United States District Court, D. Nevada
FDIC as Receiver for AMTRUST BANK, f/k/a Ohio Savings Bank, a federal savings bank, et al., Plaintiffs,
REX H. LEWIS, an individual, et al., Defendants.
ORDER TO SHOW CAUSE AND CERTIFICATION OF FACTS
RENEWED MOTION FOR AN ORDER HOLDING JUDGMENT DEBTOR REX LEWIS
IN CONTEMPT (ECF NO. 261)
FERENBACH, UNITED STATES MAGISTRATE JUDGE
the Court is Iota Violet, LLC; Iota Coral, LLC; Iota
Cinnamon, LLC; Iota Red, LLC; and Iota Royal, LLC's
(“the Iota Entities”) Renewed Motion for an Order
Holding Judgment Debtor Rex Lewis in Contempt. (ECF No. 261).
Pursuant to 28 U.S.C. § 636(e)(6)(iii),  Magistrate Judge
Ferenbach certifies the following facts to the Honorable
District Judge Mahan:
Court has entered judgment in favor of the Iota Entities and
against Rex Lewis and several associated entities for over
$59 million. (ECF No. 59). The Iota Entities have sought
discovery from Lewis to enable their execution of judgment.
May 29, 2015, the Court issued an order finding “that
Lewis is engaging in contumacious conduct” during this
discovery but denying a motion for contempt “with leave
to renew and grant[ing] Lewis one last chance to provide full
and complete discovery responses.” (ECF No. 146). The
Order directed the parties to hold further meet and confers
regarding Lewis's discovery duties. (Id.)
Iota Entities' subsequent discovery has identified
different trusts, accounts, and businesses associated with
Lewis. For the purpose of this certification of facts, the
Court will focus on the trust and bank accounts at issue in
the renewed motion to hold Lewis in contempt.
The Holder Trust
September 25, 2008, Rex Lewis became a settlor of the Lewis
APT 2008 Trust (“the Holder Trust”) in his
individual capacity and as a co-trustee of the Lewis Trust
1988. (Ex. E1). The Holder Trust is located in St. Vincent
and the Grenadines. (Id.)
Lewis, as a co-trustee of the Lewis Trust 1988, was also an
original beneficiary of the Holder Trust. (Id. at
32). The Lewis Trust 1988 was removed as a beneficiary on
July 12, 2012 with the approval of Lewis as a settlor. (Ex.
E5). The Lewis Trust 1988 was reinstated as a beneficiary on
December 10, 2013 (Ex. E9) and again removed on August 28,
2014 (Ex. E6).
Lewis testified at the October 16, 2017 hearing (“the
hearing”) that he and his attorney, Ron Jenkins,
created the Holder Trust because they were concerned about
the U.S. Senate altering how offshore trusts could be
structured and how the trusts would have to be reported.
Holder Trust deed contains a provision that the trustee
cannot reveal documents regarding the trust to any person or
entity except to the settlors and beneficiaries. (Ex. E1 at
27). That provision is subject to another clause-Clause
43-that states to the extent a person has the authority to
direct action by the trustee, the trustee is “to accept
or recognize only instructions or advice…which are
given by or are the result of persons acting of their own
free will and not under compulsion of any legal process or
like authority.” (Id.)
Holder Trust defines the “Memorandum of Settlors”
as “the document by the same name executed by the
Settlors and delivered to the Original Trustees on the date
this deed is executed by the Settlors.” (Id.
at 4). The Memorandum of Settlors would name an investment
advisor and appoint a protector. (Id. at 3, 13, 26).
In addition, “the trustees shall distribute income
generated on the Trust Assets in accordance with the
directions set forth in the Memorandum of Settlors delivered
to the Original Trustees by the Settlors at the settlement of
this Trust, as it may be modified by the Settlors from time
to time.” (Id. at 10).
date, there has been no evidence of a Memorandum of Settlors
dated other than December 2, 2011. In the December 2, 2011
Memorandum of Settlors, Lewis, acting as a settlor, appointed
a protector for the Holder Trust. (Ex. E3).
Because there had been no protector originally appointed, the
settlors and beneficiaries (Lewis and his wife) changed
trustees for the Holder Trust on December 31, 2008.
Lewis testified at the hearing that his consideration for
transferring personal assets to the Holder Trust, and thus
losing control over them, was asset protection.
Bank Accounts at Issue
JPMorgan Chase account ending in 6008 was transferred from
the Lewis Trust 1988 to the Holder Trust on September 30,
2008. (Ex. B15 at 8; ECF No. 264-13). Lewis was listed as the
holder of the account until the account was closed in
September 2011. (Ex. H3). Lewis testified at the hearing that
he did not know he was listed on the account after the
September 2008 assignment until he saw the account documents