SEC v. Northstar Communications, LLC, et. al

Case Summary:

On May 20, 2020, Krista L. Freitag was appointed as temporary receiver for Northstar Communications, LLC, Planning Services, Inc., and eGate, LLC, and their subsidiaries and affiliates (collectively, the “Entities”) pursuant to a Temporary Restraining Order (“TRO”) entered by the United States District Court for the Central District of California in an action filed by the Securities and Exchange Commission.

On June 4, 2020, this Court entered a Preliminary Injunction (“PI Order”), extending the Receiver’s temporary appointment by one week from the date of the PI Order.

On June 12, 2020, the District Court issued an Order appointing Krista Freitag as Permanent Receiver for Northstar Communications, LLC; Planning Services, Inc.; eGate, LLC and their subsidiaries and affiliates (the “Receivership Entities”) for the narrow purpose of controlling the Receivership Entity bank accounts and to execute all necessary documents to facilitate the transfer of clients’ accounts. And on June 26, 2020, the District Court issued an Order requiring the notice below be issued to all known clients of the Entities.

Document Links (PDF Format):

NOTICE TO CLIENTS OF NORTHSTAR COMMUNICATIONS, LLC;
PLANNING SERVICES, INC.; EGATE, LLC; AND IE TAX, LLC

 

On June 12, 2020, the United States District Court issued an Order appointing Krista Freitag as Permanent Receiver for Northstar Communications, LLC; Planning Services, Inc.; eGate, LLC; and IE Tax, LLC in the matter of Securities and Exchange Commission v. Paul Horton Smith, Sr.; Northstar Communications, LLC; Planning Services, Inc.; and eGate, LLC, Case No. ED‐CV‐20‐1056PA (SHKx) in the United States District Court, Central District of California.

 

The Court’s order prohibits Defendant Paul Horton Smith, Sr. from communicating with his clients, or contacting them in any way, without first obtaining approval from theCourt.

 

The Court’s order also requires that this notice inform all Defendants’ clients that they may wish to seek legal advice as to how this action will affect them. Please note that neither the Receiver nor Securities and Exchange Commission counsel is permitted to provide you with legal advice.

 

To eGate clients:

eGate is no longer able to serve as your investment adviser. Within the next 15 days, you should find another investment adviser or custodian and transfer your eGate account. The Receiver is available to assist with paperwork required to transfer your accounts from eGate, as necessary, for the next 15 days.

 

To Planning Services clients:

Planning Services is no longer able to serve as your insurance broker or financial planner. Within the next 15 days, you should find another insurance broker or financial planner. The Receiver is available to assist with paperwork required to transfer your insurance policy from Planning Services, as necessary, for the next 15 days.

 

To IE Tax clients:

IE Tax is no longer able to serve as your tax preparer. If your taxes are being prepared byIE Tax, LLC, please contact a new tax preparer within the next 15 days.

 

For your convenience, the District Court’s June 4, 2020, Preliminary Injunction, and June 12, 2020 Order requiring this notice are linked hereto and can also be found listed under the Court Filings section below. Additional contact information you may need to transfer your accounts may also be available. Contact information for the Receiver and SEC counsel is:

 

Krista Freitag, Receiver
E3 Advisors
355 S. Grand Avenue, Suite 2450
Los Angeles, CA 90071
Email:  planning@ethreeadvisors.com
Phone:  951-800-8166

 

David Brown
Securities and Exchange Commission
444 S. Flower Street, Suite 900
Los Angeles, CA 90071
Email:  browndav@sec.gov
Phone:  323-965-3321

 

The Receiver’s office will attempt to respond to individual inquiries as promptly as possible.

Please direct all inquiries and correspondence to:

planning@ethreeadvisors.com
951-800-8166

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Court Filings:

 

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Email: planning@ethreeadvisors.com
Phone: 951-800-8166