3:09-cv-00210-MJP Date Filed 07/17/09 Entry Number 45 Page 1 of 4

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF SOUTH CAROLINA
COLUMBIA DIVISION

INTER TRAVEL & SERVICES, INC., ) Case No.: 3:09-210-MJP

and GLOBAL EXEC AVIATION, INC., )
)
Plaintiffs, )
)
vs. )
)
COLUMBIA METROPOLITAN ) SUGGESTION OF STAY DUE TO
AIRPORT; RICHLAND-LEXINGTON ) RECEIVERSHIP OF PLAINTIFF
AIRPORT DISTRICT; LEARJET, INC., ) INTER TRAVEL & SERVICES, INC.
BOMBARDIER AEROSPACE CORP., )
GOODYEAR TIRE & RUBBER CO., and )
DOES #1-30, )
)
Defendants. )
____________________________________)

COME NOW Defendants Learjet Inc. and Bombardier Aerospace Corporation

(collectively “Learjet Defendants”) and give notice to the Court and the parties hereto of

the following:

1. On April 24, 2009, the U.S. Securities and Exchange Commission

(“SEC”) filed a complaint in the United States District Court for the Central District of

California against in Private Equity Management Group, Inc., Private Equity

Management Group, LLC, (collectively, “PEM Group”) and Danny Pang (“Pang”), Case

No. 2:09-cv-02901-PSG, in which the SEC alleged violations of various federal securities

laws.

2. On April 27, 2009, the district court issued a Temporary Restraining Order

appointing a receiver and imposing various restrictions on the PEM Group and Pang, and

“their affiliates and subsidiaries,” immediately freezing all assets in whatever form such

may exist, and restraining and enjoining “all other persons or entities seeking relief of
 3:09-cv-00210-MJP Date Filed 07/17/09 Entry Number 45 Page 2 of 4

any kind, in law or equity” from “commencing, prosecuting, continuing or enforcing any

suit or proceeding” against them. The court further appointed Mosier & Company, Inc.

as temporary receiver of the PEM Group, “and their subsidiaries and affiliates, with full

powers of an equity receiver, including, but not limited to, full power over all funds,

assets, collateral, … choses in action, books, records, papers and other real or personal

property ….” Temporary Restraining Order, etc., attached hereto as Exhibit “A.”

3. On June 15, 2009, the SEC filed an amended complaint against the PEM

Group and Pang alleging, among other things, that Inter Travel & Services, Inc.

(“ITAS”), Plaintiff herein, is “an entity controlled by Pang and PEM Group.” First

Amended Complaint, etc., attached hereto as Exhibit “B” at ¶ 24.

4. On July 2, 2009, the district court entered a preliminary injunction upon

the PEM Group and Pang, appointing Robert P. Mosier (“Receiver”) as permanent

receiver of the PEM Group “and their subsidiaries and affiliates, with full power of an

equity receiver, including, but not limited to, full power over all funds, assets, collateral,

… choses in action, books, records, papers and other real or personal property …” and

restraining and enjoining “all other persons or entities seeking relief of any kind, in law

or equity” from “commencing, prosecuting, continuing or enforcing any suit or

proceeding” against them. (“Preliminary Injunction”).

5. On July 9, 2009, ITAS filed a Notice of Court-Ordered Receivership and

Preliminary Injunction Affecting Defendant Inter Travel & Services, Inc. (“Notice of

Receivership”) in the cases of Travis Barker, et al. v. Clay Lacy Aviation, Inc., et al. and

related cases, Case Nos. BC 402529, BC 403556, and BC 404449, Superior Court of the

State of California for the County of Los Angeles (“California Case”). A copy of the

ND: 4817-6766-7204, v. 1 2
 3:09-cv-00210-MJP Date Filed 07/17/09 Entry Number 45 Page 3 of 4

Notice of Receivership, with a copy of the Preliminary Injunction attached, is attached

hereto as Exhibit “C.”

6. Based upon the Notice of Receivership, as an alleged subsidiary or

affiliate of the PEM Group, ITAS has notified the court in the California Case that it is

subject to the Preliminary Injunction, that the Preliminary Injunction enjoins the

California Case, and that, with respect to discovery, ITAS it is not allowed to produce

any documents in that action without the express consent of the Receiver or the district

court, which have not been obtained.

7. The Learjet Defendants are unaware of any attempt by ITAS to obtain the

consent of the Receiver or the district court in California to proceed with the instant

action, and respectfully suggest that this action is likewise subject to the Preliminary

Injunction and that this action is enjoined and should be stayed.

July 17, 2009

s/ Daniel J. Ballou
Daniel J. Ballou
Fed. I.D. 6125
HAMILTON MARTENS BALLOU & SIPE, LLC
P.O. Box 10940
Rock Hill, SC 29730
dballou@hmandb.com
(803) 329-7672

and

L. Richard Musat
Treece, Alfrey, Musat & Bosworth, P.C.
999 18th Street, Suite 1600
Denver, CO 80202
lrmusat@tamblaw.com
(303) 292-2700

ATTORNEYS FOR LEARJET, INC. and

BOMBARDIER AEROSPACE CORP.

ND: 4817-6766-7204, v. 1 3
 3:09-cv-00210-MJP Date Filed 07/17/09 Entry Number 45 Page 4 of 4

CERTIFICATE OF SERVICE

The undersigned hereby certifies that I electronically filed the foregoing

DEFENDANTS LEARJET INC. AND BOMBARDIER AEROSPACE
CORPORATION’S SUGGESTION OF RECEIVERSHIP STAY with the Clerk of Court
for United States District Court, District of South Carolina, using the CM/ECF electronic
filing system which will automatically send notification of such filing to counsel of
record as follows:

John T Lay
Ellis Lawhorne and Sims
1501 Main Street
Fifth Floor
Columbia, SC 29201

Christopher J. Daniels
Nelson Mullins Riley and Scarborough
PO Box 11070
Columbia, SC 29211

Michael Pauley
Lide and Pauley
5179 Sunset Boulevard
Lexington, SC 29072

John Hodge
Haynsworth Sinkler Boyd
PO Box 11889
Columbia, SC 29211-1889

July 17, 2009

s/Daniel J. Ballou
Daniel J. Ballou

ND: 4817-6766-7204, v. 1 4