John C. Smiley, the duly-appointed Receiver ( Receiver ), submits this quarterly report concerning the condition of the Receivership Estate.

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1 District Court, Denver County, Colorado 1437 Bannock Street Denver, CO (720) DATE FILED: October 31, :19 PM FILING ID: 2D4EA729B23D5 CASE NUMBER: 2017CV34027 Plaintiff: GERALD ROME, Securities Commissioner for the State of Colorado COURT USE ONLY v. Defendants: JOSEPH DAVID RYAN; MADYSON CAPITAL MANAGEMENT, LLC; MADYSON EQUITY GROUP, LP; MADYSON HOLDINGS, INC.; MADYSON REALTY FUND I, LLLP; and MADYSON REALTY PARTNERS LLC Relief Defendants: GABRIELLE DE MEO and AMANDA ROSE RIZARRI, aka AMANDA ROSE RIZARI Attorneys for: John C. Smiley, Receiver Michael T. Gilbert, #15009 ALLEN VELLONE WOLF HELFRICH & FACTOR P.C Stout Street, Suite 1100 Telephone: Facsimile: Case No. 2017CV34027 Division 215 RECEIVER S QUARTERLY REPORT (OCTOBER 31, 2018) John C. Smiley, the duly-appointed Receiver ( Receiver ), submits this quarterly report concerning the condition of the Receivership Estate. 1. On October 30, 2017, Gerald Rome, Securities Commissioner for the State of Colorado (the Commissioner), filed his Complaint for Injunctive and Other Relief against Joseph David Ryan ( Ryan ); Madyson Capital Management, LLC; Madyson Equity Group, LP; Madyson Holdings, Inc.; Madyson Realty Fund I, LLLP; and Madyson Realty Partners LLC

2 (collectively, Ryan and the Madyson Entities ); and against relief defendants Gabrielle De Meo and Amanda Rose Rizarri, aka Amanda Rose Rizari. 2. On November 9, 2017, the Court entered its Order Appointing Receiver, which appointed John C. Smiley receiver for the assets of Ryan and the Madyson Entities (the Receivership Estate or the Estate ), and on November 13, 2017, an Amended Order Appointing Receiver (the latter is referred to as the Receivership Order ). Pursuant to paragraph 9 of the Receivership Order, John C. Smiley, in his capacity as receiver for Joseph David Ryan and the Madyson Entities, submits this quarterly report. 3. REAL ESTATE: The primary assets of the Receivership Estate were the parcels of real estate listed in Exhibit A to the Receivership Order, an additional copy of which is attached to this report. Since his appointment, the Receiver has been marketing and selling the property. Prior to the Receiver s last Quarterly Report (filed July 18, 2018), the Receiver sold the following properties: a Northwind Dr., Colorado Springs, CO; b Julynn Rd., Colorado Springs, CO; c. 2300/2304 Sunrise Ave., Las Vegas NV: d. 217 N. 9 th Street, Las Vegas, NV; and e Camel Grove, Colorado Springs, CO. Closing statements for the sale of each of these properties were attached as Exhibit B to the previous July 18th Quarterly report, which is available on the Receivership website, Since the July 18th Report, the Receiver has sold the following two properties: f S. 3 rd Street, Las Vegas, NV; and g Pentland Downs Street, Enterprise, NV. Closing statements for the sale of each of the above two properties are attached as Exhibit B to this report. The sole remaining real property in the Receivership Estate is an office building at 3812/3820 E. Pikes Peak Ave., Colorado Springs, CO. That property has been listed for sale but no reasonable offer has been made for it. The Receiver will continue efforts to sell the property. The Receiver determined that the property located at Whitehills Street, Las Vegas, NV was not a material asset of the estate and it was abandoned pursuant to an August 8, 2018, Court Order. 2

3 Finally, the Receiver continues efforts to resolve title issues related to 782 Vortex Ave., Henderson, NV, and if successful, will proceed with efforts to market and sell that property CASH AND MARKETABLE SECURITIES: The cash balance in the Receivership Estate account as of October 30, 2018, was $1,648, A report of all receipts and disbursements by the Receivership Estate is attached as Exhibit C. The Receiver has been reimbursed a total of $30, for out of pocket expenses advanced by the Receiver. These expenses include utilities, maintenance, and travel expenses that could not be paid by check from the Receivership estate account. 5. BOOKS AND RECORDS: The Receiver has taken possession of all computers and books and records located at the Madyson Entities offices, which have no liquidation value. 6. LITIGATION CLAIMS: The Receiver continues to investigate potential litigation claims to recover assets transferred before and after the Receivership Order was entered. At this time, it does not appear there are substantial litigation claims to pursue, but the Receiver will continue to evaluate such claims. 7. CLAIMS ADMINISTRATION: On January 30, 2018, the Court granted the Receiver s Motion to Establish Administration Procedure and to Set a Claims Bar Date. The Claims Bar date was May 31, In early February 2018, the Receiver mailed claim forms to all known investors and creditors of the Estate and has conferred with numerous investors since that time with respect to filing claims. The Receiver has not reviewed the Claims in detail yet, but based on a preliminary review, has determined the following: a. Total Claims: 98 claims have been filed totaling $14,855, b. Investor Claims: 87 claims were filed by investors totaling $12,864, c. Administrative/operating claims: 11 claims totaling $1,991, TAX INFORMATION: The Estate has retained tax professionals who filed 2017 tax returns for the Madyson Receivership Entities in September After reviewing the financial information we have received, the Receiver has determined that investments in the Madyson Entities will be treated as debts of the Estate rather than equity investments. As a result, the Estate will not be issuing K-1s to individual investors. Instead, when distributions are made, the Estate will issue 1099s for the year in which distributions are made. Investors should consult with their tax advisors concerning the implications on their personal tax situations. 1 The remaining property listed on Exhibit A is 2412 Clifford Ave., Las Vegas, NV. After he was appointed, the Receiver discovered Ryan had sold that property after the Receiver had been appointed. Although the Receiver has demanded that Ryan surrender the net proceeds from that sale, as of the date of this report Ryan has not done so nor has he accounted for those proceeds. 3

4 9. CRIMINAL INDICTMENTS OF RYAN AND FARRAH: On June 18, 2018, Joseph Ryan was indicted on 10 counts of securities fraud, and Dennis Farrah was indicted on one count of securities fraud based on their solicitation of investments into the Madyson Entities. Copies of the indictments are located on the Receivership website, which is located at madysonreceivership.com, where additional information concerning the Receivership can also be found. 10. FINRA CLAIMS V. FARRAH: The Receiver is informed that certain investors in the Madyson Entities have filed demands for arbitration under regulations promulgated by the Financial Industry Regulatory Agency ( FINRA ) against a brokerage firm at which Dennis Farrah worked for Farrah s role in selling investors interests in the Madyson Entities. Investors solicited by Farrah may wish to contact attorneys familiar with such FINRA actions. In March 2018, the Receiver met with two FINRA attorneys experienced with these claims who are familiar with the case(s) against Farrah, David Neuman and Aaron Israels. They can be contacted at Dated: October 31, ALLEN VELLONE WOLF HELFRICH & FACTOR P.C. /s/ Michael T. Gilbert Michael T. Gilbert, # Stout Street, Suite 1100 Tel: (303) mgilbert@allen-vellone.com ATTORNEYS FOR JOHN C. SMILEY, RECEIVER 4

5 CERTIFICATE OF SERVICE I hereby certify that on October 31, 2018, I served a true and correct copy of the foregoing RECEIVER S QUARTERLY REPORT (October 31, 2018) was served via CCE to the following: Robert Finke, Esq. Cathern H. Smith, Esq. Ralph L. Carr Colorado Judicial Center 1300 Broadway, 8 th Floor Denver, CO robert.finke@coag.gov cathern.smith@coag.gov Martin M. Berliner, Esq. Berliner McDonald, P.C S. Syracuse Way, Suite 100 Greenwood Village, CO mberliner@berlinermcdonald.com Counsel for Ryan and the Madyson Entities Counsel for Gerald Rome, Securities Commissioner Marci Gilligan Labranche Ridley McGreevy Winocur P.C th Street, Suite 200 Counsel for Defendant Gabrielle De Meo Amanda Rizari 782 Vortez Ave. Henderson, CO Pro Se Defendant* *served separately via U.S. Mail A copy of the foregoing report (with exhibits) was also served by U.S. Mail first-class, postage-prepaid on all investors in the Madyson Entities and creditors of the Receivership Estate currently known to the Receiver at the addresses set forth on the service list currently maintained in the Receiver s records. By: Yvonne M. Davis Allen Vellone Wolf Helfrich & Factor P.C. 5