Since the initial hearing, Plaintiff has filed a supplemental declaration detailing that it has discovered that Defendants have recently transferred real property in Nevada,
California, and possibly Hawaii from their names to an entity entitled “1st Base Trust” for no consideration. (Supp. Segal Decl. ¶¶ 9, 20.)
The transfers were just prior to and soon after Judgment Debtor Edward Starrs, the manager of Judgment Debtor Greenpay, LLC and CEO of Judgment Debtor MyECheck, Inc. was scheduled to
appear for a debtor’s examination. Mr. Edwards failed to appear for his exam and a bench warrant was issued. Under section 708.620, “a receiver may be appointed where a writ of execution would not reach certain property and other remedies appear inadequate.” (Leg. Comm.
Comment to CCP § 708.620.)
Considering the supplemental declaration in connection with the original papers, the Court concludes that the appointment of a receiver is appropriate given that not only does it appear that the Judgment Debtors are on shaky financial ground but also because it does appear that there is an immediate threat that assets will be dissipated if a receiver is not appointed. Indeed, it appears that assets are already being dissipated in an attempt to avoid enforcement.
The motion is granted.
