Due to new employment that will leave her unable to continue, Kimberly Friday informed the court she’d be resigning as Receiver of Success by Health on August 12th.

As part of that resignation process, Friday recommended Peter Davis be appointed her successor.

Davis has worked as a forensic accountant for the Success by Health Receivership. He is somewhat familiar with the case and also has past Receivership experience.

The FTC consented to the transfer but on August 9th Jay Noland and his fellow defendants filed an objection.

In an order filed on August 13th, Judge Lanza dismantled each of Noland’s objections.

To keep things simple I’m going to refer to Noland and the other defendants as the “Noland defendants”.

The order opens by acknowledging the unique circumstances the court finds itself in:

the Receiver’s resignation was unexpected;

the court is
‘open to the idea of modifying or dissolving the receivership and asset freeze in light of’
the
AMG decision
, but is unable to proceed due to a
previously filed appeal by the Noland defendants
;

the Noland defendants’ appeal won’t be resolved until September 18th; and

due to the Receiver providing notice of her August 12th resignation, the court can’t wait until September 18th to issue a ruling on the Receiver transfer motion.

Whilst acknowledging that the Receiver transfer motion is flawed, namely with respect to increased expenditure as
‘Mr. Davis gets up to speed regarding his new responsibilities’
, Judge Lanza puts forth
‘the alternatives proposed by the Individual Defendants are even more flawed.’

The Noland defendants argue that in light of the AMG decision, the assumption is that the court will have to dissolve the Receivership.

Thus the appointment of an interim Receiver for a few weeks runs contrary to the interests of justice.

To which Judge Lanza responded;

There are several problems with this argument.

First, the Court is not convinced that AMG Capital automatically requires the dissolution of the receivership in this action.

The narrow holding of AMG Capital was that the FTC may not seek equitable monetary relief in a § 13(b) case … but the purpose of the receivership in this action was not solely to safeguard assets in anticipation of a future monetary award under § 13(b) (instead, it was also to prevent ongoing harm) and the FTC’s claims for monetary relief in this action are not limited to § 13(b).

The issue is more complicated than the Individual Defendants portray it to be.

Next the Noland defendants put forth that the court

can issue an indicative ruling under Rule 62(d)(1) regarding their pending (but still not fully briefed) post-AMG Capital motion to dissolve the receivership and preliminary injunction.

To which Judge Lanza replied;

This proposal comes far too late. The Receiver’s resignation is imminent.

There is no time to wait for the motion to become fully briefed, and then consider it and issue an indicative ruling, and then wait to see how t

🤖 Quick Answer

Who was appointed as the new Receiver of Success by Health?
Peter Davis, a forensic accountant with prior receivership experience, was appointed as the successor to Kimberly Friday, who resigned on August 12th due to new employment obligations. Judge Lanza approved the appointment on August 13th, dismissing objections filed by defendant Jay Noland and his co-defendants.

Why did Jay Noland's objection to Davis's appointment fail?
Judge Lanza's order systematically dismantled each of Noland's objections to Peter Davis's appointment as Receiver. The judge found Davis qualified due to his forensic accounting background and existing familiarity with the Success by Health case through his prior work in the receivership proceedings.

What was the FTC's position on the receiver transition?
The Federal Trade Commission consented to the transfer of receivership responsibilities from Kimberly Friday

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