Fairwinds seeks summary judgment for $2.3M commission claim as unsecured creditor of Cyberlux in interpleader action over deposited government contract funds; filed in HII Mission Technologies Corp. v. Cyberlux Corporation et al., No. 25-00483 (E.D. Va.), ECF No. 178
Each card carries the governed distillate name from the database. Open the quoted anchor before relying on the interpretation.
observationobservation
EDVA 178, April 15, 2026, PageIDs 3605–3615; footnote 1 at page 7.
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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.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
claimallegation
Fairwinds expressly presents itself as an unsecured Cyberlux creditor and states in footnote 1 that it has never claimed a perfected securit
Fairwinds expressly presents itself as an unsecured Cyberlux creditor and states in footnote 1 that it has never claimed a perfected security interest in the deposited funds. It describes an October 3, 2022 teaming agreement offering prime-contractor status or 8% on the first 1,000 drones if another prime was selected.
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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.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
claimallegation
Fairwinds cites a recent financial report as showing operating loss above $3.1 million, equity deficiency above $16 million and $37 million
Fairwinds cites a recent financial report as showing operating loss above $3.1 million, equity deficiency above $16 million and $37 million current assets, and fears depletion amid multi-jurisdiction litigation. No financial report or transaction-level depletion evidence is appended to this memorandum.
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21, 2026, “Brett Rosen and Deborah Rosen were indicted by a federal grand jury on charges that
they, through their joint investment business, RB Capital Partners, Inc., engaged in a years-long
securities fraud and money laundering scheme.” Declaration of Alexander N. Breckinridge V, ¶
2, Ex. 1. The indictment alleges that the Rosens “engaged in a market manipulation scheme
through financing, promoting, and selling the stock of . . . Cyberlux Corp.” Id. Cyberlux remains
in litigation regarding its stock transactions against RB Capital Partners, Atlantic Wave, and
Secured Community. Finally, recent UCC-1 filings in Nevada suggest that Fraudulent Transfers
have occurred.
Indeed, the fact that so many claimants and creditors of Cyberlux have intervened in this
Interpleader suggests that the assets of the company will be siphoned away from legitimate
creditors for other purposes. Cyberlux maintains active litigation by creditors, hiring attorneys in
multiple jurisdictions, and is facing financial hardships. The most recent financial report showed
the company reported a net loss from operations in excess of $3.1 million. Breckinridge Decl. ¶
3, Ex. 2. Its most recent balance sheet showed a “deficiency in stockholders’ equity” in excess of
$16 million against only $37 million in current assets. Id. Cyberlux is not a healthy company.
A federally appointed receiver may decide that the competing claims against Cyberlux’s
limited pot of assets necessitates the filing of a federal bankruptcy petition. See, e.g. In re
Statepark Bldg. Group, Ltd., 316 B.R. 466, 472 (Bankr. N.D. Tex. 2004); JY Creative Holdings,
Inc. v. McHale, No. 14-2899, 2015 U.S. Dist. LEXIS 15970 (M.D. Fla. Feb. 10, 2015). As this
Court recognized in its first status conference with the parties, bankruptcy court may be the
appropriate federal forum to adjudicate, rank, and prioritize the competing claims against
Cyberlux.
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claimallegation
Fairwinds suggests a federally appointed receiver might file bankruptcy to protect and rank creditors. Page 10 acknowledges that suggestion
Fairwinds suggests a federally appointed receiver might file bankruptcy to protect and rank creditors. Page 10 acknowledges that suggestion is not properly before the court at this juncture, while the conclusion nevertheless requests receiver appointment. It seeks $2,348,542.40, 8% compound post-judgment interest and equal treatment of creditors without perfected interests; no granting order is supplied.
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21, 2026, “Brett Rosen and Deborah Rosen were indicted by a federal grand jury on charges that
they, through their joint investment business, RB Capital Partners, Inc., engaged in a years-long
securities fraud and money laundering scheme.” Declaration of Alexander N. Breckinridge V, ¶
2, Ex. 1. The indictment alleges that the Rosens “engaged in a market manipulation scheme
through financing, promoting, and selling the stock of . . . Cyberlux Corp.” Id. Cyberlux remains
in litigation regarding its stock transactions against RB Capital Partners, Atlantic Wave, and
Secured Community. Finally, recent UCC-1 filings in Nevada suggest that Fraudulent Transfers
have occurred.
Indeed, the fact that so many claimants and creditors of Cyberlux have intervened in this
Interpleader suggests that the assets of the company will be siphoned away from legitimate
creditors for other purposes. Cyberlux maintains active litigation by creditors, hiring attorneys in
multiple jurisdictions, and is facing financial hardships. The most recent financial report showed
the company reported a net loss from operations in excess of $3.1 million. Breckinridge Decl. ¶
3, Ex. 2. Its most recent balance sheet showed a “deficiency in stockholders’ equity” in excess of
$16 million against only $37 million in current assets. Id. Cyberlux is not a healthy company.
A federally appointed receiver may decide that the competing claims against Cyberlux’s
limited pot of assets necessitates the filing of a federal bankruptcy petition. See, e.g. In re
Statepark Bldg. Group, Ltd., 316 B.R. 466, 472 (Bankr. N.D. Tex. 2004); JY Creative Holdings,
Inc. v. McHale, No. 14-2899, 2015 U.S. Dist. LEXIS 15970 (M.D. Fla. Feb. 10, 2015). As this
Court recognized in its first status conference with the parties, bankruptcy court may be the
appropriate federal forum to adjudicate, rank, and prioritize the competing claims against
Cyberlux.
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claimallegation
Alexander N. Breckinridge V signs for Jones Walker LLP, with Mark A. Mintz listed, April 15, 2026, and certifies electronic filing/service n
Alexander N. Breckinridge V signs for Jones Walker LLP, with Mark A. Mintz listed, April 15, 2026, and certifies electronic filing/service notice. The eleven-page memorandum is EDVA Document 178, PageIDs 3605–3615; referenced Wirth and Breckinridge declarations/exhibits are separate.
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Furthermore, Fairwinds respectfully requests that the Court appoint a Receiver pursuant to Federal
Rule of Civil Procedure 66 to resolve this matter.
April 15, 2026
Respectfully submitted,
/s/ Alexander N. Breckinridge V
ALEXANDER N. BRECKINRIDGE V
(VSB #74708)
MARK A. MINTZ (admitted pro hac vice)
JONES WALKER LLP
1 M Street SE, Suite 600
Washington, DC 20003
Telephone: (202) 203-1021
Facsimile: (202) 203-0000
abreckinridge@joneswalker.com
mmintz@joneswalker.com
Counsel for Interpleader Defendant/Claimant,
Fairwinds Technologies, LLC
CERTIFICATE OF SERVICE
The undersigned hereby certifies that the following was electronically filed using the
court’s CM/ECF system, which will automatically send email notification to counsel of record.
This, the 15th day of April, 2026.
/s/ Alexander N. Breckinridge V
ALEXANDER N. BRECKINRIDGE V
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claimallegation
Fairwinds says HII was selected prime and a June 7, 2023 Strategic Business Development, Service and Supply Teaming contract guaranteed the
Fairwinds says HII was selected prime and a June 7, 2023 Strategic Business Development, Service and Supply Teaming contract guaranteed the 8% fee for past and future services. It asserts both agreements are valid and Cyberlux does not dispute them; this memorandum is not a judicial enforceability finding.
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Fairwinds was chosen to serve as the prime contractor for the subsequent award, Fairwinds would
receive eight percent (8%) of the contract value associated with the first one thousand (1,000)
Drones delivered. Id.
The U.S. government ultimately awarded the prime contract to HII. Id. ⁋ 3. As a result,
Cyberlux and Fairwinds entered into a valid and enforceable Strategic Business Development,
Service and Supply Teaming contract (the “Contract”) on June 7, 2023. Id. ¶ 4, Exhibit 2. Under
the Contract, Cyberlux and Fairwinds agreed that Cyberlux was to pay Fairwinds a fee of eight
percent (8%) of the value of the first one thousand (1,000) Drones delivered in connection with
the services provided by Fairwinds described in the Contract. Id., Exhibit 2 ⁋5.1; Appendix A.
On July 8, 2025, Cyberlux’s CEO, Mark Schmidt, sent Fairwinds a spreadsheet detailing
the accounting breakdown of the value of the amount in commission owed to Fairwinds in
connection with Cyberlux’s sale of the Drones and valued the amount owed to Fairwinds as
$2,348,542.40. Id. ¶ 5, Exhibit 3. This was based upon amounts that Cyberlux had invoiced HII
for the sale of the Drones, which Mr. Schmidt attached to his spreadsheet as support for his
calculations. Id. ⁋ 6, Exhibit 4. That amount due to Cyberlux from HII listed on that spreadsheet,
$25,769,369.03, was the same amount HII sought to deposit with the Court in its motion for
interpleader deposit. [Dkt. No. 144]. On July 9, 2025, Fairwinds submitted an invoice for
$2,348,542.40 to Cyberlux reflecting the amount listed in the spreadsheet. Id. ⁋ 7, Exhibit 5. Mr.
Schmidt confirmed that the funds due to Cyberlux from HII referenced in the spreadsheet were
from the sale of the Drones referenced in the Contract and that Cyberlux would pay Fairwinds that
amount from funds HII was to pay Cyberlux that ultimately were deposited with the Court. Id. ⁋
5, Exhibit 3.
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claimallegation
Fairwinds attributes a July 8, 2025 spreadsheet and invoices to CEO Mark Schmidt calculating $2,348,542.40 commission and $25,769,369.03 due
Fairwinds attributes a July 8, 2025 spreadsheet and invoices to CEO Mark Schmidt calculating $2,348,542.40 commission and $25,769,369.03 due from HII. It says Schmidt linked payment to those HII proceeds, and Fairwinds invoiced $2,348,542.40 on July 9. The actual spreadsheet, invoice and correspondence are cited as Wirth exhibits but not appended.
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Fairwinds was chosen to serve as the prime contractor for the subsequent award, Fairwinds would
receive eight percent (8%) of the contract value associated with the first one thousand (1,000)
Drones delivered. Id.
The U.S. government ultimately awarded the prime contract to HII. Id. ⁋ 3. As a result,
Cyberlux and Fairwinds entered into a valid and enforceable Strategic Business Development,
Service and Supply Teaming contract (the “Contract”) on June 7, 2023. Id. ¶ 4, Exhibit 2. Under
the Contract, Cyberlux and Fairwinds agreed that Cyberlux was to pay Fairwinds a fee of eight
percent (8%) of the value of the first one thousand (1,000) Drones delivered in connection with
the services provided by Fairwinds described in the Contract. Id., Exhibit 2 ⁋5.1; Appendix A.
On July 8, 2025, Cyberlux’s CEO, Mark Schmidt, sent Fairwinds a spreadsheet detailing
the accounting breakdown of the value of the amount in commission owed to Fairwinds in
connection with Cyberlux’s sale of the Drones and valued the amount owed to Fairwinds as
$2,348,542.40. Id. ¶ 5, Exhibit 3. This was based upon amounts that Cyberlux had invoiced HII
for the sale of the Drones, which Mr. Schmidt attached to his spreadsheet as support for his
calculations. Id. ⁋ 6, Exhibit 4. That amount due to Cyberlux from HII listed on that spreadsheet,
$25,769,369.03, was the same amount HII sought to deposit with the Court in its motion for
interpleader deposit. [Dkt. No. 144]. On July 9, 2025, Fairwinds submitted an invoice for
$2,348,542.40 to Cyberlux reflecting the amount listed in the spreadsheet. Id. ⁋ 7, Exhibit 5. Mr.
Schmidt confirmed that the funds due to Cyberlux from HII referenced in the spreadsheet were
from the sale of the Drones referenced in the Contract and that Cyberlux would pay Fairwinds that
amount from funds HII was to pay Cyberlux that ultimately were deposited with the Court. Id. ⁋
5, Exhibit 3.
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claimallegation
Fairwinds says HII deposited funds March 6, 2026 and argues the matching amount and absence of another transaction in exchanged discovery id
Fairwinds says HII deposited funds March 6, 2026 and argues the matching amount and absence of another transaction in exchanged discovery identify the contract proceeds. It requests recognition of $2,348,542.40 owed as an unsecured creditor in that transaction. Matching amounts are its stated tracing argument, not a court determination.
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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.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
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claimallegation
Fairwinds invokes summary-judgment and perfection authorities and argues perfected interests outrank unsecured claims while unsecured claima
Fairwinds invokes summary-judgment and perfection authorities and argues perfected interests outrank unsecured claims while unsecured claimants share equally. It discusses real-property judgment docketing and cites bankruptcy priority provisions by analogy. These are its legal submissions, not a determination that every cited rule governs this interpleader.
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LAW AND ARGUMENT
Summary judgment is required when a “movant shows that there is no genuine dispute as
to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P.
56(a). No triable issue exists where “the record taken as a whole could not lead a rational trier of
fact to find for the non-moving party[.]” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475
U.S. 574, 587 (1986). “Once the movant meets its burden, the opposing party, to defeat the motion,
must set forth specific facts showing a genuine issue for trial.” Nifong v. SOC, LLC, 234 F. Supp.
3d 739, 750 (E.D. Va. 2017) (Ellis, J.). The non-moving party “cannot create a genuine issue of
material fact through mere speculation or the building of one inference upon another.” Beale v.
Hardy, 769 F.2d 213, 214 (4th Cir. 1985); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242,
252 (1986); Ennis v. Nat'l Ass'n of Bus. & Educ. Radio, Inc., 53 F.3d 55, 62 (4th Cir. 1995). Rather,
to survive summary judgment, the party opposing the motion must prove there is sufficient
evidence to support a jury verdict in its favor. Anderson, 477 U.S. at 249. In doing so, the nonmoving party “must do more than simply show that there is some metaphysical doubt as to the
material facts.” Matsushita, 475 U.S. at 586.
“Summary judgment is appropriate ‘if the movant shows that there is no genuine dispute
as to any material fact and the movant is entitled to judgment as a matter of law.’ Fed. R. Civ. P.
56(a). ‘[A] scintilla of evidence’ in support of the nonmoving party's position is insufficient to
defeat summary judgment. Anderson, 477 U.S. at 252. Rather, ‘[w]here the record taken as a
whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine
issue for trial.’ Matsushita, 475 U.S. at 587 (internal quotation marks omitted).” United States ex
rel Gugenheim v. Meridian Senior Living, LLC, 36 F.4th 173, 178 (4th Cir. 2022).
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claimallegation
Fairwinds says only Legalist and the United States assert facts that, if true, could support perfected interests, expressly reserving commen
Fairwinds says only Legalist and the United States assert facts that, if true, could support perfected interests, expressly reserving comment on their truth and sufficiency for later opposition. It does not concede their actual perfection.
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Judgment liens, however, in and of themselves are not perfected interests. A judgment lien
arises when a party obtains a money judgment in a federal or state court. Va. Code Ann § 8.01-
458. In order to convert that judgment lien into a perfected interest in property, a judgment creditor
must record the lien in the judgment lien docket book in the office of the county or city where the
property is situated. Va. Code Ann § 8.01-458. The recorded lien though may only attach to real
property located in the county or city where the lien was recorded - any intangible, moveable
property is excluded. Va. Code Ann § 8.01-458. The act of docketing the lien is a necessary
prerequisite to perfect the judgment lien into the real property over which the judgment creditor
seeks to assert a secured interest. Turshen v. Bennett Heating & Air Conditioning, Inc. (In re
Brisbane), 2 B.R. 636, 1980 Bankr. LEXIS 5596 (Bankr. E.D. Va. 1980); Bartl v. G. Weinberger
& Co. (In re Claxton), 32 B.R. 215, 1983 Bankr. LEXIS 5662 (Bankr. E.D. Va.), aff'd, In re
Claxton, 30 B.R. 199, 1983 Bankr. LEXIS 6230 (Bankr. E.D. Va. 1983).
Here, only two parties, Legalist and the United States government, assert facts that, if true,
could constitute them having a perfected security interest in the funds interpleaded with the Court.
Whether those facts are true, Fairwinds does not comment on at this time. Rather, Fairwinds will
address the sufficiency of those claims in its response to the motions for summary judgment filed
by the parties to this action.
By contrast, the remaining claimants—including Advanced Navigation & Positioning
Corporation, Thin Air Gear, LLC, Robert W. Berleth (as Receiver), The ARG Group, LLC,
Atlantic Wave Holdings, LLC, and Bilal Maadarani—have not demonstrated a perfected security
interest or perfected lien that attaches to the funds deposited with the Court and are all unsecured
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claimallegation
It characterises ANPC, TAG, Berleth as receiver, ARG, Atlantic Wave and Bilal Maadarani as unsecured and argues none outranks Fairwinds. It
It characterises ANPC, TAG, Berleth as receiver, ARG, Atlantic Wave and Bilal Maadarani as unsecured and argues none outranks Fairwinds. It reserves whether their underlying claims are valid. This disputed characterisation does not displace those parties’ asserted equitable or judicial-lien theories.
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Judgment liens, however, in and of themselves are not perfected interests. A judgment lien
arises when a party obtains a money judgment in a federal or state court. Va. Code Ann § 8.01-
458. In order to convert that judgment lien into a perfected interest in property, a judgment creditor
must record the lien in the judgment lien docket book in the office of the county or city where the
property is situated. Va. Code Ann § 8.01-458. The recorded lien though may only attach to real
property located in the county or city where the lien was recorded - any intangible, moveable
property is excluded. Va. Code Ann § 8.01-458. The act of docketing the lien is a necessary
prerequisite to perfect the judgment lien into the real property over which the judgment creditor
seeks to assert a secured interest. Turshen v. Bennett Heating & Air Conditioning, Inc. (In re
Brisbane), 2 B.R. 636, 1980 Bankr. LEXIS 5596 (Bankr. E.D. Va. 1980); Bartl v. G. Weinberger
& Co. (In re Claxton), 32 B.R. 215, 1983 Bankr. LEXIS 5662 (Bankr. E.D. Va.), aff'd, In re
Claxton, 30 B.R. 199, 1983 Bankr. LEXIS 6230 (Bankr. E.D. Va. 1983).
Here, only two parties, Legalist and the United States government, assert facts that, if true,
could constitute them having a perfected security interest in the funds interpleaded with the Court.
Whether those facts are true, Fairwinds does not comment on at this time. Rather, Fairwinds will
address the sufficiency of those claims in its response to the motions for summary judgment filed
by the parties to this action.
By contrast, the remaining claimants—including Advanced Navigation & Positioning
Corporation, Thin Air Gear, LLC, Robert W. Berleth (as Receiver), The ARG Group, LLC,
Atlantic Wave Holdings, LLC, and Bilal Maadarani—have not demonstrated a perfected security
interest or perfected lien that attaches to the funds deposited with the Court and are all unsecured
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claimallegation
Fairwinds proposes a federal receiver under Rule 66, acknowledging appointment is extraordinary and discussing asset-risk/equitable factors.
Fairwinds proposes a federal receiver under Rule 66, acknowledging appointment is extraordinary and discussing asset-risk/equitable factors. Those cited factors are advocacy criteria, not findings that all are met.
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creditors with the same priority.1
11 U.S.C. § 726(a)(2) (providing that under the Bankruptcy
Code all unsecured creditors’ claims are treated with the same priority); Fairchild Dornier GmbH
v. Unofficial Comm. Of Unsecured Creditors, 453 F.3d 225, 231 (4th Cir. 2006)(citing the order
of priorities in the bankruptcy code and noting that only a bankruptcy court may prioritize
unsecured creditors through such means as equitable subordination).
Advanced Navigation, Thin Air Gear, and Atlantic Wave Holdings claim only to have
judgment liens against Cyberlux property. Those liens, however, cannot be converted to perfected
interests in the funds deposited with the Court by operation of law. ARG, the Receiver, and Mr.
Maadarani make no claim to have a judgment lien but rather assert that they have general
unsecured claims. Accordingly, those parties, including Fairwinds, are unsecured creditors
standing in pari passu with one another with respect to the funds deposited with the Court and take
no priority over each other.2
III. THE DISTRICT COURT SHOULD CONSIDER USING ITS EQUITABLE
POWERS TO APPOINT A FEDERAL RECEIVER
In this complex multi-party dispute, the District Court has the discretion to appoint a federal
receiver over the assets of Cyberlux. See, generally Fed. R. Civ. P. 66. “[T[he district court has
within its equity power the authority to appoint receivers and to administer receiverships.”
Gilchrist v. GE Capital Corp., 262 F.3d 295, 302 (4th Cir. 2001). When receivers are appointed
by a federal court, they may sue and be sued as provided by federal law. Id. (citing 28 U.S.C. §§
754, 959)). And receivers appointed by a federal court are directed to “manage and operate” the
1 Fairwinds has never claimed to have a perfected security interest in the funds deposited with the
Court.
2 Fairwinds will address whether those unsecured claimants have asserted valid claims in its
response to the motions for summary judgment filed by all of the claimants.
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claimallegation
In support of a receiver, Fairwinds cites reported January 21, 2026 indictments of Brett and Deborah Rosen concerning RB Capital and Cyberlu
In support of a receiver, Fairwinds cites reported January 21, 2026 indictments of Brett and Deborah Rosen concerning RB Capital and Cyberlux stock; it invokes other stock litigation and says Nevada UCC filings suggest fraudulent transfers. Indictment allegations and counsel’s transfer inference are not convictions or adjudicated fraudulent transfers.
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receivership estate “according to the requirements of the valid laws of the State in which such
property is situated, in the same manner that the owner or possessor thereof would be bound to do
if in possession thereof.” Id. (quoting 28 U.S.C. §959(b))(quotation marks removed). Fairwinds
recognizes that the appointment of a receiver “is an extraordinary remedy that should be employed
with the utmost caution,”3
but suggests that this is the extraordinary case that calls for such
appointment.
Neither the Supreme Court nor the Fourth Circuit has provided a concrete list of factors for
courts to weigh in considering whether to appoint a receiver. LNV Corp. v. Harrison Family
Business, LLC, 132 F. Supp. 3d 683, 689 (D. Md. 2015)(citing Manuel v. Gembala, No. 10-4, 2010
U.S. Dist. LEXIS 105167. At *6 (E.D.N.C. Sept. 30, 2010)). The LNV court considered the
following considerations from Wright & Miller, § 2983:
fraudulent conduct on the part of defendant; the imminent danger of
the property being lost, concealed, injured, diminished in value, or
squandered; the inadequacy of the available legal remedies; the
probability that harm to plaintiff by denial of the appointment would
be greater than the injury to the parties opposing appointment; and,
in more general terms, plaintiff's probable success in the action and
the possibility of irreparable injury to his interests in the property.
This formulation is similar to approaches taken by the Fifth Circuit and the Eighth Circuit.
See Aviation Supply Corp. v. R.S.B.I. Aerospace, Inc., 999 F.2d 314, 316-17 (8th Cir. 1993);
Santibanez v. Wier McMahon & Co., 105 F.3d 234, 241-42 (5th Cir. 1997).
Here, there remain facts that are unknown about Cyberlux, but what has been learned is
that there are serious allegations of fraud and criminal activity surrounding Cyberlux. On January
3 Wilmington Trust v. Homes4families, LLC, No. 19-1896, 2019 U.S. Dist. LEXIS 192492,
at *7 (D. Md. Nov. 6, 2019)(quoting First United Bank & Trust v. Square at Falling Run, LLC,
No. 11-31, 2011 U.S. Dist. LEXIS 44409, at *3 (N.D. W. Va. April 25, 2011))
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 8 of 11 PageID# 3612
entityobservation
Fairwinds Technologies 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.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
entityobservation
Alexander N. Breckinridge V
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Furthermore, Fairwinds respectfully requests that the Court appoint a Receiver pursuant to Federal
Rule of Civil Procedure 66 to resolve this matter.
April 15, 2026
Respectfully submitted,
/s/ Alexander N. Breckinridge V
ALEXANDER N. BRECKINRIDGE V
(VSB #74708)
MARK A. MINTZ (admitted pro hac vice)
JONES WALKER LLP
1 M Street SE, Suite 600
Washington, DC 20003
Telephone: (202) 203-1021
Facsimile: (202) 203-0000
abreckinridge@joneswalker.com
mmintz@joneswalker.com
Counsel for Interpleader Defendant/Claimant,
Fairwinds Technologies, LLC
CERTIFICATE OF SERVICE
The undersigned hereby certifies that the following was electronically filed using the
court’s CM/ECF system, which will automatically send email notification to counsel of record.
This, the 15th day of April, 2026.
/s/ Alexander N. Breckinridge V
ALEXANDER N. BRECKINRIDGE V
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 11 of 11 PageID# 3615
entityobservation
MARK A. MINTZ
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Furthermore, Fairwinds respectfully requests that the Court appoint a Receiver pursuant to Federal
Rule of Civil Procedure 66 to resolve this matter.
April 15, 2026
Respectfully submitted,
/s/ Alexander N. Breckinridge V
ALEXANDER N. BRECKINRIDGE V
(VSB #74708)
MARK A. MINTZ (admitted pro hac vice)
JONES WALKER LLP
1 M Street SE, Suite 600
Washington, DC 20003
Telephone: (202) 203-1021
Facsimile: (202) 203-0000
abreckinridge@joneswalker.com
mmintz@joneswalker.com
Counsel for Interpleader Defendant/Claimant,
Fairwinds Technologies, LLC
CERTIFICATE OF SERVICE
The undersigned hereby certifies that the following was electronically filed using the
court’s CM/ECF system, which will automatically send email notification to counsel of record.
This, the 15th day of April, 2026.
/s/ Alexander N. Breckinridge V
ALEXANDER N. BRECKINRIDGE V
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 11 of 11 PageID# 3615
entityobservation
Cyberlux Corporation
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#111488991v1
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP.,
Interpleader Plaintiff
v.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
entityobservation
HII Mission Technologies Corp.
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#111488991v1
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP.,
Interpleader Plaintiff
v.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
entityobservation
Thomas O. Wirth
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#111488991v1
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP.,
Interpleader Plaintiff
v.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
entityobservation
Mark Schmidt
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Fairwinds was chosen to serve as the prime contractor for the subsequent award, Fairwinds would
receive eight percent (8%) of the contract value associated with the first one thousand (1,000)
Drones delivered. Id.
The U.S. government ultimately awarded the prime contract to HII. Id. ⁋ 3. As a result,
Cyberlux and Fairwinds entered into a valid and enforceable Strategic Business Development,
Service and Supply Teaming contract (the “Contract”) on June 7, 2023. Id. ¶ 4, Exhibit 2. Under
the Contract, Cyberlux and Fairwinds agreed that Cyberlux was to pay Fairwinds a fee of eight
percent (8%) of the value of the first one thousand (1,000) Drones delivered in connection with
the services provided by Fairwinds described in the Contract. Id., Exhibit 2 ⁋5.1; Appendix A.
On July 8, 2025, Cyberlux’s CEO, Mark Schmidt, sent Fairwinds a spreadsheet detailing
the accounting breakdown of the value of the amount in commission owed to Fairwinds in
connection with Cyberlux’s sale of the Drones and valued the amount owed to Fairwinds as
$2,348,542.40. Id. ¶ 5, Exhibit 3. This was based upon amounts that Cyberlux had invoiced HII
for the sale of the Drones, which Mr. Schmidt attached to his spreadsheet as support for his
calculations. Id. ⁋ 6, Exhibit 4. That amount due to Cyberlux from HII listed on that spreadsheet,
$25,769,369.03, was the same amount HII sought to deposit with the Court in its motion for
interpleader deposit. [Dkt. No. 144]. On July 9, 2025, Fairwinds submitted an invoice for
$2,348,542.40 to Cyberlux reflecting the amount listed in the spreadsheet. Id. ⁋ 7, Exhibit 5. Mr.
Schmidt confirmed that the funds due to Cyberlux from HII referenced in the spreadsheet were
from the sale of the Drones referenced in the Contract and that Cyberlux would pay Fairwinds that
amount from funds HII was to pay Cyberlux that ultimately were deposited with the Court. Id. ⁋
5, Exhibit 3.
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 2 of 11 PageID# 3606
entityobservation
Legalist
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Judgment liens, however, in and of themselves are not perfected interests. A judgment lien
arises when a party obtains a money judgment in a federal or state court. Va. Code Ann § 8.01-
458. In order to convert that judgment lien into a perfected interest in property, a judgment creditor
must record the lien in the judgment lien docket book in the office of the county or city where the
property is situated. Va. Code Ann § 8.01-458. The recorded lien though may only attach to real
property located in the county or city where the lien was recorded - any intangible, moveable
property is excluded. Va. Code Ann § 8.01-458. The act of docketing the lien is a necessary
prerequisite to perfect the judgment lien into the real property over which the judgment creditor
seeks to assert a secured interest. Turshen v. Bennett Heating & Air Conditioning, Inc. (In re
Brisbane), 2 B.R. 636, 1980 Bankr. LEXIS 5596 (Bankr. E.D. Va. 1980); Bartl v. G. Weinberger
& Co. (In re Claxton), 32 B.R. 215, 1983 Bankr. LEXIS 5662 (Bankr. E.D. Va.), aff'd, In re
Claxton, 30 B.R. 199, 1983 Bankr. LEXIS 6230 (Bankr. E.D. Va. 1983).
Here, only two parties, Legalist and the United States government, assert facts that, if true,
could constitute them having a perfected security interest in the funds interpleaded with the Court.
Whether those facts are true, Fairwinds does not comment on at this time. Rather, Fairwinds will
address the sufficiency of those claims in its response to the motions for summary judgment filed
by the parties to this action.
By contrast, the remaining claimants—including Advanced Navigation & Positioning
Corporation, Thin Air Gear, LLC, Robert W. Berleth (as Receiver), The ARG Group, LLC,
Atlantic Wave Holdings, LLC, and Bilal Maadarani—have not demonstrated a perfected security
interest or perfected lien that attaches to the funds deposited with the Court and are all unsecured
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 6 of 11 PageID# 3610
entityobservation
Robert W. Berleth
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Judgment liens, however, in and of themselves are not perfected interests. A judgment lien
arises when a party obtains a money judgment in a federal or state court. Va. Code Ann § 8.01-
458. In order to convert that judgment lien into a perfected interest in property, a judgment creditor
must record the lien in the judgment lien docket book in the office of the county or city where the
property is situated. Va. Code Ann § 8.01-458. The recorded lien though may only attach to real
property located in the county or city where the lien was recorded - any intangible, moveable
property is excluded. Va. Code Ann § 8.01-458. The act of docketing the lien is a necessary
prerequisite to perfect the judgment lien into the real property over which the judgment creditor
seeks to assert a secured interest. Turshen v. Bennett Heating & Air Conditioning, Inc. (In re
Brisbane), 2 B.R. 636, 1980 Bankr. LEXIS 5596 (Bankr. E.D. Va. 1980); Bartl v. G. Weinberger
& Co. (In re Claxton), 32 B.R. 215, 1983 Bankr. LEXIS 5662 (Bankr. E.D. Va.), aff'd, In re
Claxton, 30 B.R. 199, 1983 Bankr. LEXIS 6230 (Bankr. E.D. Va. 1983).
Here, only two parties, Legalist and the United States government, assert facts that, if true,
could constitute them having a perfected security interest in the funds interpleaded with the Court.
Whether those facts are true, Fairwinds does not comment on at this time. Rather, Fairwinds will
address the sufficiency of those claims in its response to the motions for summary judgment filed
by the parties to this action.
By contrast, the remaining claimants—including Advanced Navigation & Positioning
Corporation, Thin Air Gear, LLC, Robert W. Berleth (as Receiver), The ARG Group, LLC,
Atlantic Wave Holdings, LLC, and Bilal Maadarani—have not demonstrated a perfected security
interest or perfected lien that attaches to the funds deposited with the Court and are all unsecured
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 6 of 11 PageID# 3610
entityobservation
Brett Rosen
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21, 2026, “Brett Rosen and Deborah Rosen were indicted by a federal grand jury on charges that
they, through their joint investment business, RB Capital Partners, Inc., engaged in a years-long
securities fraud and money laundering scheme.” Declaration of Alexander N. Breckinridge V, ¶
2, Ex. 1. The indictment alleges that the Rosens “engaged in a market manipulation scheme
through financing, promoting, and selling the stock of . . . Cyberlux Corp.” Id. Cyberlux remains
in litigation regarding its stock transactions against RB Capital Partners, Atlantic Wave, and
Secured Community. Finally, recent UCC-1 filings in Nevada suggest that Fraudulent Transfers
have occurred.
Indeed, the fact that so many claimants and creditors of Cyberlux have intervened in this
Interpleader suggests that the assets of the company will be siphoned away from legitimate
creditors for other purposes. Cyberlux maintains active litigation by creditors, hiring attorneys in
multiple jurisdictions, and is facing financial hardships. The most recent financial report showed
the company reported a net loss from operations in excess of $3.1 million. Breckinridge Decl. ¶
3, Ex. 2. Its most recent balance sheet showed a “deficiency in stockholders’ equity” in excess of
$16 million against only $37 million in current assets. Id. Cyberlux is not a healthy company.
A federally appointed receiver may decide that the competing claims against Cyberlux’s
limited pot of assets necessitates the filing of a federal bankruptcy petition. See, e.g. In re
Statepark Bldg. Group, Ltd., 316 B.R. 466, 472 (Bankr. N.D. Tex. 2004); JY Creative Holdings,
Inc. v. McHale, No. 14-2899, 2015 U.S. Dist. LEXIS 15970 (M.D. Fla. Feb. 10, 2015). As this
Court recognized in its first status conference with the parties, bankruptcy court may be the
appropriate federal forum to adjudicate, rank, and prioritize the competing claims against
Cyberlux.
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 9 of 11 PageID# 3613
entityobservation
Deborah Rosen
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21, 2026, “Brett Rosen and Deborah Rosen were indicted by a federal grand jury on charges that
they, through their joint investment business, RB Capital Partners, Inc., engaged in a years-long
securities fraud and money laundering scheme.” Declaration of Alexander N. Breckinridge V, ¶
2, Ex. 1. The indictment alleges that the Rosens “engaged in a market manipulation scheme
through financing, promoting, and selling the stock of . . . Cyberlux Corp.” Id. Cyberlux remains
in litigation regarding its stock transactions against RB Capital Partners, Atlantic Wave, and
Secured Community. Finally, recent UCC-1 filings in Nevada suggest that Fraudulent Transfers
have occurred.
Indeed, the fact that so many claimants and creditors of Cyberlux have intervened in this
Interpleader suggests that the assets of the company will be siphoned away from legitimate
creditors for other purposes. Cyberlux maintains active litigation by creditors, hiring attorneys in
multiple jurisdictions, and is facing financial hardships. The most recent financial report showed
the company reported a net loss from operations in excess of $3.1 million. Breckinridge Decl. ¶
3, Ex. 2. Its most recent balance sheet showed a “deficiency in stockholders’ equity” in excess of
$16 million against only $37 million in current assets. Id. Cyberlux is not a healthy company.
A federally appointed receiver may decide that the competing claims against Cyberlux’s
limited pot of assets necessitates the filing of a federal bankruptcy petition. See, e.g. In re
Statepark Bldg. Group, Ltd., 316 B.R. 466, 472 (Bankr. N.D. Tex. 2004); JY Creative Holdings,
Inc. v. McHale, No. 14-2899, 2015 U.S. Dist. LEXIS 15970 (M.D. Fla. Feb. 10, 2015). As this
Court recognized in its first status conference with the parties, bankruptcy court may be the
appropriate federal forum to adjudicate, rank, and prioritize the competing claims against
Cyberlux.
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 9 of 11 PageID# 3613
eventattribution
Fairwinds requests commission judgment and proposes federal receivership.
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#111488991v1
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP.,
Interpleader Plaintiff
v.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
inferenceinference
Fairwinds’ express unsecured posture and reservation of rival perfection distinguish the existence/amount of its debt from relative priority
Fairwinds’ express unsecured posture and reservation of rival perfection distinguish the existence/amount of its debt from relative priority. Its request for equal treatment is not a concession that all claims are valid or that Legalist/US are actually perfected.
inferenceinference
The receiver/bankruptcy proposal attempts to change the forum and asset-administration mechanism, but the brief acknowledges its procedural
The receiver/bankruptcy proposal attempts to change the forum and asset-administration mechanism, but the brief acknowledges its procedural incompleteness and supplies no appointment or bankruptcy result.
otherattribution
Complete supplied 11-page source reviewed at SHA-256 a332954210d007e3dc567dd361ea29f83163944047f08ac600b5b3d231f5efc9. Source assertions, or
Complete supplied 11-page source reviewed at SHA-256 a332954210d007e3dc567dd361ea29f83163944047f08ac600b5b3d231f5efc9. Source assertions, original visual features, filing/communication context and identified missing attachments are retained. Own full eleven-page native reading and image inspection of pages 1,2,6,7,9,10,11. Checked exact commission digits, express no-perfected-interest footnote, reserved rival positions, procedural caveat, signature and service. Remaining native pages fully read, including authorities and footnotes.
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#111488991v1
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division
HII MISSION TECHNOLOGIES CORP.,
Interpleader Plaintiff
v.
CYBERLUX CORPORATION, et al.,
Interpleader Defendants/Claimants
Civil Action No: 3:25-cv-483-JAG
FAIRWINDS TECHNOLOGIES, LLC’S
MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
Pursuant to the Court’s Orders dated February 11, 2026 and March 31, 2026 (Dkt. Entries
145, 158) and Federal Rule of Civil Procedure 56, Fairwinds Technologies LLC (“Fairwinds”),
through its undersigned counsel, hereby respectfully submits this memorandum in support of its
motion for summary judgment in the above-captioned action.
STATEMENT OF UNDISPUTED FACTS
Fairwinds intervened in the case as an Interpleader Defendant asserting a claim to funds
that HII Mission Technologies Corp. (“HII”) has deposited with the Court on March 6, 2026, as
an unsecured creditor of Cyberlux Corporation (“Cyberlux”).
Fairwinds became an unsecured creditor of Cyberlux initially through an October 3, 2022,
Teaming Agreement (the “TA”) entered into by the parties by which Fairwinds assisted Cyberlux
in securing a contract vehicle award for the shipment of Cyberlux’s Model K8 Aircraft (“Drones”).
Declaration of Thomas O. Wirth, ¶ 2, Exhibit 1.
The TA provided Fairwinds, in consideration for its services, either: (i) the opportunity to
serve as prime contractor for any subsequent award; or, (ii) in the event that a party other than
Case 3:25-cv-00483-JAG Document 178 Filed 04/15/26 Page 1 of 11 PageID# 3605
questionquestion
What actual agreements, service/performance records, Schmidt spreadsheet and receipts validate the commission amount, trigger and claimed co
What actual agreements, service/performance records, Schmidt spreadsheet and receipts validate the commission amount, trigger and claimed connection to deposited proceeds?
questionquestion
What later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receive
What later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receiver or bankruptcy route?
questionquestion
Does Fairwinds claim a perfected first-priority interest or show a receiver was appointed?
observation
CONNECT
Reviewed relationships
The canvas follows the database: source to DISTIL record, DISTIL record to knowledge object, then reviewed relationship. Position alone means nothing.
On January 21, 2026, Brett Rosen and Deborah Rosen were indicted by federal grand jury on securities fraud and money laundering charges, with allegations naming market manipulation of Cyberlux Corporation stock.supports{"timeline_thread":"programme","timeline_thread_label":"Procurement & programme"}
This reviewed database occurrence and exact public source passage document the dated event in the public chronology.
{"timeline_thread":"programme","timeline_thread_label":"Procurement & programme"}relates to{"chapter":29,"exposure_lens":"Intermediary exposure depends on the actual service, compensation, disclosure, approval and actor-specific knowledge; a percentage fee is a question, not an offence by itself.","responsibility":"Legitimate services, fee disclosure, customer approval, registration and price treatment.","sequence":329,"unit_key":"CH29"}
The controlling book publication map connects this dated event to Part III, Chapter 29. The connection follows stored event/source and publication identifiers.
It characterises ANPC, TAG, Berleth as receiver, ARG, Atlantic Wave and Bilal Maadarani as unsecured and argues none outranks Fairwinds. It reserves whether their underlying claims are valid. This disputed characterisation does not displace those parties’ asserted equitable or judicial-lien theories.contradictsTAG claims an equitable lien and constructive trust dating to its September 5, 2023 supply contract, citing Virginia and alternative Colorado authorities and distinct tracing/collateral-intent requirements. It offers December 3, 2024 breach or August 29, 2025 judgment as fallback dates. Those asserted dates are not established perfected-priority findings.
Opposing claimant positions: Fairwinds characterises TAG as unsecured and pari passu, while TAG claims an earlier equitable lien/constructive trust. This records their disagreement, not a finding that either position is legally correct.
Fairwinds invokes summary-judgment and perfection authorities and argues perfected interests outrank unsecured claims while unsecured claimants share equally. It discusses real-property judgment docketing and cites bankruptcy priority provisions by analogy. These are its legal submissions, not a determination that every cited rule governs this interpleader.supportsFairwinds’ express unsecured posture and reservation of rival perfection distinguish the existence/amount of its debt from relative priority. Its request for equal treatment is not a concession that all claims are valid or that Legalist/US are actually perfected.
Specifically named source propositions support the bounded distinction or question.
Fairwinds says HII was selected prime and a June 7, 2023 Strategic Business Development, Service and Supply Teaming contract guaranteed the 8% fee for past and future services. It asserts both agreements are valid and Cyberlux does not dispute them; this memorandum is not a judicial enforceability finding.supportsWhat actual agreements, service/performance records, Schmidt spreadsheet and receipts validate the commission amount, trigger and claimed connection to deposited proceeds?
Specifically named source propositions support the bounded distinction or question.
Fairwinds says HII deposited funds March 6, 2026 and argues the matching amount and absence of another transaction in exchanged discovery identify the contract proceeds. It requests recognition of $2,348,542.40 owed as an unsecured creditor in that transaction. Matching amounts are its stated tracing argument, not a court determination.supportsWhat actual agreements, service/performance records, Schmidt spreadsheet and receipts validate the commission amount, trigger and claimed connection to deposited proceeds?
Specifically named source propositions support the bounded distinction or question.
It characterises ANPC, TAG, Berleth as receiver, ARG, Atlantic Wave and Bilal Maadarani as unsecured and argues none outranks Fairwinds. It reserves whether their underlying claims are valid. This disputed characterisation does not displace those parties’ asserted equitable or judicial-lien theories.supportsFairwinds’ express unsecured posture and reservation of rival perfection distinguish the existence/amount of its debt from relative priority. Its request for equal treatment is not a concession that all claims are valid or that Legalist/US are actually perfected.
Specifically named source propositions support the bounded distinction or question.
Fairwinds expressly presents itself as an unsecured Cyberlux creditor and states in footnote 1 that it has never claimed a perfected security interest in the deposited funds. It describes an October 3, 2022 teaming agreement offering prime-contractor status or 8% on the first 1,000 drones if another prime was selected.supportsDoes Fairwinds claim a perfected first-priority interest or show a receiver was appointed?
Specifically named source propositions support the bounded distinction or question.
Fairwinds proposes a federal receiver under Rule 66, acknowledging appointment is extraordinary and discussing asset-risk/equitable factors. Those cited factors are advocacy criteria, not findings that all are met.supportsWhat later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receiver or bankruptcy route?
Specifically named source propositions support the bounded distinction or question.
Fairwinds says only Legalist and the United States assert facts that, if true, could support perfected interests, expressly reserving comment on their truth and sufficiency for later opposition. It does not concede their actual perfection.supportsWhat later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receiver or bankruptcy route?
Specifically named source propositions support the bounded distinction or question.
Fairwinds suggests a federally appointed receiver might file bankruptcy to protect and rank creditors. Page 10 acknowledges that suggestion is not properly before the court at this juncture, while the conclusion nevertheless requests receiver appointment. It seeks $2,348,542.40, 8% compound post-judgment interest and equal treatment of creditors without perfected interests; no granting order is supplied.supportsWhat later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receiver or bankruptcy route?
Specifically named source propositions support the bounded distinction or question.
Fairwinds suggests a federally appointed receiver might file bankruptcy to protect and rank creditors. Page 10 acknowledges that suggestion is not properly before the court at this juncture, while the conclusion nevertheless requests receiver appointment. It seeks $2,348,542.40, 8% compound post-judgment interest and equal treatment of creditors without perfected interests; no granting order is supplied.supportsThe receiver/bankruptcy proposal attempts to change the forum and asset-administration mechanism, but the brief acknowledges its procedural incompleteness and supplies no appointment or bankruptcy result.
Specifically named source propositions support the bounded distinction or question.
Fairwinds suggests a federally appointed receiver might file bankruptcy to protect and rank creditors. Page 10 acknowledges that suggestion is not properly before the court at this juncture, while the conclusion nevertheless requests receiver appointment. It seeks $2,348,542.40, 8% compound post-judgment interest and equal treatment of creditors without perfected interests; no granting order is supplied.supportsDoes Fairwinds claim a perfected first-priority interest or show a receiver was appointed?
Specifically named source propositions support the bounded distinction or question.
Fairwinds says only Legalist and the United States assert facts that, if true, could support perfected interests, expressly reserving comment on their truth and sufficiency for later opposition. It does not concede their actual perfection.supportsDoes Fairwinds claim a perfected first-priority interest or show a receiver was appointed?
Specifically named source propositions support the bounded distinction or question.
Fairwinds says only Legalist and the United States assert facts that, if true, could support perfected interests, expressly reserving comment on their truth and sufficiency for later opposition. It does not concede their actual perfection.supportsFairwinds’ express unsecured posture and reservation of rival perfection distinguish the existence/amount of its debt from relative priority. Its request for equal treatment is not a concession that all claims are valid or that Legalist/US are actually perfected.
Specifically named source propositions support the bounded distinction or question.
Fairwinds proposes a federal receiver under Rule 66, acknowledging appointment is extraordinary and discussing asset-risk/equitable factors. Those cited factors are advocacy criteria, not findings that all are met.supportsThe receiver/bankruptcy proposal attempts to change the forum and asset-administration mechanism, but the brief acknowledges its procedural incompleteness and supplies no appointment or bankruptcy result.
Specifically named source propositions support the bounded distinction or question.
It characterises ANPC, TAG, Berleth as receiver, ARG, Atlantic Wave and Bilal Maadarani as unsecured and argues none outranks Fairwinds. It reserves whether their underlying claims are valid. This disputed characterisation does not displace those parties’ asserted equitable or judicial-lien theories.supportsWhat later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receiver or bankruptcy route?
Specifically named source propositions support the bounded distinction or question.
Fairwinds expressly presents itself as an unsecured Cyberlux creditor and states in footnote 1 that it has never claimed a perfected security interest in the deposited funds. It describes an October 3, 2022 teaming agreement offering prime-contractor status or 8% on the first 1,000 drones if another prime was selected.supportsFairwinds’ express unsecured posture and reservation of rival perfection distinguish the existence/amount of its debt from relative priority. Its request for equal treatment is not a concession that all claims are valid or that Legalist/US are actually perfected.
Specifically named source propositions support the bounded distinction or question.
Fairwinds attributes a July 8, 2025 spreadsheet and invoices to CEO Mark Schmidt calculating $2,348,542.40 commission and $25,769,369.03 due from HII. It says Schmidt linked payment to those HII proceeds, and Fairwinds invoiced $2,348,542.40 on July 9. The actual spreadsheet, invoice and correspondence are cited as Wirth exhibits but not appended.supportsWhat actual agreements, service/performance records, Schmidt spreadsheet and receipts validate the commission amount, trigger and claimed connection to deposited proceeds?
Specifically named source propositions support the bounded distinction or question.
It characterises ANPC, TAG, Berleth as receiver, ARG, Atlantic Wave and Bilal Maadarani as unsecured and argues none outranks Fairwinds. It reserves whether their underlying claims are valid. This disputed characterisation does not displace those parties’ asserted equitable or judicial-lien theories.supportsDoes Fairwinds claim a perfected first-priority interest or show a receiver was appointed?
Specifically named source propositions support the bounded distinction or question.
Fairwinds invokes summary-judgment and perfection authorities and argues perfected interests outrank unsecured claims while unsecured claimants share equally. It discusses real-property judgment docketing and cites bankruptcy priority provisions by analogy. These are its legal submissions, not a determination that every cited rule governs this interpleader.supportsWhat later opposition and ruling resolve competing perfection/equitable claims, the applicable priority law and the proposed federal receiver or bankruptcy route?
Specifically named source propositions support the bounded distinction or question.
WEIGH
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