Lewis

Securities & Exchange Commission v. Lewis

Good Law
173 F. App'x 565
United States Court of Appeals for the Ninth CircuitMarch 9, 2006No. 04-56073California362 words

Opinion

Lead Opinion

MEMORANDUM **

Janet Goldblatt appeals the district court’s denial of her Rule 24 motion for intervention in a civil enforcement action initiated by the Securities and Exchange Commission against James P. Lewis, Jr. for selling unregistered securities in a fraudulent “Ponzi” investment scheme.

1. Goldblatt failed to meet the requirements for intervention as of right under Federal Rule of Civil Procedure 24(a). See United States v. Alisal Water Corp., 370 F.3d 915, 919 (9th Cir.2004). In particular, Goldblatt failed to establish that her interest was inadequately represented by the court-appointed receiver, who pursued a different strategy but shared Goldblatt’s objective to maximize recovery to the creditors. See United States v. City of Los Angeles, 288 F.3d 391, 402-03 (9th Cir.2002).

2. The district court did not abuse its discretion in denying permissive intervention because Goldblatt failed to show either that independent federal jurisdiction over her claim existed, or that her proposed state court class action suit would not “unduly delay or prejudice the adjudication of the rights of the original parties.” Id. at 403 . Because there was no abuse of discretion, we do not…

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