{00922219.

DOC}

MARC C. SINGER
973.645.4839
msinger@saiber.com


May 23, 2014

VIA ECF

The Hon. Paul A. Crotty, U.S.D.J .
United States District Court
500 Pearl Street, Chambers 1350
New York, New York 10007-1312

Re: Securities & Exchange Commission v. John Babikian, 14-cv-1740

Dear J udge Crotty:

We represent Alima Beg, the ex-wife of John Babikian, individually and in her capacity
as sole shareholder of 9292-9025 Quebec, Inc., a Quebec Corporation (Beg). We write to
respectfully request the Courts permission to allow Ms. Beg to file a motion to intervene as of
right pursuant to Fed. R. Civ. P. 24(a), and for relief from the Courts Order dated April 21, 2014
[Docket Entry No. 31], freezing Babikians assets and extending a writ of attachment on property
co-owned by Ms. Beg, through her entity, 942 North Laurel Avenue, Los Angeles, California,
90038 (the North Laurel Property). Counsel for the Securities and Exchange Commission has
indicated that it consents to Ms. Begs intervention and a lift of the Order for the limited purpose
of permitting the sale of the North Laurel Property to close, subject to certain conditions as set
forth herein.

Prior to the SECs initiation of this action against Babikian, and pursuant to their divorce
judgment, Babikian was directed to sell the North Laurel Property, and remit fifty-percent of the
proceeds of the sale to Ms. Beg. The property was listed for sale, and an offer for $2,550,000
was accepted on or about February 20, 2014, with the property scheduled to close on or about
March 20, 2014. J ust under one week prior to the closing, the SEC filed this action against
Babikian, and obtained a Temporary Restraining Order [Docket Entry No. 4], freezing his assets
and obtaining writs of attachment against real property owned by him, including the North
Laurel Property. That Order was extended by Order dated April 21, 2014. Because the Courts
orders have prevented the sale from closing, and the buyers have waited for nearly sixty days
past the anticipated closing date, Ms. Beg risks losing the buyers in the absence of an Order from
this Court.

Case 1:14-cv-01740-PAC Document 40 Filed 05/23/14 Page 1 of 3
The Hon. Paul A. Crotty, U.S.D.J .
May 23, 2014
Page 2

{00922219.DOC}
It is respectfully submitted that the Court should permit Ms. Beg to intervene as of right
under these circumstances. Intervention as of right should be granted where a party: (1) files a
timely motion; (2) asserts an interest relating to the property or transaction that is the subject
matter of the action; (3) demonstrates an impairment of that interest without intervention; and (4)
establishes that such interest is not adequately protected by the other parties to the litigation.
United States v. Pitney Bowes, Inc., 25 F.3d 66, 70 (2d Cir. 1994) (internal citations omitted);
Fed. R. Civ, P. 24(a). Ms. Begs anticipated application is timely as the freezing Order was just
entered April 21, 2014, and she has unquestionably demonstrated an interest in property forming
the subject matter of this action. Ms. Begs interest cannot be adequately represented by the
current parties to the litigation. There is no contention by the SEC that Ms. Beg engaged in any
wrongdoing forming the subject matter of the Complaint, yet she is unable to proceed with the
sale of property in which she maintains a fifty-percent interest, and is being prevented from
realizing the proceeds of that sale to meet her daily needs.

Ms. Beg has voluntarily complied with the SECs request for documents and information
concerning her fifty-percent ownership interest in the North Laurel Property. After undertaking
a review of the relevant documents, counsel for the SEC consents to Ms. Begs request to
intervene for the limited purpose of the lifting the Courts Order dated April 21, 2014, and to
allowing the sale of the North Laurel Property to proceed. Ms. Beg will also seek permission
from the Court to receive her share of the proceeds after the closing because she is experiencing
financial hardship. At this point in time, the SEC does not consent to Ms. Begs request to
release her share of the proceeds directly to her and/or to allow her attorney to hold them in
escrow, notwithstanding her precarious financial situation. The SEC also requires that
Babikians share of the proceeds be subject to the courts freezing Order, which Ms. Beg does
not oppose.

If permitted to make a motion to intervene, Ms. Beg respectfully requests that the Court
decide her application for relief on an expedited basis. Ms. Beg is currently unemployed, has not
been awarded alimony, has mounting legal fees, and her other assets have been seized by the
Quebec Minister of Revenue because Babikian apparently owes substantial sums of money to it
for unpaid income taxes. It is imperative that Ms. Beg be permitted to intervene not only to
ensure the sale transaction closes expeditiously to prevent the buyers from changing their minds,
but also because she requires the funds because she has no income.

We appreciate the Courts time in considering Ms. Begs request. Subject to the Court's
permission and the SEC's agreement, we would respectfully ask for an expedited briefing
schedule so that the application can be heard on the earliest possible date.





Case 1:14-cv-01740-PAC Document 40 Filed 05/23/14 Page 2 of 3
The Hon. Paul A. Crotty, U.S.D.J .
May 23, 2014
Page 3

{00922219.DOC}


Should the Court require any further information, please do not hesitate to contact me.

Respectfully submitted,

/s/ Marc C. Singer

MARC C. SINGER


cc: All Counsel of Record via ECF
Ms. Anne-France Goldwater (via electronic mail)
Ms. Alima Beg (via electronic mail)





Case 1:14-cv-01740-PAC Document 40 Filed 05/23/14 Page 3 of 3