Case 4:11-cv Document 79 Filed in TXSD on 06/12/12 Page 1 of 5

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1 Case 4:11-cv Document 79 Filed in TXSD on 06/12/12 Page 1 of 5 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION SECURITIES AND EXCHANGE COMMISSION, PLAINTIFF, vs. BRIAN A. BJORK, THE ESTATE OF JOEL DAVID SALINAS, J. DAVID GROUP OF COMPANIES, INC., J. DAVID FINANCIAL GROUP, LP, SELECT ASSET MANAGEMENT, LLC, SELECT ASSET CAPITAL MANAGEMENT, LLC, SELECT ASSET FUND I, LLC, AND SELECT ASSET PRIME INDEX FUND, LLC, DEFENDANTS. CIVIL ACTION NO. 4:11 CV RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD, TEXAS TO THE HONORABLE KEITH P. ELLISON, UNITED STATES DISTRICT COURT: Steven A. Harr ( Receiver ), the Receiver appointed by the Court in these proceedings, files this Unopposed Motion to Abandon the Estate s Interest in the Remaining Contents at 214 E. Edgewood, Friendswood, Texas, respectfully stating: RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD TEXAS - PAGE 1 OF 5 MHDOCS _ I. BACKGROUND 1. On August 1, 2011, the Securities and Exchange Commission ( SEC ) filed its Complaint against Defendants. In conjunction therewith, the SEC sought, and by Order Appointing Receiver (the Order ), the Court appointed Steven A. Harr as the Receiver for Brian A. Bjork, The Estate of Joel David Salinas, J. David Group of Companies, Inc., J. David

2 Case 4:11-cv Document 79 Filed in TXSD on 06/12/12 Page 2 of 5 Financial Group, LP, Select Asset Management, LLC, Select Capital Management, LLC, Select Asset Fund I, LLC, and Select Asset Prime Index Fund, LLC (collectively, the Receivership Entities ). 2. As the Court ordered, the Receiver was authorized to have complete and exclusive control, possession and custody of all Receivership assets and Receivership records of Defendants. Receivership Assets and Receivership Records were defined in the Order as assets, monies, securities, properties, real and personal, tangible and intangible, of whatever kind and description, wherever located, and the legally recognized privileges (with regard to the entities), of the [Receivership Entities] and all entities they own or control..., and the books and records, client lists, account statements, financial and accounting documents, computers, computer hard drives, computer disks, internet exchange servers, telephones, personal digital devices and other informational resources of or in possession of the [Receivership Entities] or issued by [Receivership Entities] and in possession of any agent or employee of the [Receivership Entities] The Receiver has fulfilled his duties as Receiver since his appointment and has conducted various investigations of the Receivership Entities with the intent to marshal the Receivership assets for the benefit of the Receivership Entities investors and creditors. These efforts have included interactions with existing and former employees, review of corporate records, discussions with involved third-parties, forensic accounting of all financial records, and analysis of the value to debt ratio of all assets and personal property owned by the Receivership Estate ( Estate ). 1 Order Appointing Receiver, 1. RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD TEXAS - PAGE 2 OF 5 MHDOCS _

3 Case 4:11-cv Document 79 Filed in TXSD on 06/12/12 Page 3 of 5 4. For ten months, the Receiver has maintained the real estate and small office building located at 214 E. Edgewood, Friendswood, Texas (the Property ). The Property was the headquarters for Select Asset Management, LLC, J David Financial Group, LP, J David Group of Companies, Inc., and various other entities that are involved in this Receivership. All of the contents at the Property that had more than minimal value were sold by the Receiver. Namely, the Receiver solicited bids from several furniture buyers to sell the furniture housed at the Property. The sale proceeds were deposited into the Receivership Account for the benefit of the victims in this matter. However, miscellaneous remaining contents (Remaining Contents ) which lack any real value are being stored at the Property. Thus, the Receiver seeks to abandon the Estate s interest the Remaining Contents so that they can be donated or discarded. RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD TEXAS - PAGE 3 OF 5 MHDOCS _ II. ABANDONMENT OF THE REMAINING CONTENTS A. The Remaining Contents 5. The Remaining Contents generally include paper shredders, office supplies, kitchen tools and dishware, books, computer supplies, a used stereo receiver and speakers, a kitchen table with four chairs (the chairs are stained), phones, a wall-mounted Select Asset Management basketball goal, Select Asset Management marketing materials and stationary, and miscellaneous janitorial supplies. A more detailed list of the Remaining Contents is attached hereto as Exhibit Colored photographs of the above-referenced Remaining Contents are attached hereto as Exhibit 2. B. The Cost to Remove the Contents Outweighs any Benefit of Selling 7. The Receiver contends that the cost of securing appraisals on the Remaining

4 Case 4:11-cv Document 79 Filed in TXSD on 06/12/12 Page 4 of 5 Contents, and the work associated with selling the remaining contents greatly outweighs any financial benefit from a sale. Thus, the Receiver requests the Court allow the Receiver to abandon the Estate s interest in the Remaining Contents and that he be authorized to either donate these materials to a worthy cause or discard them all together. 8. Pursuant to Local Rule CV-7, the Receiver advises the Court that the Plaintiff Securities and Exchange Commission consents to the relief requested in this Motion. The Defendant entities are all controlled by the Receiver. III. CONCLUSION WHEREFORE, the Receiver prays that the Court enter an Order in the form submitted with this Motion, or for substantially the same relief in such form as the Court may find just and proper. Dated this 12th day of June, Respectfully submitted, MUNSCH HARDT KOPF & HARR, P.C. By: /s/ Randy A. Canché Randy A. Canché # MUNSCH HARDT KOPF & HARR, P.C. Bank of America Center 700 Louisiana, Suite 4600 Houston, Texas (713) (telephone) (713) (telecopy) rcanche@munsch.com COUNSEL FOR STEVEN A. HARR, RECEIVER RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD TEXAS - PAGE 4 OF 5 MHDOCS _

5 Case 4:11-cv Document 79 Filed in TXSD on 06/12/12 Page 5 of 5 CERTIFICATE OF CONFERENCE On June 12, 2012, I conferred with Tim McCole and he stated that the Securities and Exchange Commission is not opposed to this Motion. /s/ Randy A. Canché Randy A. Canché CERTIFICATE OF SERVICE I certify that a copy of the foregoing was filed electronically with the Clerk via the CM/ECF system. Notice of this filing will be sent to all parties by operation of the Court s electronic filing system. Houston, Texas, this 12th day of June /s/ Randy A. Canché Randy A. Canché RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD TEXAS - PAGE 5 OF 5 MHDOCS _

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21 Case 4:11-cv Document 79-4 Filed in TXSD on 06/12/12 Page 1 of 1 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION SECURITIES AND EXCHANGE COMMISSION, PLAINTIFF, vs. BRIAN A. BJORK, THE ESTATE OF JOEL DAVID SALINAS, J. DAVID GROUP OF COMPANIES, INC., J. DAVID FINANCIAL GROUP, LP, SELECT ASSET MANAGEMENT, LLC, SELECT ASSET CAPITAL MANAGEMENT, LLC, SELECT ASSET FUND I, LLC, AND SELECT ASSET PRIME INDEX FUND, LLC, DEFENDANTS. CIVIL ACTION NO. 4:11 CV ORDER GRANTING RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD, TEXAS On this day of 2012, the Court considered Receiver s Motion to Abandon the Estate s Interest in the Remaining Contents at 214 E. Edgewood, Friendswood Texas. The Motion is GRANTED. SIGNED this day of, UNITED STATES DISTRICT JUDGE RECEIVER S UNOPPOSED MOTION TO ABANDON THE ESTATE S INTEREST IN THE REMAINING CONTENTS AT 214 E. EDGEWOOD, FRIENDSWOOD TEXAS MHDOCS _