1~J FI ED COI T 1 FILED IN COUNTY CLERK'S OFFICE 2 NOV 1 8, 2019 PIERCE COUNTY, 4 KEVIN STOC HINGTON ounty Clerk DEPUTY BY 5 6 STATE OF WASHINGTON PIERCE COUNTY SUPERIOR COURT 7 8 STATE OF WASHINGTON, NO. 1 9 _9, -12n<2 Plaintiff, 12 13 14 15 VETERANS INDEPENDENT ENTERPRISES OF WASHINGTON, a Washington public benefit corporation (aka VETERANS WORKSHOP); ROSEMARY HIBBLER (aka ROSEMARY PARGOUD, ROSEMARY SMITH, AND ROSEMARY BARNES); DONALD J. HUTT; and GARY ORDER TO SHOW CAUSE RE: APPOINTMENT OF GENERAL RECEIVER AND APPOINTING INTERIM RECEIVER (CLERK'S ACTION REQUIRED) PETERSON, 16 Defendants. 17 18 19 THIS MATTER came before the Court. upon Plaintiff's Emergency Petition for Appointment of Interim Receiver over Veterans Independent Enterprises of Washington and 20 Order to Show Cause Re: Appointment of General Receiver (Motion). The Court has reviewed 21 22 the Motion, Plaintiff's Complaint for Order Appointing Receiver, Injunctive and Other Relief, 23 and the Declarations of Joshua Studor, Daniel J. Bugbee, and Jacqueline Franklin in support of 24 Plaintiff's Motion, including any exhibits thereto, together with oral argument. Based upon such 25 review, and being otherwise fully advised, the Court finds that (1) good cause exists to shorten 26 ORDER TO SHOW CAUSE RE APPOINTMENT OF RECEIVER AND APPOINTING INTERIM RECEIVER — 1 ATTORNEY GENERAL OF WASHINGTON Consumer Protection Division 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188 (206) 464-7745 I the period of notice required for an application for the appointment of a receiver and that no 2 notice is required under the circumstances, (2) that good cause exists for the appointment of an 3 interim general receiver over Defendant Veterans Independent Enterprises of Washington aka 4 Veterans Workshop (VIEW), (3) that the proposed interim receiver, Daniel J. Bugbee, is qualified 5 6 7 g to serve as the interim general receiver of VIEW; and (4) other good cause has been shown for the relief requested in the Motion. Based upon the foregoing, it is hereby ORDERED, ADJUDGED AND DECREED as 9 follows: 10 11 12 Plaintiff s Motion is hereby GRANTED. It is further ORDERED, ADJUDGED AND DECREED that Defendant is ordered to appear before ) 60 cv this Court on November 21, 2019 at ~J d k") to show cause why Daniel J. Bugbee should 13 14 not be appointed as general receiver to assume control of Defendant Veterans Independent 15 Enterprises of Washington's (VIEW) personal property, real property and business operations. 16 IT IS FURTHER ORDERED, ADJUDGED AND DECREED that 17 1. Daniel J. Bugbee (Interim Receiver) is hereby appointed as interim general 18 _ receiver—from the entry of this Order through the above ordered show cause hearing to take 19 control of-all personal property, real property and business operations of VIEW, including but 20 not limited to all furniture, fixtures, equipment, inventory, deposits and accounts and other items 21 22 of tangible and intangible personal property located at, or used in conjunction with, VIEW's 23 business, including any rents and profits thereof. Pursuant to RCW 7.60.025(5), the Interim 24 Receiver 's appointment as interim general receiver is not conditioned on Plaintiff State of 25 Washington's giving of security. 26 ORDER TO SHOW CAUSE RE APPOINTMENT OF, RECEIVER AND APPOINTING INTERIM RECEIVER — 2 ATTORNEY GENERAL OF WASHINGTON Consumer Protection S Division 800 Fifth A Avenue, venue, Suite 2000 Seattle, WA 98104-3188 (206) 464-7745 1 2. The automatic stay of RCW 7.60. 110 shall be in effect upon entry of this Order. 2 3. The Interim Receiver shall take charge of VIEW's business operations; have 3 exclusive possession and control over VIEW's business operation, maintain, secure, and manage 4 VIEW; review the books and records of VIEW; and collect the deposits, rents and income related 5 6 7 thereto for payment of the costs and expenses associated with operating VIEW. 4. Defendant VIEW and its members, managers, partners, officers, agents, g employees, representatives, trustees, beneficiaries, and attorneys are hereby directed to 9 cooperate fully with the Interim Receiver in carrying out its duties. Without limiting the 10 11 foregoing, such persons and entities are required to do the following: a. Assist and cooperate fully with the Interim Receiver in the administration 12 of the assets and business operations of the receivership and the discharge of the Receiver's 13 14 15 16 duties, and comply with all orders of the Court; b. Immediately deliver to the Interim Receiver all of VIEW's property, including, but not limited to, all keys, accounts, funds, books, papers, records, other documents 17 of any nature whatsoever (to expressly include any and all files contained on any digital 18 _ - media)—together with any and-all passwords, _personal identification numbers,-access codes 19 and/or two-factor authentication required to access same—as well as real property and personal 20 property that as of the date of this Order-are in the , possession, custody or control of Defendant 21 VIEW or available-to Defendant VIEW, including any of its agent, employee or affiliates; 22 23 24 c. Immediately turn over to the Interim Receiver all bank accounts and funds in VIEW's possession, custody or control on the date of this Order or coming into its possession, 25 26 ORDER TO SHOW CAUSE RE APPOINTMENT OF RECEIVER LAND APPOINTING INTERIM RECEIVER - 3 ATTORNEY GENERAL OF WASHINGTON Consumer 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188 (206)464-7745 2000 I custody or control on or after entry of this Order that arose from VIEW's operations or are in 2 any way related thereto, including any cash proceeds; and 3 d. Submit to examination by the Interim Receiver, or by any other person, 4 upon order of this Court, under oath, concerning the acts, conduct, property, assets, liabilities, 5 6 and financial condition of VIEW, or any matter relating to the Interim Receiver's administration 7 of the receivership estate. g 5. VIEW and its members, managers, partners, officers, directors, agents, property 9 managers, employees, representatives, trustees, beneficiaries, and attorneys are also hereby 10 prohibited from: 11 a. Interfering with the Interim Receiver, directly or indirectly, in the 12 management and operation of the receivership estate, or otherwise directly or indirectly taking 13 14 15 any actions or causing any such action to be taken which would dissipate or damage the estate or negatively affect its operations. b. 16 Expending, disbursing, transferring, assigning, selling, conveying, 17 devising, pledging, mortgaging, creating a security interest in, or otherwise disposing of the 18 19 whole or part of VIEW's .assets and-the proceeds and pro-fits-therefrom. C. Doing any act which will, or which will tend to, directly or indirectly, 20 21 22 23 24 25 impair, defeat, prevent, or prejudice the preservation of the receivership estate, or in any way negatively impact the Interim Receiver's ability to-discharge his duties under the terms of this Order and RCW 7.60, et seq. 6. The Interim Receiver is hereby vested with all powers afforded a receiver under the laws of the State of Washington. The powers vested in the Interim Receiver shall include, 26 ORDER TO SHOW CAUSE RE APPOINTMENT OF RECEIVER AND APPOINTING INTERIM RECEIVER - 4 ATTORNEY GENERAL OF WASHINGTON Consumer Protection Division 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188 (206) 464-7745 I without limitation, the power to present for payment any checks, money orders, and other forms 2 of payment payable to VIEW, or such similar names. The Interim Receiver shall have the sole 3 and exclusive authority to disburse funds from VIEW's bank accounts. The Interim Receiver 4 shall have the authority to take possession of bank and other deposit accounts of VIEW, and to 5 6 open, transfer and change all bank and trade accounts relating to VIEW, so the all such accounts 7 are under the exclusive control of the Interim Receiver. 7. 8 9 The Interim Receiver's exercise of the powers set forth in this Order, unless otherwise indicated, shall be in the name, and on behalf of, Defendant VIEW. 10 IT IS FURTHER ORDERED, ADJUDGED AND DECREED that 11 In the e t the Court does not appoint Daniel J. Bugbee as the terim Receiver, a 12 temporary restraining or 13 14 following: shall issue prohibiting VIEW, its a is and employees from the a. disposing of, transferring, seer . g, cumbering, or in any way tampering with 15 16 VIEW's real and personal pr erty asse including without limitation, equipment, j 17 inventory, deposits an ccounts and other items tangible and intangible personal 18 property locat at, or used in conjunctia_n with, VIE 19 business, including any rents an profits thereof, other than in the ordinary course of business; and 20 21 22 H H 23 H 24 H 25 26 ORDER TO SHOW CAUSE RE APPOINTMENT OF RECEIVER AND APPOINTING INTERIM RECEIVER - 5 ATTORNEY GENERAL OF WASHINGTON Consumer Protection Division 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188 (206)464-7745 1 2 3 b.> transferring, destroying, or otherwise tampering with VIEW's books, reco , papers, in the and other documents of any nature wh45D2ver, ordinary 4 This order remains in effect until modified or revoked by this Court. 5 6 DONE IN OPEN COURT this L` —day No ember, 20 9. 7 8 COURT CO ISSIONER 9 10 11 Presented by: MARK GELMAN COURT COMMISSfONER ROBERT W. FERGUSON Attorney General FILED IN COUNTY CLERK'S OFFICE 12 13 NOV 18 2019 14 ;USHUA S,TZDOR, WSBA #47183 /LYNDA ATKINS, WSBA #52396 15 HEIDI ANDERSON, WSBA #37603 Assistant Attorneys General 16 Attorneys for Plaintiff State of Washington 800 Fifth Avenue, Suite 2000 17 Seattle, WA 98104 (206) 464-6684 18 PIERCE COUNTY, (WASHINGTON KEVIN STOCK, County Clerk DEPUTY BY 19 20 21 co If 1 . 22 NOV 182019 23 r 24 25 26 ORDER TO SHOW CAUSE RE APPOINTMENT OF RECEIVER AND APPOINTING INTERIM RECEIVER — 6 ATTORNEY GENERAL OF WASHINGTON Consumer Protection Division 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188 (206) 464-7745