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RESPONSE TO [DOC#323] AND [DOC#324] - Page 6
17. Moreover, the entry of a receivership without due process and subject
matter jurisdiction over the property placed into receivership is unconstitutional
and void ab initio. The great mass of weight of clear and controlling Fifth Circuit
and Supreme Court precedent extending back for more than a century that
establishes the unlawful and unconstitutional nature of the receivership order – and
the absence of any controlling precedent to support the receivership order– signed
without notice, without hearing, without affidavits, without supporting findings,
and without lawful cause– makes the receiver’s action under the order
unreasonable and a violation of the receiver’s fiduciary and legal duties to inform
the Court of the illegality and unconstitutionality of the receivership order and
process by which it was entered.
18. For further grounds, should same be necessary, the receiver and his firm
are estopped from entitlement to payment for fees because at the time he was
appointed receiver in this Court’s order, he was employed by your honor as a special
master in this very case. See Docket #37. Notably, Peter Vogel’s appoint as special
master was itself done in clear violation of the Federal Rules of Civil Procedure.
19. The receiver himself recognized that holding both roles was inappropriate
and sought termination of his employment as special master on December 10, 2010.
See Docket#147. Post appointment termination of his employment as special
master, however, is not sufficient. Pursuant to 28 U.S.C. 958, Mr. Vogel was legally
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