Order Appointing Receiver

Judgment Creditors have good faith reasons to believe that Debtor owns non-exempt rights to present or future property that cannot be readily attached or levied on by ordinary legal process as required by the standard set forth in Tanner2. Such property includes, but is not limited to, real property tangible and intangible assets, other property, professional corporations which have accounts receivable, bank accounts that are easily moved and constantly changing in balance, and community property held jointly.

The appointment of a Receiver to locate, marshal, and administer assets is justified because the Court believes that non-exempt assets exist which Judgment Creditors are justified in believing Debtor will hide.

Receiver is necessary to carry out this Court's prior orders, and that the Receivership is necessary not to harass, but to serve justice. A Receiver is necessary in this case pursuant to the Texas Turnover Statute, TEX. PRAC. & REM. CODE § 31.002 and the Texas Fraudulent Transfer Act §24.009

The unique power of a Receivership derives from the doctrine of custodia legis. Once a turnover order containing an appointment of a Receiver is signed, all of the judgment debtor's nonexempt property becomes property in custodia legis, @r "in the custody of the law".3 In other words, the judgment debtor's property is considered to be in the constructive possession of the court.

No one-not even a lien holder with a prior filed deed of trust-can sell property held in custodia legis by a duly appointed Receiver without first obtaining approval from the Court in which the Receivership is pending.5 Any unauthorized transfer of property in the custody of a Receiver is not merely voidable, it is void.6 Thus, any attempt by a judgment debtor to transfer any of his nonexempt property after the turnover order has been signed is void

The Judgment is not considered a "consumer debt" as defined by the 15 U.S. Code § 1692, the Fair Debt Collection Practices Act (FDCPA).

MARK D. SCHMIDT (INDIVIDUAL) 1134 Fearrington Post Apt 12 Pittsboro, NC 27312-5014 SSN: -0622 D.O.B. February 1965

"Receiver" refers to: ROBERT W. BERLETH. Receiver1 is the agent of this Court (not the attorney for any party) BERLETH & ASSOCIATES Robert W. Berleth Texas Bar # 24091860 SDOT #: 3062288 E-mail: rberleth@berlethlaw.com

Signed: Michael Rong 5/22/2025 Hon. Michael Gomez JUDGE PRESIDING

"Judgment" refers to the Order domesticated by this court dated June 23, 2023. Applicant is owed a judgment amount of $1,572,500, with attorney's fees of $177,126.19, plus sanctions of $3,895.00 and $6,842.50 plus court costs with post-judgment interest accruing at the rate of 12% per annum.

On the date of entry below, this Court considered Judgment Creditors post-judgment Application for Turnover relief and to Appoint a Receiver> reviewed the documents on file, relevant statutory and case law, admissible evidence, all arguments of the parties and counsel

4/1/2025 5:58 PM Marilyn Burgess - District Clerk Harris County Envelope No. 99158470 By: Lisa Cooper Filed: 4/1/2025 4:40 PM Pgs-31

Signed: Michael Rong 5/22/2025 Hon. Michael Gomez JUDGE PRESIDING

As of 02/18/2025 $2,111,086.01 remains owed and due from the Debtors to the Plaintiff, and subject to the Receiver's actions.