Sherman

I. Factual and Procedural Background

The current appeal arises from a somewhat Byzantine set of events:

IN RE: SHERMAN 7897

In 1997, the SEC commenced a securities fraud action against Whitworth Energy Resources, Ltd., Williston Basin Holding Corp., and Amerivest Financial Group, Inc., along with their principals (Whitworth action), in the United States District Court for the Central District of California. The com- plaint alleged, among other things, that the defendants oper- ated a Ponzi-like scheme by representing that investors were receiving income from oil and gas production when, in fact, distributions were made from receipts obtained from new investors or assessments of existing investors. The district court entered an order freezing the corporate entities’ assets and appointing Thomas Lennon as permanent receiver for the defendant entities and their subsidiaries and affiliates, includ- ing Oxford Oil and Gas, Inc. and the Oxford Group of Com- panies, Ltd.1 The district court ordered that the Receiver was to have

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