Receivership, affirmed.

The Fifth Circuit found no abuse of discretion about the appointment of a receiver in SEC v. Barton, emphasizing these aspects of the controlling three-factor test:

• Receivership was “clear[ly] necess[ary] to protect a party’s interest in property” because:
  • The investors’ property interests faced threats from the defendant’s continued dissipation of assets, market conditions, and third-party actions (such as liens, lawsuits, and foreclosures).
  • The defendant continued to spend investor funds even after the SEC filed its complaint, showing no deterrence from prior legal action.
  • The receivership allowed for active management of assets, which included operating businesses and properties requiring ongoing oversight.
  • The receivership enabled the court to stay litigation and foreclosure actions, preventing further loss of value to the receivership estate.
• Less drastic remedies, such as a monitorship or asset freeze, were inadequate because:
  • These alternatives would still allow the defendant some control over the assets, increasing the risk of further dissipation.
  • The district court had already found the defendant in contempt for violating prior requirements, indicating that a monitorship would not be effective.
  • The assets required dynamic management, which a freeze or monitorship could not provide.

Nos. 23-11237 & 24-10004 (April 17, 2025).