Weiss v. Altholtz
United States District Court for the Northern District of Illinois, Eastern Division
September 29, 2011, Decided; September 29, 2011, Filed
No. 10 C 02609
Memorandum Opinion and Order
Plaintiff Leslie Weiss, a federally appointed receiver for The Nutmeg Group, alleges that Defendants Harvey Altholtz, Wealth Strategy Partners, and Altholtz Family Limited Partnership are liable for the finder's fees Nutmeg paid to Altholtz. Weiss's second amended complaint asserts claims under the Securities and Exchange Act of 1934 (Exchange Act), 15 U.S.C. § 78a et seq., the Florida Securities Act, F.S.A. § 517.01 et seq., and unjust enrichment. R. 46. Defendant has moved to dismiss [R.51] all claims pursuant to Federal Rule of Civil Procedure 12(b)(6). [*2] For the following reasons, the Court grants the motion to dismiss with prejudice.
In September 2003, Nutmeg and Harvey Altholtz entered into a letter agreement whereby Altholtz would find prospective investors for Nutmeg's investment funds in exchange for a set percentage fee. R. 46 ¶ 19. Altholtz was the general partner, principal equity holder, and operator of both Wealth Strategy Partners, LLP (Wealth Strategy), and the Altholtz Family Limited Partnership (AF Partnership). Id. ¶¶ 2-3. Neither Altholtz nor the partnerships he controlled were registered broker-dealers with the Securities and Exchange Commission (SEC) or the Florida Securities Commission. Id. ¶¶ 16-17. Between 2006 and 2008, Nutmeg paid Altholtz a total of $125,995.65 in finder's fees based on the letter agreement. Id. ¶ 21.
In March 2009, the SEC filed suit against Nutmeg and the two individuals —Randall [*3] and David Goulding — who had controlled Nutmeg up until then. Id. ¶ 11. Five months later, the judge assigned to the SEC suit appointed Leslie Weiss as the receiver for Nutmeg. Id. ¶ 1. As a court-appointed receiver, Weiss is authorized to oversee all aspects of Nutmeg's business. Id. ¶ 11.
In April 2010, Weiss filed this suit against Altholtz, based on the Exchange Act of 1934, the Florida Securities Act, and Illinois state law. R.1. After Altholtz moved to dismiss, R.27, Weiss amended the complaint twice. R. 43, R.46. Altholtz has filed a motion to dismiss the Second Amended Complaint, R.51, and that motion is now fully briefed.Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.
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2011 U.S. Dist. LEXIS 111461 *; Fed. Sec. L. Rep. (CCH) P96,553; 2011 WL 4538459
LESLIE J. WEISS, as Receiver for The Nutmeg Group, LLC, Plaintiff, v. HARVEY ALTHOLTZ, WEALTH STRATEGY PARTNERS, LLP, and ALTHOLTZ FAMILY LIMITED PARTNERSHIP, Defendants.
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