The SEC charged A Chicago Convention Center, LLC, Anshoo Sethi, and Intercontinental Regional Center Trust of Chicago, LLC with operating a fraudulent securi…

UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

UNITED STATES SECURITIES )
AND EXCHANGE COMMISSION )
                                                                                    )
Plaintiff, )    Civil Action No. 13-cv-982
)
v. )
)    Honorable Judge Amy J. St. Eve
A CHICAGO CONVENTION CENTER,  )
LLC, ANSHOO SETHI, and )
INTERCONTINENTAL REGIONAL )
CENTER TRUST OF CHICAGO, LLC )
                                                                                    )

Defendants. )

__________________________________________    )

ORDER MODIFYING THE COURT’S ASSET FREEZE ORDER AND DIRECTING

SUNTRUST BANK TO RETURN ESCROWED FUNDS TO INVESTORS

This  cause  is  before  the  Court  on  the  Plaintiff  United  States  Securities  and  Exchange
Commission’s  (“SEC’s”),  Motion  to  Modify  the  Court’s  Asset  Freeze  Order  [Dkt.  #27]  and
Directing SunTrust Bank to Return Escrowed Funds to Investors, which Defendants have moved
to join.  The Court has reviewed the SEC’s Motion and attachments thereto, being duly advised
in the premises, this Court finds as follows:
1. The  Court  has  subject  matter  jurisdiction  over  this  civil  enforcement  action  and
personal jurisdiction over the Defendants;
2. On  February  20,  2013,  the  Court  entered  an  order  on  the  SEC’s  motion  for
preliminary injunction and asset freeze [Dkt. #27] which provided:
All  funds  and  other  assets  of  Defendants  that  are  located  within  the
territory of the United States, and all funds and other assets held, managed
or  controlled,  whether  directly  or  indirectly,  by  Defendants,  wherever
located, are hereby frozen, including, but not limited to all such funds and
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other  assets  held  at  SunTrust  Bank  (including  those  accounts  ending  in  -
4261 and -2231, and -0659, Cathay Bank, and Pacific Global Bank).
3. Under  the  terms  of  Defendants’  offering  to  investors,  investors  wired  $500,000
apiece  from  their  overseas  banking  accounts  to  U.S.-based  escrow  accounts  administered  by
SunTrust Bank (“SunTrust”).  Since November 2011, investors in Defendants securities offering
have  wired  a  total  of  $147,105,946.03  to  SunTrust  escrow  accounts  (accounts  ending  in  -4261
and -2231) in the U.S.  These investor funds are subject to the Court’s February 20, 2013 asset
freeze order.
4. The Defendants’ Offering Memorandum and subscription agreements executed by
each investor provide that the escrow agent, SunTrust, would return all amounts held in escrow
(without interest) if, among other reasons, the Defendants’ offering is terminated.
5. As a result of the SEC’s action, Defendants have terminated the offering and have
moved to join the SEC’s motion to return escrowed funds to investors.
6. There is good cause to modify the Court’s February 20, 2013 asset freeze order to
permit the prompt payment to investors’ of their principal investments in Defendants’ securities
offering, which have been collected in the frozen escrow accounts.
7. Therefore, the SEC’s Motion is GRANTED.
IT IS THEREFORE ORDERED:
8. The  Court’s  February  20,  2013  asset  freeze  order  shall  remain  in  full  force  and
effect except as expressly provided herein.
9. The Court’s February 20, 2013 asset freeze order is hereby modified to permit the
Escrow  Agent,  SunTrust,  to  return  “all  Subscription  Proceeds  received  from  Subscribers”  as
those terms are defined in the Subscription Escrow Agreement.
10. The   Escrow   Agent,   SunTrust,   is   ordered   to   return   to   the   Subscriber   the
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Subscription  Agreement  (if  in  the  Escrow  Agent’s  possession)  and  the  Subscription  Proceeds
tendered  therewith,  without  deduction  or  payment  of  interest  via  wire  transfer  or,  if  necessary,
via other reasonable means, as provided for in Section 3 of the Subscription Escrow Agreements.
11. In  exchange  for  performing  the  services  specified  in  Paragraph  10  of  this  Order,
the  Escrow  Agent,  SunTrust,  may  charge  Defendants  no  more  than  the  amounts  stated  in  the
Escrow Subscription Agreements and any out-of-pocket expenses shall be billed at cost.  These
expenses  may  be  deducted  by  SunTrust  from  Defendants’  administrative  (non-escrow)  account
ending in –0659 held at and administered by SunTrust.
12. Except  as  expressly  provided  in  Paragraph  13,  nothing  in  this  Order  shall  be
construed as imposing any right or obligation upon any person or entity beyond those rights and
obligations  set  forth  in  the  Subscription  Escrow  Agreement.    Nothing  in  this  Order  shall  be
construed as modifying Section 6 of the Subscription Escrow Agreements.
13. Within thirty (30) days after entry of this Order, SunTrust shall provide the SEC
and Defendants with an accounting of all investor subscription amounts wired to investors, in a
format  to  be  provided  by  the  SEC  and  Defendants,  or  agreed  to  among  SunTrust  the  SEC,  and
Defendants.  Such an accounting shall inform the SEC and Defendants of the activities and status
of  the  distribution  to  investors,  and  shall  specify,  at  a  minimum,  the  identities  of  investors,  the
amount(s)  wired  to  each  investor,  and  the  identity  of  any  investor  to  whom  SunTrust  has  been
unable return Subscription Proceeds as of the date of the report.  To the extent SunTrust has been
unable  to  return  Subscription  Proceeds  to  any  investor  as  of  the  date  of  SunTrust’s  report,  the
SEC may provide this information to such investor’s counsel, if known, to facilitate the return of
funds.   SunTrust  shall  continue  to  make  periodic  accountings  to  the  SEC  and  Defendants  until
such time as all investor subscription amounts are paid to investors.
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14. The Court shall retain exclusive jurisdiction over all claims arising in connection
with this Order.
IT IS SO ORDERED.
Dated:  April 19, 2013
                                                                        United            States            District            Judge
___________________________________
                                                                        Judge            Amy            J.            St.            Eve
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Case: 1:13-cv-00982 Document #: 71 Filed: 04/19/13 Page 1 of 4 PageID #:2523 

UNITED STATES DISTRICT COURT
 
FOR THE NORTHERN DISTRICT OF ILLINOIS 


EASTERN DIVISION
 

UNITED STATES SECURITIES ) 
AND EXCHANGE COMMISSION )

 ) 
Plaintiff, ) Civil Action No. 13-cv-982 

) 
v. ) 

) Honorable Judge Amy J. St. Eve 
A CHICAGO CONVENTION CENTER,  ) 
LLC, ANSHOO SETHI, and ) 
INTERCONTINENTAL REGIONAL ) 
CENTER TRUST OF CHICAGO, LLC )

 ) 

Defendants. )
 

__________________________________________ ) 


ORDER MODIFYING THE COURT’S ASSET FREEZE ORDER AND DIRECTING 

SUNTRUST BANK TO RETURN ESCROWED FUNDS TO INVESTORS 


This cause is before the Court on the Plaintiff United States Securities and Exchange 

Commission’s (“SEC’s”), Motion to Modify the Court’s Asset Freeze Order [Dkt. #27] and 

Directing SunTrust Bank to Return Escrowed Funds to Investors, which Defendants have moved 

to join.  The Court has reviewed the SEC’s Motion and attachments thereto, being duly advised 

in the premises, this Court finds as follows: 

1. The Court has subject matter jurisdiction over this civil enforcement action and 

personal jurisdiction over the Defendants;  

2. On February 20, 2013, the Court entered an order on the SEC’s motion for 

preliminary injunction and asset freeze [Dkt. #27] which provided: 

All funds and other assets of Defendants that are located within the 
territory of the United States, and all funds and other assets held, managed 
or controlled, whether directly or indirectly, by Defendants, wherever 
located, are hereby frozen, including, but not limited to all such funds and 

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Case: 1:13-cv-00982 Document #: 71 Filed: 04/19/13 Page 2 of 4 PageID #:2524 

other assets held at SunTrust Bank (including those accounts ending in -
4261 and -2231, and -0659, Cathay Bank, and Pacific Global Bank). 

3. Under the terms of Defendants’ offering to investors, investors wired $500,000 

apiece from their overseas banking accounts to U.S.-based escrow accounts administered by 

SunTrust Bank (“SunTrust”). Since November 2011, investors in Defendants securities offering 

have wired a total of $147,105,946.03 to SunTrust escrow accounts (accounts ending in -4261 

and -2231) in the U.S. These investor funds are subject to the Court’s February 20, 2013 asset 

freeze order. 

4. The Defendants’ Offering Memorandum and subscription agreements executed by 

each investor provide that the escrow agent, SunTrust, would return all amounts held in escrow 

(without interest) if, among other reasons, the Defendants’ offering is terminated.   

5. As a result of the SEC’s action, Defendants have terminated the offering and have 

moved to join the SEC’s motion to return escrowed funds to investors.  

6. There is good cause to modify the Court’s February 20, 2013 asset freeze order to 

permit the prompt payment to investors’ of their principal investments in Defendants’ securities 

offering, which have been collected in the frozen escrow accounts. 

7. Therefore, the SEC’s Motion is GRANTED.   

IT IS THEREFORE ORDERED: 

8. The Court’s February 20, 2013 asset freeze order shall remain in full force and 

effect except as expressly provided herein. 

9. The Court’s February 20, 2013 asset freeze order is hereby modified to permit the 

Escrow Agent, SunTrust, to return “all Subscription Proceeds received from Subscribers” as 

those terms are defined in the Subscription Escrow Agreement.  

10. The Escrow Agent, SunTrust, is ordered to return to the Subscriber the 

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Case: 1:13-cv-00982 Document #: 71 Filed: 04/19/13 Page 3 of 4 PageID #:2525 

Subscription Agreement (if in the Escrow Agent’s possession) and the Subscription Proceeds 

tendered therewith, without deduction or payment of interest via wire transfer or, if necessary, 

via other reasonable means, as provided for in Section 3 of the Subscription Escrow Agreements.   

11. In exchange for performing the services specified in Paragraph 10 of this Order, 

the Escrow Agent, SunTrust, may charge Defendants no more than the amounts stated in the 

Escrow Subscription Agreements and any out-of-pocket expenses shall be billed at cost.  These 

expenses may be deducted by SunTrust from Defendants’ administrative (non-escrow) account 

ending in –0659 held at and administered by SunTrust.  

12. Except as expressly provided in Paragraph 13, nothing in this Order shall be 

construed as imposing any right or obligation upon any person or entity beyond those rights and 

obligations set forth in the Subscription Escrow Agreement.  Nothing in this Order shall be 

construed as modifying Section 6 of the Subscription Escrow Agreements. 

13. Within thirty (30) days after entry of this Order, SunTrust shall provide the SEC 

and Defendants with an accounting of all investor subscription amounts wired to investors, in a 

format to be provided by the SEC and Defendants, or agreed to among SunTrust the SEC, and 

Defendants. Such an accounting shall inform the SEC and Defendants of the activities and status 

of the distribution to investors, and shall specify, at a minimum, the identities of investors, the 

amount(s) wired to each investor, and the identity of any investor to whom SunTrust has been 

unable return Subscription Proceeds as of the date of the report.  To the extent SunTrust has been 

unable to return Subscription Proceeds to any investor as of the date of SunTrust’s report, the 

SEC may provide this information to such investor’s counsel, if known, to facilitate the return of 

funds. SunTrust shall continue to make periodic accountings to the SEC and Defendants until 

such time as all investor subscription amounts are paid to investors.   

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Case: 1:13-cv-00982 Document #: 71 Filed: 04/19/13 Page 4 of 4 PageID #:2526 

14. The Court shall retain exclusive jurisdiction over all claims arising in connection 

with this Order.   

IT IS SO ORDERED. 

Dated: April 19, 2013 

      United States District Judge 

___________________________________ 
      Judge Amy J. St. Eve 

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