United States Securities and Exchange Commission v. Hyatt et al

MOTION

N.D. Ill.July 7, 2008

Case 1:08-cv-02224 Document 84 Filed 07/07/2008 Page 1 of 3 Case 1:08-cv-02224 Document 84 Filed 07/07/2008 Page 2 of 3 Case 1:08-cv-02224 Document 84 Filed 07/07/2008 Page 3 of 3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION CHICAGO REGIONAL OFFICE NINTH FLOOR 175 WEST JACKSON STREET CHICAGO, ILLINOIS 60604 ROBIN ANDREWS TELEPHONE: (312) 353-4304 STAFF ATTORNEY, DIVISION OF ENFORCEMENT FAX: (312) 353-7398 June 2, 2008 Via Email Thomas M. Leinenweber, Esq. Leinenweber & Baroni LLC 321 S. Plymouth Ct. Ste. 1515 Chicago, IL 60604 Re: SEC v. Hyatt et al. (1:08-cv-2224) Dear Mr. Leinenweber: As we have previously discussed, and as explained in my May 14, 2008 letter to you, there are numerous orders and discovery requests regarding Mr. Hyatt which are outstanding: • The SEC’s April 18, 2008 discovery request to Mr. Hyatt required the production of numerous documents. • Judge Hibbler’s April 18, 2008 order required that Mr. Hyatt produce an accounting of, among other things, all uses of investor funds. • Judge Hibbler’s April 21, 2008 order required the immediate production of all telephone and email records of Jason Hyatt and Heidi Hyatt from April 18, 2008 through April 21, 2008. • The SEC issued a request to Mr. Hyatt on May 12, 2008 for all computers or hard drives on which he conducted Hyatt Johnson Capital business. This would include, but is not limited to, (1) two computers (Pavilion and Presario) which were imaged in March 2008 by a vendor for Hyatt Johnson Capital, LLC as well as (2) a Hyatt Johnson Computer purchased in 2003, which was also used by Jason Hyatt. Our understanding is that Mr. Hyatt has represented to the Hyatt Johnson Capital receiver, Robert Handler, that this last computer was previously given to Mr. Hyatt’s brother or brother-in-law. If this is the case, please immediately provide the name and address of that individual so we can issue a subpoena for the production of that computer from that individual. To date, the SEC has not received any of the above documents or items, with the exception of certain telephone records produced today. If we do not receive the remaining required documents and items by Wednesday, June 4, we intend to file a motion to compel Mr. Case 1:08-cv-02224 Document 84-2 Filed 07/07/2008 Page 1 of 2 2 and/or Mrs. Hyatt’s compliance with the SEC’s discovery requests and a motion for contempt regarding their noncompliance with the Court’s orders. Sincerely, s/ Robin Andrews Robin Andrews cc: Jim Kopecky, Esq. Case 1:08-cv-02224 Document 84-2 Filed 07/07/2008 Page 2 of 2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION CHICAGO REGIONAL OFFICE NINTH FLOOR 175 WEST JACKSON STREET CHICAGO, ILLINOIS 60604 ROBIN ANDREWS TELEPHONE: (312) 353-4304 STAFF ATTORNEY, DIVISION OF ENFORCEMENT FAX: (312) 353-7398 June 19, 2008 Via Email Thomas M. Leinenweber, Esq. Leinenweber & Baroni LLC 321 S. Plymouth Ct. Ste. 1515 Chicago, IL 60604 Re: SEC v. Hyatt et al. (1:08-cv-2224) Dear Mr. Leinenweber: In connection with the SEC’s April 19, 2008 contempt motion against Jason Hyatt and Heidi Hyatt, there are a number of issues that we wish to address. Our understanding from earlier conversations with you is that you do not represent Heidi Hyatt, but that, for the purposes of the contempt proceedings, you will pass along relevant information and requests to Heidi, as she is married to your client and currently without counsel. If, however, Heidi Hyatt has obtained separate counsel or if you now represent her, please inform us immediately. The SEC intends to pursue its contempt claims against Jason Hyatt and Heidi Hyatt in an evidentiary hearing, after which the SEC will ask the Court for appropriate sanctions. At the contempt hearing, the SEC intends to introduce certain records the SEC has received from The Private Bank, including bank records and pictures of Heidi Hyatt’s visits to the bank. Please inform us whether you will you stipulate to the authenticity of these records, in lieu of a certificate from the custodian of records of The Private Bank. The SEC intends to call as witnesses Jason Hyatt and Heidi Hyatt. In addition, in light of your comments today during Mr. Hyatt’s arraignment hearing during which you stated that Robert Michels was not Mr. Hyatt’s counsel on April 18, 2008, the SEC intends to call Mr. Michels as a witness as well. As we have previously reminded you, Judge Hibbler’s April 21, 2008 order required the immediate production of all telephone and email records of Jason Hyatt and Heidi Hyatt from April 18, 2008 through April 21, 2008. We have received from Jim Kopecky what are purportedly the required telephone records, but we have not received any of the required email records. You have informed us that in addition to representing Panacea Partners, Jim Kopecky now represents Mr. Hyatt personally. Please inform us in writing if this is incorrect. Case 1:08-cv-02224 Document 84-3 Filed 07/07/2008 Page 1 of 2 2 If your client wishes to resolve the contempt motion prior to a hearing, the SEC would be willing to accept Jason Hyatt’s consent to the entry of a finding that he acted in contempt of Judge Hibbler’s April 18, 2008 order. If we do not receive any such notification, the SEC will proceed in its preparation for an evidentiary hearing, which we hope to schedule at the July 2, 2008 status conference. Sincerely, s/ Robin Andrews Robin Andrews cc: Jim Kopecky, Esq. Case 1:08-cv-02224 Document 84-3 Filed 07/07/2008 Page 2 of 2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION CHICAGO REGIONAL OFFICE NINTH FLOOR 175 WEST JACKSON STREET CHICAGO, ILLINOIS 60604 ROBIN ANDREWS TELEPHONE: (312) 353-4304 STAFF ATTORNEY, DIVISION OF ENFORCEMENT FAX: (312) 353-7398 July 2, 2008 Via Email Thomas M. Leinenweber, Esq. Leinenweber & Baroni LLC 321 S. Plymouth Ct. Ste. 1515 Chicago, IL 60604 Re: SEC v. Hyatt et al. (1:08-cv-2224) Dear Mr. Leinenweber: As I mentioned in our telephone conversation this morning, Judge Lindberg has scheduled an evidentiary hearing on the SEC’s April 19, 2008 contempt motion against Jason Hyatt and Heidi Hyatt for Wednesday, July 16, 2008. The Court’s minute order this morning indicates that the hearing is scheduled for 10:00 a.m. on that date. During our conversation, you represented that you are willing to agree to certain stipulations. My understanding is that you agree to stipulate to the authenticity and admissibility of the following categories of documents: • Telephone records for Jason Hyatt and Heidi Hyatt that the SEC received from Jim Kopecky; • Email and Telephone records the SEC received from Robert Michels; • Various records the SEC has received from Mr. Hyatt’s banks; and • Records the SEC received from the St. Charles Country Club regarding Mr. Hyatt’s membership. The SEC hopes that you will agree to these stipulations in order to reduce the number of witnesses that must be called and the duration of the evidentiary hearing. In addition, please let me know by Tuesday, July 8, 2008 whether you are willing to stipulate to the following facts: • The phone using number (312) 479-1233 is a cellular phone primarily used by Jason Hyatt. This phone is a Blackberry which receives emails. • The phone using number (630) 362-7385 is a cellular phone primarily used by Heidi Hyatt. Case 1:08-cv-02224 Document 84-4 Filed 07/07/2008 Page 1 of 2 2 As we have repeatedly reminded you, Judge Hibbler’s April 21, 2008 order required the immediate production of all telephone and email records of Jason Hyatt and Heidi Hyatt from April 18, 2008 through April 21, 2008. We have not received any of the required email records; please produce these immediately. Sincerely, s/ Robin Andrews Robin Andrews Case 1:08-cv-02224 Document 84-4 Filed 07/07/2008 Page 2 of 2