.2. Obtain credit reports, bank searches, and other reports to aid in locating non-
exempt assets. Receiver may order any Consumer Reporting Agency, as defined
by the Fair Credit Reporting Act (“FCRA”) 16 USC §1681b(f) to provide
consumer reports on Defendants and witnesses as allowed under FCRA 16
USC §1681b(a)(1).
10.5.3 Provide certified copies of documents in the possession of Receiver as requested by third
parties -- to the extent allowed by law.
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10.5.4. Collect all unclaimed funds belonging to Defendants, including from the Texas
Comptroller’s Office.
10.5.5. Order providers of utilities, social media companies, telecommunications,
telephone, cell phone, cable, internet, data services, internet website hosts, email
hosts, iCANN providers, satellite television services, and all similar services
(including Facebook, LinkedIn, ComCast, AT&T, Verizon, Sprint, T-Mobile,
Dish Network, and Direct TV), and financial institutions to turnover information
that Receiver believes may prove or lead to the discovery of the existence or
location of Defendants’ whereabouts or non-exempt assets, including account
information, telephone numbers, names, service addresses, telephone numbers,
payment records, and bank and credit card information.
10.5.5.1. Such orders shall be directed to the entity from which the information is
sought and describe, as specifically as possible, the precise information requested
with the dates for which the information is required, which shall not be more than
one year before the issuance of the Receiver’s request, unless specifically stated in
the request of attached letters.
10.5.5.2 This Order hereby specifically defines Receiver as a state official,
acting in an official capacity, as defined in section 182.054(1) of
the Texas Utility Code.
10.5.5.3. This Order specifically serves as the court order required by 47
USC § 551, and Tex. Fin. Code §59.001, and satisfies all
obligations of the responding party to obtain or receive a court
order prior to disclosing material containing personally identifiable
information of the subscriber or customer.
10.5.5.4. Disclosing information under this order is not a violation of PUC
Substantive Rule 25.272. This Order satisfies the law, regulation, or
legal process exception to the Proprietary Customer Information
Safeguards found in PUC Substantive Rule 25.272 (g)(1).
10.6. Engage in Pre-Sale Activities. Receiver is hereby authorized to engage in presale activities
to secure the highest and best sales price for non-exempt property collected by Receiver,
including appraisals, evaluations, listing agreements.
10.6.1. Receiver must make application to the Court for a finding of the exempt character
of any real or personal property prior to consummating any sales transactions, with
notice and opportunity for hearing for Defendants and any person claiming a
superior interest in the property.
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10.6.2. Receiver may sell, lease, license or redeem the following types of property to
transform the property into cash without further action or authorization from
this Court:
10.6.2.1. All air miles and rewards programs belonging to Defendants.
10.6.2.2. Intellectual property, including any patent.
10.6.2.3. Stocks, bonds, and all negotiable instruments.
10.7. Receive and Redirect Defendants’ U.S. Mail. If Defendants is doing with, or working for a
business entity, to the extent allowed by law and in compliance with U.S. postal regulations
and federal and state laws governing electronic communications, Receiver is authorized to
redirect, read, and copy Defendants’ mail, whether electronic, paper, or facsimile, or
otherwise, and whether sent to a street address, phone line, post office box, or via the
internet, prior to and exclusive of receipt. However, Receiver must establish procedures for
allowing Defendants to timely retrieve the mail or copies. For an individual (non-entity)
debtor, Receiver must request a supplemental order from the Court after notice to
Defendants and an opportunity to be heard at the hearing to consider the Receiver’s request.
As the Defendant is an individual to the extent allowed by law and in compliance with U.S.
postal regulations and federal and state laws governing electronic communications,
Receiver is authorized to redirect, read, and copy Defendants’ mail, whether electronic,
paper, or facsimile, or otherwise, and whether sent to a street address, phone line, post office
box, or via the internet, prior to and exclusive of receipt. However, Receiver must establish
procedures for allowing Defendants to timely retrieve the mail or copies. For an individual
(non-entity) debtor, Receiver must request a supplemental order from the Court after notice
to Debtors and an opportunity to be heard at the hearing to consider the Receiver’s request.
10.8. Use Reasonable Methods for Service of Documents. Receiver may serve Defendants
according to the Texas Rules of Civil Procedure. If, for whatever reason this standard
method of service is unsuccessful, after documentation, Receiver may serve Defendants by
placing the documents to be served in Defendants’ mailboxes, taping them to the door of
Defendants’ residence, or delivering them to the receptionist at Defendants’ place of work.
Receiver may serve a non- natural entity by taping the documents to be served on the
registered agent’s door or delivering them to the receptionist at the registered agent’s
registered office.
11. Specific Duties of Third Parties. It is ORDERED that every person with actual notice of
this Order shall not interfere with property in Receiver’s control or subject to this Order, and shall
not interfere with Receiver in the performance of Receiver’s duties under this order. All persons
are hereby notified that Receiver, to the exclusion of Defendants, is the party entitled to possess, sell,
liquidate and otherwise deal with Defendants’ non-exempt property and once any person receives
notice of this Order, that person may be subject to liability if that person releases property, unless
WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 9 OF 19
directed by Receiver or the Court.
11.1. All persons who hold any Defendants’ property or records are ORDERED to
immediately notify Receiver and to deliver the property within ten working days
of Receiver’s demand and actual notice of this Order.
11.2 All persons who discover the existence of Defendants’ property (or of facts or
records that could lead to the discovery of property in which Defendants have
any interest) are ORDERED to immediately notify Receiver within ten working
days of such discovery and after Receiver’s demand and actual notice of this Order.
11.3 NOTICE: Any person resisting or objecting to Receiver’s order or request, based on legal or
other advice, is ORDERED to give the full name, address, fax number, e-mail address, cell
phone number, and direct telephone number for each person giving such advice and to
instruct each person to immediately contact Receiver. Providing this contact information
shall not be considered a waiver of any attorney-client communication or any other privilege.
12. Authority of Peace Officers. Any peace officer shall have the authority and is hereby authorized under
this Order to accompany Receiver under a writ to locations designated by Receiver where Receiver believes
that Defendants’ assets may be located. A peace officer is required to keep the peace and any peace officer is
hereby ordered to prevent illegal interference with Receiver’s carrying out any duty under this Order and is
hereby ordered to prevent illegal interference with property in Receiver’s control or subject to Receiver’s
control under this order.
13. County Clerk Responsibilities. The County Clerk is specifically ORDERED to do the following to
the extent allowed by law:
13.1. Writs of Turnover issued under this Order, shall not be limited in time, or have an
expiration date. Those serving the writs shall return them to Receiver, not the
clerk, unless otherwise instructed. More than one writ of turnover may be issued
and outstanding. The clerk is ordered to issue writs on an expedited basis, upon
request of Receiver.
14. Receiver Fees and Final Accounting. Receiver is entitled to a fee equal to 25% of all proceeds of assets
that come into his actual, constructive, or legal possession, and all recoveries and credits against the
judgment, not to exceed 25% of the balance due on the judgment, including post- judgment attorney’s fees,
Receiver’s fees, costs, and expenses – without further approval of the Court.
14.1. Receiver is directed and authorized to pay to Receiver the 25% contingent fee,
which shall be taxed as costs against Defendants and shall be added to the cost
docket of this Court upon request.
14.2. Receiver is directed and authorized to pay to Plaintiff’s attorney as Plaintiff’s
trustee.
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14.3. A receiver’s fee exceeding 25% of all proceeds coming into Receiver’s
possession may be paid if an order is granted, after notice to and opportunity for
hearing for all parties.
14.4. However, if a Defendant files for bankruptcy protection, the Receiver's fee shall be equal to
25 percent of the debt owed at the time the bankruptcy is filed.
14.5. Release of Judgment. Plaintiff shall file a release of judgment with the Tarrant
County Clerk (and all counties in which an abstract of judgment was filed) within
14 business days of collection and satisfaction of the judgment and all costs and
fees incurred in collection of the judgment.
14.6. Final Accounting. The Receiver shall file a final accounting and application to
close the receivership within thirty days of the filing of any release of judgment.
14.6.1. All authority of the Receiver shall terminate on the later date of (a) 30
days after the filing of the final accounting, or (b) the Court’s order
approving the final accounting.
15. Attorney’s Fees. Defendants is ORDERED to pay Plaintiff $2,000.00 in attorney’s fees, to date, for
obtaining this Order. Defendants shall pay that fee to Plaintiff’s counsel of record on or before 14 days of
receipt of this order.
In the case of an appeal or petition for writ of mandamus regarding this order, Receiver is awarded
$4,000.00 in attorney’s fees for successfully defending those actions, and Plaintiff is awarded
$3,000.00 in attorney’s fees for successfully defending those actions.
16. Time Period for objections to this Order. All objections to (i) this Order, (ii) the bond, including its
sufficiency, (iii) Receiver’s qualifications, and (iv) every other issue relating to this Order, are irrevocably
waived if they are not made in writing and filed within twenty days of the service of this order on (or actual
notice to) Defendants or Defendant’s counsel.
17. Other Relief Granted.
__________________________________________________________________________________________________________________
NOTICE TO DEFENDANTS: A Turnover Order has been entered against you. If you have not done
so, you have the right to hire an attorney to assist you in compliance with this turnover order. If you
believe that Receiver’s demands are inappropriate, you must either comply, or seek protection from
the Court. Persons seeking protection must set the matter for the earliest possible hearing date, after
giving full notice to Receiver and making all reasonable attempts to resolve the issues without
further court intervention.
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Exhibit A
Documents Ordered to be delivered to the Receiver’s office, at 420 Throckmorton Street, Suite 1210,
Fort Worth, Texas 76102 within ten days of receipt of the Order requiring turnover and appointing
the Receiver
Definitions and instructions.
1) Time Periods. All time periods are for the five years before this order was signed, unless otherwise
stated.
2) Continuing duty to supplement. The turnover order is continuing and must be supplemented.
Should Defendants or any witness come into possession, custody, or control of anything that was
ordered turned over or produced, that person must turn over the item within ten (10) days.
3) Definitions.
a) “Order” means the turnover order.
b) “Account Information” means the login, username or other account identifier with all
passwords associated with accessing the accounts.
c) “Contact Information”, “telephone number,” and “address,” mean that person’s full name,
nick names, d/b/a’s, and all addresses (including work and residence), all telephone numbers
(including home, office, fax, pager, and cell numbers), and e-mail, Facebook, social
networking, and web site addresses. If any of the information is lacking, provide the Contact
Information for every person believed to provide the missing information. This includes any
“Entity” as described below.
d) “Defendants” includes every judgment against Defendants within five years of signing the
order.
e) “Copies” means complete, legible copies. If illegible copies are to be provided, with a notation
showing where legible copies can be found.
f) “Entity” includes all business organizations, whatever their form, including public or private
corporations, limited liability companies, partnerships, joint ventures, unincorporated
associations, and individual proprietorships.
g) “Manager” refers collectively to anyone who is an officer, director, member, manager, or
supervisor of an entity, or who makes business decisions for an Entity.
h) “Produce” means to deliver. If an item is not listed in this exhibit, Defendants or any witness
must turn over the item in the time specified by the demand.
i) “Records” and “Documents” are mutually inclusive, and include the records, documents, and
items formally ordered turned over, or requested by Receiver. Requests regarding property
or documents owned or possessed by Defendants also apply to Defendants’ brother, sister,
child, step-child, spouse, mother, father, sister, brother, partner, or co-owner, manager,
member, shareholder, officer and director of any business, if the requests involve documents
that Defendants would be required to turnover had that Defendants possessed or controlled
the item.
j) “Shareholder” includes the owners, members, managers, partners, and others who have
ownership rights or any right in any Entity.
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k) “Turnover” includes to create a list or report, if no list or report exists. “Turnover” also means
to convey the information that is available to you, not merely the information of your present
knowledge, including providing information, documents or records known by you, or that is
in your possession, or the possession of your family, employees, co-workers, co-owners or
agents, including your attorney or any agent or investigator of your attorney.
l) “Witness” means any person other than Defendants but may have information, records or
documents relating to Defendants.
4). Document labeling and identification.
a) “All” is presumed to apply to every item. If an item is listed, this Order means all similar
items.
b) Each turned over document, file, or photograph must be given a consecutive
identification number and produced in the condition and order of arrangement in
which it existed when the application for this Order was filed, including all file labels,
dividers, or associated identifying markers. An index must be provided, if the documents
are large, or if Receiver requests.
c) Creating lists and compilations. If the Order or this exhibit requires Defendants to compile
or create a list or document, Defendants are ordered to do so.
d) Lost document, records, or tangible things. If Defendants, or Defendants’ attorneys, agents or
representatives, had possession or control of a document, record, or tangible thing ordered
turned over which has been lost, destroyed, purged, or is not in their possession, custody or
control, identify the item and describe the circumstances surrounding the loss, destruction,
purging, or separation from your possession, custody or control, indicating the dates that the
circumstances occurred.
e) No document, file or photograph requested may be altered, changed, modified, disposed
of or destroyed.
f) Indicate to which paragraph of the Order the document, record or tangible thing applies.
When producing data or information in electronic or magnetic form, make a paper
copy. If it is not reasonably possible to make a hard copy print-out of the data or
information, copy the data or information and provide it in WordPerfect, Microsoft Word,
Microsoft Excel, Rich Text Format, JPEG, Adobe, or another format acceptable to
Receiver.
Items, data, and records ordered turned over.
1. A letter authorizing Receiver to obtain all records and assets to which Defendants are entitled;
2. Contact information for Defendants and witness controlling or knowing of relevant documents
information.
3. For every Entity in which a Defendants is/was an owner, shareholder, member or manager, or has/had
authority over accounts financial institutions:
a. Copies of all personal and business federal income tax returns filed by or prepared for
Defendants for the current year and for the last five years prior to the current year, with all
schedules, attachments, W-2 forms, 1099 forms and all similar federal income summary forms
for the same year.
b. Statements, canceled checks and deposit slips for all checking accounts, savings accounts,
credit union accounts or other depository accounts, held either separately or jointly for the
WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 13 OF 19
current calendar year and for the last five years prior to the current calendar year for all
accounts in which each Defendant’s name is on the printed checks, in which each Defendant
has an interest or on which each Defendant has signatory authority.
c. All checks, cash, securities (stocks and bonds), promissory notes, deeds, deeds of trust,
documents of title, contracts, accounts receivable, escrow agreements, retainage agreements,
records and all documents that identify all property in which each Defendant has an interest
and that which is collateral or security for any obligation or contingent obligation of each
Defendant, with all documents indicating any interest of each Defendant in rental
agreements, royalty agreements, licenses, bailment agreements, filings under the Uniform
Commercial Code, security agreements, assignments, all filed or recorded liens, lis pendens,
lawsuits, recorded mechanics and materialmen's lien affidavits, judgments, abstracts,
partnership agreements, employment agreements, and all documents indicating each
Defendants’ present and prospective heirship, beneficial interest in trusts, beneficial interest
in insurance policies and insurance coverage and right to any insurance policy's cash
surrender value or ownership in which each Defendant has any interest;
d. A copy of Defendants’ driver’s licenses, social security cards, and other items used to identify
the witness, like an identification card issued by the Texas Department of Public Service or
Department of Public Safety, corporate franchise certificate, or other licensing authority (ex:
city health department);
e. Copies of all financial statements prepared on Defendants’ behalf, including statements
presented to financial institutions or other parties to guarantee, secure or attempt to secure
a loan or financial assistance;
f. All booklets, annual statements and other documents evidencing the nature and extent of
each Defendants’ rights under any stock option plan, retirement plan, pension or profit-
sharing plan, employee stock ownership plan, company savings plan, thrift fund matching
plan and all other similar plans prepared or received during the last five years;
g. The contact information of everyone knowing the status of assets and income in which each
Defendant has an interest, whether being community or separate property, each Defendant’s
liabilities or the location and value of each Defendant’s assets, including banks, savings and
loan associations, mortgagees, merchants, credit providers, brokers, credit unions, financial
institutions, security dealers, people and organizations dealing with mineral interests who
have received information from Defendants regarding Defendants' assets, income, liabilities;
h. All records that would indicate the cost basis of Defendants’ assets;
i. The most recent statements, deposit confirmation slips, and documents evidencing the
balance, term and interest rates for money and assets in which each Defendant has any
interest, whether separately or jointly, invested by or for Defendants in any cash management
funds, certificates of deposit, money market funds, treasury bills, bonds, debentures or any
other type investment and acquisition paying or promising to pay a return on each
Defendants’ monies invested during the past five years from the date of the signing of this
order;
j. All certificates of stock and brokerage house statements evidencing ownership and the
purchase, sale, assignment or transfer of stocks, bonds, debentures or other securities
(whether in privately held or publicly traded companies or institutions) owned by each
Defendant or in which each Defendant has an interest during the past five years from the date
of the signing of this order;
k. Documents and records showing all business holdings, partnerships (general, limited or
otherwise), sole proprietorships, trusts, corporations, joint ventures and any other business
WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 14 OF 19
organizations in which each Defendant is a manager, member, shareholder or to which each
Defendant has an interest during the past five years from the date of the signing of this order;
l. Assumed name certificates under which each Defendant has done or is doing business during
the past five years from the date of the signing of this order;
m. Insurance policies, active or terminated, including life, health, auto, disability, homeowners,
or personality, of which each Defendant is the owner, beneficiary, insured, heir to the
proceeds, beneficiary of an existing or identified trust funded by insurance proceeds, during
the past five years from the date of the signing of this order. This includes policies sought,
but not obtained;
n. All deeds, deeds of trust, land installment contracts, contracts for deeds, syndications, real
estate investment trusts, partnership agreements, easements, rights of way, leases, rental
agreements, documents involving mineral interests, mortgages, notes and closing statements
relating to all real property in which each Defendant has or had an interest during the past
five years from the date of the signing of this order;
o. The leases for, and addresses for all storage facilities, or places where any and all Defendants’
assets are stored, including the contact information for the facility during the past five years
from the date of the signing of this order;
p. Certificates of title, current licenses, receipts, bills of sale and loan documents for all motor
vehicles and farm equipment, including but not limited to automobiles, trucks, motorcycles,
recreational vehicles, boats, trailers, airplanes and other motorized vehicles and equipment
owned by each Defendant or that he or she has or had any interest during the past five years
from the date of the signing of this order;
q. For every trust of which each Defendant is a trustee, joint trustee, beneficiary, settlor or
trustor which conveyed, transferred, assigned, created any options to purchase, or disposed
of any interest in real property or personal property, turnover documents evidencing the
manner of disposition and the consideration. Documents showing all evaluations of each
Defendant’s interest, share of principal and income, and showing the principal and income
allocated to each Defendant during the past five years from the date of the signing of this
order;
r. All documents and records of safe deposit boxes maintained by each Defendant or to which
each Defendant has had access, or has a claim, right or interest in, including all lists of all
contents during the past five years from the date of the signing of this order. Identify the
location of all the safe deposit boxes, the contents, and deliver the keys to Receiver;
s. Documents constituting or describing each Defendant’s accounts receivable, for the past five
years, including documents identifying the accounts receivable of the ongoing businesses
which each Defendant owns has or had an interest, and copies of all collected, offset, credited,
uncollected,
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Cause No. DC-23-05065 STEVEN WASKOW, M.D., § IN THE DISTRICT COURT OF Plaintiff, § § vs. § § DALLAS COUNTY, TEXAS ADDISON BROWN, LLC, JUSTIN § BROWN, RICK LOCKHART, and § NUECES CAPITAL, LLC. § Defendants, Jointly & Severally. § 162nd JUDICIAL DISTRICT ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER (With Attached List of Items to be Turned Over) The Court considered Plaintiff’s/Applicant’s application for turnover and appointment of a receiver, reviewed the documents on file, evidence, all arguments, and finds that Plaintiff/Applicant is entitled to aid from this Court and the appointment of a receiver is necessary. Defined Terms. As used in this order, the terms below are defined. Term Definition Plaintiff Steven Waskow, M.D. Defendants Addison Brown, LLC, and Justin Brown. Receiver Name: Mark Stout Address: 420 Throckmorton Street, Suite 1210 Fort Worth, Texas 76102 Tel. No.: 817-338-1616 E-Mail: mstout@padfieldstout.com Judgment Date: December 15, 2022 A. $130,000.00 against Defendant Addison Brown, LLC. B. $100,000.00, plus statutory 5% interest thereon from the date of Plaintiff’s investment (April 4, 2015) until the date of entry of this Journal Entry of Judgment, pursuant to Texas Securities Act § 33, against Defendant Addison Brown, LLC, and Defendant Justin Brown, jointly and severally. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 1 OF 19 C. Rescission of Plaintiff’s investment with Defendant Addison Brown, LLC. D. On September 20, 2022, this Court entered its Order Granting Motion for Attorney’s Fees and Punitive Damages. Plaintiff’s Motion for Attorney’s Fees and Costs and for Punitive Damages has been deemed confessed and this Court has further found that Plaintiff has demonstrated that Defendant Addison Brown and Defendant Justin Brown engaged in conduct constituting (1) fraud; (2) malice, or (3) gross negligence.” Texas Securities Act § 33 (M). Pursuant to said Order and findings, this Court hereby enters final judgment against Defendants as follows, all against Defendant Addison Brown, LLC, and Defendant Justin Brown, jointly and severally. E. Punitive damages in the amount of $100,000.00, pursuant to Texas Securities Act § 33 (M). F. Attorneys’ fees in the amount of $77,172.50, pursuant to Texas Securities Act § 33 (D) (7). G. Costs in the amount of $4,846.99, pursuant to Texas Securities Act § 33 (D) (6). H. All amounts awarded in this Judgment shall bear interest at the rate set pursuant to 12 O.S. § 727.1(A). (Exhibit “A”). Receivership Assets All of Defendants’ non-exempt property Bond Amount $0 Atty’s Fees for $2,500.00 Motion Requested FACTUAL FINDINGS. The Court makes the following factual findings: 1. Unsatisfied Judgment. Plaintiff owns an unsatisfied final, valid, and subsisting judgment against Defendants. 2. Property Not Readily Attachable. Plaintiff has good faith reasons to believe that Defendants own non-exempt rights to present or future property that cannot be readily attached or levied upon by ordinary legal process, like bank accounts that are easily moved and constantly changing in balance. Appointing a receiver to locate, marshal, and administer assets is justified because non-exempt assets exist, as virtually everyone has a bank account or other non-exempt asset, that Plaintiff believes that Defendants will hide. Plaintiff believes Defendants own non-exempt property that is not readily attachable through ordinary legal, process as required by the standard in Tanner v. McCarthy, 274 S.W.3d 311 (Tex.App.–Houston [1st Dist.] 2009, no pet.), so Plaintiff is entitled to a turnover order that does not identify specific property. See Tex. Civ. Prac. & Rem. Code §31.002(h). WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 2 OF 19 3. Reasonable Collection Attempts Not Required. Post-judgment discovery is not a prerequisite for the appointment of a receiver. 4. Necessity of Receiver. Plaintiff is entitled to aid from the Court, and it is necessary to appoint a receiver to facilitate the collection of the judgment. 5. Attorney’s Fees. The Court takes judicial notice of the time that is reasonable and necessary for the preparation and prosecution of the motion for turnover and for a receiver. 5.1 Reasonable Receiver Fees. A contingent fee of 25% is a fair, reasonable, customary, and necessary fee for a receiver. Defendants have not made a reasonable effort to pay the judgment, and a contingency fee is most likely the only way that Plaintiff can afford a receiver because the costs of an hourly fee for Receiver are prohibitive. 6. Competent and Experienced Receivers are rare. The time and effort required by a receiver to keep time, apply for fees, as well as the lag between filing for fees and being paid -- not being paid at the time of or shortly after rendering of services, would inhibit the recruitment of experienced receivers. Given the chances of no recovery, contingent fees are the most economical fee schedule, and the costs of proving an hourly fee will very often exceed the original judgment. 7. Appointment of Receiver. After considering the propriety of receivers previously appointed by the Court in other cases, and Plaintiff’s recommendations, the Court hereby creates a receivership and appoints Mark Stout as the Receiver over Defendants’ non-exempt assets, pursuant to the Texas Turnover Statute, (i.e., Texas Civil Practice and Remedies Code Sec. 31.002). Receiver is to serve without a bond. 7.1. Purpose of the Receiver. The Receiver is the agent of this Court (not the attorney for any party) and is to be treated with the same courtesy accorded to the Court. Receiver shall notify the Court of the parties if Receiver recommends the appointment of a special master for any reason. 7.2. Constructive Possession of Defendants’ Non-Exempt Property. The Court hereby assumes jurisdiction over and takes constructive possession of all of receivership assets. The receivership has a judicial lien on all non-exempt assets of Defendants’ regardless of whether the Receiver takes actual possession. 7.3. Effect of Order on Defendants and Third Parties. The unique power of a receivership derives from the doctrine of custodia legis. Once a turnover order containing an appointment of a receiver is signed, all the judgment debtor’s non-exempt property becomes property in custodia legis, or “in the custody of the law.” First Southern Properties, Inc. v. Vallone, 533 S.W.2d 339, 343 (Tex. 1976). The judgment Debtor’s property is considered to be in the constructive possession of the court. During the pendency of a receivership, a receiver has exclusive possession and custody of the judgment debtor’s property to which the WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 3 OF 19 receivership relates. First S. Props., 533 S.W.2d at 343; Ellis v. Vernon Ice Co. & Water Co., 86 Tex. 109, S.W. 858 (1893). No one, not even a lien holder with a prior filed deed of trust, can sell property held in custodia legis by a duly appointed receiver without first obtaining approval from the Court in which the receivership is pending. First S. Props. at 533 S.W.2d at 341; Huffmeyer v. Mann, 49 S.W.3d 554, 560 (Tex.Civ.App.–Corpus Christi, 2001). Any unauthorized transfer of property in the custody of a receiver is not merely voidable, it is void. First S. Props., 533 S.W.2d at 341. Any conveyance of property in the custody of a receiver without approval by the court has no effect upon the receivership and the accomplishment of its purposes. T.H. Neel v. W.L. Fuller, 557 S.W. 2d 73, 76 (Tex. 1977). In short, any attempt by Defendants to transfer any of their non-exempt property after the turnover order has been signed is void and can be called back by the receiver or subsequent suit to set aside the transfer brought by the receiver. 7.4. No Responsibility to Litigate. Receiver is not required to defend or prosecute any litigation regarding Defendants. However, D e f e n d a n t s may request an order from this Court requiring Receiver to take any appropriate or reasonably necessary action to maintain the value of the receivership assets. 7.5. Immunity of Receiver. To the extent allowed by law, Receiver and his agents shall have immunity from suit for state law claims and shall not be liable for any loss or damage Incurred by any person or entity by reason of any act performed or omitted in good faith in the course and scope of Receiver’s duties and responsibilities for the receivership set out in this order, including exercising control over receivership assets. “Once an individual is cloaked with derived judicial immunity because of a particular function being performed for a court, every action taken with regard to that function-whether good or bad, honest, or dishonest, well-intentioned, or not is immune from suit. Once applied to the function, the cloak of immunity covers all acts, both good and bad.” Davis v. Radoff, 317 S.W.3d 301, (Tex.App-Hou 1st 2009), (citing Ramirez v. Burnside & Rishebarger, LLC, No. 04-04- 00160-CV, 2005 WL 1812595 (Tex. App .-San Antonio Aug. 3, 2005, no pet.) (mem.op.)). 8. Defendants’ Responsibilities and Obligations to Receiver and the Court. Defendants are ORDERED to do the following as soon as practicable and no later than 10 calendar days from service of this Order: 8.1. Deliver to Receiver, at Receiver’s address, the items described in Exhibit “A”, together with all documents and records requested by Receiver. 8.2. Turnover to Receiver all non-exempt funds to the extent required to satisfy the Judgment. Defendants may not spend non-exempt funds, or sell, transfer, or encumber non-exempt assets, without Receiver’s prior written consent. 8.3. Make a Complete Disclosure to Receiver of all their assets. Defendants must disclose all exempt and non-exempt assets, so that the exempt status of each WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 4 OF 19 asset can be determined. Defendants must disclosure and provide sufficient specificity to permit a constable to identify and levy upon each asset. 8.4. Supplement all disclosures, in writing, within five (5) days of knowledge of information required to be disclosed, without being prompted. 8.5. Organize and collate the disclosed information and documents in the formats and manners directed by Receiver. 8.6. DO NOT interfere with nor impede Receiver, directly or indirectly, in the performance of Receiver’s duties set out in this Order. 9. Post-Judgment Pleadings and Discovery. All parties are ORDERED to serve Receiver with electronic copies of all motions, notices, discovery responses, correspondence, and communications among the parties. 9.1. Receiver may propound written discovery requests to the parties, which must follow the rules of civil procedure, in addition to Receiver’s specific powers set out in this Order. Upon request, Defendants must provide documents in electronic format with indices, which may include word processing format, or another format requested by Receiver. 10. Receiver’s Specific Powers. The Receiver is authorized to do the following: 10.1. Take possession of all non-exempt property of Defendants in their actual or constructive possession, custody, or control, including the non-exempt items described in Exhibit “A”, and includes cash, accounts receivable, lease payments, notes receivable, promissory notes, checks, credit card payments, the accounts in banks, stock brokerage firms, and entities like E-Trade Clearing, LLC, stocks, bonds, securities, deeds to non-exempt real property, fixtures, vehicles, vehicle titles, boats, planes, documents, safety deposit boxes, causes of action, contract rights, equipment, supplies inventory. 10.1.1. Secure control over all non-exempt property and engage in presale activities including appraisals, evaluations, listing and advertising agreements. Receiver may transfer title into receivership or place a hold on the title of personal and intangible property, including intellectual property, patents, trademarks, service-marks, copyrights, websites, and domain names. 10.1.2. Enter all non-exempt property and take all actions to gain access to leased premises, storage facilities, and safe deposit boxes where non- exempt property, or records of Defendants may be situated, and to seize the contents. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 5 OF 19 10.1.3. Disable or remove non-exempt property belonging to Defendants or place the property into storage; insure any property taken into his possession; obtain such writs as Receiver deems necessary to obtain possession; and change the locks to premises belonging to Defendants. Receiver has no duty to take these actions, or to maintain, guard, or insure property taken into custodial egis, or to maintain or pay any lease, nor shall Receiver be required to pay any mortgage, lien, or assessment, defend against any lawsuit, pay any tax or fee, file tax returns, maintain any insurance coverage, or have any obligation except as specifically ordered. 10.1.4. Assume that property is not exempt if it appears to be non-exempt until the person claiming the exemption states the exemption claimed, the factual and legal grounds for the exemption, and describes the property with sufficient specificity that a constable could levy upon it. If there is any dispute whether an asset is exempt, or property of Defendants, Receiver is authorized to take custody of the asset until the Court determines the rights of those claiming an interest in the asset. 10.1.5. Contract or hire any person, firm, or company (including hiring legal counsel and forensic accountants) reasonably necessary to accomplish any right or power granted by this Order, including to analyze financial statements, further remedies available to Receiver, change lock to premises belonging to Defendants, exclude persons from interfering with Receiver’s custody of premises, move or store Defendants’ property to collect accounts receivable. 10.2. Endorse and cash checks and negotiable instruments payable to Defendants, except paychecks for current wages. 10.3. Lawsuits and Claims. Receiver shall have the right, power, and authority to commence, maintain, settle, and control any cause of action, including all post-judgment and pre- judgment remedies and collection techniques that Defendants would have otherwise had the right to commence, maintain, settle, or control, including to hire counsel to pursue any such causes of action. 10.3.1. Fraudulent Transfer. Receiver may investigate and bring suit to recover assets transferred by any Defendant to another person (transferees) as defined in the Uniform Fraudulent Transfer Act. 10.4. Management, Control and Disposition of Entities. All legal right, title and ownership of any limited partnership interest, partnership interest, stock interest in any corporation or membership interest Defendants have in any business entity is divested from Defendants and is placed in custodia legis with Receiver. Chitex Commication v. Kramer, 168 B.R. 587, 590 (S.D. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 6 OF 19 Tex. 1994) (“the president of an insolvent corporation had no authority to affect the corporation’s property interests once a state court had placed it into receivership”). To the extent that the debtor is the sole owner of, or has control over that entity or business, all management authority is vested in Receiver as if Receiver were the owner of that entity. 10.4.1. Management of Business Interest. Receiver shall have the authority and power, but not the obligation, to manage all businesses and business affairs of Defendants. 10.4.2. Vote. Receiver shall have the exclusive right, power, and authority to vote any shares of stock, partnership interests, or other business interests of Defendants. Where Defendants has an interest in a legal business entity, Receiver shall have the exclusive power and authority to make, vote or sign any orders or minutes or resolutions of directors authorizing any action of Defendants requiring such resolution or signed minutes by Defendants operating agreement, partnership agreement, bylaws, or other such agreements. 10.5. Obtain Property and Information from Third Parties and require the attendance of third parties and, with this Court’s prior approval issue subpoenas to third parties, or those who may possess knowledge or information concerning Defendants’ non-exempt assets. Receiver may require the attendance of Defendants and, with this Court’s prior approval issue subpoenas to Defendants, third parties, or witnesses, including employment records from the Texas Workforce Commission, for the production of documents, things, and information, including matters concerning the employment of Defendants or a witness, the existence, location, or value of Defendants’ assets. Receiver may schedule and issue notices for stenographic or non-stenographic examinations of anyone who may know of relevant facts concerning Defendants’ non-exempt assets. 10.5.1. Obtain Defendants’ driver’s license contact information and confidential personal identifier records from the Texas Department of Public Safety, and all similarly named entities. Those entities are ordered to release Defendants’ contact information and confidential personal identifier records to Receiver, including Defendants’ photograph. 10.5.2. Obtain credit reports, bank searches, and other reports to aid in locating non- exempt assets. Receiver may order any Consumer Reporting Agency, as defined by the Fair Credit Reporting Act (“FCRA”) 16 USC §1681b(f) to provide consumer reports on Defendants and witnesses as allowed under FCRA 16 USC §1681b(a)(1). 10.5.3 Provide certified copies of documents in the possession of Receiver as requested by third parties -- to the extent allowed by law. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 7 OF 19 10.5.4. Collect all unclaimed funds belonging to Defendants, including from the Texas Comptroller’s Office. 10.5.5. Order providers of utilities, social media companies, telecommunications, telephone, cell phone, cable, internet, data services, internet website hosts, email hosts, iCANN providers, satellite television services, and all similar services (including Facebook, LinkedIn, ComCast, AT&T, Verizon, Sprint, T-Mobile, Dish Network, and Direct TV), and financial institutions to turnover information that Receiver believes may prove or lead to the discovery of the existence or location of Defendants’ whereabouts or non-exempt assets, including account information, telephone numbers, names, service addresses, telephone numbers, payment records, and bank and credit card information. 10.5.5.1. Such orders shall be directed to the entity from which the information is sought and describe, as specifically as possible, the precise information requested with the dates for which the information is required, which shall not be more than one year before the issuance of the Receiver’s request, unless specifically stated in the request of attached letters. 10.5.5.2 This Order hereby specifically defines Receiver as a state official, acting in an official capacity, as defined in section 182.054(1) of the Texas Utility Code. 10.5.5.3. This Order specifically serves as the court order required by 47 USC § 551, and Tex. Fin. Code §59.001, and satisfies all obligations of the responding party to obtain or receive a court order prior to disclosing material containing personally identifiable information of the subscriber or customer. 10.5.5.4. Disclosing information under this order is not a violation of PUC Substantive Rule 25.272. This Order satisfies the law, regulation, or legal process exception to the Proprietary Customer Information Safeguards found in PUC Substantive Rule 25.272 (g)(1). 10.6. Engage in Pre-Sale Activities. Receiver is hereby authorized to engage in presale activities to secure the highest and best sales price for non-exempt property collected by Receiver, including appraisals, evaluations, listing agreements. 10.6.1. Receiver must make application to the Court for a finding of the exempt character of any real or personal property prior to consummating any sales transactions, with notice and opportunity for hearing for Defendants and any person claiming a superior interest in the property. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 8 OF 19 10.6.2. Receiver may sell, lease, license or redeem the following types of property to transform the property into cash without further action or authorization from this Court: 10.6.2.1. All air miles and rewards programs belonging to Defendants. 10.6.2.2. Intellectual property, including any patent. 10.6.2.3. Stocks, bonds, and all negotiable instruments. 10.7. Receive and Redirect Defendants’ U.S. Mail. If Defendants is doing with, or working for a business entity, to the extent allowed by law and in compliance with U.S. postal regulations and federal and state laws governing electronic communications, Receiver is authorized to redirect, read, and copy Defendants’ mail, whether electronic, paper, or facsimile, or otherwise, and whether sent to a street address, phone line, post office box, or via the internet, prior to and exclusive of receipt. However, Receiver must establish procedures for allowing Defendants to timely retrieve the mail or copies. For an individual (non-entity) debtor, Receiver must request a supplemental order from the Court after notice to Defendants and an opportunity to be heard at the hearing to consider the Receiver’s request. As the Defendant is an individual to the extent allowed by law and in compliance with U.S. postal regulations and federal and state laws governing electronic communications, Receiver is authorized to redirect, read, and copy Defendants’ mail, whether electronic, paper, or facsimile, or otherwise, and whether sent to a street address, phone line, post office box, or via the internet, prior to and exclusive of receipt. However, Receiver must establish procedures for allowing Defendants to timely retrieve the mail or copies. For an individual (non-entity) debtor, Receiver must request a supplemental order from the Court after notice to Debtors and an opportunity to be heard at the hearing to consider the Receiver’s request. 10.8. Use Reasonable Methods for Service of Documents. Receiver may serve Defendants according to the Texas Rules of Civil Procedure. If, for whatever reason this standard method of service is unsuccessful, after documentation, Receiver may serve Defendants by placing the documents to be served in Defendants’ mailboxes, taping them to the door of Defendants’ residence, or delivering them to the receptionist at Defendants’ place of work. Receiver may serve a non- natural entity by taping the documents to be served on the registered agent’s door or delivering them to the receptionist at the registered agent’s registered office. 11. Specific Duties of Third Parties. It is ORDERED that every person with actual notice of this Order shall not interfere with property in Receiver’s control or subject to this Order, and shall not interfere with Receiver in the performance of Receiver’s duties under this order. All persons are hereby notified that Receiver, to the exclusion of Defendants, is the party entitled to possess, sell, liquidate and otherwise deal with Defendants’ non-exempt property and once any person receives notice of this Order, that person may be subject to liability if that person releases property, unless WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 9 OF 19 directed by Receiver or the Court. 11.1. All persons who hold any Defendants’ property or records are ORDERED to immediately notify Receiver and to deliver the property within ten working days of Receiver’s demand and actual notice of this Order. 11.2 All persons who discover the existence of Defendants’ property (or of facts or records that could lead to the discovery of property in which Defendants have any interest) are ORDERED to immediately notify Receiver within ten working days of such discovery and after Receiver’s demand and actual notice of this Order. 11.3 NOTICE: Any person resisting or objecting to Receiver’s order or request, based on legal or other advice, is ORDERED to give the full name, address, fax number, e-mail address, cell phone number, and direct telephone number for each person giving such advice and to instruct each person to immediately contact Receiver. Providing this contact information shall not be considered a waiver of any attorney-client communication or any other privilege. 12. Authority of Peace Officers. Any peace officer shall have the authority and is hereby authorized under this Order to accompany Receiver under a writ to locations designated by Receiver where Receiver believes that Defendants’ assets may be located. A peace officer is required to keep the peace and any peace officer is hereby ordered to prevent illegal interference with Receiver’s carrying out any duty under this Order and is hereby ordered to prevent illegal interference with property in Receiver’s control or subject to Receiver’s control under this order. 13. County Clerk Responsibilities. The County Clerk is specifically ORDERED to do the following to the extent allowed by law: 13.1. Writs of Turnover issued under this Order, shall not be limited in time, or have an expiration date. Those serving the writs shall return them to Receiver, not the clerk, unless otherwise instructed. More than one writ of turnover may be issued and outstanding. The clerk is ordered to issue writs on an expedited basis, upon request of Receiver. 14. Receiver Fees and Final Accounting. Receiver is entitled to a fee equal to 25% of all proceeds of assets that come into his actual, constructive, or legal possession, and all recoveries and credits against the judgment, not to exceed 25% of the balance due on the judgment, including post- judgment attorney’s fees, Receiver’s fees, costs, and expenses – without further approval of the Court. 14.1. Receiver is directed and authorized to pay to Receiver the 25% contingent fee, which shall be taxed as costs against Defendants and shall be added to the cost docket of this Court upon request. 14.2. Receiver is directed and authorized to pay to Plaintiff’s attorney as Plaintiff’s trustee. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 10 OF 19 14.3. A receiver’s fee exceeding 25% of all proceeds coming into Receiver’s possession may be paid if an order is granted, after notice to and opportunity for hearing for all parties. 14.4. However, if a Defendant files for bankruptcy protection, the Receiver's fee shall be equal to 25 percent of the debt owed at the time the bankruptcy is filed. 14.5. Release of Judgment. Plaintiff shall file a release of judgment with the Tarrant County Clerk (and all counties in which an abstract of judgment was filed) within 14 business days of collection and satisfaction of the judgment and all costs and fees incurred in collection of the judgment. 14.6. Final Accounting. The Receiver shall file a final accounting and application to close the receivership within thirty days of the filing of any release of judgment. 14.6.1. All authority of the Receiver shall terminate on the later date of (a) 30 days after the filing of the final accounting, or (b) the Court’s order approving the final accounting. 15. Attorney’s Fees. Defendants is ORDERED to pay Plaintiff $2,000.00 in attorney’s fees, to date, for obtaining this Order. Defendants shall pay that fee to Plaintiff’s counsel of record on or before 14 days of receipt of this order. In the case of an appeal or petition for writ of mandamus regarding this order, Receiver is awarded $4,000.00 in attorney’s fees for successfully defending those actions, and Plaintiff is awarded $3,000.00 in attorney’s fees for successfully defending those actions. 16. Time Period for objections to this Order. All objections to (i) this Order, (ii) the bond, including its sufficiency, (iii) Receiver’s qualifications, and (iv) every other issue relating to this Order, are irrevocably waived if they are not made in writing and filed within twenty days of the service of this order on (or actual notice to) Defendants or Defendant’s counsel. 17. Other Relief Granted. __________________________________________________________________________________________________________________ NOTICE TO DEFENDANTS: A Turnover Order has been entered against you. If you have not done so, you have the right to hire an attorney to assist you in compliance with this turnover order. If you believe that Receiver’s demands are inappropriate, you must either comply, or seek protection from the Court. Persons seeking protection must set the matter for the earliest possible hearing date, after giving full notice to Receiver and making all reasonable attempts to resolve the issues without further court intervention. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 11 OF 19 Exhibit A Documents Ordered to be delivered to the Receiver’s office, at 420 Throckmorton Street, Suite 1210, Fort Worth, Texas 76102 within ten days of receipt of the Order requiring turnover and appointing the Receiver Definitions and instructions. 1) Time Periods. All time periods are for the five years before this order was signed, unless otherwise stated. 2) Continuing duty to supplement. The turnover order is continuing and must be supplemented. Should Defendants or any witness come into possession, custody, or control of anything that was ordered turned over or produced, that person must turn over the item within ten (10) days. 3) Definitions. a) “Order” means the turnover order. b) “Account Information” means the login, username or other account identifier with all passwords associated with accessing the accounts. c) “Contact Information”, “telephone number,” and “address,” mean that person’s full name, nick names, d/b/a’s, and all addresses (including work and residence), all telephone numbers (including home, office, fax, pager, and cell numbers), and e-mail, Facebook, social networking, and web site addresses. If any of the information is lacking, provide the Contact Information for every person believed to provide the missing information. This includes any “Entity” as described below. d) “Defendants” includes every judgment against Defendants within five years of signing the order. e) “Copies” means complete, legible copies. If illegible copies are to be provided, with a notation showing where legible copies can be found. f) “Entity” includes all business organizations, whatever their form, including public or private corporations, limited liability companies, partnerships, joint ventures, unincorporated associations, and individual proprietorships. g) “Manager” refers collectively to anyone who is an officer, director, member, manager, or supervisor of an entity, or who makes business decisions for an Entity. h) “Produce” means to deliver. If an item is not listed in this exhibit, Defendants or any witness must turn over the item in the time specified by the demand. i) “Records” and “Documents” are mutually inclusive, and include the records, documents, and items formally ordered turned over, or requested by Receiver. Requests regarding property or documents owned or possessed by Defendants also apply to Defendants’ brother, sister, child, step-child, spouse, mother, father, sister, brother, partner, or co-owner, manager, member, shareholder, officer and director of any business, if the requests involve documents that Defendants would be required to turnover had that Defendants possessed or controlled the item. j) “Shareholder” includes the owners, members, managers, partners, and others who have ownership rights or any right in any Entity. WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 12 OF 19 k) “Turnover” includes to create a list or report, if no list or report exists. “Turnover” also means to convey the information that is available to you, not merely the information of your present knowledge, including providing information, documents or records known by you, or that is in your possession, or the possession of your family, employees, co-workers, co-owners or agents, including your attorney or any agent or investigator of your attorney. l) “Witness” means any person other than Defendants but may have information, records or documents relating to Defendants. 4). Document labeling and identification. a) “All” is presumed to apply to every item. If an item is listed, this Order means all similar items. b) Each turned over document, file, or photograph must be given a consecutive identification number and produced in the condition and order of arrangement in which it existed when the application for this Order was filed, including all file labels, dividers, or associated identifying markers. An index must be provided, if the documents are large, or if Receiver requests. c) Creating lists and compilations. If the Order or this exhibit requires Defendants to compile or create a list or document, Defendants are ordered to do so. d) Lost document, records, or tangible things. If Defendants, or Defendants’ attorneys, agents or representatives, had possession or control of a document, record, or tangible thing ordered turned over which has been lost, destroyed, purged, or is not in their possession, custody or control, identify the item and describe the circumstances surrounding the loss, destruction, purging, or separation from your possession, custody or control, indicating the dates that the circumstances occurred. e) No document, file or photograph requested may be altered, changed, modified, disposed of or destroyed. f) Indicate to which paragraph of the Order the document, record or tangible thing applies. When producing data or information in electronic or magnetic form, make a paper copy. If it is not reasonably possible to make a hard copy print-out of the data or information, copy the data or information and provide it in WordPerfect, Microsoft Word, Microsoft Excel, Rich Text Format, JPEG, Adobe, or another format acceptable to Receiver. Items, data, and records ordered turned over. 1. A letter authorizing Receiver to obtain all records and assets to which Defendants are entitled; 2. Contact information for Defendants and witness controlling or knowing of relevant documents information. 3. For every Entity in which a Defendants is/was an owner, shareholder, member or manager, or has/had authority over accounts financial institutions: a. Copies of all personal and business federal income tax returns filed by or prepared for Defendants for the current year and for the last five years prior to the current year, with all schedules, attachments, W-2 forms, 1099 forms and all similar federal income summary forms for the same year. b. Statements, canceled checks and deposit slips for all checking accounts, savings accounts, credit union accounts or other depository accounts, held either separately or jointly for the WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 13 OF 19 current calendar year and for the last five years prior to the current calendar year for all accounts in which each Defendant’s name is on the printed checks, in which each Defendant has an interest or on which each Defendant has signatory authority. c. All checks, cash, securities (stocks and bonds), promissory notes, deeds, deeds of trust, documents of title, contracts, accounts receivable, escrow agreements, retainage agreements, records and all documents that identify all property in which each Defendant has an interest and that which is collateral or security for any obligation or contingent obligation of each Defendant, with all documents indicating any interest of each Defendant in rental agreements, royalty agreements, licenses, bailment agreements, filings under the Uniform Commercial Code, security agreements, assignments, all filed or recorded liens, lis pendens, lawsuits, recorded mechanics and materialmen's lien affidavits, judgments, abstracts, partnership agreements, employment agreements, and all documents indicating each Defendants’ present and prospective heirship, beneficial interest in trusts, beneficial interest in insurance policies and insurance coverage and right to any insurance policy's cash surrender value or ownership in which each Defendant has any interest; d. A copy of Defendants’ driver’s licenses, social security cards, and other items used to identify the witness, like an identification card issued by the Texas Department of Public Service or Department of Public Safety, corporate franchise certificate, or other licensing authority (ex: city health department); e. Copies of all financial statements prepared on Defendants’ behalf, including statements presented to financial institutions or other parties to guarantee, secure or attempt to secure a loan or financial assistance; f. All booklets, annual statements and other documents evidencing the nature and extent of each Defendants’ rights under any stock option plan, retirement plan, pension or profit- sharing plan, employee stock ownership plan, company savings plan, thrift fund matching plan and all other similar plans prepared or received during the last five years; g. The contact information of everyone knowing the status of assets and income in which each Defendant has an interest, whether being community or separate property, each Defendant’s liabilities or the location and value of each Defendant’s assets, including banks, savings and loan associations, mortgagees, merchants, credit providers, brokers, credit unions, financial institutions, security dealers, people and organizations dealing with mineral interests who have received information from Defendants regarding Defendants' assets, income, liabilities; h. All records that would indicate the cost basis of Defendants’ assets; i. The most recent statements, deposit confirmation slips, and documents evidencing the balance, term and interest rates for money and assets in which each Defendant has any interest, whether separately or jointly, invested by or for Defendants in any cash management funds, certificates of deposit, money market funds, treasury bills, bonds, debentures or any other type investment and acquisition paying or promising to pay a return on each Defendants’ monies invested during the past five years from the date of the signing of this order; j. All certificates of stock and brokerage house statements evidencing ownership and the purchase, sale, assignment or transfer of stocks, bonds, debentures or other securities (whether in privately held or publicly traded companies or institutions) owned by each Defendant or in which each Defendant has an interest during the past five years from the date of the signing of this order; k. Documents and records showing all business holdings, partnerships (general, limited or otherwise), sole proprietorships, trusts, corporations, joint ventures and any other business WASKOW v. BROWN-ORDER REQUIRING TURNOVER AND APPOINTING RECEIVER PAGE 14 OF 19 organizations in which each Defendant is a manager, member, shareholder or to which each Defendant has an interest during the past five years from the date of the signing of this order; l. Assumed name certificates under which each Defendant has done or is doing business during the past five years from the date of the signing of this order; m. Insurance policies, active or terminated, including life, health, auto, disability, homeowners, or personality, of which each Defendant is the owner, beneficiary, insured, heir to the proceeds, beneficiary of an existing or identified trust funded by insurance proceeds, during the past five years from the date of the signing of this order. This includes policies sought, but not obtained; n. All deeds, deeds of trust, land installment contracts, contracts for deeds, syndications, real estate investment trusts, partnership agreements, easements, rights of way, leases, rental agreements, documents involving mineral interests, mortgages, notes and closing statements relating to all real property in which each Defendant has or had an interest during the past five years from the date of the signing of this order; o. The leases for, and addresses for all storage facilities, or places where any and all Defendants’ assets are stored, including the contact information for the facility during the past five years from the date of the signing of this order; p. Certificates of title, current licenses, receipts, bills of sale and loan documents for all motor vehicles and farm equipment, including but not limited to automobiles, trucks, motorcycles, recreational vehicles, boats, trailers, airplanes and other motorized vehicles and equipment owned by each Defendant or that he or she has or had any interest during the past five years from the date of the signing of this order; q. For every trust of which each Defendant is a trustee, joint trustee, beneficiary, settlor or trustor which conveyed, transferred, assigned, created any options to purchase, or disposed of any interest in real property or personal property, turnover documents evidencing the manner of disposition and the consideration. Documents showing all evaluations of each Defendant’s interest, share of principal and income, and showing the principal and income allocated to each Defendant during the past five years from the date of the signing of this order; r. All documents and records of safe deposit boxes maintained by each Defendant or to which each Defendant has had access, or has a claim, right or interest in, including all lists of all contents during the past five years from the date of the signing of this order. Identify the location of all the safe deposit boxes, the contents, and deliver the keys to Receiver; s. Documents constituting or describing each Defendant’s accounts receivable, for the past five years, including documents identifying the accounts receivable of the ongoing businesses which each Defendant owns has or had an interest, and copies of all collected, offset, credited, uncollected,