Evidence Record
Exhibit B
1. My name is Jeff Prostok. I am over the age of twenty-one (21) years, of sound mind, and otherwise competent to make this declaration SThe facts and statements contained in this declaration are...
DISTIL analysis
DISTIL Run
Profile
Standard
Version
1
Doc Type
legal_declaration
Total Nodes
23
Node Legend
Entity (ENT)
Event (EVT)
Claim (CLM)
Anchor (ANC)
Omission (OMI)
Tension (TEN)
Tell (TEL)
Inference (INF)
Hypothesis (HYP)
Stage 1
Index
Orientation · No nodes
Document Classification
legal_declaration Jeff Prostok, counsel for Legalist SPV III, LP post-judgment receivership proceeding, protective advance offer 2025-06-05 to 2025-06-06
financial_commitmentreceiver_non_responsecontractual_rights_assertion
Analytical Frame
creditor intervention in receivership
Analytical Summary
This declaration by Jeff Prostok, counsel for Legalist SPV III, LP, documents an attempt to satisfy a $2.75M judgment through a protective advance under an existing credit agreement with judgment debtor Cyberlux Corporation. During a June 5, 2025 teleconference with court-appointed receiver Robert Berleth, Prostok informed the receiver of Legalist's intent to exercise its contractual right to make this advance, and funds were transferred to Prostok's firm trust account. Despite agreement during the call, the receiver failed to provide payment instructions by the declaration date of June 6, 2025, creating an apparent impediment to satisfaction of the judgment.
Key Points
- Legalist SPV III, LP offers protective advance of at least $2,755,100.10 to satisfy judgment against Cyberlux
- Protective advance authorized under existing credit agreement between Legalist and Cyberlux
- Funds transferred and held in counsel's trust account as of June 6, 2025
- Court-appointed receiver Robert Berleth agreed to provide wiring instructions but failed to do so
- Declaration filed in support of emergency motion to stay or suspend receivership order
Stage 2
Core — Entities, Events, Claims
15 nodes
ENT-001
Entity
Jeff Prostok
Jeff Prostok, declarant and counsel for Legalist SPV III, LP. Attorney with law firm holding trust account containing protective advance funds.
Page 2 — My name is Jeff Prostok. I am over the age of twenty-one (21) years, of sound mind, and otherwise competent to make this declaration
ENT-002
Entity
Legalist SPV III, LP
Legalist SPV III, LP ("Legalist"), third-party creditor with existing credit agreement with Cyberlux Corporation, offering protective advance to satisfy judgment.
Page 2 — I am counsel for Legalist SPV III, LP ("Legalist").
ENT-003
Entity
Robert Berleth
Robert Berleth, court-appointed receiver in the Atlantic Wave Holdings v. Cyberlux matter who failed to provide payment instructions.
Page 2 — I attended a teleconference on June 5, 2025, at which Robert Berleth, the Court-appointed receiver.
ENT-004
Entity
Alex Pennetti
Alex Pennetti, counsel for Cyberlux Corporation and Mark D. Schmidt (judgment debtors), present at June 5, 2025 teleconference.
Page 2 — Alex Pennetti, counsel for Cyberlux Corporation and Mark D. Schmidt, were also present.
ENT-005
Entity
Cyberlux Corporation
Cyberlux Corporation, judgment debtor and party to existing credit agreement with Legalist SPV III, LP.
Page 2 — CYBERLUX CORPORATION and MARK D. SCHMIDT, Individually, Defendant/Judgment Debtors.
ENT-006
Entity
Atlantic Wave Holdings, LLC
Atlantic Wave Holdings, LLC, plaintiff and judgment creditor in Cause No. 2024-48085.
Page 2 — ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC, Plaintiff/Judgment-Creditor
EVT-001
Event
June 5, 2025 teleconference
Teleconference on June 5, 2025, attended by Jeff Prostok, Robert Berleth (receiver), Austin Priddy, and Alex Pennetti, at which Legalist's protective advance was announced.
Page 2 — I attended a teleconference on June 5, 2025, at which Robert Berleth, the Court-appointed receiver. My colleague Austin Priddy, and Alex Pennetti, counsel for Cyberlux Corporation and Mark D. Schmidt, were also present.
EVT-002
Event
Prostok informs Berleth of protective advance
During the June 5, 2025 call, Jeff Prostok informed receiver Robert Berleth that Legalist would exercise its contractual right to make a protective advance of not less than $2,755,100.10 to satisfy the judgment.
Page 2 — During that call, I informed Mr. Berleth that Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment. I indicated that the protective advance issued would be for an amount not less than $2,755,100.10.
EVT-003
Event
Funds transferred to trust account
Legalist transferred funds which are being held in the trust account of Jeff Prostok's law firm as of the declaration date.
Page 2 — The funds described herein were transferred by Legalist and are currently being held in the trust account of my law firm.
EVT-004
Event
Pennetti requests wiring instructions
At end of June 5, 2025 teleconference, Alex Pennetti requested that receiver Robert Berleth provide wiring instructions to facilitate Legalist's protective advance.
Page 3 — At the end of the teleconference, Mr. Pennetti requested that Mr. Berleth provide his wiring instructions to facilitate Legalist's protective advance.
EVT-005
Event
Berleth agrees to provide instructions
During the June 5, 2025 call, receiver Robert Berleth agreed that he would provide wiring instructions.
Page 3 — Mr. Berleth agreed that he would do so.
EVT-006
Event
Receiver fails to provide instructions
As of June 6, 2025 (declaration date), Jeff Prostok had not received any payment instructions from receiver Robert Berleth despite his agreement to provide them.
Page 3 — To date, I have not received any payment instructions from Mr. Berleth.
CLM-001
Claim
Legalist has contractual right to protective advance
Legalist asserts it has contractual right under existing credit agreement with Cyberlux Corporation to make protective advance to satisfy judgment.
Page 2 — Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment.
CLM-002
Claim
Protective advance satisfies total judgment balance
Declaration asserts protective advance of not less than $2,755,100.10 would satisfy the total balance of the judgment against Cyberlux.
Page 2 — I informed Mr. Berleth that Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment. I indicated that the protective advance issued would be for an amount not less than $2,755,100.10.
CLM-003
Claim
Declaration supports emergency motion
Declaration submitted in support of Defendants' Emergency Motion to stay or otherwise suspend Order Appointing Receiver.
Page 2 — I submit this Declaration in support of Defendants' Emergency Motion to stay or Otherwise Suspend Order Appointing Receiver.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
4 nodes
TEN-001
Tension
Receiver agreement vs. non-performance
Receiver Robert Berleth agreed to provide wiring instructions to facilitate payment but failed to do so within 24 hours, creating barrier to judgment satisfaction.
Page 3 — Mr. Berleth agreed that he would do so. To date, I have not received any payment instructions from Mr. Berleth.
TEN-002
Tension
Third-party creditor intervention in receivership
Legalist, as third-party creditor, seeks to satisfy judgment and potentially terminate receivership through protective advance, creating potential conflict with receiver's role and judgment creditor's interests.
Page 2 — I submit this Declaration in support of Defendants' Emergency Motion to stay or Otherwise Suspend Order Appointing Receiver. During that call, I informed Mr. Berleth that Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment.
QST-001
Question
Why did receiver fail to provide instructions?
What explains the receiver's failure to provide payment instructions despite explicit agreement during the June 5 call? Possible explanations include strategic delay, consultation with judgment creditor, or administrative issues.
Page 3 — Mr. Berleth agreed that he would do so. To date, I have not received any payment instructions from Mr. Berleth.
QST-002
Question
What are terms of Legalist-Cyberlux credit agreement?
What are the specific terms of the existing credit agreement between Legalist and Cyberlux that authorize this protective advance? Does it grant Legalist priority over other creditors?
Page 2 — Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance
Stage 4
Interpretive — Inferences, Omissions, Patterns
4 nodes
INF-001
Inference
Legalist seeks to protect collateral position
Legalist's protective advance appears designed to satisfy judgment and terminate receivership, protecting its secured creditor position and preventing receiver from liquidating assets that may serve as Legalist's collateral.
Page 2 — I submit this Declaration in support of Defendants' Emergency Motion to stay or Otherwise Suspend Order Appointing Receiver. Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment.
INF-002
Inference
One-day delay creates urgency narrative
Declaration emphasizes receiver's failure to provide instructions within one day (June 5 to June 6) to create urgency supporting emergency motion, though single-day delay may not be objectively unreasonable for receivership matters.
Page 2, 3 — I attended a teleconference on June 5, 2025, at which Robert Berleth, the Court-appointed receiver. To date, I have not received any payment instructions from Mr. Berleth. Executed in, Vancouver, British Columbia, on the 6th day of June, 2025.
OMI-001
Omission
No details on credit agreement terms
Declaration asserts contractual right to protective advance but provides no details about credit agreement terms, conditions, or whether advance increases Cyberlux's debt to Legalist.
Page 2 — Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance
OMI-002
Omission
No judgment creditor position stated
Declaration does not disclose whether judgment creditor Atlantic Wave Holdings was consulted about or consented to Legalist's protective advance arrangement.
Page 2 — During that call, I informed Mr. Berleth that Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment.
Extracted text
3 pages · 2017 charactersEXHIBIT B
Unofficial Copy Office of Marilyn rgess District Clerk
ATLANTIC WAVE HOLDINGS, LLC
§ IN THE DISTRICT COURT OF
and SECURE COMMUNITY, LLC,
§
Plaintiff/Judgment-Creditor
§
§
§
v.
§ HARRIS COUNTY, TEXAS
§
CYBERLUX CORPORATION and
§
MARK D. SCHMIDT, Individually,
§
§
Defendant/Judgment Debtors.
§ 129TH JUDICIAL DISTRICT
DECLARATION OF JEFF PROSTOK
1.
My name is Jeff Prostok. I am over the age of twenty-one (21) years, of sound mind, and otherwise competent to make this declaration SThe facts and statements contained in this declaration are within my personal knowledge and are true and correct.
2.
I submit this Declaration in support of Defendants' Emergency Motion to stay or Otherwise Suspend Order Appointing Receiver.
3.
I am counsel for Legalist SPV III, LP ("Legalist").
4.
I attended a teleconference on June 5, 2025, at which Robert Berleth, the Court- appointed receiver. My colleague Austin Priddy, and Alex Pennetti, counsel for Cyberlux Corporation and Mark D. Schmidt, were also present.
5.
During that call, I informed Mr. Berleth that Legalist, acting pursuant to its existing credit agreement with Cyberlux Corporation, would exercise its contractual right to make a protective advance to satisfy the total balance of the judgment. I indicated that the protective advance issued would be for an amount not less than $2,755,100.10.
6.
The funds described herein were transferred by Legalist and are currently being held in the trust account of my law firm.
7.
At the end of the teleconference, Mr. Pennetti requested that Mr. Berleth provide his wiring instructions to facilitate Legalist's protective advance. Mr. Berleth agreed that he would do so. To date, I have not received any payment instructions from Mr. Berleth.
I declare under the penalty of perjury that the foregoing is true and correct, Executed in, Vancouver, British Columbia, on the 6th day of June, 2025.
If Punct Jeff Prostok, Declarant
Unofficial Copy Office of Marilyn Burgess District Clerk
Original source file
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- aw-harris-awh-2024-48085-doc-120966320.pdf
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