SEC v. Louis V. Schooler and First Financial Planning Corp d/b/a Western Financial Planning Corp

Case Summary:

On September 6, 2012, Thomas C. Hebrank of E3 Advisors was appointed temporary receiver for Western Financial Planning Corporation and the entities it controls, including the general partnerships (“Defendants”), pursuant to an Order entered by the United States District Court for the Southern District of California in an action against Defendants filed by the Securities and Exchange Commission.

Document Links (PDF Format):

Case Updates:




Closure of the Partnerships & Western Entities & Final K-1s
The Court has granted the Receiver the authority to close the GPs and the necessary related Western entities. These closures will allow the receiver to consolidate tax preparations which should save over $100,000 annually. The expected cost savings will go towards increasing the total amount available to distribute to investors with allowed claims. Accordingly, the Receiver will work with the CPA firm to prepare the final K-1s before the March 2018 deadline. As part of this process, a final value will be given for your investment that mirrors our expected return of 10-15% of your approved claim amount. Please seek additional information from your IRA Administrator or your tax preparer to determine what effect these closures will have on your IRA and your taxes. The Receiver cannot give individual investment or tax advice.


Re-scheduled Claims Confirmation Hearing
The hearing to confirm the claim amounts was scheduled for December 15, 2017. However, the Court delayed a ruling on that motion to give those six investors that continue to dispute their claims a further opportunity to present factual evidence to support their respective disputes. Those letters and evidence are due to the Court by January 9, 2018. Specific instructions and additional detail on the Court’s requirement for those letters can be accessed here as well as through the relevant link below. The hearing to approve the claims has been pushed back to February 9, 2018.


Updated Timing of Distributions
After confirming the claims, the Receiver will seek authorization from the Court to make interim distributions to investors with allowed clams. Due to the delay in approving the claims, we now anticipate making the first distribution in June of 2018. Subsequent distributions will likely be on an annual basis, or as appropriate based on the cash available for distributions. Based on our most recent valuations and projections, we estimate investors will recover between 10% and 15% of their confirmed claims. The timing of final distributions will be based on the timing of the sale of all of the properties.


Updated Contact Information
As always, if your physical address or email address has changed, please send your current contact information to If you are not receiving monthly case updates, you can sign up for them using the link at the bottom of this page.


Status of Property Sales
The Receiver has thus far completed the following sales:

  • Reno Partners – sold for $32,000
  • Honey Springs Partners – sold for $240,000
  • Valley Vista Partners – sold for $240,000
  • Jamul Valley (Jamul Meadows, Hidden Hills, Lyons Valley) – sold for $520,000
  • Bratton View – sold for $265,000
  • Reno View and Reno Vista – sold for $75,640
  • LV Kade – sale for $9,500,000 approved by the Court and expected to close in January 2018
  • Silver Springs North – sold for $700,000
  • Park Vegas – sold for $1,150,000
  • Washoe V – sale for $640,000
  • Production – sale for $4,000,000
  • Silver State – sale for $1,500,000
  • Washoe V – sale for $640,000 approved by the Court and expected to close this month
  • LV Kade – sale for $9,500,000 approved by the Court and expected to close this month
  • Dayton IV – sale for $300,000 approved by the Court and expected to close during the first quarter of 2018


Case Updates:


Court Order re: Receiver’s Proposal to Conduct Orderly Sale of GP Properties & Approval of Distribution Plan


The Court held a hearing on the above referenced motion on May 20, 2016.  On May 25, 2016, the Court issued its order, which can be found at this link: LINK: Order Granting–Denying–Motion for Authority to Conduct Sale of GP Properties & Aguirre’s Motion for Trial


In summary, the Court ruled that (1) the Receiver shall file a proposed modified orderly sale process to incorporate a public sale component in compliance with 28 USC § 2001 within 14 days); (2) the Receiver shall submit a report and recommendation with the Court within 180 days, evaluating the pros and cons of the Xpera Group’s recommendations that can feasibly maximize the value of the receivership estate; (3) it would be inequitable and impractical to allow the GPs to exit the receivership; (4) allegations that the Receiver was behaving unethically or irresponsibly are without merit; (5) the Receiver shall refile his Fourteenth Interim Report and file a final fee application at the end of the case consistent with the SEC billing instructions, including the Standardized Fund Accounting Report; (6) any newly created investor entities that seek to purchase GP properties may utilize their projected distribution amounts as a component of their bids; (7) the Receiver’s proposed “one pot” distribution of receivership assets is approved; and (8) the Receiver’s proposed distribution plan and proposed procedures for the administration of investor claims are approved.


We encourage you to read the Court’s order in its entirety.  We will be providing additional details and information as it becomes available.


Please note that as a result of the approval of the one pot distribution proposal, assets of the receivership entities (Western and the GPs) have been pooled together, past due taxes and other property expenses will be paid from pooled funds, and investor note payments owed to their GPs will no longer be collected.


Case Updates:



The Court has ordered investor information packets to be prepared for all of the Western GPs, as soon as updated appraisals or other valuation information has been received. As this information becomes available, the property name and associated GPs will be listed below. The name will contain a link to that particular information packet.


1. Bratton Valley Property – Valley Vista, Bratton View & Honey Springs Partnerships
2. Dayton I Property – Dayton View, Fairway, Green View and Par Four Partnerships
3. Dayton II Property – Storey County, Comstock, Silver City, Nevada View Partnerships
4. Dayton III Property – Gold Ridge, Sky View, Grand View & Rolling Hills Partnerships
5. Dayton IV Property – Eagle View, Falcon Heights, Night Hawk & Osprey Partnerships
6. Fernley I Property – Crystal Clearwater & High Desert Partnerships
7. Jamul Valley Property – Jamul Meadows, Lyons Valley & Hidden Hills Partnerships
8. Las Vegas I Property – Park Vegas, Production & Silver State Partnerships
9. Las Vegas II Property – Rainbow & Horizon Partnerships
10. LV Kade Property – Hollywood, BLA, Checkered Flag and Victory Lap Partnerships
11. Minden Property – Carson Valley, Heavenly View, Sierra View and Pine View Partnerships
12. Santa Fe Property – Santa Fe View, Pueblo and Pecos Partnerships
13. Silver Springs North Property – North Springs, Rawhide, Highway 50 & Orange Vista Partnerships
14. Silver Springs South Property – Rail Road, Spruce Heights, Vista Del Sur & Lahontan Partnerships
15. Stead Property – P-39 Aircobra, P-40 Warhawk & F-86 Partnerships [Updated]
16. Tecate Property – ABL, Mex-Tec, Borderland, Prosperity, Freetrade, Suntec, Via 188, International, Tecate South, Twin Plat & Vista Tecate Partnerships
17. Washoe I Property – Reno View, Reno Vista & Reno Partnerships
18. Washoe III Property – Spanish Springs, Antelope Springs, Wild Horse and Big Ranch Partnerships
19. Washoe IV Property  – Rose Vista, Steam Boat, Galena Ranch and Redfield Heights Partnerships
20. Washoe V Property – Pyramid Highway 177 & Frontage 17 Partnerships
21. Yuma I Property – Gila View, Painted Desert & Snow Bird Partnerships
22. Yuma II Property – Desert View, Sonora View, Mesa View and Road Runner Partnerships
23. Yuma III Property – Mountain View, Ocotillo, Cactus Ridge & Mohawk Mountain Partnerships




On May 19, 2015, the Court granted the SEC’s motion for partial summary judgment and ordered Defendants Schooler and Western to disgorge $136,654,250, plus prejudgment interest. Enforcement of the order is outside the scope of the receivership and will be handled by the SEC.


On January 21, 2016, the Court granted the SEC’s motion for injunctive relief and monetary remedies against Mr. Schooler and ordered disgorgement in the total amount of $147,610,280, representing profits gained as a result of the conduct alleged by the SEC. Attached is a link to the Court’s Order.


Order Granting Final Judgment and Monetary Remedies





Who is the Receiver? Why was there a Receiver appointed? Thomas C. Hebrank was appointed by the Federal District Court on September 6, 2012. The Receiver was appointed after a complaint was filed by the Securities and Exchange Commission against Louis V. Schooler and First Financial Planning Corp. dba Western Financial Planning Corp. (“Western”). Your partnership was created by Western and is one of the subjects of the ongoing litigation between the SEC and Louis Schooler.


Who can I talk to about my investment? You can periodically visit the Receiver’s website for additional updates as far as the case, Receiver’s Reports and other legal filings ( The Receiver and his staff are happy to take your questions, however to keep expenses low we ask that you check the FAQ or website first. Please direct inquiries to the Receiver to


What are the next steps in the receivership? As ordered by the Court, the Receiver has pooled all GP bank accounts, and is in the process of retaining a real estate expert to supplement the work of the Xpera Group and to advise the Court and Receiver regarding certain recommendations for the properties made by the Xpera Group. An attorney for a minority group of investors has filed an appeal of the Court’s Order re: Receiver’s Proposal to Conduct Orderly Sale of GP Properties & Approval of Distribution Plan, and has opposed the sale of certain properties that were in process or near completion. The Court has scheduled a hearing for September 6, 2016 to address these issues.



Court Filings:


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