Case News
Court Denies Receivership Relief Defendant’s Motion for Emergency Stay Relief
The Court’s Order authorizing the Receiver to value and market for sale the Arroyo Hondo property required Receivership Relief Defendant, Victoria Stewart, and any other residents to vacate the Arroyo Hondo property on or before October 14, 2026. On September 30, 2026, Victoria Stewart filed an Emergency Motion seeking to stay the October 14 deadline to vacate. That motion is available on the Substantive Pleadings page or by clicking here.
On October 13, 2026, the Court entered an Order denying the Emergency Stay Motion, allowing the October 14 vacate deadline to stand so the Receiver can proceed with the valuing and marketing of the Arroyo Hondo property. The Court’s denial order is accessible on the Substantive Pleadings page or by clicking here.
Receiver Seeks Authorization to Value and Market Two Additional Properties
On October 8, 2026, the Receiver filed a motion for entry of an order authorizing the Receiver to value and market for sale two properties owned by Individual Defendant, Michael S. Young, his wife and Receivership Relief Defendant, Maria C. Young, or by their jointly owned entity. One of the properties serves as the Youngs’ primary residence in Greenwood Village, Colorado, and the other property is a series of four vacant lots located in Port Charlotte, Florida. The Youngs did not oppose the Motion.
The Receiver’s motion is available on the Substantive Pleadings page or by clicking here.
Court Denies Stewarts’ Joint Motion Regarding Sandy Toes LLC Funds
On September 28, 2026, Michael S. Stewart and Victoria M. Stewart jointly moved the Court for a determination on whether approximately $2,434,590 in proceeds from Sandy Toes LLC, currently in the Receiver’s possession, is actually Receivership Property, to immediately segregate and preserve those funds pending that determination, and to order a verified accounting. The motion is available on the Substantive Pleadings page or by clicking here.
On September 30, 2026, the Court entered a text Order at ECF No. 725, which denied the Stewarts’ Joint Motion, finding they had shown no legal interest in the funds held in Sandy Toes LLC’s name and that the motion was another frivolous attempt to prolong the proceedings.
Court Authorizes Receiver to Proceed with Valuing and Marketing of Arroyo Property for Sale
On September 14, 2026, the Court granted the Receiver’s motion for an order authorizing the Receiver to value and market for sale certain real property located in Scottsdale, Arizona informally known as the Arroyo Property. The Arroyo Property is a Receivership Asset that was owned by Michael S. Stewart and Victoria M. Stewart through a jointly controlled entity. The Court’s Order also denied related relief requested by Victoria M. Stewart in separate motions.
The Receiver’s motion is available here. The Order is available on the Substantive Pleadings page or by clicking here.
Court Grants United States’ Summary Judgment Motion
On September 14, 2026, the Court entered summary judgment in favor of the United States Securities and Exchange Commission against Defendants Michael S. Stewart and Bryant E. Sewall. The Court found that the Defendants’ convictions in the Criminal Case precluded the Defendants from relitigating Claims 1-7 and 9 in the Civil Case, because the circumstances and conduct underlying the criminal convictions are identical to those underlying the civil claims. The Court’s Order granting summary judgment is available on the Substantive Pleadings page or by clicking here. Final Judgment can be found on the Substantive Pleadings page or by clicking here. The Motion for Summary Judgment can also be reviewed on the Substantive Pleadings page or by clicking here.
0Filing Notice: Motion to Approve and Authorize Q2 2026 Receiver and Professional Fees
A Motion for Order Approving and Authorizing Payment of the Receiver’s and Professionals’ Fees and Costs from April 1, 2026 through June 30, 2026 was filed with the Court on September 3, 2026. The motion seeks court authorization to pay compensation and expenses incurred during the second quarter of 2026. The Motion is available for review on the Substantive Pleadings page and may also be accessed by clicking here.
0Filing Notice: Motion to Approve and Authorize Q1 2026 Receiver and Professional Fees
A Motion for Order Approving and Authorizing Payment of the Receiver’s and Professionals’ Fees and Costs from January 1, 2026 through March 31, 2026 was filed with the Court on May 29, 2026. The motion seeks court authorization to pay compensation and expenses incurred during the first quarter of 2025. The Motion is available for review on the Substantive Pleadings page and may also be accessed by clicking here. Additionally, a Supplemental Declaration in support of the Motion was filed on June 3, 2026. The Supplemental Declaration can be viewed on the Substantive Pleadings page and may also be accessed by clicking here.
0Q2 2026 Quarterly Report Filed
The Receiver’s Quarterly Report for the second quarter of 2026 was filed on July 30, 2026. The report is available for review on the Substantive Pleadings page and may also be accessed by clicking here.
0The SEC seeks summary judgment against Sewall and Stewart in the civil case.
In the civil action, the Securities and Exchange Commission (SEC) filed a Motion for Summary Judgment earlier this month against defendants, Bryan Edwin Sewall and Michael Shawn Stewart. The Motion argues that Sewall and Stewart are collaterally estopped from re-litigating their liability in the civil case in light of their criminal convictions. The SEC contends that the same material facts exist in both the civil and criminal case, and both individuals have already been convicted under the stricter, criminal standard. The SEC’s Motion is available to read here.
0Michael Shawn Stewart sentenced in the criminal case.
On June 29, 2026, the Court sentenced Stewart to 288 months imprisonment. The Judgment can be found here. Stewart’s co-defendant, Bryan Edwin Sewall was sentenced back in January 2025, where the Court sentenced Sewall to a 276-month term of imprisonment. Sewall’s Judgment can be found here.
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