.

1. 1
2
3
4
5
6
7
8
9
10
11
0... 12--I
--I
13
0:: 14
W
--I 15
--I
~.
16
17
18
19
20
21
22
23
24
25
26
27
28
RANDALL A. MILLER (Bar No. 116036)
AUSTA WAKILY (BarNo. 257424)
MILLERLLP
515 South Flower Street, Suite 2150
Los Angeles, CA 90071-2201
Telephone: 800.720.2126
Facsimile: 888.749.5812
U)s !!I;1p~J!uRT
OCT 08 2012
JO~ A CLA~.fLIZRK
BYGE ~ AwL·
Attorneys for KNAPP, PETERSEN & CLARKE,
STEVEN RAY GARCIA, STEPHEN M. HARRIS
and ANDRE JARDINI
=R~<!HARLES. DEPUTY
SUPERIOR COURT OF CALIFORNIA
COUNTY OF LOS ANGELES
STEPHEN M. GAGGERO; an individual;
PACIFIC COAST MANAGEMENT, INC., a
Corporation; GINGERBREAD COURT LP, a
Limited Partnership; 511 OFW, LP a Limited
Partnership; MALIBU BROAD BEACH LP, a
Limited Partnership; MARINA GLENCOE
LP, a Limited Partnership; BLU HOUSE LLC,
a Limited Liability Company; BOARDWALK
SUNSET LLC, a Limited Liability Company;
TRUSTEE of GIGANIN TRUST, JOSEPH
PRASKE; TRUSTEE of ARENZANO
TRUST, JOSEPH PRASKE; and TRUSTEE of
AQUASANTE FOUNDATION, JOSEPH
PRASKE,
Plaintiffs and Judgment Debtors,
v.
KNAPP, PETERSEN & CLARKE, STEPHEN
RAY GARCIA, STEPHEN M. HARRIS and
ANDRE JARDINI,
Defendants and Judgment Creditors.
CASE NO.: BC286925
[Assigned for all purposes to Judge Honorable
Judge Robert 1. Hess, Department 24]
ilF"I~ :v'9&~
[PROP88ED] ORDER FOR THE
APPOINTMENT OF RECEIVER
-1-
[pROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

2. 1
2
3
4
5
6
7
8
9
10
11
a.. 12...J
...J
13
0::: 14
ill
...J 15
...J
~
16
17
18
19
20
21
22
23
24
25
26
27
28
TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD:
Defendants and Judgment Creditors Knapp, Petersen & Clarke's, Steven Ray Garcia's,
Stephen M. Harris', and Andre Jardini's (collectively, "KPC" or "Judgment Creditors") Motion
for the Appointment of a Receiver came on regularly for hearing as to Stephen M. Gaggero on
August 23,2012 and on October 3,2012 as to the remaining Judgment Debtors in Department 24
of the above-entitled Court the honorable Robert L. Hess presiding. Having considered KPC's
Motions for the Appointment of a Receiver and the papers and pleadings submitted in support of
and opposition and good cause appearing, the Court grants KPC's motion as follows:
IT IS ORDERED THAT Judgment Creditors KPC's Motion for the Appointment of a
Receiver to enforce their judgment against Judgment Debtors Stephen M. Gaggero, Pacific Coast
Management, Inc., 511 OFW LP, Gingerbread Court LP, Malibu BroadBeach LP, Marina Glencoe
LP, Blu House LLC, and Boardwalk Sunset LLC, Joseph Praske as trustee of the Giganin Trust,
Joseph Praske as trustee of the Arenzano Trust, and Joseph Praske as trustee of the Aquasante
Foundation (collectively referred to as "JUDGMENT DEBTORS") in the amount of
$2,178,235.51 plus post-judgment interest and allowable costs is GRANTED.
IT IS FURTHER ORDERED THAT the JUDGMENT DEBTORS must post an
undertaking in the amount of for $4,356,471.02 unless the undertaking is given by an admitted
surety insurer in which case the amount of undertaking necessary to stay enforcement of this
Order is $3,267,353.26. Code Civ. Proc. § 917.5.
Ill...)} D AIT IS FURTHER ORDERED THAT .~A-'1 r /JiLl S~r}n./ ("Receiver") is
appointed as post judgment receiver of the Judgment Debtors. The receiver shall file a $10,000
receiver's bond and Receiver's oath within 10 days ofthis Order. /JV1.t I'5tJwl
J/.} MY.) 011-1'11
fll/ii/IOv<'l'1 I'J) ,YJ.J )/I/JL..( S' //Jyu'~ . 12?W
-2-
[PROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

3. 1
2
3
4
5
6
7
8
9
10
11
a.. 12--1
--1
13
0::: 14
W
--1 15
.--1
~
16
17
18
19
20
21
22
23
24
25
26
27
28
IT IS FURTHER ORDERED THAT upon filing the bond and oath the Receiver is
endowed with the powers, rights duties and obligations, as set forth below:
1. Investigate all of the Judgment Debtors' assets and liabilities including, but not limited to,
deposit accounts, investments, business interests, the nature and extent of any ownership,
operation, value and/or other involvement with any and all real property and/or rental
properties, purchase options, motor vehicles, personal property, the current residence of
Judgment Debtors, any business entities, corporations, partnerships or joint ventures
involved with Judgment Debtors, and any litigation;
2. Take possession of any assets and/or property, as well as copies of any records (paper,
electronic or otherwise) relating to Judgment Debtor assets and Stephen M. Gaggero's
estate plan;
3. Investigate any and all transfers of assets (real, personal or other) and any and all accounts
of any of the Judgment Debtors or their entities, and request and receive tax retUrns of
Judgment Debtors or of any corporate or other business ~ntity' in which any Judgment
Debtor is involved;
4. Employ agents and employees as the receiver believes in his business judgment, necessary
to carry out his duties as receiver and u~on .court order to pay the agents and employees at
ordinary and usual rates and prices pursuant to appropriate contracts out offunds that come
into his possession as receiver, including a court approved attorney pursuant to C.R.C.
3.1180;
5. Enforce the Assignment Order and Order Restraining Judgment Debtors entered into by
this Court;
6. Record this Order and/or any appropriate liens on any or all property of any of the
Judgment Debtors;
7. Hold any such property or records until further order ofthis Court.
-3-
[pROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

4. a..
......I
......I
r:r
LU
......I
......I
2
1 IT IS FURTHER ORDERED THAT:
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
8. The Receiver and/or Parties to this action may, from time to time, and upon notice to other
Parties in this action, petition this Court for further instructions, clarification and for
further powers necessary to enable the Receiver to properly perform his duties;
9. The Receiver may generally do such other things as are necessary or incidental to the
foregoing specific powers, directions and general authority and to take actions relating to
any property provided the Receiver obtains prior court approval for any actions beyond the
scope contemplated herein.
10. The Receiver shall have all rights and powers of the Debtors to obtain immediate access to
Judgment Debtors financial records from any third party, specifically including any
financial institution, to locate, trace and to freeze any funds or additional records, pending
further Court Order, and to collect, receive, demand all cash proceeds of the Judgment
pebtors including, but not limited to, cash, investments, loan proceeds, negotiable
instruments, savings, prepayments, deposits, reimbursements, receivables, notes, offsets, as
well as future contingent interests upon realization.
. ;)0 1l1I-111-
11. Receiver's hourly rate will be $ 3mf . - per hour plus costs, or such other rate as set by
the Court, plus costs as approved by the Court.
.IT IS FURTHER ORDERED THAT the Judgment Debtors and their respective agents,
partners, managers, attorneys, employees, assignees, successors, representatives and all persons
21 acting under, in concert with or for them:
22 12. Shall relinquish and immediately tum over possession of all "financial books, records and
23 ownership documents" relating directly or indirectly to any of Judgment Debtors assets
24 and liabilities to the Receiver within seven (7) court days ofthe appointment of a Receiver.
25 13. Shall tum over to the Receiver, and direct all managers and other third parties in
26 possession thereofto turn over all documents and records concerning any deposit accounts,
27 web sites, emails, in whatever mode maintained, including information contained on
28
-4-
[PROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

5. 1
2
3
4
5
6
7
8
9
10
11
0..
12.....J
....:.J
13
~ 14
W
.....J 15
.....J
~
16
17
18
19
20
21
22
23
24
25
26
27
28
.computers and any and all software relating thereto, as well as all banking records,
statements, canceled checks, electronic records and passwords.
14. Shall immediately tum over to the Receiver documents regarding any transfers of assets
valued over $10,000.00 to any third party within the past seven (7) years, wherever
located.
15. Shall immediately advise receiver as to the nature and extent of any insurance coverage.
Judgment Debtors shall immediately name the Receiver as an additional insured on the
insurance policies for the period Receiver is in possession ofthe assets;
16. Judgment Debtors are prohibited from cancelling, reducing or modifying any and all
insurance coverage currently in existence.
IT IS FURTHER ORDERED that pending further Order of this Court, Judgment Debtors
and their respective agents, servants, partners, managers, employees, attorneys, assignees,
successors, representatives, and all other persons acting under, in concert with or for them who
have actual or constructive knowledge ofthis Order, and their agents and employees;
17. Shall not commit or permit any waste on any of Judgment Debtors' assets.
18. Shall not demand, collect, receive, discount or in any other way divert or use any proceeds
owed to any Judgment Debtor, directly or indirectly.
19. Shall not directly/indirectly interfere in any manner with the discharge ofReceiver's duties
under this Order or in furtherance ofthe Receiver's receivership duties.
20. Shall not expend, disburse, transfer, assign, sell, convey, devise, pledge, mortgage,
hypothecate, create a security interest in, encumber, gift, conceal, or in any manner
whatsoever deal in or dispose of all or any part of any Judgment Debtor's property (real,
personal, or otherwise) interests without further Court Order.
21. Shall not do any act which will, or may, impair, defeat, divert, prevent or prejUdice
preservation of any Judgment Debtor's property.
-5-
[pROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

6. 0...
.....I
.....I
0:::
W
.....I
.....I
~
1 IT IS FURTHER ORDERED that the parties shall give notice to the Receiver of any event
2 that may affect the receivership.
3
4 IT IS FURTHER ORDERED THAT that the Receiver will have the following additional
5 powers with respect to Judgment Debtors Pacific Coast Management, Inc., 511 OFW LP,
6 Gingerbread Court LP, Malibu BroadBeach LP, Marina Glencoe LP, Blu House LLC, and
7 Boardwalk Sunset LLC, Joseph Praske as trustee of the Giganin Trust, Joseph Praske as trustee of
8 the Arenzano Trust, and Joseph Praske as trustee ofthe Aquasante Foundation (referred to as Alter
9 Ego Judgment Debtors):
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
·26
27
28
22. Until further order of this Court, the Receiver has full and exclusive power, duty, and
authority to administer and manage all of Alter Ego Judgment Debtors' business affairs,
funds, assets, choses in action and any of its other property, and is vested with all of the
powers of the Alter Ego Judgment Debtors' shareholders, directors and officers. No one
other than the Receiver has authority to file any voluntary bankruptcy petition on behalf of
I '/1.- .() h· v (,7 'i h&..<-kru./Jlc... (""ithe Alter Ego Judgment Debtors'(..Ut. ~ Ie",.,...TI C'e 1 I ~ r ' F 7
/tt;J
. 23. The Receiver is authorized to, and shall, take exclusive possession and control of any and
all documents, records, property and assets, wherever located within or outside this state,
of the Alter Ego Judgment Debtors including, but not limited to, the following: All
accounts, contract rights, general intangibles and payment intangibles, including without
limitation, contracts and accounts, all proceeds thereof, and all writings or other records in
whatever form (including electronic) which document any of them, including, but not
limited to, written agreements, purchase orders, invoices, receipts, checkbooks, check
registers, passbooks, journals, ledgers and books of account from which Judgment Debtor
receives payments or other data used in or related to its business.
24. The Receiver is also authorized to, and shall, take possession of any and all real property
owned by the Alter Ego Judgment Debtors', or in which the Alter Ego Judgment Debtors
have any interest.
-6-
[PROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

7. 1
2
3
4
5
6
7
8
9
10
11
0...
12....J
....J
13
0:: 14
W
....J 15
....J
~
16
17
18
19
20
21
22
23
24
25
26
27
28
25. The Receiver is authorized to take all necessary steps to receive, collect, and review all
mail addressed to the Alter Ego Judgment Debtors. At the Receiver's discretion, the
Receiver is authorized to instruct the U.S. Postmaster to reroute, hold, and/or release said
mail to the Receiver.
26. The Receiver is authorized to, and shall, take possession of all of the Alter Ego Judgment
Debtors' bank accounts, wherever located within or without this state, and shall receive
possession of any money on deposit in said bank accounts. Any bank or other financial
institution maintaining any such account shall, upon presentation of a copy of this order,
immediately deliver any such funds to the Receiver and shall provide the Receiver with
copies ofany documents or records concerning such accounts as the Receiver may request.
27. The Receiver is authorized to, and shall, demand, collect, and hold all of the Alter Ego
Judgment Debtors' accounts receivable and all proceeds thereof including, but hot limited
to, any escrow accounts containing funds to be dispersed upon the occurrence of a
particular event.
28. The Receiver is authorized to, and shall, present for payment any checks, money orders,
negotiable instruments or commercial paper through which the Alter Ego Judgment
Debtors are compensated for its goods and/or services. The Receiver is authorized to, and
shall, endorse the same and collect the proceeds, including, but not limited to, the proceeds
from any escrow accounts containing funds to be dispersed upon the occurrence of a
particular event.
29. The Receiver is authorized to, and shall, deposit all proceeds collected and taken under the
Receiver's exclusive possession and control into an interest bearing bank account
("Receiver Trust Account") to be thereafter used and maintained by the Receiver in
furtherance of the Receiver's duties and powers set forth herein. The Receiver shall keep
detailed accounting records of all deposits to and all expenditures from the Receiver Trust
Account, and shall maintain those accounting records until the termination of the
receivership.
-7-
[pROPOSED] ORDER FOR THE APPOINTMENT OF A RECEIVER

8. 0..
....J
....J
cr::
W
....J
....J
1 30. No such risk or obligation so incurred shall be the personal risk or obligation of the
2 Receiver, but shall be the risk and obligation ofthe receivership estate.
3 31. The Receiver shall, within thirty (30) days of the effective date of this appointment, file
4 and serve an inventory setting forth a list of all property of which the Receiver has taken
5 exclusive possession pursuant to this order to the Court. The Receiver shall file a
6 supplemental inventory if he takes possession of any additional property pursuant to this
7 order after thirty (30) days ofthe effective date.
8 32. Upon reasonable notice, the parties shall have access to all non-privileged documents in
9 the Receiver's possession, and may copy any such documents at their expense.
10
11
12
13
14
15
NOTICE IS HEREBY GIVEN THAT INTERFERENCE WITH RECEIVER'S
DUTIES/ACTIONS AND/OR FAILURE BY JUDGMENT DEBTORS OR ANY PARTY
OR THEIR PRINCIPALS, EMPLOYEES, AGENTS, ATTORNEYS, OR
REPRESENTATIVES TO COMPLY WITH TillS ORDER MAY SUBJECT THE PARTY
TO BEING HELD INCONTEMPT OF COURT.
16 IT IS SO ORDERED
17
18 Dated: ()~~ ~/ h,JJ2
19
20
21
22
23
24
25
26
27
28
,
Honorable Robert L. Hess
-8-
[PROPOSED] ORDER FOR THE APPOINThlIENT OF A RECEIVER