Freitag, as Receiver for ANI Development LLC v. Dean Libs, et al. was filed in the Southern District of California on January 25, 2022, asserting one claim for fraudulent transfer.
Plaintiff is the court-appointed permeant receiver for ANI Development LLC (“ANI Development”), American National Investments, Inc., and their subsidiaries and affiliates (“Receivership Entities”) in an action titled SEC v. Gina Champion-Cain, et al., Case No. 3:19-cv-01628-LAB-AHG (“SEC Action”). Plaintiff was appointed Receiver in the SEC Action and was vested with exclusive authority and control over the assets of the Receivership Entities, as well as investigatory powers. This action is against Defendant Dean Libs, in his individual capacity, and Defendant Dean Libs Inc., a California corporation.
The complaint in the SEC Action alleged that Gina Champion-Cain (“Champion-Cain”) and ANI Development ran a Ponzi scheme involving fraudulent liquor license loans. Champion-Cain and ANI Development raised $390 million from 435 investors. During the Receiver’s investigation, she discovered Defendants Dean Libs and Dean Libs, Inc. received profits over and above their initial deposits, totaling $667,570.36. The complaint alleges that Defendants provided no services or other value to the Receivership Entities other than amounts paid for the fictitious investments. The Receiver further asserts that as net winners in a Ponzi scheme, Defendants’ ignorance of the scheme is not a defense to fraudulent transfer under California law.
The Receiver, through the sole claim of fraudulent transfer, seeks to recover allegedly fraudulent payments received by Defendants.