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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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observationobservation
Gross $25,769,369.03; registry $23,736,937.56 after named deductions.
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issue concerning a material fact only arises when the evidence, viewed in the light most favorable
to the non-moving party, is sufficient to allow a reasonable trier of fact to return a verdict in that
party’s favor. Rhoades v. United States Army Corps of Engineers, No. 3:22-CV-728-HEH, 2023
WL 3981271, at *3 (E.D. Va. June 13, 2023) (citing JKC Holding Co. LLC v. Washington Sports
Ventures, Inc., 264 F.3d 459, 465 (4th Cir. 2001)).
A simple allegation of a dispute of fact is not enough to defeat a summary judgment motion;
rather, “[o]nly disputes over facts which might affect the outcome of the suit under the governing
law will properly preclude the entry of summary judgment. Factual disputes that are irrelevant or
unnecessary will not be counted.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). “The
mere existence of some alleged factual dispute between the parties … will not defeat an otherwise
properly supported motion for summary judgment; the requirement is that there be no genuine
issue of material fact.” Hooven-Lewis v. Caldera, 249 F.3d 259, 265 (4th Cir. 2001) (emphasis in
original) (citing Anderson, 477 U.S. at 247–48). When the record here is viewed consistent with
this standard, summary judgment in favor of the Receiver is appropriate.
STATEMENT OF UNDISPUTED FACTS
Pursuant to Local Civil Rule 56(B), the Receiver lists the following material facts that the
Receiver contends there is no genuine issue:
Cyberlux Contract and Payment of Corpus
1. In September 2014, the United States awarded HII a federal contract, Prime
Contract No. GS00Q14OADU109; Task/Delivery Order No. 47QFCA22F00039 and Technical
Direction Letter 1-023 (the “Prime Contract”), supporting the Department of Navy and the
General Services Administration, the Federal Systems Integration and Management Center. 1st
Am. Compl. ¶ 18; Berleth Decl. ¶ 6.
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observationobservation
Proposed waterfall differs from itemised claimed debts.
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Receiver is entitled to summary judgment for his fees, in the amount of 25% of the remaining
Corpus, or $5,934,234.39.
4. Priorities.
The Interpleader Defendants each claim an interest in the Corpus:
a. Cyberlux claim is unknown, though presumed to be the entire Corpus;
b. Atlantic Wave and Secure Community claim $6,025,603.42, not inclusive
of interest (per Interrogatory Answer);
c. Legalist claims $13,204,742.88 (per Interrogatory Answer);
d. USA claims $1,149,776.34, not inclusive of interest (per Interrogatory
Answer);
e. ANPC claims $3,087,878.86 (per Interrogatory Answer);
f. WeShield claims $3,905,541.64 (per Interrogatory Answer);
g. Roman Investments claims $576,436.03 (per Interrogatory Answer);
h. MAS claims $215,062.95 (per Interrogatory Answer);
i. Mr. Sinensky claims $310,097.79 (per Interrogatory Answer);
j. Fairwinds claims $2,348,542.00 (per Interrogatory Answer);
k. TAG claims $1,385,489.46 (per Interrogatory Answer);
l. ARG claims $14,118,618.61 (per Complaint in Intervention of the ARG
Group, LLC [D.N. 155]); and
m. The Receiver claims $5,934,234.39 as his fee pursuant to the Order.
In total, the Interpleader Defendants (not including the Receiver), which do not encompass
all of Cyberlux’s creditors, claim at least $46,327,789.98. Including the Receiver, the claims in
this Interpleader Action, total $52,262,024.37. However, not all of the claims asserted by certain
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claimallegation
Berleth’s15April2026 ECF176 summary-judgment brief seeks the interpleaded fund for creditor distribution or at least $5,934,234.39 as a25% r
Berleth’s15April2026 ECF176 summary-judgment brief seeks the interpleaded fund for creditor distribution or at least $5,934,234.39 as a25% receiver fee. It relies on a Texas order, his declaration and other exhibits not included in this20-page main brief; counsel certifies filing/service. The request is not an allowance or turnover order.
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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claimallegation
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, l
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, leaving $9,339,299.66. The receiver argues his fee is analogous to a bankruptcy administrative priority. He alternatively says if the court entrusts the whole or post-USA/Legalist remainder to him, he will take a pro-rata portion with the listed unsecured creditors. This conditional alternative is not the same as irrevocably waiving his priority claim.
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Interpleader Defendants are valid, and certain claims have higher priority, such as the claim by the
United States Government for Cyberlux’s tax liability, as well as Legalist’s secured claim for
amounts that pre-date the Receivership. Similarly, because the Receiver acts like a trustee in a
bankruptcy, his fees and costs are administrative expenses and have priority. See 11 U.S.C. § 507;
see e.g. Va. Code § 55.1-324 (detailing how trustee under deed of trust shall first discharge the
expenses of executing the trust, including a reasonable commission to the trustee). In a bankruptcy
proceeding, “[a]dministrative expense claims . . . are entitled to payment as a second priority under
the distribution scheme provided in the Bankruptcy Code.” In re Health Diagnostic Laboratory,
Inc., 557 B.R. 885, 893 (Bankr. E.D.Va. 2016). “Courts generally agree that ‘an administrative
expense has two defining characteristics: (1) the expense and right to payment arise after the filing
of bankruptcy, and (2) the consideration supporting the right to payment provides some benefit to
the estate.’” Id. (quoting CIT Commc’n Fin. Corp. v. Midway Airlines Corp. (In re Midway Airlines
Corp.), 406 F.3d 229, 237 (4th Cir. 2005)). Here, the Receiver’s right to payment arises from the
Order, which is a post-judgment order, and the consideration for the Receiver’s fee is his role in
securing the Corpus. In fact, in Paragraph 53, the Order provides that “[t]he Receiver’s fees and
expenses are considered costs of court.” Vaccaro v. Raymond James & Assocs., 655 S.W.3d 485,
490 (Tex. Ct. App. 2022). See Hill v. Hill, 460 S.W.3d 751, 760 n.6 (Tex. Ct. App. 2015) (in case
involving § 64.001 receiver, noting that receiver’s fees are entitled to priority over other creditors
(citing Jordan v. Burbach, 330 S.W.2d 249, 252 (Tex. Ct. App. 1959)). Ultimately, the Corpus is
sufficient to provide payment to Legalist and its secured claim that pre-dates the Receivership, to
the United States Government for tax payments, and to the Receiver for his fee. Should the Court
not grant summary judgment providing the Corpus to the Receiver for distribution to Cyberlux’s
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claimallegation
The receiver proposes pro-rata allowed non-insider claims: ANPC $2,926,814.39 (different from its earlier claimed balance), ThinAir $1,385,4
The receiver proposes pro-rata allowed non-insider claims: ANPC $2,926,814.39 (different from its earlier claimed balance), ThinAir $1,385,489.46, Fairwinds $2,348,542, ARG $4.2million described as an agreed reduction to actual-sales commission, and Catalyst Machineworks $2,676,378.58. The agreement and allowance grounds are not attached, and the section’scurrent-party label should not settle procedural participation for every listed creditor.
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(1) ANPC: $2,926,814.39.
(2) Thin Air Gear, LLC: $1,385,489.46.
(3) Fairwinds Technologies: $2,348,542.00.
(4) ARG Group (agreed reduction to commission on actual sales, not
contracted amount): $4,200,000.00.
(5) Catalyst Machineworks, LLC (Phillip Tucker and Neill Whiteley):
$2,676,378.58.
e. Unsecured, non-party14 creditors, non-insider claims. Should these nonparties intervene, the claims are legitimate, as they represent claims for
services related to the Subcontract or services to Cyberlux and should be
paid pro-rata with paragraph 4 creditors:
(1) Aerotek, Inc.: $235,411.27
(2) Clayton Services: $786,155.07
(3) Northwind Axis Advisory: $36,691.95
(4) Marlin Leasing Corp: $36,009.40
(5) 3rd Gen. Development: $342,478.34
The remaining claims represent Legalist’s remaining balance of $5,891,115.71, which is
money lent and interest earned following the Receivership, as well as a number of insiders or
invalid claims, as the agreements made with Cyberlux were done outside the Receiver’s
knowledge or approval, and without authority by Cyberlux pursuant to the Order. While in
Receivership, a number of parties entered into agreements, or caused judgments and security
agreements to be entered. Similarly, certain Interpleader Defendants are “insiders” as defined by
14 The Receiver expects certain of these non-parties to file a Motion to Intervene.
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claimallegation
Conditional on intervention, he recommends Aerotek $235,411.27, ClaytonServices $786,155.07, NorthwindAxisAdvisory $36,691.95, MarlinLeasing
Conditional on intervention, he recommends Aerotek $235,411.27, ClaytonServices $786,155.07, NorthwindAxisAdvisory $36,691.95, MarlinLeasing $36,009.40 and3rdGenDevelopment $342,478.34 pro-rata. These are his proposed legitimacy/classification judgments about non-parties, not court allowances.
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(1) ANPC: $2,926,814.39.
(2) Thin Air Gear, LLC: $1,385,489.46.
(3) Fairwinds Technologies: $2,348,542.00.
(4) ARG Group (agreed reduction to commission on actual sales, not
contracted amount): $4,200,000.00.
(5) Catalyst Machineworks, LLC (Phillip Tucker and Neill Whiteley):
$2,676,378.58.
e. Unsecured, non-party14 creditors, non-insider claims. Should these nonparties intervene, the claims are legitimate, as they represent claims for
services related to the Subcontract or services to Cyberlux and should be
paid pro-rata with paragraph 4 creditors:
(1) Aerotek, Inc.: $235,411.27
(2) Clayton Services: $786,155.07
(3) Northwind Axis Advisory: $36,691.95
(4) Marlin Leasing Corp: $36,009.40
(5) 3rd Gen. Development: $342,478.34
The remaining claims represent Legalist’s remaining balance of $5,891,115.71, which is
money lent and interest earned following the Receivership, as well as a number of insiders or
invalid claims, as the agreements made with Cyberlux were done outside the Receiver’s
knowledge or approval, and without authority by Cyberlux pursuant to the Order. While in
Receivership, a number of parties entered into agreements, or caused judgments and security
agreements to be entered. Similarly, certain Interpleader Defendants are “insiders” as defined by
14 The Receiver expects certain of these non-parties to file a Motion to Intervene.
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claimallegation
He places Legalist’sremaining $5,891,115.71 and purported insider/invalid claims behind those tiers, arguing post-receivership agreements la
He places Legalist’sremaining $5,891,115.71 and purported insider/invalid claims behind those tiers, arguing post-receivership agreements lacked his authority. He cites historical Schmidt presidency ofAtlanticWave and speculates about ownership to support insider concerns, while acknowledging precedent cautions against discouraging good-faith insider loans. Historical office or speculative ownership does not itself establish applicable insider status.
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(1) ANPC: $2,926,814.39.
(2) Thin Air Gear, LLC: $1,385,489.46.
(3) Fairwinds Technologies: $2,348,542.00.
(4) ARG Group (agreed reduction to commission on actual sales, not
contracted amount): $4,200,000.00.
(5) Catalyst Machineworks, LLC (Phillip Tucker and Neill Whiteley):
$2,676,378.58.
e. Unsecured, non-party14 creditors, non-insider claims. Should these nonparties intervene, the claims are legitimate, as they represent claims for
services related to the Subcontract or services to Cyberlux and should be
paid pro-rata with paragraph 4 creditors:
(1) Aerotek, Inc.: $235,411.27
(2) Clayton Services: $786,155.07
(3) Northwind Axis Advisory: $36,691.95
(4) Marlin Leasing Corp: $36,009.40
(5) 3rd Gen. Development: $342,478.34
The remaining claims represent Legalist’s remaining balance of $5,891,115.71, which is
money lent and interest earned following the Receivership, as well as a number of insiders or
invalid claims, as the agreements made with Cyberlux were done outside the Receiver’s
knowledge or approval, and without authority by Cyberlux pursuant to the Order. While in
Receivership, a number of parties entered into agreements, or caused judgments and security
agreements to be entered. Similarly, certain Interpleader Defendants are “insiders” as defined by
14 The Receiver expects certain of these non-parties to file a Motion to Intervene.
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claimallegation
The receiver puts Cyberlux last, offers to report proposed distributions and fees to the federal orTexas court as directed with creditor obj
The receiver puts Cyberlux last, offers to report proposed distributions and fees to the federal orTexas court as directed with creditor objection opportunities, and repeats that he is best placed to administer funds. This describes a proposed controlled distribution process, not evidence that distributions occurred.
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creditors, the Receiver proposes the following with respect to the distribution and validity of
claims:
a. USA for the full amount: $1,149,776.34.
i. This would leave approximately $22,587,161.22 of the Corpus.
b. Legalist’s secured claim for the amount owed as of May 22, 202512:
$7,313,627.17.
i. This would leave approximately $15,273,534.05 of the Corpus.
c. The Receiver’s fees, as administrative fee with priority over unsecured
creditors pursuant to the Order and substantially similar to 11 U.S.C. §
507(a)(2): 25% of the Corpus or $5,934,234.39.
i. This would leave approximately $9,339,299.66 of the Corpus.
However, should the Court order the entire Corpus, or the amount
remaining after payments to the USA and Legalist’s claim as of May
22, 2025 (approximately $15,273,534.05), the Receiver will take a
pro-rata portion in connection with the claims set forth in (d) and (e)
below.13
d. Unsecured, current party, non-insider claims. All legitimate and should be
paid pro-rata:
12 May 22, 2025 is the date the Order was signed establishing the Receivership. Any action taken
after this date would have required authority from the Receiver. Nevertheless, given Legalist and
Cyberlux still have a business relationship and Cyberlux continues to make public disclosures in
connection with obligations to the Securities and Exchange Commission, such quarterly reports
indicate that Legalist and the other insider creditors should not have any issue collecting from
Cyberlux.
13 The Receiver, similarly, will report to either this Court, or the Texas Court, as this Court directs,
for recommendations of distributions for creditors, including the Receiver’s fees, with an
opportunity for each creditor to object.
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claimallegation
The receiver identifies14 current claimants, notes HII dropped some originally named creditors who later intervened, and asserts at least a
The receiver identifies14 current claimants, notes HII dropped some originally named creditors who later intervened, and asserts at least a dozen additional creditors including employees and $70million total debts. He says the fund is Cyberlux’sonly known substantial asset despite public reports; neither a complete creditor register nor independent asset valuation is attached.
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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claimallegation
The brief recounts federal prime/task order and29August2023 subcontract,13May/17May2024 terminations,26February2025 Mod4, and government-dir
The brief recounts federal prime/task order and29August2023 subcontract,13May/17May2024 terminations,26February2025 Mod4, and government-directed inventory shipment. It reports HII received $2,757,254.39 on28May2025 and $23,012,114.64 on15July, totalling $25,769,369.03 subject to Mod4§7 setoff/recoupment. These are attributed recitations of complaint/declaration, not attached bank evidence or acceptance records.
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issue concerning a material fact only arises when the evidence, viewed in the light most favorable
to the non-moving party, is sufficient to allow a reasonable trier of fact to return a verdict in that
party’s favor. Rhoades v. United States Army Corps of Engineers, No. 3:22-CV-728-HEH, 2023
WL 3981271, at *3 (E.D. Va. June 13, 2023) (citing JKC Holding Co. LLC v. Washington Sports
Ventures, Inc., 264 F.3d 459, 465 (4th Cir. 2001)).
A simple allegation of a dispute of fact is not enough to defeat a summary judgment motion;
rather, “[o]nly disputes over facts which might affect the outcome of the suit under the governing
law will properly preclude the entry of summary judgment. Factual disputes that are irrelevant or
unnecessary will not be counted.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). “The
mere existence of some alleged factual dispute between the parties … will not defeat an otherwise
properly supported motion for summary judgment; the requirement is that there be no genuine
issue of material fact.” Hooven-Lewis v. Caldera, 249 F.3d 259, 265 (4th Cir. 2001) (emphasis in
original) (citing Anderson, 477 U.S. at 247–48). When the record here is viewed consistent with
this standard, summary judgment in favor of the Receiver is appropriate.
STATEMENT OF UNDISPUTED FACTS
Pursuant to Local Civil Rule 56(B), the Receiver lists the following material facts that the
Receiver contends there is no genuine issue:
Cyberlux Contract and Payment of Corpus
1. In September 2014, the United States awarded HII a federal contract, Prime
Contract No. GS00Q14OADU109; Task/Delivery Order No. 47QFCA22F00039 and Technical
Direction Letter 1-023 (the “Prime Contract”), supporting the Department of Navy and the
General Services Administration, the Federal Systems Integration and Management Center. 1st
Am. Compl. ¶ 18; Berleth Decl. ¶ 6.
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claimallegation
Berleth asserts an oral appointment16January2025, written order22May, possession/lock change23May and final shipment30May. He credits his ow
Berleth asserts an oral appointment16January2025, written order22May, possession/lock change23May and final shipment30May. He credits his own intervention as indispensable to creating the fund and says Cyberlux resisted through two removals/remands and an unsuccessful appeal. The but-for causation and likely nonpayment absent his intervention are his advocacy, not adjudicated facts.
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Advanced Navigation and Positioning Corporation (“ANPC”); (7) the Receiver; (8) Assure Global
LLC d/b/a WeShield (“WeShield”); (9) Roman Investments PR LLC (“Roman Investments”);
(10) MAS USA MGT LLC (“MAS”); (11) Michael Sinensky (“Mr. Sinensky” and together with
WeShield, MAS, and Roman Investments, the “Sinensky Creditors”); (12) Fairwinds
Technologies LLC (“Fairwinds”); (13) Thin Air Gear, LLC (“TAG”); and (14) ARG Group, LLC
(“ARG”) (together, the “Interpleader Defendants”). With the exception of the Sinesky Creditors,
Fairwinds, TAG, and ARG who filed motions to intervene, these are parties selected by HII to be
a part of this action.3
But, there are a number of other creditors of Cyberlux who likely claim an
interest in the funds at issue, but may not have notice of this interpleader action.
The Receiver’s interest arises from the Texas court’s appointment of him as the Receiver
and then also from his efforts to ensure that there were funds available in the first instance. Indeed,
without the Receiver, no creditor would be able to make a claim to the interpleaded funds HII
owed to Cyberlux totaling $25,769,369.03 (the “Corpus”).4
The Receiver was instrumental in
ensuring that the Corpus was due and owed to Cyberlux, through the Receiver, for satisfaction of
Cyberlux’s requirements pursuant to the agreement between HII and Cyberlux. In fact, none of the
funds would be available to any creditor, but for the Receiver’s efforts. See Berleth Decl. attached
as Exhibit B. These efforts began in earnest on January 16, 2025, when the 129th District Court
for Harris County, Texas (the “Texas Court”), Cause No. 2024-48085, established the
3
Notably, HII included TAG and ARG, among others, in their initial Complaint for Interpleader,
but did not include TAG, ARG, and certain others in its Amended Complaint for Interpleader.
4
The Corpus constitutes the amount that was due to Cyberlux under its subcontract with HII,
which in turn, held a prime contract with the United States Government to support, among others,
the Department of the Navy. The Corpus has since been reduced following a Garnishment
proceeding in Fairfax Cir. Ct. and the payment of HII’s legal fees. The Corpus and amount
deposited into this Court’s Registry, in an interest-bearing account, is $23,736,937.56.
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claimallegation
The brief reconciles gross $25,769,369.03 to registry $23,736,937.56 by deducting $1,444,543.11 Fairfax garnishment and $587,888.36 HII fees
The brief reconciles gross $25,769,369.03 to registry $23,736,937.56 by deducting $1,444,543.11 Fairfax garnishment and $587,888.36 HII fees/costs, citingECF150/153. It describes Fairfax orders22July and15August2025 and payment to Atlantic Wave. The printed registry amount in paragraph23 contains punctuation error $23,736.937.56; other passages show the intended amount.
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16. As a member of both NAFER7
and TATR8
, Mr. Berleth is an experienced and
respected receiver in state and federal courts. Berleth Decl. ¶ 3-4.
17. On May 23, 2025, the Receiver took physical possession of the Cyberlux
manufacturing facility located at 21631 Rhodes Road, Spring, Texas 77388, and changed the locks
to the building, took precursory inventory, and secured the entire premises. Berleth Decl. ¶ 12.
18. Working with the parties, the Receiver coordinated the final shipments of
Government property over the next several weeks, with the final truck departing the manufacturing
facility on May 30, 2025. Berleth Decl. ¶ 13.
19. The Receiver coordinated with HII and confirmed the total payment of
$25,769,369.03 from HII. Berleth Decl. ¶ 13.
20. Consistent with the Order, on July 17, 2025, the Receiver requested that HII seize
and forward to him any funds held by HII, which funds are non-exempt assets. Berleth Decl. ¶ 19.
21. On July 22, 2025, and August 15, 2025, the Circuit Court for Fairfax County
ordered the payment of $1,444,543.11 into that court’s registry, which was then paid to Atlantic
Wave. [D.N. 150.]
22. HII incurred costs and attorneys’ fees in connection with this matter totaling
$587,888.36, which was recouped from the Corpus. [D.N. 150.]
23. The Corpus, not inclusive of interest earned, available for distribution totals
$23,736.937.56. [D.N. 153.]
24. The Receiver has the ability to properly disburse the funds in accordance with the
Order and anticipated subsequent orders from the Texas Court, which would give all creditors an
7
National Association of Federal Equity Receivers.
8
Texas Association of Turnover Receivers.
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claimallegation
The receiver asserts the Texas order remains operative, grants a judicial lien and exclusive custody of nonexempt assets, and requires third
The receiver asserts the Texas order remains operative, grants a judicial lien and exclusive custody of nonexempt assets, and requires third-party turnover within ten working days of demand. He acknowledges HII did not remit funds and the federal court denied his earlier deposit motion. Scope and effect of the quoted order remain legal positions requiring the order and governing decisions.
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the underlying judgment remains unpaid, and (3) that the judgment debtor owns nonexempt
property.” Custom Coils, Inc. v. Nash, No. 12-25-00164-CV, 2026 WL 308270, at *4 (Tex. Ct.
App. Feb. 4, 2026). Those elements were met, and the Texas Court appointed the Receiver. Order
¶ 6. The turnover statute is deemed to be remedial in nature and is construed liberally to enable
collection by the judgment creditor. See Haden v. David J. Sacks, P.C., 332 S.W.3d 523, 530 (Tex.
Ct. App. 2009) (“Because the statute is procedural and thus remedial in nature, we must adopt a
construction that, in the absence of an express legislative prohibition to the contrary, will enable
collection by the judgment creditor, here the law firm, against the judgment debtor, here Haden
and the company.”); see also Order ¶ 8 (holding that a Receiver is necessary “with the power and
authority to take possession of all leviable property of the Debtors”). The Receiver is entitled to
take possession of Cyberlux’s non-exempt property, which primarily, if not exclusively includes,
the Corpus.
1. The Receivership in Texas is Still in Effect.
The Order remains the operative order that the Receiver is abiding by with respect to the
Receivership in place in Texas. Cyberlux is a judgment debtor- as it relates to Atlantic Wave and
numerous other creditors. The Order provides the Receiver with unique powers and demands
certain actions, including the exclusive possession and custody of Cyberlux’s property and
delivery of same to the Receiver, among other powers. See Order ¶ 10 (“Pursuant to this order, the
Receiver will have a judicial lien on all non-exempt assets of the Debtor and on all non-exempt
community assets of Debtor regardless of whether the Receiver takes actual possession.”). In
securing assets, third parties are ordered to deliver property to the Receiver within ten working
days of Receiver’s demand. Order ¶ 19(a). Included in the Order is the possession of certain
property including, but not limited to, Cyberlux’s financial accounts, account receivables,
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claimallegation
The brief acknowledges Texas denied the20February2026 amended motion to expand receivership but argues denial did not terminate it and quote
The brief acknowledges Texas denied the20February2026 amended motion to expand receivership but argues denial did not terminate it and quoted Texas language points to theVirginia interpleader. It asks the federal court to expand authority. A footnote describes two additionalTexas receivership applications while expressly admitting no receiver had been appointed in either; future appointments are not established.
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negotiable instruments, contract rights, and other property, while remaining assured that the first
receivership, the Order, controls. Order ¶¶ 14, 23, 25. The Receiver made demand on HII for the
Corpus and, similarly, moved this Court for an order requiring HII deposit the Corpus into this
Court’s Registry in July, 2025. HII did not remit the Corpus to the Receiver, and the Court denied
the Receiver’s motion. The Receiver attempted to work within the confines of the Order to obtain
the Corpus for distribution to creditors. Nevertheless, the Order pre-dates the instant litigation and
this Court should give deference and authority to the underlying Texas Court’s Order—particularly
when it remains operative and permits the Receiver the authority to marshal Cyberlux’s resources
and assets. See generally Order.
2. This Court Should Expand the Receivership.
While the February 20, 2026, Amended (Joint) Motion to Supplement Receivership,
seeking to expand the Receiver’s authority was denied, the Texas Court did not terminate the
Receivership or the Order. Notably, the Texas Court indicated that the issues arising from seeking
permission to satisfy several judgments “are best addressed and considered in the Virginia
Interpleader case.”10 [D.N. 161, Ex. A.] The Order provides not only the authority for the Receiver
to marshal Cyberlux’s assets, but provides that “[t]he first receivership order signed controls. . . .
The assets are in the control of the court for the first receivership.” Order, ¶ 23. The first
receivership is the Receivership. Because there can be no serial receiverships, “[t]he Receiver may
obtain permission from this and other courts to satisfy several judgments against the same debtor.”
10 The Receiver, with his knowledge of Cyberlux, the Corpus, and the various parties asserting a
claim to the Corpus, as an agent of the Texas Court is in the best position to help resolve those
claims. The Order permits this in either this matter, the Virginia Interpleader case, or the matter in
Texas. This is particularly true when not all of Cyberlux’s creditors are parties to the Virginia
Interpleader case.
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claimallegation
The receiver invokes custodia legis and says order¶53 entitles him to25% of assets/recoveries/credits, potentially33% upon collecting the fu
The receiver invokes custodia legis and says order¶53 entitles him to25% of assets/recoveries/credits, potentially33% upon collecting the full judgment. He analogises reasonableness factors and distinguishes receiver fees from attorney fees, requesting25% of the remaining registry fund, $5,934,234.39; a footnote separately lists25% of gross as $6,442,342.25. His fee base and legal entitlement remain requests.
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acknowledgement that “[t]he 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 [Cyberlux] nonexempt property becomes property in custodia legis, or ‘in the custody of
the law.’” Order ¶ 9 (citing First S. Props., Inc. v. Vallone, 533 S.E.2d 339, 343 (Tex. 1976)).
More specifically, “[d]uring the pendency of a Receivership, the Receiver has exclusive possession
and custody of the judgment debtor’s property to which the Receivership relates.” Id. In First
Southern Properties, Inc., the court holds “[n]o one has authority, even under a prior deed of trust
or execution, to sell property held in custodia legis by a duly appointed receiver, unless the sale is
authorized by the court in which the receivership is pending.” Id. at 341 (citations omitted).
Here, the Receiver’s efforts resulted in the Corpus being available to Cyberlux’s creditors
in the first instance, as the Receiver’s Declaration makes plain. The Receiver was instrumental in
ensuring that the Corpus was due and owed to Cyberlux for satisfaction of Cyberlux’s
requirements pursuant to the agreement between HII and Cyberlux. Accordingly, the Receiver’s
interest is clear and he is entitled to summary judgment for his fees and costs (25% of the remaining
Corpus) in marshalling the Corpus as an available remedy to Atlantic Wave and the other creditors.
However, it remains clear that he is further entitled to summary judgment for the additional
authority and direction from this Court to use the Corpus to satisfy Cyberlux’s debts, or at a
minimum, satisfy the outstanding judgment subject to the Receivership.
3. The Receiver is Entitled to his Fee.
In addition, the Receiver is entitled to his fees and costs from the Corpus with respect to
the Receivership and the entitlement of funds from the Corpus following his direct involvement in
ensuring the Corpus, in its entirety, was available for the Receiver or this Court to determine how
Cyberlux’s legitimate creditors would be paid. The turnover statute authorizes recovery of
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claimallegation
The brief lists claims from interrogatory answers: AW/Secure $6,025,603.42; Legalist $13,204,742.88; USA $1,149,776.34; ANPC $3,087,878.86;
The brief lists claims from interrogatory answers: AW/Secure $6,025,603.42; Legalist $13,204,742.88; USA $1,149,776.34; ANPC $3,087,878.86; WeShield $3,905,541.64; Roman $576,436.03; MAS $215,062.95; Sinensky $310,097.79; Fairwinds $2,348,542; ThinAir $1,385,489.46; ARG $14,118,618.61 from its complaint. These sum to the printed $46,327,789.98, or $52,262,024.37 with receiver’sfee. They are claimed amounts, not allowed debts; Cyberlux’sunspecified residual claim is excluded.
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Receiver is entitled to summary judgment for his fees, in the amount of 25% of the remaining
Corpus, or $5,934,234.39.
4. Priorities.
The Interpleader Defendants each claim an interest in the Corpus:
a. Cyberlux claim is unknown, though presumed to be the entire Corpus;
b. Atlantic Wave and Secure Community claim $6,025,603.42, not inclusive
of interest (per Interrogatory Answer);
c. Legalist claims $13,204,742.88 (per Interrogatory Answer);
d. USA claims $1,149,776.34, not inclusive of interest (per Interrogatory
Answer);
e. ANPC claims $3,087,878.86 (per Interrogatory Answer);
f. WeShield claims $3,905,541.64 (per Interrogatory Answer);
g. Roman Investments claims $576,436.03 (per Interrogatory Answer);
h. MAS claims $215,062.95 (per Interrogatory Answer);
i. Mr. Sinensky claims $310,097.79 (per Interrogatory Answer);
j. Fairwinds claims $2,348,542.00 (per Interrogatory Answer);
k. TAG claims $1,385,489.46 (per Interrogatory Answer);
l. ARG claims $14,118,618.61 (per Complaint in Intervention of the ARG
Group, LLC [D.N. 155]); and
m. The Receiver claims $5,934,234.39 as his fee pursuant to the Order.
In total, the Interpleader Defendants (not including the Receiver), which do not encompass
all of Cyberlux’s creditors, claim at least $46,327,789.98. Including the Receiver, the claims in
this Interpleader Action, total $52,262,024.37. However, not all of the claims asserted by certain
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entityobservation
Robert W. Berleth
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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entityobservation
HII Mission Technologies Corp.
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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entityobservation
Cyberlux Corporation
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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entityobservation
Legalist SPV III, LP
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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entityobservation
Atlantic Wave Holdings, LLC
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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entityobservation
Mark D. Schmidt
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
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entityobservation
Robert N. Drewry
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detailed knowledge regarding Cyberlux and its creditors, legitimate and otherwise. As a matter of
law, the Order provides the means and parameters for the Receiver to distribute the Corpus. The
Receiver is prepared to take the Corpus and ensure the legitimate creditors receive their share.
However, the Order and the actions taken by the Receiver to allow the Corpus to be available
provide the Receiver a priority claim for his fees and costs, akin to a bankruptcy trustee.
CONCLUSION
The record in the instant action, and status of the Receiver under Texas law, demonstrates
that the Receiver has priority to receive the Corpus for distribution to creditors pursuant to the
receivership, or, at a minimum, his share of the Corpus for fees and costs in the amount of
$5,934,234.39. For the reasons set forth herein, and during any oral argument, the Receiver is
entitled to summary judgment.
Dated: April 15, 2026 ROBERT W. BERLETH, as RECEIVER
/s/ Robert N. Drewry
Vernon E. Inge, Jr. (Va. Bar No. 32699)
Robert N. Drewry (Va. Bar No. 91282)
Whiteford, Taylor & Preston, L.L.P.
Two James Center
1021 East Cary Street, Suite 2001
Richmond, Virginia 23219
Telephone: 804.977.3301
Facsimile: 804.977.3291
E-Mail: vinge@whitefordlaw.com
rdrewry@whitefordlaw.com
Counsel for the Appointed Receiver,
Robert Berleth, as Receiver for Cyberlux Corp.
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entityobservation
Vernon E. Inge, Jr.
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detailed knowledge regarding Cyberlux and its creditors, legitimate and otherwise. As a matter of
law, the Order provides the means and parameters for the Receiver to distribute the Corpus. The
Receiver is prepared to take the Corpus and ensure the legitimate creditors receive their share.
However, the Order and the actions taken by the Receiver to allow the Corpus to be available
provide the Receiver a priority claim for his fees and costs, akin to a bankruptcy trustee.
CONCLUSION
The record in the instant action, and status of the Receiver under Texas law, demonstrates
that the Receiver has priority to receive the Corpus for distribution to creditors pursuant to the
receivership, or, at a minimum, his share of the Corpus for fees and costs in the amount of
$5,934,234.39. For the reasons set forth herein, and during any oral argument, the Receiver is
entitled to summary judgment.
Dated: April 15, 2026 ROBERT W. BERLETH, as RECEIVER
/s/ Robert N. Drewry
Vernon E. Inge, Jr. (Va. Bar No. 32699)
Robert N. Drewry (Va. Bar No. 91282)
Whiteford, Taylor & Preston, L.L.P.
Two James Center
1021 East Cary Street, Suite 2001
Richmond, Virginia 23219
Telephone: 804.977.3301
Facsimile: 804.977.3291
E-Mail: vinge@whitefordlaw.com
rdrewry@whitefordlaw.com
Counsel for the Appointed Receiver,
Robert Berleth, as Receiver for Cyberlux Corp.
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eventattribution
Receiver files summary-judgment memorandum.
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
Case 3:25-cv-00483-JAG Document 176 Filed 04/15/26 Page 1 of 20 PageID# 3065
eventattribution
Receiver reports securingSpringfacility.
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Page 7 of 20
16. As a member of both NAFER7
and TATR8
, Mr. Berleth is an experienced and
respected receiver in state and federal courts. Berleth Decl. ¶ 3-4.
17. On May 23, 2025, the Receiver took physical possession of the Cyberlux
manufacturing facility located at 21631 Rhodes Road, Spring, Texas 77388, and changed the locks
to the building, took precursory inventory, and secured the entire premises. Berleth Decl. ¶ 12.
18. Working with the parties, the Receiver coordinated the final shipments of
Government property over the next several weeks, with the final truck departing the manufacturing
facility on May 30, 2025. Berleth Decl. ¶ 13.
19. The Receiver coordinated with HII and confirmed the total payment of
$25,769,369.03 from HII. Berleth Decl. ¶ 13.
20. Consistent with the Order, on July 17, 2025, the Receiver requested that HII seize
and forward to him any funds held by HII, which funds are non-exempt assets. Berleth Decl. ¶ 19.
21. On July 22, 2025, and August 15, 2025, the Circuit Court for Fairfax County
ordered the payment of $1,444,543.11 into that court’s registry, which was then paid to Atlantic
Wave. [D.N. 150.]
22. HII incurred costs and attorneys’ fees in connection with this matter totaling
$587,888.36, which was recouped from the Corpus. [D.N. 150.]
23. The Corpus, not inclusive of interest earned, available for distribution totals
$23,736.937.56. [D.N. 153.]
24. The Receiver has the ability to properly disburse the funds in accordance with the
Order and anticipated subsequent orders from the Texas Court, which would give all creditors an
7
National Association of Federal Equity Receivers.
8
Texas Association of Turnover Receivers.
Case 3:25-cv-00483-JAG Document 176 Filed 04/15/26 Page 7 of 20 PageID# 3071
eventattribution
Receiver reports final truck departure.
Read the anchor · page 7
Page 7 of 20
16. As a member of both NAFER7
and TATR8
, Mr. Berleth is an experienced and
respected receiver in state and federal courts. Berleth Decl. ¶ 3-4.
17. On May 23, 2025, the Receiver took physical possession of the Cyberlux
manufacturing facility located at 21631 Rhodes Road, Spring, Texas 77388, and changed the locks
to the building, took precursory inventory, and secured the entire premises. Berleth Decl. ¶ 12.
18. Working with the parties, the Receiver coordinated the final shipments of
Government property over the next several weeks, with the final truck departing the manufacturing
facility on May 30, 2025. Berleth Decl. ¶ 13.
19. The Receiver coordinated with HII and confirmed the total payment of
$25,769,369.03 from HII. Berleth Decl. ¶ 13.
20. Consistent with the Order, on July 17, 2025, the Receiver requested that HII seize
and forward to him any funds held by HII, which funds are non-exempt assets. Berleth Decl. ¶ 19.
21. On July 22, 2025, and August 15, 2025, the Circuit Court for Fairfax County
ordered the payment of $1,444,543.11 into that court’s registry, which was then paid to Atlantic
Wave. [D.N. 150.]
22. HII incurred costs and attorneys’ fees in connection with this matter totaling
$587,888.36, which was recouped from the Corpus. [D.N. 150.]
23. The Corpus, not inclusive of interest earned, available for distribution totals
$23,736.937.56. [D.N. 153.]
24. The Receiver has the ability to properly disburse the funds in accordance with the
Order and anticipated subsequent orders from the Texas Court, which would give all creditors an
7
National Association of Federal Equity Receivers.
8
Texas Association of Turnover Receivers.
Case 3:25-cv-00483-JAG Document 176 Filed 04/15/26 Page 7 of 20 PageID# 3071
eventattribution
Brief acknowledges denial of amendedTexas expansion motion.
Read the anchor · page 10
Page 10 of 20
negotiable instruments, contract rights, and other property, while remaining assured that the first
receivership, the Order, controls. Order ¶¶ 14, 23, 25. The Receiver made demand on HII for the
Corpus and, similarly, moved this Court for an order requiring HII deposit the Corpus into this
Court’s Registry in July, 2025. HII did not remit the Corpus to the Receiver, and the Court denied
the Receiver’s motion. The Receiver attempted to work within the confines of the Order to obtain
the Corpus for distribution to creditors. Nevertheless, the Order pre-dates the instant litigation and
this Court should give deference and authority to the underlying Texas Court’s Order—particularly
when it remains operative and permits the Receiver the authority to marshal Cyberlux’s resources
and assets. See generally Order.
2. This Court Should Expand the Receivership.
While the February 20, 2026, Amended (Joint) Motion to Supplement Receivership,
seeking to expand the Receiver’s authority was denied, the Texas Court did not terminate the
Receivership or the Order. Notably, the Texas Court indicated that the issues arising from seeking
permission to satisfy several judgments “are best addressed and considered in the Virginia
Interpleader case.”10 [D.N. 161, Ex. A.] The Order provides not only the authority for the Receiver
to marshal Cyberlux’s assets, but provides that “[t]he first receivership order signed controls. . . .
The assets are in the control of the court for the first receivership.” Order, ¶ 23. The first
receivership is the Receivership. Because there can be no serial receiverships, “[t]he Receiver may
obtain permission from this and other courts to satisfy several judgments against the same debtor.”
10 The Receiver, with his knowledge of Cyberlux, the Corpus, and the various parties asserting a
claim to the Corpus, as an agent of the Texas Court is in the best position to help resolve those
claims. The Order permits this in either this matter, the Virginia Interpleader case, or the matter in
Texas. This is particularly true when not all of Cyberlux’s creditors are parties to the Virginia
Interpleader case.
Case 3:25-cv-00483-JAG Document 176 Filed 04/15/26 Page 10 of 20 PageID# 3074
inferenceinference
The motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiv
The motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
inferenceinference
The itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claim
The itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
inferenceinference
The alternative pro-rata fee offer is conditioned on entrusting funds to the receiver; it cannot be treated as an unconditional reduction of
The alternative pro-rata fee offer is conditioned on entrusting funds to the receiver; it cannot be treated as an unconditional reduction of the25% priority request.
inferenceinference
Assertions of indispensability, insider status and invalid post-appointment debt require primary shipment/authority/ownership records rather
Assertions of indispensability, insider status and invalid post-appointment debt require primary shipment/authority/ownership records rather than repetition of the receiver’sposition.
otherattribution
Complete supplied 20-page source reviewed at SHA-256 4c7cb8736aa22d69333b84ca151ca22936e34213071221c270036f2a4ead170e. Source assertions, or
Complete supplied 20-page source reviewed at SHA-256 4c7cb8736aa22d69333b84ca151ca22936e34213071221c270036f2a4ead170e. Source assertions, original visual features, filing/communication context and identified missing attachments are retained. Own registered4c7cb8736aa22d69333b84ca151ca22936e34213071221c270036f2a4ead170e read fully pages1–20 including footnotes. Ownrenders1,7,14,16,17,19,20 checked caption,materialbalances/waterfall,signature andservice. Itemised claims summed exactly; no referencedexhibit substituted for its absentcontents.
Read the anchor · page 1
Page 1 of 20
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP., §
Interpleader Plaintiff, §
§
v. § Civil Action No. 3:25-cv-483
§
CYBERLUX CORP., et al., §
Interpleader Defendants/Claimants. §
INTERPLEADER DEFENDANT’S, ROBERT W. BERLETH, AS RECEIVER,
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT
Interpleader Defendant/Claimant, Robert W. Berleth, as Receiver (the “Receiver”), by
counsel, pursuant to Fed. R. Civ. P. 56 and Local Civil Rule 56, submits this Memorandum of Law
in Support of his Motion for Summary Judgment.
INTRODUCTION
Despite the existence of an authorized state receivership action that pre-dates this litigation,
on June 24, 2025, Plaintiff HII Mission Technologies Corp. (“HII”) filed its Complaint for
Interpleader (the “Complaint”) pursuant to 28 U.S.C. § 1335, requesting that this Court allow HII
to interplead certain funds into this Court’s Registry that are, or may be, owed to Cyberlux, but are
subject to multiple claims. After HII amended the Complaint on August 4, 2025, the present
interpleader defendants consist of the following parties: (1) Cyberlux Corporation (“Cyberlux”)1
;
(2) Atlantic Wave Holdings, LLC (“Atlantic Wave”)2
; (3) Secure Community, LLC (“Secure
Community”); (4) Legalist SPV III, LP (“Legalist”); (5) United States of America (“USA”); (6)
1
Mark D. Schmidt (“Schmidt”) is CEO for Cyberlux.
2
Schmidt has also served as an officer for Atlantic Wave. Attached as Exhibit A is a May 11,
2021 Statement of Principal Office Change signed by Mark Schmidt as President. The Court can
take judicial notice of the publicly filed documents on Virginia’s State Corporation Commission
website from Atlantic Wave’s May 11, 2021 filing, wherein Schmidt signs the filing as President
of Atlantic Wave. See infra n.8.
Case 3:25-cv-00483-JAG Document 176 Filed 04/15/26 Page 1 of 20 PageID# 3065
questionquestion
What order and applicable law establish current receiver scope, fee reasonableness/base and priority over each secured claim?
questionquestion
What verified ledger and agreements reconcile claimant balances, ARG’sproposed reduction and non-party participation?
questionquestion
What source documents establish shipment contribution, acceptance, legal title and claimed insider ownership at the relevant dates?
questionquestion
What does Berleth seek and what remains unresolved?
allegation
CONNECT
Reviewed relationships
The canvas follows the database: source to DISTIL record, DISTIL record to knowledge object, then reviewed relationship. Position alone means nothing.
during the receivership the receiver has been contacted by no fewer than a dozen other creditors of cyberlux several of whom have existing outstanding judicial awards and many others of whom have either pending litigation or contractual obligations with cyberlux for payment including employee back payrelates to{"chapter":27,"exposure_lens":"The prime-contractor exposure inquiry asks what HII submitted or accepted, who knew what, and whether the procurement, payment and settlement files support the decision made.","responsibility":"Supplier selection, price, subcontract administration, advance controls, inspection, termination and Government submissions.","sequence":327,"unit_key":"CH27"}
The controlling book database maps the source supporting this allegation to Part III, Chapter 27. This is a reviewed source-to-publication link, not a name match.
During the Receivership, the Receiver has been contacted by no fewer than a dozen other creditors of Cyberlux, several of whom have existing outstanding judicial awards, and many others of whom have either pending litigation or contractual obligations with Cyberlux for payment, including employee back pay.supportsduring the receivership the receiver has been contacted by no fewer than a dozen other creditors of cyberlux several of whom have existing outstanding judicial awards and many others of whom have either pending litigation or contractual obligations with cyberlux for payment including employee back pay
This database-linked source passage is the reviewed documentary support mapped to the allegation in the controlling book version.
The brief recounts federal prime/task order and29August2023 subcontract,13May/17May2024 terminations,26February2025 Mod4, and government-directed inventory shipment. It reports HII received $2,757,254.39 on28May2025 and $23,012,114.64 on15July, totalling $25,769,369.03 subject to Mod4§7 setoff/recoupment. These are attributed recitations of complaint/declaration, not attached bank evidence or acceptance records.referencesThe 2025 origin CQA marks must not be converted into acceptance or destination receipt. Unlike the 2023 forms, the separate acceptance and receiver fields are blank. This limits what these particular forms establish; it does not prove that acceptance or receipt never occurred elsewhere.
Berleth asserts an oral appointment16January2025, written order22May, possession/lock change23May and final shipment30May. He credits his own intervention as indispensable to creating the fund and says Cyberlux resisted through two removals/remands and an unsuccessful appeal. The but-for causation and likely nonpayment absent his intervention are his advocacy, not adjudicated facts.supportsWhat source documents establish shipment contribution, acceptance, legal title and claimed insider ownership at the relevant dates?
Specifically named source propositions support the bounded distinction or question.
The brief acknowledges Texas denied the20February2026 amended motion to expand receivership but argues denial did not terminate it and quoted Texas language points to theVirginia interpleader. It asks the federal court to expand authority. A footnote describes two additionalTexas receivership applications while expressly admitting no receiver had been appointed in either; future appointments are not established.supportsWhat order and applicable law establish current receiver scope, fee reasonableness/base and priority over each secured claim?
Specifically named source propositions support the bounded distinction or question.
The receiver proposes pro-rata allowed non-insider claims: ANPC $2,926,814.39 (different from its earlier claimed balance), ThinAir $1,385,489.46, Fairwinds $2,348,542, ARG $4.2million described as an agreed reduction to actual-sales commission, and Catalyst Machineworks $2,676,378.58. The agreement and allowance grounds are not attached, and the section’scurrent-party label should not settle procedural participation for every listed creditor.supportsWhat verified ledger and agreements reconcile claimant balances, ARG’sproposed reduction and non-party participation?
Specifically named source propositions support the bounded distinction or question.
He places Legalist’sremaining $5,891,115.71 and purported insider/invalid claims behind those tiers, arguing post-receivership agreements lacked his authority. He cites historical Schmidt presidency ofAtlanticWave and speculates about ownership to support insider concerns, while acknowledging precedent cautions against discouraging good-faith insider loans. Historical office or speculative ownership does not itself establish applicable insider status.supportsThe itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
Specifically named source propositions support the bounded distinction or question.
The brief lists claims from interrogatory answers: AW/Secure $6,025,603.42; Legalist $13,204,742.88; USA $1,149,776.34; ANPC $3,087,878.86; WeShield $3,905,541.64; Roman $576,436.03; MAS $215,062.95; Sinensky $310,097.79; Fairwinds $2,348,542; ThinAir $1,385,489.46; ARG $14,118,618.61 from its complaint. These sum to the printed $46,327,789.98, or $52,262,024.37 with receiver’sfee. They are claimed amounts, not allowed debts; Cyberlux’sunspecified residual claim is excluded.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The receiver invokes custodia legis and says order¶53 entitles him to25% of assets/recoveries/credits, potentially33% upon collecting the full judgment. He analogises reasonableness factors and distinguishes receiver fees from attorney fees, requesting25% of the remaining registry fund, $5,934,234.39; a footnote separately lists25% of gross as $6,442,342.25. His fee base and legal entitlement remain requests.supportsThe alternative pro-rata fee offer is conditioned on entrusting funds to the receiver; it cannot be treated as an unconditional reduction of the25% priority request.
Specifically named source propositions support the bounded distinction or question.
The receiver proposes pro-rata allowed non-insider claims: ANPC $2,926,814.39 (different from its earlier claimed balance), ThinAir $1,385,489.46, Fairwinds $2,348,542, ARG $4.2million described as an agreed reduction to actual-sales commission, and Catalyst Machineworks $2,676,378.58. The agreement and allowance grounds are not attached, and the section’scurrent-party label should not settle procedural participation for every listed creditor.supportsThe itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
Specifically named source propositions support the bounded distinction or question.
Conditional on intervention, he recommends Aerotek $235,411.27, ClaytonServices $786,155.07, NorthwindAxisAdvisory $36,691.95, MarlinLeasing $36,009.40 and3rdGenDevelopment $342,478.34 pro-rata. These are his proposed legitimacy/classification judgments about non-parties, not court allowances.supportsThe itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
Specifically named source propositions support the bounded distinction or question.
He places Legalist’sremaining $5,891,115.71 and purported insider/invalid claims behind those tiers, arguing post-receivership agreements lacked his authority. He cites historical Schmidt presidency ofAtlanticWave and speculates about ownership to support insider concerns, while acknowledging precedent cautions against discouraging good-faith insider loans. Historical office or speculative ownership does not itself establish applicable insider status.supportsWhat source documents establish shipment contribution, acceptance, legal title and claimed insider ownership at the relevant dates?
Specifically named source propositions support the bounded distinction or question.
The receiver asserts the Texas order remains operative, grants a judicial lien and exclusive custody of nonexempt assets, and requires third-party turnover within ten working days of demand. He acknowledges HII did not remit funds and the federal court denied his earlier deposit motion. Scope and effect of the quoted order remain legal positions requiring the order and governing decisions.supportsWhat order and applicable law establish current receiver scope, fee reasonableness/base and priority over each secured claim?
Specifically named source propositions support the bounded distinction or question.
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, leaving $9,339,299.66. The receiver argues his fee is analogous to a bankruptcy administrative priority. He alternatively says if the court entrusts the whole or post-USA/Legalist remainder to him, he will take a pro-rata portion with the listed unsecured creditors. This conditional alternative is not the same as irrevocably waiving his priority claim.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The receiver asserts the Texas order remains operative, grants a judicial lien and exclusive custody of nonexempt assets, and requires third-party turnover within ten working days of demand. He acknowledges HII did not remit funds and the federal court denied his earlier deposit motion. Scope and effect of the quoted order remain legal positions requiring the order and governing decisions.supportsThe motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
Specifically named source propositions support the bounded distinction or question.
The brief lists claims from interrogatory answers: AW/Secure $6,025,603.42; Legalist $13,204,742.88; USA $1,149,776.34; ANPC $3,087,878.86; WeShield $3,905,541.64; Roman $576,436.03; MAS $215,062.95; Sinensky $310,097.79; Fairwinds $2,348,542; ThinAir $1,385,489.46; ARG $14,118,618.61 from its complaint. These sum to the printed $46,327,789.98, or $52,262,024.37 with receiver’sfee. They are claimed amounts, not allowed debts; Cyberlux’sunspecified residual claim is excluded.supportsWhat verified ledger and agreements reconcile claimant balances, ARG’sproposed reduction and non-party participation?
Specifically named source propositions support the bounded distinction or question.
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, leaving $9,339,299.66. The receiver argues his fee is analogous to a bankruptcy administrative priority. He alternatively says if the court entrusts the whole or post-USA/Legalist remainder to him, he will take a pro-rata portion with the listed unsecured creditors. This conditional alternative is not the same as irrevocably waiving his priority claim.supportsWhat order and applicable law establish current receiver scope, fee reasonableness/base and priority over each secured claim?
Specifically named source propositions support the bounded distinction or question.
The receiver invokes custodia legis and says order¶53 entitles him to25% of assets/recoveries/credits, potentially33% upon collecting the full judgment. He analogises reasonableness factors and distinguishes receiver fees from attorney fees, requesting25% of the remaining registry fund, $5,934,234.39; a footnote separately lists25% of gross as $6,442,342.25. His fee base and legal entitlement remain requests.supportsWhat order and applicable law establish current receiver scope, fee reasonableness/base and priority over each secured claim?
Specifically named source propositions support the bounded distinction or question.
Conditional on intervention, he recommends Aerotek $235,411.27, ClaytonServices $786,155.07, NorthwindAxisAdvisory $36,691.95, MarlinLeasing $36,009.40 and3rdGenDevelopment $342,478.34 pro-rata. These are his proposed legitimacy/classification judgments about non-parties, not court allowances.supportsWhat verified ledger and agreements reconcile claimant balances, ARG’sproposed reduction and non-party participation?
Specifically named source propositions support the bounded distinction or question.
The brief reconciles gross $25,769,369.03 to registry $23,736,937.56 by deducting $1,444,543.11 Fairfax garnishment and $587,888.36 HII fees/costs, citingECF150/153. It describes Fairfax orders22July and15August2025 and payment to Atlantic Wave. The printed registry amount in paragraph23 contains punctuation error $23,736.937.56; other passages show the intended amount.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
Berleth asserts an oral appointment16January2025, written order22May, possession/lock change23May and final shipment30May. He credits his own intervention as indispensable to creating the fund and says Cyberlux resisted through two removals/remands and an unsuccessful appeal. The but-for causation and likely nonpayment absent his intervention are his advocacy, not adjudicated facts.supportsThe motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
Specifically named source propositions support the bounded distinction or question.
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, leaving $9,339,299.66. The receiver argues his fee is analogous to a bankruptcy administrative priority. He alternatively says if the court entrusts the whole or post-USA/Legalist remainder to him, he will take a pro-rata portion with the listed unsecured creditors. This conditional alternative is not the same as irrevocably waiving his priority claim.supportsThe alternative pro-rata fee offer is conditioned on entrusting funds to the receiver; it cannot be treated as an unconditional reduction of the25% priority request.
Specifically named source propositions support the bounded distinction or question.
He places Legalist’sremaining $5,891,115.71 and purported insider/invalid claims behind those tiers, arguing post-receivership agreements lacked his authority. He cites historical Schmidt presidency ofAtlanticWave and speculates about ownership to support insider concerns, while acknowledging precedent cautions against discouraging good-faith insider loans. Historical office or speculative ownership does not itself establish applicable insider status.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, leaving $9,339,299.66. The receiver argues his fee is analogous to a bankruptcy administrative priority. He alternatively says if the court entrusts the whole or post-USA/Legalist remainder to him, he will take a pro-rata portion with the listed unsecured creditors. This conditional alternative is not the same as irrevocably waiving his priority claim.supportsThe itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
Specifically named source propositions support the bounded distinction or question.
The receiver invokes custodia legis and says order¶53 entitles him to25% of assets/recoveries/credits, potentially33% upon collecting the full judgment. He analogises reasonableness factors and distinguishes receiver fees from attorney fees, requesting25% of the remaining registry fund, $5,934,234.39; a footnote separately lists25% of gross as $6,442,342.25. His fee base and legal entitlement remain requests.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The brief recounts federal prime/task order and29August2023 subcontract,13May/17May2024 terminations,26February2025 Mod4, and government-directed inventory shipment. It reports HII received $2,757,254.39 on28May2025 and $23,012,114.64 on15July, totalling $25,769,369.03 subject to Mod4§7 setoff/recoupment. These are attributed recitations of complaint/declaration, not attached bank evidence or acceptance records.supportsWhat source documents establish shipment contribution, acceptance, legal title and claimed insider ownership at the relevant dates?
Specifically named source propositions support the bounded distinction or question.
Berleth’s15April2026 ECF176 summary-judgment brief seeks the interpleaded fund for creditor distribution or at least $5,934,234.39 as a25% receiver fee. It relies on a Texas order, his declaration and other exhibits not included in this20-page main brief; counsel certifies filing/service. The request is not an allowance or turnover order.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The brief lists claims from interrogatory answers: AW/Secure $6,025,603.42; Legalist $13,204,742.88; USA $1,149,776.34; ANPC $3,087,878.86; WeShield $3,905,541.64; Roman $576,436.03; MAS $215,062.95; Sinensky $310,097.79; Fairwinds $2,348,542; ThinAir $1,385,489.46; ARG $14,118,618.61 from its complaint. These sum to the printed $46,327,789.98, or $52,262,024.37 with receiver’sfee. They are claimed amounts, not allowed debts; Cyberlux’sunspecified residual claim is excluded.supportsThe itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
Specifically named source propositions support the bounded distinction or question.
The itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
He places Legalist’sremaining $5,891,115.71 and purported insider/invalid claims behind those tiers, arguing post-receivership agreements lacked his authority. He cites historical Schmidt presidency ofAtlanticWave and speculates about ownership to support insider concerns, while acknowledging precedent cautions against discouraging good-faith insider loans. Historical office or speculative ownership does not itself establish applicable insider status.supportsAssertions of indispensability, insider status and invalid post-appointment debt require primary shipment/authority/ownership records rather than repetition of the receiver’sposition.
Specifically named source propositions support the bounded distinction or question.
The proposed waterfall pays USA $1,149,776.34, Legalist’sasserted22May2025 secured balance $7,313,627.17, then receiver fee $5,934,234.39, leaving $9,339,299.66. The receiver argues his fee is analogous to a bankruptcy administrative priority. He alternatively says if the court entrusts the whole or post-USA/Legalist remainder to him, he will take a pro-rata portion with the listed unsecured creditors. This conditional alternative is not the same as irrevocably waiving his priority claim.supportsThe motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
Specifically named source propositions support the bounded distinction or question.
The brief reconciles gross $25,769,369.03 to registry $23,736,937.56 by deducting $1,444,543.11 Fairfax garnishment and $587,888.36 HII fees/costs, citingECF150/153. It describes Fairfax orders22July and15August2025 and payment to Atlantic Wave. The printed registry amount in paragraph23 contains punctuation error $23,736.937.56; other passages show the intended amount.supportsThe itemised claim total reconciles arithmetically, but proposed distributions use different allowable balances and exclude/reclassify claims. A user must distinguish claimed, proposed-allowed and paid amounts.
Specifically named source propositions support the bounded distinction or question.
The receiver proposes pro-rata allowed non-insider claims: ANPC $2,926,814.39 (different from its earlier claimed balance), ThinAir $1,385,489.46, Fairwinds $2,348,542, ARG $4.2million described as an agreed reduction to actual-sales commission, and Catalyst Machineworks $2,676,378.58. The agreement and allowance grounds are not attached, and the section’scurrent-party label should not settle procedural participation for every listed creditor.supportsWhat does Berleth seek and what remains unresolved?
Specifically named source propositions support the bounded distinction or question.
The brief acknowledges Texas denied the20February2026 amended motion to expand receivership but argues denial did not terminate it and quoted Texas language points to theVirginia interpleader. It asks the federal court to expand authority. A footnote describes two additionalTexas receivership applications while expressly admitting no receiver had been appointed in either; future appointments are not established.supportsThe motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
Specifically named source propositions support the bounded distinction or question.
The receiver puts Cyberlux last, offers to report proposed distributions and fees to the federal orTexas court as directed with creditor objection opportunities, and repeats that he is best placed to administer funds. This describes a proposed controlled distribution process, not evidence that distributions occurred.supportsThe alternative pro-rata fee offer is conditioned on entrusting funds to the receiver; it cannot be treated as an unconditional reduction of the25% priority request.
Specifically named source propositions support the bounded distinction or question.
The receiver invokes custodia legis and says order¶53 entitles him to25% of assets/recoveries/credits, potentially33% upon collecting the full judgment. He analogises reasonableness factors and distinguishes receiver fees from attorney fees, requesting25% of the remaining registry fund, $5,934,234.39; a footnote separately lists25% of gross as $6,442,342.25. His fee base and legal entitlement remain requests.supportsThe motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
Specifically named source propositions support the bounded distinction or question.
The brief recounts federal prime/task order and29August2023 subcontract,13May/17May2024 terminations,26February2025 Mod4, and government-directed inventory shipment. It reports HII received $2,757,254.39 on28May2025 and $23,012,114.64 on15July, totalling $25,769,369.03 subject to Mod4§7 setoff/recoupment. These are attributed recitations of complaint/declaration, not attached bank evidence or acceptance records.supportsThe motion blends three distinct issues: Texas custody authority, claimed causal contribution to shipment, and priority/amount of the receiver’sfee. Proof of one does not alone establish the others.
Specifically named source propositions support the bounded distinction or question.
Berleth asserts an oral appointment16January2025, written order22May, possession/lock change23May and final shipment30May. He credits his own intervention as indispensable to creating the fund and says Cyberlux resisted through two removals/remands and an unsuccessful appeal. The but-for causation and likely nonpayment absent his intervention are his advocacy, not adjudicated facts.supportsAssertions of indispensability, insider status and invalid post-appointment debt require primary shipment/authority/ownership records rather than repetition of the receiver’sposition.
Specifically named source propositions support the bounded distinction or question.
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