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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
  • DCG PMG, LLC
  • DCG PMF, 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
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Motion for Authority to Sell Real Property-11711 Alexandriana Road, Huntersville, North Carolina- Free and Clear of Liens

dcgreceivership Pleadings

The Receiver seeks authority to sell real property at 11711 Alexandriana Road, Huntersville, NC.   Any objections to the Motion must be filed with the Court by March 15, 2019 and served upon the Receiver.   The current bid for the property is $775,000 (the “Initial Bid”).   Higher bids for the property may be made to the Receiver through and until April 1, 2019 by submitting a bid on the same terms as the Initial Bid, that exceeds the Initial Bid by at least 10% and is submitted with proof of funds necessary to close (in the form of a bank statement, cashier’s check or other like evidence).

DCG Motion for Authority to Sell Real Property 11711 Alexandriana Road

Receiver’s Tenth Application for Attorney’s Fees and Seventh Application for Accountants’ Fees

dcgreceivership Pleadings

A.  Cotten Wright, Receiver, has filed an application for compensation for the period of October 1, 2018 through December 31, 2018 to Grier Furr & Crisp, PA. The application for  compensation seeks approval of $14,577.00 in fees and reimbursement of expenses of $1,222.42, for a total of $15,799.42.

The Receiver has also filed an application for compensation for the period of October 1, 2018 through December 31, 2018 to Middleswarth, Bowers and Company, LLC, accountants for the Receiver.  That application seeks approval of $225.00 in fees and reimbursement of $0.00 in expenses, for a total of $225.00.  Regardless of any fees and expenses that may be allowed by the Court, payment of any approved fees and expenses shall be limited to 30% of net recoveries.

If you do not want the Court to approve the applications noticed herein, or if you want the Court to consider your views, then within 14 days, you or your attorney must do the following: (1) file a written response explaining your position with the Court; (2) mail, fax or email a copy of your response to the Receiver; and (3) attend a hearing on your response, if the Court schedules a hearing.

If you or your attorney do not take these steps,  the Court may decide that you do not oppose the relief the Receiver requests and may enter orders approving the applications for compensation.

dcg gfc tenth application for compensation

dcg eighth application for compensation bowers

dcg notice for fee apps gfc and bowers