Securities and Exchange Commission v. Wells Fargo Bank, N.A.

PROCTOR, District Judge:

I. BACKGROUND

Following the collapse of a Ponzi scheme, the district court appointed a receiver to administer the affairs, funds, and property of parties who perpetrated that failed scheme. The district court also established a claims administration process by which those who had claims to property administered by the equity receivership could file proofs of claim. In this appeal, we are called upon to decide whether in such a circumstance a district court may extinguish a non-party’s preexisting rights to property under the administration of the equity receivership if…