Chase Investment Services Corp. v. Law Offices of Jon Divens & Associates, LLC

FINDINGS OF FACT AND CONCLUSIONS OF LAW

I. INTRODUCTION AND PROCEDURAL BACKGROUND

Plaintiff-in-Interpleader Chase Investment Services Corp. (“Plaintiff’ or “CISC”) filed this interpleader action against several Defendants-in-Interpleader that had conflicting claims to the assets in a CISC securities brokerage account, Account No. CM2-303194 (“the Account” or “the CISC Account”). The Account was opened in late July 2009 by Defendant-inInterpleader Jon Divens (“Divens”) on behalf of Defendant-in-Interpleader the Law Offices of Jon Divens & Associates, LLC (“JDA”).

Initially, the Account held no assets. However, after two transfers in September 2009, the Account held securities representing interests from three Collateralized Mortgage Obligations (collectively, “the CMOs”). The securities in the Account included: (1) a CMO designated as the Cobalt CBMS Series 2007-CS Class 10 00.02840 05/15/2046, CUSIP 1907DAG6, with a face value of $1,008,402,393 (hereinafter, “the Cobalt CMO”); (2) a CMO designated as the JPMCC Series 2007-CB19 Class X 00.01240 02/12/2049 MTG SEC, CUSIP 46630VAG7, with a face value of $235,250,000 (hereinafter, “the JPMCC Series CMO”); and (3) a CMO designated…