On June 2, 2016, the Securities and Exchange Commission (the “SEC”) filed a complaint against Richard W. Davis, Jr. (“Davis”) and the entities named below (the “Receivership Defendants”), alleging that Davis, through the Receivership Defendants, raised at least $11.5 million through the unregistered sale of securities and failed to disclose to investors that the majority of the funds raised were either transferred to entities owned or controlled by Davis or transferred Davis in amounts in excess of the management fees that he had represented to investors he would be entitled to.  The SEC alleged various violations of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and certain rules established under those statutes.  In the complaint and a subsequent motion, the SEC requested that the Court appoint a receiver for the entities listed below to marshal the assets of the Receivership Defendants in an orderly fashion and determine whether and to what extent the funds may be repaid to investors.

Without admitting or denying any of the allegations in the SEC’s complaint, Davis consented to entry of a judgment in the Civil Action. On June 3, 2016, the Court entered judgement against Davis, which, among other things, permanently restrains and enjoins Davis from engaging in any further conduct that would violate the Securities Act of 1933, the Securities Exchange Act of 1934, or the Investment Advisers Act of 1940 and also requires Davis to disgorge funds in an amount to be determined by the Court upon a future motion by the SEC.  Davis also consented to the appointment of a receiver.

Accordingly, on June 8, 2016, the Court appointed the Receiver to take possession, custody, and control over all of the assets belonging to the Receivership Defendants or any of their subsidiaries, successors, and assigns (the “Receivership Estate”).  In addition, the Receiver has been directed to liquidate the assets of the Receivership Estate, conduct a claims determination process, and disburse the funds in the Receivership Estate to holders of allowed claims based on a distribution scheme to be approved by the Court in the future.

The Receivership Defendants include the following:

  • DCG Real Assets, LLC
  • DCG Commercial Fund I, LLC
  • H20, LLC
  • Finely Limited, LLC
  • DCG Funds Underwriting, LLC
  • DCG ABF Management, LLC
  • DCG Funds Management, LLC
  • Davis Capital Group, Inc.
  • Davis Financial, Inc.
  • DCG Partners, LLC
  • DCG Real Estate Development, LLC
  • Huntersville Plaza Phase One, LLC
  • Huntersville Plaza Phase Two, LLC
  • North Lake Business Park, LLC
  • Richard Davis Enterprises, LLC

Notice of Hearing on Motion to Amend Conditions of Release

The Court has issued a Notice that Magistrate Judge David S. Cayer will conduct a hearing on July 10, 2017 at 10:50 a.m. in the Magistrate Courtroom 1-3, 401 W Trade St, Charlotte, NC 28202 on Richard Davis’s Motion to amend the conditions of his release and the Opposition to that Motion filed on behalf of the United States.

Motion Filed Requesting that the Conditions of Mr. Davis’s Release be Amended

In the criminal case against Richard Davis, his attorneys filed a motion on June 16, 2017 asking the Court to amend the conditions of his release so as to impose a curfew rather than home detention.   The U.S. Attorneys’ Office filed an opposition to that motion on June 23, 2017.  Both the motion and the opposition are attached here.  If the Court sets a hearing on this matter, notice of the hearing date will be posted on this webpage.

Motion to Amend Conditions of Release

Motion to Amend Conditions of Release ExA

Opposition to Motion to Amend Conditions of Release

Opposition to Motion to Amend Conditions of Release ExA

Opposition to Motion to Amend Conditions of Release ExB

Opposition to Motion to Amend Conditions of Release ExC

Receiver Sues to Recover Equipment and Obtains Preliminary Injunction

In 2016, the Receiver engaged a private investigator to locate and retrieve certain gold mining and related equipment constituting Receivership property and existing in Nevada (the “Mining Equipment”).  On May 11, 2017, the Receiver’s investigator, working together with local law enforcement and a heavy equipment hauling company, attempted to take possession of the Mining Equipment.  However, the individuals controlling the Mining Equipment refused to surrender possession thereof to the Receiver.

After unsuccessfully attempting to persuade those individuals to voluntary turn over the Mining Equipment, the Receiver, through her attorneys, filed a lawsuit to recover possession of the Mining Equipment on June 2, 2017.  A copy of the corresponding Complaint is linked below.  The Court entered a temporary restraining order and preliminary injunction on June 5, 2017 and June 16, 2017, respectively, freezing any disposition of the Mining Equipment and directing the defendants to turn the Mining Equipment over to the Receiver.  Those orders are also linked below.

MEDE1 – Complaint

MEDE5 – TRO – Mining Equipment

MEDE7 – Preliminary Injunction

Recommendations and Court Order on Victim Notice Procedures

The Court in Rich Davis’s criminal case approved procedures for notifying victims of updates in that case and public court proceedings, which were proposed by the Receiver in her capacity as Special Master in that case.  Copies of the recommendations and the Court’s Order are attached.

Special Master Recommendations on Victim Notice Procedures 4-26-17

Order Victim Notice Procedures 6-2-17

Joint Motion for Peremptory Setting and Entry of Scheduling Order

On May 24, 2017, the attached joint motion was filed by the prosecution and defense in the criminal case of Richard Wyatt Davis, Jr. requesting that the Court set a trial date in February, 2018 and that other pre-trial deadlines be established in accordance with the proposed trial date.

Joint Motion for Peremptory Setting