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IN RE MILLER
DUNCAN KEIR, Bankruptcy Judge
A. DefinitionsFor the purpose of this Order, the following definitions apply:
1. Adversary Proceedings. The term "Adversary Proceedings" shall mean the consolidated adversary proceedings captioned W. Clarkson McDow, Jr. v. Michael K. Lewis, et al., consisting of Adversary Proceeding Nos. 07-00347, 07-00620 and 07-00621, proceeding in, or having proceeded in, the United States Bankruptcy Court for the District of Maryland.
2. Debtor. The term "Debtor" shall mean a person, entity or municipality concerning which a case under Title 11 of the United States Code has been commenced and remains pending.
3. Complaint. The term "Complaints" shall mean the Amended Complaint for Fines, Disgorgement of Compensation and Injunction filed in the United States Bankruptcy Court for the District of Maryland by the United States Trustee for Region Four in Adversary Proceeding 07-00347, and the Complaint for Fines, Disgorgement of Compensation and Injunction filed in the United States Bankruptcy court for the District of Maryland by the United States Trustee in Adversary Proceedings 07-00620 and 07-00621.
4. Injunction. The term "Injunction" shall mean the injunction imposed by this Order, the terms of which are set forth in Section D below.
5. Settlement Agreement. The term "Settlement Agreement" refers to the settlement agreement between the United States Trustee and Earnest Lewis dated September __, 2009, and attached as Exhibit 1 to the Motion to Approve Settlement and For Issuance of Consent Injunction filed in the Adversary Proceeding.
B. Recitals of Stipulated Facts1. W. Clarkson McDow, Jr., is the duly appointed United States Trustee for Region Four and the District of Maryland, which is part of Region Four (the "United States Trustee").
2. Earnest Lewis ("Mr. Lewis") is an individual residing in the District of Columbia and conducting business in the State of Maryland.
3. The United States Trustee initiated the Adversary Proceeding against Mr. Lewis and others by filing the Complaints and alleging violations of the United States Bankruptcy Code and other laws by Mr. Lewis and others in connection with the filing of motions and other documents in the United States Bankruptcy Court for the District of Maryland.
4. Mr. Lewis answered the Complaint denying many of the United States Trustee's allegations of fact and interposing defenses to the legal claims asserted by the United States Trustee.
5. The parties conferred regarding the Adversary Proceeding and reached an agreement resolving the claims asserted against Mr. Lewis by the United States Trustee in the Adversary Proceedings. The terms of that agreement are set forth in the Settlement Agreement and in the Injunction.
6. It is agreed and understood that the Settlement Agreement, the Injunction and the consent to this Order, represent a compromise of claims and that nothing in the Settlement Agreement, the Injunction or Mr. Lewis's consent to this Order constitutes or will be construed as an admission of liability or of any wrongdoing or violation of law by Mr. Lewis.
C. Approval of Settlement and Settlement Agreement
The Court has reviewed the pleadings, motions and other documents filed in the Adversary Proceeding and finds the terms of the Settlement Agreement to be reasonable, appropriate and warranted. Therefore, upon consideration of the recitals of fact set forth above and stipulated to by the parties, it is hereby,
ORDERED, that Settlement Agreement and the settlement of the Adversary Proceeding on the terms set forth in the Settlement Agreement are hereby approved.
D. Terms and Conditions of Injunction
The Court has reviewed the pleadings, motions and other documents filed in the Adversary Proceeding and finds the terms of the Injunction to be reasonable and the issuance of the Injunction to be appropriate and warranted. Therefore, upon consideration of the recitals of fact set forth above and stipulated to by the parties, it is hereby,
ORDERED, that the Injunction shall be granted and that Mr. Lewis shall be enjoined, throughout the entire United States and all of its territories, as follows:
1. Except as provided in paragraph 2, Mr. Lewis shall not knowingly purchase real property from any person who is a debtor in a bankruptcy case or who has been a debtor in a bankruptcy case that was dismissed within the six months preceding the purchase.
2. Nothing in this Injunction shall prohibit or restrict Mr. Lewis from purchasing real property that Mr. Lewis intends to and actually does use as his primary residence, regardless of the seller.
3. In addition to any sanction or remedy generally applicable to the violation of an injunction, if Mr. Lewis is determined by a court of appropriate jurisdiction to have violated any term of this Injunction, then:
a. Mr. Lewis consents to entry of a judgment imposing a fine in the amount of $1,000,000. The fine provided in this Paragraph:
(i) shall be payable to the United States Trustee;
(ii) shall be in addition to any other fines, damages, sanctions or remedies otherwise imposed or for which Mr. Lewis is found liable; and
(iii) shall not reduce any damages, fines or other amounts such Mr. Lewis is ordered to pay or for which Mr. Lewis is found liable; and
b. The United States Trustee shall be entitled to re-open or otherwise reassert the Complaint and/or the allegations, claims and causes of action asserted in the Complaint. In the event the United States Trustee re-opens or otherwise reasserts the Complaint and/or the allegations, claims and causes of action asserted in the Complaint in accordance with this Paragraph, then the United States Trustee shall be entitled to assert, provide evidence of, and seek recovery for any cause of action stated in the Complaint which occurred prior to the date of this Injunction without regard to any applicable statute of limitations, laches or other timeliness defense.
SO ORDERED
DUNCAN KEIR, Bankruptcy Judge
Notice RecipientsDistrict/Off: 0416-1 User: vharper Date Created: 3/1/2010 Case: 07-00347 Form ID: pdfparty Total: 4 Recipients of Notice of Electronic Filing: aty Barry M. Tapp Suwon4@aol.com aty Hugh M. (UST) Bernstein hugh.m.bernstein@usdoj.gov TOTAL: 2 Recipients submitted to the BNC (Bankruptcy Noticing Center): dft Ernest Lewis 1348 Newton Street, N.W. Washington D.C., DC 20010 aty Barry M. Tapp 14662 Cambridge Circle Laurel, MD 20707 TOTAL: 2
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