Sacramento Public Library Authority
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1 Sacramento Public Library Authority July 23, 2015 Agenda Item 10.0: Hagginwood Case Final Accounting and Distribution of Assets TO: FROM: RE: Sacramento Public Library Authority Board Rivkah K. Sass, Library Director Hagginwood Case Final Accounting and Distribution of Assets RECOMMENDED ACTION(S): None Information only. BACKGROUND On November 15, 2013, Sacramento Public Library received restitution in the amount of $480,000 from the sale of the home owned by Dennis Nilsson and various automobiles owned by Nilsson and co-defendants Jim Mayle and Janie Rankins-Mayle. As reported to the Authority Board on December 11, 2013, the District Attorney expected the Receiver to complete all work and claims on the issue within four to six weeks, at which point the Library would have received the balance of funds, estimated to be approximately $20,000. The Library included receipt of the $480,000 in the Mid-Year Budget Update to the Authority Board (Item 15.0: Mid-Year Budget Update FY , Feb. 27, 2014) and expected resolution in early FY On April 21, 2015, Assistant Chief Deputy District Attorney Michael Blazina provided Library staff with a copy of the Minute Order issued by the Sacramento County Superior Court summarizing the issues to be resolved and notified Library staff that the original receiver, Benjamin McGrew, had inappropriately paid himself a sum of $18,750 without court authorization and that attempts to locate Mr. McGrew were unsuccessful. On May 29, Sacramento County Superior Court Judge Allen Sumner heard the new Receiver s final report and accounting. That accounting indicated that the Library would receive $8, and that the Library could, if it was determined to be cost-effective, attempt to recover the original receiver s bond, in the amount of $10,000. The Authority Counsel is currently pursuing a claim against the bond. ATTACHMENT(S): Attachment A: Order on Final Accounting Attachment B: Proof of Final Disbursement of Receivership Funds, Case Number 08F02622
2 SUPERIOR COURT OF CALIFORNIA, COUNTY OF SACRAMENTO MAY THE PEOPLE OF THE STATE OF CALIFORNIA, ) Case No. 08F02622 DEPT.: 9 7 Plaintiff, ) ) 8 ) ORDER ON FINAL ACCOUNTING 9 vs. ) ) JAMES EARLE MAYLE SR ) 10 ) Hearing: DENNIS NILSSON ) Time: 10:00 a.m. 11 ) JANIE MAE RANKINS-MAYLE, ) 12 ) Defendants. ) 13 ) The Final Account and Report ofthe Receiver filed by Russell Burbank, the court- 16 appointed successor receiver in the matter ofthe People v. Mayle, et al., came on for hearing on 17 May 29, 2015 at 10:00 a.m. in Department 9. The Court finds that due notice of the Final 18 Account and Report has been given for the period and in the manner prescribed by law, and 19 enters its orders as follows: The Final Account and Report is approved as submitted. 2. The actions of the Receiver as reported in the final account are ratified. 3. The Receiver is authorized and directed to take the following actions: a) Pay the sum of$14, to the Receiver for accrued and unpaid receiver fees and expenses; b) Pay the sum of$2, to Burr Pilger Mayer, Inc. for accrued and unpaid accounting fees and expenses; c) Pay the sum of$1, to the Receiver and $ to Burr Pilger Mayer, Inc. for expenses to complete the receivership; d) Pay the sum of$7, to Wilke, Fleury, Hoffelt, Gould & Birney, LLP for legal services rendered to the receivership; 1
3 e) Pay the sum of$ to Tom the Toolman for services rendered to the receivership estate; f) Assign the receivership estate's account receivable due from the previous receiver, J. Benjamin McGrew, in the amount of$18, to the Sacramento County Public Library; and g) Disburse any funds remaining in the possession of the Receiver after making payments authorized by the Court to the Sacramento County Library. 4. The Court finds that State Farm Insurance Company was given proper notice of this final account and hearing. As no objections were received and no persons appeared at the hearing on the company's behalf, the Court finds that any claim by State Farm Insurance Company against the Receiver or the receivership estate in this matter is now barred. Accordingly, the Receiver is authorized and directed to pay the sum of $5, to James Mayle and Janie Rankins-Mayle as full settlement of their claim against the estate. 5. Russell Burbank is discharged as receiver and the bond in the sum of $20,000 is exonerated upon the payment of the remaining assets of the Sacramento County Public Library. 6. The Receiver is directed to file proof of payment of the final proceeds to the Sacramento County Public Library. 7. The Sacramento County Public Library Authority shall advise the court of any funds collected from J. Benjamin McGrew. IT IS SO ORDERED Dated: ~(zq [ (;' JUDGE OF THE SUPERIOR COURT ALLEN SUMNER
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