COUNTY OF NASSAU X FOR TEMPORARY STAY SUPREME COURT OF THE STATE OF NEW YORK

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1 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NASSAU X CONTINENTAL - against - BANK, Plaintiff, INDEX# /2015 IAS Part 26 AGILE OUTSOURCED SOLUTIONS LLC, and EMERGENCY STEVEN GARY GITTLESON, individually and on behalf ORDER TO SHOW of Agile Outsourced Solutions, LLC, CAUSE AND REQUEST Defendants.. FOR TEMPORARY STAY (" plaintiff" Plaintiff Continental Bank, ("plaintiff"), pursuant to New York CPLR 5240, respectfully requests that the Court enter an order extending the duration of the restraining notice issued to Citibank, N.A. ("Citibank") for a period of one hundred and fifty (150) days beyond May 16, 2018, and additionally for a temporary stay of the expiration of the restraining notice period. Let any party in this matter show cause before this Court on May 16, 2018, at 4:00 p.m. EST, or as soon thereafter as counsel can be heard, before Justice Anna R. Anzalone, or one of the Justices of the above-styled court, at the Supreme Court of the State of New York, County of Nassau, 100 Supreme Court Drive, Mineola, NY 11501, why an order should not be granted extending the duration of the restraining notice issued to Citibank, N.A. ("Citibank") for a period of one-hundred and fifty (150) days beyond May 16, 2018, and additionally for a temporary stay of the expiration of the restraining notice period In support, plaintiff attaches as Exhibit A the Affidavit of Michael Anthony Shaw, and further states as follows: 1. Plaintiff holds a judgment against Steven Gray Gittleson in the amount of $41, M f }

2 2. As part of its post judgment collection efforts, plaintiff served a restraining notice to Citibank pursuant to New York CPLR On May 15, 2017, Citibank responded to the restraining notice indicating that it holds $83, belonging to Steven G. Gittleson. 4. Thereafter, Mr. Gittleson moved to have the default judgment set aside on July 24, The Court denied Mr. Gittleson's motion to vacate the default judgment via Order dated January 29, Following the denial of the motion to vacate default judgment, plaintiff commenced a special proceeding against Citibank and filed a petition for turnover of the funds held pursuant to the restraining notice. 7. The special proceeding for turnover is set before the Honorable John M. Galasso. the' The return date on the petition is April 26, Therefore, under Judge Galasso's policies, the Court will render a decision on the petition for turnover after the restraining notice period has expired. Additionally, plaintiff anticipates the need to amend the relief sought in its turnover proceeding. 8. Under New York CPLR 5222(b), a restraining order served on a garnishee is valid for one year after service. The one year duration on the restraining notice is set to expire on May 16, The possibility exists that the hold on the funds held by Citibank will expire prior to Judge Galasso's ruling on the petition for turnover. 9. New York CPLR 5240, the Court may extend the use of any enforcement procedure, including a restraining notice. Therefore, plaintiff respectfully requests that the Court enter an Order extending the duration of the restraining notice to Citibank for a period of one (M )

3 hundred fifty (150) days to give plaintiff the necessary time to amend the relief sought in its turnover proceeding, and to allow Judge Galasso an opportunity to rule on the petition for turnover. Plaintiff files this motion to protect its interest, as Citibank holds funds in approximately twice the amount of the judgment in this matter. If Plaintiff receives the funds, the judgment will be satisfied entirely 10. Plaintiff will suffer immediate injury if Citibank releases the funds subject to the restraining notice prior to resolution of either plaintiff's pending petition for turnover in the special proceeding. Citibank is holding funds sufficient to pay plaintiff's judgment in full¹. If Citibank releases the funds before the Court rules on the petition for turnover, the petition will become moot, and plaintiff will have to pursue the funds via a fraudulent transfer theory that will cost plaintiff significant delay and expense. See, US Bancorp. Equip. Finance v. Rubashkin, 2011 NY Slip Op (N.Y. Sup. Ct. 2011). 11. The balancing of equities weights in plaintiff's favor. Prior to the expiration of the restraining notice, plaintiff has petitioned for turnover of the funds against Citibank in the special proceeding. Plaintiff did not unduly delay in petitioning for turnover of the funds. Following service of the restraining notice in May 2017, the judgment debtor moved to vacate the default judgment. The court denied Mr. Gittleson's challenge to the default judgment in January Plaintiff has not previously sought an extension of this restraining period, the extension will not prejudice any party, and the extension is not interposed for purposes of delay. WHEREFORE, Continental Bank respectfully requests the entry of an order extending the duration of the restraining notice issued to Citibank, N.A. for a period of one hundred and fifty (150) days beyond May 16, 2018, and further staying the expiration of the restraining notice period. 1 The amount of the judgment as of May 16, 2018 is $47,694.88, comprised of a principal balance of $41, plus $5, in post-judgment interest (per diem of $10.32 for 568 days). tm }

4 Dated: May 15, 2018 JONES WALKER, LLP By: Michael Anthony Shaw, Esq. New York Bar No.: JONES WALKER LLP 201 S. Biscayne Blvd., Suite 2600 Miami, FL Telephone: (305) Counsel for Plaintiff Continental Bank Copy furnished to: Martin Shell The Shell Law Firm, PLLC 11 Broadway, Suite 615 New York, NY 1004 Attorney for Defendants Citibank, N.A. c/o Legal Services Intake Unit 701 E. 60th St., N., Mail Code 1251 Sioux Falls, SD (M )

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6 NE%' SUPREME COURT OF THE STATE OF NEW COUNTY OF NASSAU X YORK CONTINENTAL BANK, Plaintiff, INDEX# /2015 IAS Part 26 - against - AGILE OUTSOURCED SOLUTIONS LLC, and STEVEN GARY GITTLESON, individually and on behalf of Agile Outsourced Solutions, LLC, Defendants.. AFFIDAVIT OF MICHAEL ANTHONY SHAW IN SUPPORT OF EMERGENCY ORDER TO SHOW CAUSE AND REQUEST FOR TEMPORARY STAY STATE OF FLORIDA COUNTY OF MIAMI DADE I, Michael Anthony Shaw, being duly sworn, depose and state as follows: 1. I am over the age of 18 years and am a member of the bar of the state of New York. 2. I am an attorney at the law firm of Jones Walker LLP, which represents the plaintiff in the above-styled action. 3. I make this affidavit in support of plaintiff's Emergency Order to Show Cause and Request for Temporary Stay. I make this affidavit on my own personal knowledge. 4. Plaintiff holds a judgment against Steven Gray Gittleson in the amount of $41, As part of its post judgment collection efforts, plaintiff served a restraining notice to Citibank pursuant to New York CPLR (M )

7 6. On May 15, 2017, Citibank responded to the restraining notice indicating that it holds $83, belonging to Steven G. Gittleson. A true and correct copy of Citibank's response to the restraining notice is attached as Exhibit Thereafter, Mr. Gittleson moved to have the default judgment set aside on July 24, The Court denied Mr. Gittleson's motion to vacate the default judgment via Order dated January 29, A true and correct copy of this Order is attached as Exhibit Following the denial of the motion to vacate default judgment, plaintiff commenced a special proceeding against Citibank and filed a petition for turnover of the funds held pursuant to the restraining notice. A true and correct copy of the petition is attached as Exhibit The special proceeding for turnover is set before the Honorable John M. Galasso. The return date on the petition is April 26, The restraining notice will expire on May 16, Therefore, under Judge Galasso's policies, the Court will render a decision on the petition for turnover after the restraining notice period has expired. Additionally, plaintiff anticipates the need to amend the relief sought in its turnover proceeding. 11. The present Emergency Order to Show Cause and Temporary Stay makes an emergency request to extend the duration of the restraining notice issued to Citibank for one hundred and fifty days (150) to give plaintiff the necessary time to amend the relief sought in its turnover proceeding, and to allow Judge Galasso an opportunity to rule on the petition for turnover. There will be immediate injury to plaintiff if Citibank releases the funds subject to the restraining notice prior to resolution of either plaintiffs pending petition for turnover in the special proceeding. If the restraining order expires prior to entry of the turnover order, and Citibank releases the funds held on the restraining order to the judgment debtor, plaintiff will lose the ability {M }

8 to collect its judgment in full. Citibank presently holds funds in excess of the amount owed on the judgment.1 judgment. 13. Plaintiff has not previously sought an extension of this restraining period, the extension will not prejudice any party, and the extension is not interposed for purposes of delay. Michael Anthony Shaw, Esq. New York Bar No.: Sworn to and subscribed before me on May /5, 2018 by Michael Anthony Shaw. He is personally known to me and did take an oath. Signature 0 person tak¾g acknowledgment (SEAL) Name of acknowledger typed, printed or stamped gglltigy AMELIAB.FERNANDEZ fa: +++~"4~~ ~. Notary N'CONi!SSQMgmgggpm MYCOMMISSTON # GG EXPlRES: Jame22,2020 Title or rank ~ ~~4y soneed%nsnotaypune Undanwiters 1 The amount of the judgment as of May 16, 2018 is $47,694.88, comprised of a principal balance of $41, plus $5, in post-judgment interest (per diem of $10.32 for 568 days). (M }

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10 . I I e Citigroup Management Corp. Legal Operations (Texas) 100 Citibank Drive San Antonio, TX May 15, 2017 Jones Walker LLP Tania L. Klam, Esquire 201 South Biscayne Blvd Miami Center, Suite 2600 Miami, FL Reference: LSl Index# STEVEN G GITTLESON Dear Sir/Madam: I am authorized to provide an on behalf of Citibank, N.A, in response to the attached service. Citibank has taken the following action: X Citibank is holding funds in the amount of $83, towards this service. X Funds/Accounts being held include a Joint Account(s): STEVEN G GITTLESON and ARONA T OSRIN. Please note that any balances referenced above are subject to verification and collection of any outstanding deposits. Citibank reserves the right to reduce the amount reported for any funds that subsequently become uncollected or unavailable. Should you have any questions please contact our Legal Operations Escalation line at (866) Please forward any written replies to: Citibank, N.A. c/o Legal Services Intake Unit 60th 701 E. St., N. Mail Code 1251 Sioux Falls, SD Sincerely, J. Garr.cia Citibank, Legal Operations Citigroup Management Corp. provides servicing for Citibank, N.A.,

11 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NASSAU Judgment Debtor's Address: Steven Gary Gittleson x 280 Rector Pl, Apt #3F New York, NY CONTINENTAL BANK, Plaintiff,. INDEX NO against- AGILE OUTSOURCED SOLUTIONS LLC, and INFORMATION - STEVEN GARY GITTLESON, individually and on behalf SUBPOENA WITH of Agile Outsourced Solutions, LLC, RESTRAINING NOTICE Defendants TO: Via Certified Mail/Return Receipt Requested ( ) Citibank, N.A. 1 Court Square, 31st Floor Long Island City, New York, WHEREAS, in an action in the Supreme Court of the State of New York, County of New York between Beach Community Bank, as plaintiff, and Steven Gary Gittleson, judgment debtor, in the amount of $41, of which $41, together with interest thereon from October 24, 2016 remains due and unpaid; and WHEREAS, the witness; resides; is regularly employed; has an office for the regular transaction of business in person; in Nassau County, New York. NOW, THEREFORE, WE COMMAND YOU, that you are to answer in writing under oath, separately and fully, each question in the questionnaire accompanying this subpoena, each answer referring to the question to which it responds; and that you return the answers together with the original of the questions within seven (7) days after your receipt of the questions and this subpoena. TAKE NOTICE that false swearing or failure to comply with this subpoena is punishable by contempt of court. RESTRAINING NOTICE WHEREAS, it appears that you owe a debt to thejudgment debtors or are in possession or in custody of property in which the judgment debtors have an interest; including any and all certificates of deposit, checking, savings, money market or other accounts and assets within the care, custody and /or control of garnishee belonging to the judgment debtors. TAKE NOTICE, that pursuant to subdivision (b) of Section 5222 of the Civil Practice Law and Rules, which is set forth in full herein, you are hereby forbidden to make or suffer I lm }

12 'I C1VIL PRACHCE LAW AND RULES Section 5222 (b)effect of restraint; prohibition of transfer; duration. A judgment debtor served with a restraining notice is forbidden to make or suffer any sale assignment, transfer or interference with, any property in which he has an interest, except upon direction of the sheriff or pursuant to an order of the court, until the judgment is satisfied or vacated. A restraining notice served upon a person other than the judgment debtor is effective only if, at the time of service, he owes a debt to the judgment debtor or he is in the possession or custody of property in which he knows or has reason to believe that the judgment debtor has an interest, or if the judgment creditor has stated in the notice that a specified debt is owed by the person served to the judgment debtor or that the judgment debtor has an interest in specified property in the possession or custody of the person served. All property in which the judgment debtor is known or believed to have an interest then in and thereafter coming into the possession or custody of such a person, including any specified in the notice, then due and thereafter coming due to the judgment debtor, shall be subject to the notice. Such a person is forbidden to make or suffer any sale, assignment or transfer of, or any interference with, any such property, or pay over or otherwise dispose of any such debt, to any person other than the sheriff, except upon direction of the sheriff, or pursuant to an order of the court, until the expiration of one year after the notice is served upon him, or until the judgment is satisfied or vacated, whichever event first occurs. A judgment debtor who has specified personal property or debt in a restraining notice shall be liable to the owner of the property or the person to whom the debt is owed, if other than the judgment debtor, for any damages sustained by reason of the restraint. If a garnishee served with a restraining notice withholds the payment of money belonging or owed to the judgment debtor in an amount equal to twice the amount due on the judgment, the restraining notice is not effective as to other property or money. Section 5224 (a)(3)(i) Kinds and service of subpoena. I HEREBY CERTIFY THAT THIS INFORMATION SUBPOENA COMPLIES WITH RULE 5224 OF THE CIVIL PRACTICE LAW AND RULES AND SECTION 601 OF THE GENERAL BUSINESS LAW THAT I HAVE A REASONABLE BELIEF THAT THE PARTY RECEIVING THIS SUBPOENA HAS IN THEIR POSSESSION INFORMATION ABOUT THE DEBTOR THAT WILL ASSIST THE CREDITOR IN COLLECT1NG THE JUDGMENT. By signing the certification, the judgment creditor or attorney certifies that, to the best of that person's knowledge, information and belief, formed after an inquiry reasonable under the circumstances, that the individual or entity receiving the subpoena has relevant information about the debtor. (M} / l

13 I TAKE FURTHER NOTICE that disobedience of this restraining notice is punishable as contempt of court. Dated: Washington, DC May 2, 2017 Respectfully submitted, ' JONES WALKER LLP Counsel for Plaintiff 201 South Biscayne Boulevard Miami Center, Suite 2600 Miami, Florida Telephone: (305) Facsimile: (305) Designated By: T ia L., Esquire

14 3) "And" or "Or" shall include the conjunctive as well as the disjunctive. 4) "Communications" include correspondence, discussions, telephone conversations and all other forms of written or oral communication. 5) "Judgment Debtor" refers to Defendant Steven Gary Gittleson, QUESTIONS â 1. What deposit accounts (including, but not limited to, copies of statements, items, memoranda, evidence of wire transfers, debits, credits and cashier's checks, and as to any checks of any kind, copies of the front and back) from and aller September 13, 2005, are owned by: 1 JOINT CHECKING ACCOUNT AND 5 JOINT MONEY MARKET ACCOUNT a. Judgment Debtor b. Any accounts of any individuals or entities in which Judgment Debtor has/had signature authority and/or any other ownership or beneficial interest or other control. 2. Regarding the accounts owned by Judgment debtor or any accounts of any individuals or entities in which Judgment Debtor has/had signature authority and/or any other $22, ownership or beneficial interest or other control: a. How much money is in each account? S'3 ¹9333 $ $ $6, $191, b. How is each account owned (tenancy by the entirety, joint account(with ARONA T OSRIN ARONA T OSRIN ARONA T OSRIN ARONA T OSRIN ARONA T OSRIN whom)? STEVEN G GITTLESON STEVEN G GITTLESON STEVEN G GITTLESON STEVEN G GITTLESON STEVEN G GITTLESON ARONA T OSRIN STEVEN G GITTLESON c. When was each account opened? 08/11/ /11/ /19/ /26/ /01/ /28/2001 d. If closed, when was each account closed? NOT APPLICABLE 3. What loans have been given by you since September 13, 2005 to Judgment NOT APPLICABLE (M I33473g,I )

15 Debtor. a. Do you have in your possession financial statements regarding these loans? NOT APPLICABLE b. Do you have in your possession tax returns used in connection with these loans? NOT APPLICABLE c. Do you have in your possession loan applications in connection with these loans? NOT APPLICABLE d. Do you have in your possession operating agreements for any and all parties to the loan or their affiliates, including, but not limited to Judgment Debtor? NOT APPLICABLE e. Do you have in your possession all loan documents, including, but not limited to, Promissory Notes, Mortgages, Assignment of Rents, Guaranties, Mortgages and Loan Agreements. NOT APPLICABLE 4. Do you have in your possession all payments disbursed or received (including, but not limited to, copies of statements, items, memoranda, evidence of wire transfers, debits, credits and cashier's checks, and as to any checks of any kind, copies of the front and back) maintained at you from and after September 13, 2005, by Steven Gary Gittleson: a. Judgment debtor. NOT APPLICABLE b. Any and all entities for which judgment debtor was a principal or over which judgment debtor exercised control. NOT APPLICABLE c. Any individual or entity for which judgment debtors had signature authority. NOT APPLICABLE d. Any individual over which judgment debtors exercised control. NOT APPLICABLE samuel Garcia Citigrou Management Corp On b alf of Citibank 10 Citiba Dr (M ) n A nio TX , 2017

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17 R1LEu: NASSAU COUNTY CLERK U1/29/201U 11:M "" ^"" "" ' '"" AM[ NYSCEF DOC. NO. 55 RECEIVED NYSCEF: /29/2018 SUPREME COURT - STATE OF NEW YORK PRESENT: Honorable Anna R. Anzalone. Justice of the Supreme Court x CONTINENTAL BANK, TRIAL/IAS, PART 20 NASSAU COUNTY.. Plaintiff, - against - Index No /2015 Motion Seq. No.: 004 AGILE OUTSOURCED SOLUTIONS LLC and STEVEN GARY GITTLESON, individually and on behalf of AGIpE OUTSOURCED SOLUTIONS LLC, x. Defendants. The following papers read on this motion: Defendants' Notice of Motion, Motion to Vacate the Default Papers...' Judgment, Affidavit and Supporting Papers Plaintiff's Affirmation in Opposition and Exhibits The Defendants, Agile Outsourced Solutions LLC and Steven Gary Gittleson, move this Court for an order vacating a default judgment dated October 24, 2016 and entered against it on November 3, The plaintiff opposes the motion. By order of this Court dated January 27, 2016, the plaintiff's motion for a default judgment was denied without prejudice to renew upon providing proper proof of service of additional notice. Having sufficiently satisfying its burden, the Court granted the plaintiff's motion for a default judgment pursuant to CPLR In the instant motion, the defendants move to vacate the default in appearing or answering the summons and complaint of 2

18 FILED : NASSAU COUNTY CLERK 01/ : 54 1NDE NU. b UW 7 / 2 UM AMJ NYSCEF DOC, NO. 55. RECEIVED NYSCEF: 01/29/2011 "A defendant seeking to vacate a judgment entered upon default is required to demonstrate both a reasonable excuse for the default and the existence of a meritorious defense" (St. Luke's Roosevelt Hospital v. Blue Ridge Insurance Co., 21 A.D.3d 946 [2d Dept. 2005]; CPLR 5015[a][1].) The "determination of what constitutes a reasonable excuse lies within the sound discretion of the Supreme Court..." (Lemberger v. Congregation Yetev Lev D'Satmar, Inc., 33 A.D.3d 671, 672 [2d Dept. 2006]; see also Hodges v. Sidial, 48 A.D.3d 633 [2d Dept. 2008]). Here, the Court has reviewed the affidavit of service and concludes service on the defendants was proper. Accordingly, as the defendants have failed to satisfy their burden, it is ORDERED, that the defendants' motion for an order vacating the default judgment is denied. This constitutes the Decision and Order of the Court. DATED: January 24, 2018 Mineola, New York ENTER: >&sr~ W Hon. Anna R. Anzalo, JSC ENTERED JAN NASSAU COUNTY COUNTY CLERK'S OFFICE -2-2 of 2

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20 FILED : NASSAU COUNTY CLERK INDEX NO / /23/ : 21 PH NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/23/2018 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NASSAU â x CONTINENTAL - against - BANK, Plaintiff, INDEX# CITIBANK, N.A., PETITION Defendant.. FOR TURNOVER Plaintiff and judgment creditor Continental Bank, by and through its undersigned counsel, and pursuant to NY CPLR 5225(b), files its petition seeking an order directing Citibank, N.A. to turnover funds being held pursuant to an information subpoena with restraining notice, and alleges and sets forth as follows: PARTIES l. Continental Bank is a Utah corporation, with its principal place of business located at 15 West South Temple, Suite 420, Salt Lake City, Utah Citibank, N.A. is a national bank transacting business in Nassau County, New York, and is in possession of the funds at issue in this present dispute. BACKGROUND 3. On October 24, 2016 the Court entered a final judgment against judgment debtors Agile Outsourced Solutions LLC and Steven Gary Gittleson (the "judgment debtors") in the "Judgment" amount of $41, (the "Judgment"). A true and correct copy of the judgment is attached hereto as Exhibit A. 4. Thereafter, on May 2, 2017, judgment creditor issued an Information Subpoena with Restraining Notice to Citibank, N.A. regarding accounts of Mr. Gittelson, which included {M! } j.1 of 3

21 INDEX NO /2018 FILED : NASSAU COUNTY CLERK 03/23/ : 21 P$ NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/23/2018 an exemption notice and exemption claim form pursuant to NY CPLR 5222-A(b). A true and correct copy of the information subpoena is attached hereto as Exhibit B. 5. Citibank, N.A. responded to the Information Subpoena with Restraining Notice on May 15, 2017 indicating that it was holding funds in the amount of $83, from accounts maintained by Mr. Gittelson. A true and correct copy of Citibank, N.A.'s answer is attached hereto as Exhibit C. 6. Also, on May 15, 2017, Citibank, N.A. provided Mr. Gittelson with notice of the restraining notice and of his opportunity to claim an exemption with respect to the funds by mailing the notice to him at his last known address, pursuant to NY CPLR 5222-A(b). 7. Mr. Gittelson did not assert any exemption with respect to the funds held by Citibank, N.A. 8. On July 24, 2017, the judgment debtor filed his Motion and Affidavit in Support of Motion to vacate default judgment. 9. By order of this Court dated January 24, 2018, the judgment debtors' motion was denied. A true and correct copy of the January 24, 2018 order is attached hereto as Exhibit D. 10. As March 22, 2018, the amount due and owing under the Judgment is: Principal Balance Due: $41, Post-Judgment Interest: $ 5,304A8 (Per diem of 514 days) Total Due: $47, Because Citibank, N.A.'s answer establishes that they are indebted to the judgment debtor Steven Gary Gittelson in the amount of $83,666.24, and because the judgment debtor has not claimed any exemption as to the funds, judgment creditor Continental Bank is {M } 2 of 3

22 FILED : NAS SAU COUNTY CLERK 03/23/ : 21 P1 INDEX NO /2018 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/23/ entitled to the entry of an order directing Citibank, N.A. to turn over funds in the amount of $47, toward the satisfaction of judgment creditor's unpaid judgment. WHEREFORE, judgment creditor Continental Bank respectfully requests that the Court grant this Petition, and enter an order (1) directing Citibank, N.A. to turn over funds in the amount of $47, to Continental Bank; and (2) awarding such further and different relief which the Court deems appropriate under the circumstances. Dated: March 23, 2018 JONES WALKER, LLP By Michael Anthony Shaw, Esq. New York Bar No.: JONES WALKER LLP 201 S. Biscayne Blvd., Suite 2600 Miami, FL Telephone: (305) miamiservice@joneswalker.com Counsel for PlaintiffContinental Bank {M } 3 of 3