RECEIVERSHIPS: National Note of Utah, LC

WAYNE KLEIN, RECEIVER FOR
National Note of Utah, LC

10 Exchange Place, 502
Salt Lake City, UT 84111
(801) 456-4591

This site contains updates and filings related to the National Note of Utah Receivership. Updates are posted chronologically with the relevant links. This information is summarized quarterly by the Receiver in a status update to the court. The latest quarterly report can be found here.

Investor Questionnaires
June 28, 2012: The Receiver has prepared a questionnaire to gather information about those who had dealings with National Note, Wayne Palmer, or companies affiliated with National Note. A copy of the questionnaire can be found here. A PDF version can be found here. We ask that you complete the questionnaire and return it to us so we can have correct contact information for you and have information about the nature of your transactions with the companies and Mr. Palmer.
Property Auction and Sale Notices

Industrial Lots: Byron, Minnesota

  • Motion for permission to publish notice and hold auction
  • Declaration in support of motion
  • Auction Procedures
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    Updates: Descriptions of Recent Developments

    December 4, 2014: The Court today issued an order approving the sale of six lots in the Almond Heights subdivision in Toquerville, Utah. Five of the lots are subject to deeds of trust held by others, so the Receivership will receive only a portion of the proceeds from the sales or will hold the proceeds in the real estate reserve account until the validity of the trust deeds have been resolved. A copy of the order can be found here.

    December 4, 2014: The Court approved the fee application for the Receiver and his attorneys for the period from July to December 2013. While the entire fee and expense application was approved, the Court ordered the Receiver to hold 20% of the fee amount in reserve until final termination of the Receivership Estate and further approval by the Court. A copy of the order can be found here.

    November 26, 2014: The Receiver filed a lawsuit today against Secure American Gold Exchange (SAGE) seeking the return of $112,000 that National Note paid to SAGE as part of a plan to purchase gold from an African source. SAGE’s company charter has expired, but the company holds a judgment against some Florida entities that received National Note’s money. The Receiver hopes to be able to take control of that judgment and obtain more information about the transactions. A copy of the lawsuit can be found here.

    November 18, 2014: The Receiver filed a motion today notifying the Court of a preliminary agreement to sell two parcels of industrial land in Byron, Minnesota and asking the Court to approve a plan to conduct an auction to determine whether any other buyers are willing to pay a higher price. At the conclusion of the auction, the property would be sold to the highest bidder. A copy of the motion can be found here.

    November 17, 2014: The Court issued an order requiring David VanCampen to pay $1,000 to the Receivership for his failure to respond to a subpoena requesting information about his role in seeking to purchase African gold for Receivership Entities. A copy of the order can be found here.

    November 13, 2014: The Court issued an order allowing JP Morgan Chase Bank to intervene in the receivership litigation to pursue its request that the bank be allowed to foreclose on the home where Mr. Palmer is living. The Court set a hearing on December 12, 2014 to consider whether to lift the asset freeze order and allow the bank to pursue foreclosure. A copy of the order can be found here.

    November 11, 2014: The Receiver filed his status report for the quarter ending September 30, 2014. A copy can be found here.

    November 7, 2014: The Receiver today filed a motion seeking approval to conduct an auction to sell industrial land at 1631 Voll Drive, Byron, Minnesota. The Receiver has accepted an offer of $156,700 for the property. The Receiver plans to hold an auction in December at the property to see if higher offers will be submitted. Bidders wishing to participate in the auction must pre-qualify to bid. A copy of the motion can be found here. The auction procedures are here. The receiver’s declaration in support of the motion is found here. Bidders wanting copies of the appraisals obtained by the Receiver or wanting more information are encouraged to contact the Receiver.

    November 7, 2014: The Receiver filed a supplemental notice with the Court describing the results of the third appraisal of the Almond Heights lots. A copy of the notice can be found here.

    November 6, 2014: The Court today signed an order approving the sale of the home on Hawthorne Avenue in Middleton, Idaho. A copy of the order can be found here.

    November 3, 2014: The Receiver filed a motion today seeking Court approval to sell six lots in the Almond Heights subdivision in Toquerville, Utah. Five of the lots are subject to deeds of trust which will reduce the amount of net sales proceeds for the Receivership Estate. A copy of the motion can be found here.

    October 20, 2014: The Receiver sent a letter to the receiver for American Pension Services urging the APS receiver to modify its proposed liquidation plan by adopting a more accurate valuation of National Note assets held in the accounts of APS customers. A copy of the letter can be found here. The exhibits to the letter can be accessed here.

    October 15, 2014: The Receiver filed a third fee application for the work performed by the Receiver and his counsel for the period from July 2013 to December 2013. A copy of the fee application can be found here.

    October 10, 2014: The Receiver filed a motion today seeking permission to amend the lawsuit filed against KeyBank. The proposed amended lawsuit would add as defendants CitiBank and Elan Financial Services based on information indicating that payments from National Note went to these additional financial institutions. A copy of the motion can be found here.

    October 2, 2014: A judge today signed an order compelling Key Bank to produce documents relating to credit card accounts where National Note made payments on the accounts. The judge also denied the bank’s motion for a protective order. The order can be found here.

    October 1, 2014: The Court issued an order approving three recent settlement agreements negotiated by the Receiver. A copy of the order can be found here.

    October 1, 2014: The Receiver filed a motion seeking Court approval to appoint three appraisers to appraise the Almond Heights property in Toquerville, Utah in connection with offers he has received for the property. A copy of the motion can be found here.

    September 30, 2014: The Receiver filed a motion seeking court approval to sell a home in Middleton, Idaho for $76,000, which is 95% of the listed price. A copy of the motion can be found here.

    September 26, 2014: The Receiver filed a motion seeking Court approval of three new settlement agreements. One involves settlement of a lawsuit, a second allows cooperation in selling property subject to liens, and the third relates to payment relating to a property sale. A copy of the motion can be found here.

    September 25, 2014: The Court entered an order to show cause against David Christopher VanCampen requiring him to submit to a deposition by the Receiver and appear at a hearing to determine whether he should be held in contempt. A copy of the order can be found here.

    September 24, 2014: JPMorgan Chase Bank filed a motion to intervene in the Receivership case, seeking to lift the asset freeze so the bank can foreclose on the residence of Wayne Palmer. A copy of the bank’s motion can be found here.

    September 22, 2014: The Receiver filed a motion asking the Court to hold a hearing on whether David VanCampen should be compelled to appear and allow the Receiver to take his deposition. A copy of the motion can be found here.

    September 5, 2014: The Receiver today filed with the Court notice that the Receiver’s report analyzing the financial condition of National Note has been disclosed to persons the Receiver has sued and is now being made available to investors via the website. The Report includes:

    September 2, 2014: The Court today approved three settlement agreements entered into by the Receiver. A copy of the order can be found here.

    August 28, 2014: The Receiver filed a motion today seeking Court approval of three settlement agreements that will bring $673,000 into the Receivership Estate. A copy of the motion can be found here.

    August 28, 2014: The Court issued an order today approving the sale of a home in Kanab which was part of the Receivership Estate. The Court also authorized the Receiver to pay a reduced amount owed to the bank which had a lien on the property. A copy of the order can be found here.

    August 25, 2014: On August 13, 2014 the Receiver was served a summons and complaint in a lawsuit filed in Florida by a person whose property includes a lien by National Note. A copy of the lawsuit can be found here. The case was removed to federal court at the request of the IRS. The Receiver notified Thoresen that he needed permission from the Receivership Court in order to sue the Receivership Estate. In response, Thoresen dismissed his lawsuit. The notice of dismissal can be found here.

    August 22, 2014: The Receiver filed a lawsuit today against approximately 130 persons who hold assignments of beneficial interest in properties owned by National Note. Close to half of the holders of assignments like this previously released their assignments voluntarily, but since not all assignments have been released, the proceeds from the sales of real estate cannot be made available for distributions to investors. Today’s lawsuit seeks a judicial determination whether these assignments are valid liens against the real estate. A copy of the lawsuit can be found here. A list showing all defendants and the properties on which their assignments were recorded can be found here. The defendants in the lawsuits are invited to release their assignments. The litigation will proceed against all defendants that decide not to release their assignments.

    August 20, 2014: The U.S. Securities and Exchange Commission has filed a motion to postpone the trial date of Wayne Palmer in order to take the depositions of his attorneys. A copy of the SEC’s motion can be found here.

    August 19, 2014: The Court signed an order approving the settlement with the True Kirk Trust, including the transfer of the Twin Pines property to the Kirk Trust and payment to the Receivership of approximately $200,000. A copy of the order can be found here.

    August 18, 2014: The Receiver filed a motion seeking approval of a settlement agreement he reached with the True Kirk Trust relating to the Twin Pines apartment building in Brigham City, Utah. The agreement, if approved, will result in the Receivership receiving approximately $200,000 and the property being transferred to the Kirk Trust. A copy of the motion can be found here.

    August 18, 2014: The Court today signed an order approving the sale of one of the homes owned by the Receivership Estate in Middleton, Idaho. A copy of the order can be found here.

    August 13, 2014: The Receiver filed a motion today seeking Court approval to sell a cabin located in Kanab, Utah. A copy of the motion can be found here.

    August 12, 2014: The Receiver has received an offer for the cabin property in Kanab, UT held in the Receivership Estate. The offer requires that it be closed within a very short window, so the Court today approved the appointment of two additional appraisers and publication of notice. The Receiver expects to file his motion describing the sale and asking Court approval of the sale within the next few days. Additional offers for this cabin are invited.

    August 4, 2014: The Court issued an order today denying the motion filed by a group of approximately 20 defendants to consolidate their cases before a single judge. A copy of the order can be found here.

    July 28, 2014: The Receiver filed a motion today seeking approval of a settlement agreement with Reed Larsen and three companies controlled by him. A copy of the motion can be found here.

    July 25, 2014: The Receiver filed a status report today covering the period from April 1, 2014 through June 30, 2014. A copy of the Report can be found here.

    July 25, 2014: The Court today granted the Receiver default judgment against Richard Schutte in the amount of $26,498.63. A copy of the judgment can be found here.

    July 16, 2014: An insolvency expert issued his report today explaining the basis for his opinion that during the entire period he examined (from 2004 to 2012), National Note was insolvent. A copy of the insolvency report can be found here.

    July 9, 2014: The court today entered a default judgment for the Receiver against Timothy and Kellie McKenna. The judgment orders them to pay $16,465.20 and declares that the “assignment of beneficial interest” in real estate owned by National Note is void. A copy of the order can be found here.

    July 9, 2014: At a court hearing today on the SEC’s motion for summary judgment against Mr. Palmer, Mr. Palmer asked the Court to let him present his evidence at trial. The Court set a trial date for September 23, 2014 at 9:30 a.m. Because the Court set a trial date, it denied the SEC’s motion for summary judgment.

    July 9, 2014: The Court today approved the fee application for the Receiver and his counsel for the period from January through June 2013. A copy of the order can be found here.

    July 9, 2014: Following a hearing, the court approved the sale of the remaining two building lots in the Autumn Ridge subdivision in Eagle Mountain, Utah. A copy of the order can be found here.

    July 7, 2014: The Court today issued an order requiring Wayne Scholle to appear at a hearing on August 4, 2014 to show cause why he should not be held in contempt of court. A copy of the order can be found here.

    July 2, 2014: The Receiver filed an amended complaint against Innovative Services, Sawtell Capital, and Michael Memmott. The amended complaint seeks recovery of an additional $160,000 that the Receiver identified as having been paid to others for the benefit of Sawtell and Memmott. A copy of the amended complaint can be found here.

    July 2, 2014: The Receiver filed a motion with the Court notifying the Court that Wayne Scholle had not complied with a prior order entered by the Court and asking the Court to hold a hearing to determine whether to hold Mr. Scholle in contempt of court. A copy of the motion can be found here.

    July 1, 2014: The Court entered an order today approving the sale of Autumn Ridge Lot #2. A copy of the order can be found here.

    June 30, 2014: The Receiver filed a lawsuit against Cedric and Cynthia Johnson, seeking the return of $203,797.83 in false profits and a declaration that the assignments of beneficial interest held by the Johnsons in several properties were not valid liens on those properties. A copy of the lawsuit can be found here.

    June 26, 2014: The Receiver filed a motion seeking approval to sell the home located on 1st Avenue in Middleton, Idaho. The proposed sale is for $105,000. A copy of the motion can be found here. The Court has set a hearing on this sale for August 4, 2014 at 10:30 a.m.

    June 24, 2014: Wayne Palmer asked the Court to postpone the scheduled hearing on the SEC’s motion for summary judgment that had been scheduled for June 26. The Court granted his request and the hearing has been reset for July 9, 2014 at 1:30 p.m. A copy of the motion can be found here and the Court’s order can be found here.

    June 16, 2014: The Court today approved eight settlement agreements that had been negotiated by the Receiver. A copy of the order approving the settlements can be found here.

    June 16, 2014: The Court today authorized the Receiver to publish notice of the proposed sale of Autumn Ridge lots 16 and 39. Notice will be published in newspapers in Salt Lake and Utah County. A copy of the order can be found here.

    June 13, 2014: The Court set a hearing date to consider the Receiver’s motion to sell Autumn Ridge lots 16 and 39. The hearing will be on July 8, 2014 at 10:30 a.m.

    June 11, 2014: The Receiver filed a motion today seeking court approval to sell the remaining two building lots in the Autumn Ridge subdivision in Eagle Mountain, Utah. If approved by the Court, the lots will be sold for $39,900 each. A copy of the motion can be found here.

    June 11, 2014: The court hearing at which the judge will consider the SEC’s motion for summary judgment against Wayne Palmer has been postponed to Friday, June 27 at 10:00 a.m. The motion to approve the sale of Autumn Ridge Lot #2 and a motion by an attorney for a group of defendants seeking the transfer of cases will also be heard on June 27.

    June 9, 2014: An attorney who represents defendants in 23 different lawsuits filed by the Receiver filed a motion seeking to transfer those 23 lawsuits to a single judge. The Receiver filed his response, explaining he does not oppose the transfer, subject to the need to comply with court rules on any transfer. A copy of the Receiver’s response can be found here.

    June 9, 2014: The Receiver filed a motion seeking approval of eight new settlement agreements signed by the Receiver during the prior two months. A copy of the Receiver’s motion, including a description of the eight settlement agreements, can be found here.

    May 30, 2014: The Receiver filed a motion today asking the Court to order two Utah law firms to return $10,000 to the Receivership Estate. The motion alleges that after the Receiver was appointed, a borrower who owed money to National Note paid $10,000 to the law firms and that the law firms used that money for the legal defense of Wayne Palmer, when the monies should have been paid to the Receivership Estate as a payment on the loan owed to National Note. A copy of the Receiver’s motion can be found here.

    May 14, 2014: The Court today issued an opinion denying the motion to dismiss filed by Glendale Eaton and the Eaton Living Trust. Eaton had argued that the Receiver lacked personal jurisdiction over him since he lives in Texas and that the Receiver’s lawsuit faled to sufficiently state a claim against Eaton. The Court’s opinion rejects all the arguments by Eaton and holds that he is subject to litigation in the federal court in Utah. A copy of the opinion can be found here.

    May 13, 2014: The Court today approved the Receiver’s request to publish notice of a proposed sale of a building lot in the Autumn Ridge subdivision in Eagle Mountain, Utah. A copy of the notice can be found here.

    May 9, 2014: The Receiver has filed a motion seeking Court approval to hire Lone Peak Valuation Group as an insolvency expert and to provide an opinion on the valuation of assets held by National Note. A copy of the motion can be found here. The Court has set a hearing on this motion for May 26, 2014 at 10:30 a.m.

    May 2, 2014: The Receiver filed a motion today asking the Court for permission to sell one of the three building lots in the Autumn Ridge development that remain in the receivership estate. The proposed sale is for $39,900, a price 20% higher than the average appraised values. A copy of the motion can be found here.

    April 28, 2014: The Court today approved the sale of Autumn Ridge Lot #3 for $39,900. A copy of the order approving the sale can be found here.

    April 24, 2014: The Receiver has learned that the U.S. Securities and Exchange Commission filed suit against American Pension Services (APS) and its owner. The SEC’s lawsuit alleges that APS violated the securities laws by misappropriating customer funds, making unauthorized investments, and inflated asset values. At the request of the SEC, the federal court froze all assets of APS and appointed a receiver over APS. The APS receiver has established a website with information about the APS receivership at www.apsreceiver.com . The website includes answers to frequently asked questions, a copy of which can be found here. Documents relating to the SEC’s lawsuit against American Pension Services have been made public. A copy of the SEC’s lawsuit against APS can be found here. The Court order appointing a receiver can be found here.

    April 24, 2014: The Receiver filed a status report today covering the period from January 1, 2014 to March 31,2014. A copy of the report can be found here. Exhibit B, describing the status of property sales, can be found here.

    April 23, 2014: The Receiver filed suit against Michelle Turpin, a Salt Lake City attorney, seeking the return of $88,135.37 paid to her by National Note. The Receiver believes that some or all of the payments to Turpin were for services she provided to persons other than National Note. A copy of the lawsuit filed today can be found here.

    April 22, 2014: Wayne Palmer’s attorney filed a motion to withdraw as counsel for Mr. Palmer. A copy of his motion can be found here. The Court set a hearing for May 19 on this motion and set a hearing on June 16 to hear arguments on the SEC’s motion for summary judgment against Mr. Palmer.

    April 17, 2014: The Receiver filed an application today seeking Court approval to pay his fees and the fees of his counsel for the six-month period from January 1, 2013 to June 30, 2013. A copy of the fee application can be found here.

    April 14, 2014: The Court issued an order today approving the appointment of three appraisers for the two homes in Middleton, Idaho. A copy of the order can be found here.

    April 4, 2014: The Receiver filed a motion asking the Court to appoint three appraisers for two homes in Middleton, Idaho that are in the Receivership Estate. These appraisals will help the Receiver set a price to sell the two homes. A copy of the motion can be found here.

    March 28, 2014: The Court today approved the publication of notice of the planned sale of Autumn Ridge lot #3. The Court set a hearing for April 25, 2014 to consider the sale. A copy of the motion can be found here.

    March 28, 2014: The Receiver filed a motion today seeking approval to hire a third appraiser for the Elkhorn Ridge lots near Malad, Idaho. Obtaining a third appraisal is designed to streamline the process of selling lots at Elkhorn. A copy of the motion can be found here.

    March 26, 2014: The Receiver filed a motion today seeking Court approval to sell one of the building lots at the Autumn Ridge subdivision in Eagle Mountain, Utah. The sale would be for $39,900. This is 16% higher than the appraised value. A copy of the motion can be found here.

    March 14, 2014: The Court entered a default judgment against Doug Wells and the C&O Wells Trust in the amount of $99,358.79. A copy of the default judgment can be found here.

    March 14, 2014: The Court today issued an order approving seven settlement agreements recently negotiated by the Receiver. A copy of the order can be found here.

    March 12, 2014: The SEC filed a brief on February 28, 2014, opposing Palmer’s motion to stay the SEC proceedings. A copy of the SEC’s filing can be found here. Palmer filed his reply on March 12, 2014. A copy of Palmer’s reply can be found here.

    March 10, 2014: The Receiver filed a motion today seeking Court approval of seven settlement agreements entered into in the recent past. A copy of the motion can be found here.

    February 28, 2014: The Court today approved a settlement that the Receiver negotiated with American West Bank in which the bank will pay $70,000 to the Receivership Estate. The payment is to compensate the receivership estate for an interest it held in a company whose property was foreclosed by the bank. A copy of the order approving the settlement can be found here.

    February 19, 2014: The Court denied a renewed motion by Leon Harward to intervene in the Receivership litigation. The order followed a hearing that the Court held on February 14, 2014. A copy of the Court order can be found here.

    February 18, 2014: Palmer’s attorneys filed a renewed motion seeking to stay the civil proceedings brought by the SEC against Palmer. A copy of the motion can be found here.

    February 4, 2014: The Receiver filed the status report for the quarter ending December 31, 2013. A copy of the report can be found here. The exhibits to the report can be found here Exhibit A, Exhibit B, and Exhibit C.

    January 23, 2014: The Court approved a settlement agreement between the Receiver and Barclay Associates, the lender holding a lien on most of the Riverbend property in Middleton, Idaho. Pursuant to the agreement, Barclay will take title to the property, but agrees to assert no claims against the Receivership Estate for any deficiency in the amounts owed on the loan. A copy of the Court order can be found here.

    January 23, 2014: The federal public defender’s office filed a motion today asking the Court to put the SEC’s lawsuit against Palmer on hold. A copy of that motion can be found here.

    January 13, 2014: The Receiver filed his opposition to the renewed motion by Leon Harward to be able to intervene in the Receivership litigation. A copy of the Receiver’s filing can be found here.

    January 6, 2014: The Court today signed an order approving 18 settlement agreements negotiated by the Receiver. A copy of the Court order can be found here.

    January 3, 2014: The Receiver filed a motion today seeking court approval of 18 preliminary settlement agreements. These agreements will bring a little more than $200,000 into the Receivership Estate and resolve lawsuits filed by the Receiver. A copy of the Receiver’s motion can be found here.

    December 26, 2013: Leon Harward, owner of West Side Enterprises, has filed a motion asking the Court to reconsider allowing him to intervene in the Receivership litigation. Harward had West Side Enterprises assign its rights in the Expressway Business Park to Harward and now asks the Court to reverse its prior decision denying him the right to intervene. A copy of Harward’s motion can be found here.

    December 9, 2013: The Court today approved the Receiver’s first request for reimbursement of expenses and payment of fees for the work of the Receiver and his counsel for work performed between June and December 2012. The Court overruled the objections that Palmer had filed. A copy of the order can be found here.

    December 5, 2013: The Court held a hearing today on the Receiver’s motion to sell the home in Temple, Georgia and approved the sale. A copy of the Court order can be found here.

    December 4, 2013: The Court today granted the motion by Barclay Associates to intervene in the Receivership litigation. Barclay is the lender for and lien holder on the Riverbend property in Middleton, Idaho. A copy of the Court’s order can be found here.

    November 21, 2013: The Court today denied a motion to dismiss filed by Steve Van Gordon. The Court ruled that the U.S. District Court has jurisdiction over the Receiver’s lawsuit seeking recovery from Van Gordon. A copy of the Court’s ruling can be found here.

    November 21, 2013: The Court today issued an order denying the motion to intervene filed by a group of 40 investors. The order followed a hearing on November 15 at which the Court heard arguments on the request to intervene. A copy of the Court’s order can be found here.

    November 15, 2013: A motion to intervene was filed today by Barclay Associates. Barclay is the lender on property owned by the Receivership Estate in Middleton, Idaho. Barclay’s motion states that it seeks to intervene to get a declaration of its security interests in the property and to seek possession of the property. A copy of Barclay’s motion can be found here. A copy of the lawsuit that Barclay intends to file, along with copies of the documents supporting its claim of a security interest, can be found here.

    November 15, 2013: The Receiver filed a notice today with the Court describing the results of the auction of the Cottonwood property. A copy of the notice can be found here.

    November 14, 2013: The Court today signed an order denying the motion to intervene filed by Leon Harward and West Side Enterprises. The order follows a hearing held on November 12, 2013. A copy of the court order can be found here.

    November 13, 2013: The SEC began administrative proceedings today against Julie Palmer Martin. Those proceedings seek a determination whether Martin violated the federal securities laws. A copy of the order initiating these SEC proceedings can be found here.

    November 8, 2013: The Receiver filed a motion today seeking court approval to sell a home owned by the Receivership Estate in Temple, Georgia. The home appraised for $125,000 and an offer has been received for $125,000. A copy of the motion can be found here.

    November 4, 2013 The Receiver filed the fifth status report with the Court today. This report covers activities from July 1, 2013 to September 30, 2013. A copy of the report can be found here.

    October 31, 2013: The Court issued an order today approving the 11 settlement agreements recently negotiated by the Receiver. A copy of the order can be found here.

    October 30, 2013: The Receiver filed a motion today asking the Court to approve 11 settlement agreements that have been negotiated by the Receiver. If approved, these settlements will bring $69,000 into the Receivership estate and result in the release of a $125,000 deed of trust on a property in the receivership estate. A copy of the motion can be found here.

    October 28, 2013: The Court today approved the sale of the 1-acre property on Little Cottonwood Road to the high bidder at the auction. The high bid was $291,000.00. A copy of the order can be found here.

    October 23, 2013: The Receiver has withdrawn his motion seeking to conduct an auction for the 85-acre parcel of land in Fairfield. The buyer withdrew his offer when the City of Fairfield denied the buyer’s application for permission to use the property for the buyer’s intended business. A copy of the motion can be found here.

    October 23, 2013: The Court approved holding an auction for the sale of Elkhorn Lot #2, near Malad, Idaho. The opening bid at the auction will be $31,500. The Receiver will publish notice of the auction in the newspaper and set an auction date. A copy of the Court’s order can be found here.

    October 22, 2013: The Receiver filed a motion seeking court permission to consummate the sale of the Cottonwood Road property to the high bidder at the auction. The auction bidding started at $211,000 and resulted in a high bid of $291,000. A copy of the motion can be found here.

    October 21, 2013: A motion was filed today by Leon Harward and Westside Enterprises, seeking to intervene in the Receivership matter. The motion indicates that Harward and Westside want the Court to pay Harward a share of all Expressway properties sold by the Receiver. A copy of the motion can be found here.

    October 21, 2013: The Receiver filed a motion today seeking Court approval to conduct an auction to sell Elkhorn Lot #2. An offer of $31,500 has been received for this vacant building lot near Malad, Idaho. The Receiver seeks to hold an auction to see if any higher offers are received. A copy of the motion can be found here.

    October 9, 2013: An attorney representing defendants in 22 lawsuits filed by the Receiver has filed a motion seeking to intervene in the Receivership litigation. The motion seeks to allow these defendants to participate in the court case considering the SEC’s lawsuit against Mr. Palmer while also continuing the 22 lawsuits individually. A copy of the motion can be found here.

    October 9, 2013: The Court granted the motion by Paul Hawkins to intervene in the receivership matter to allow Hawkins to file suit against former officers and employees of National Note and its affiliates. Hawkins agreed to conditions that will ensure that his lawsuit will not cause the receivership to expend time and money relating to his litigation and he has waived any claims against the receivership estate. A copy of the Court’s order can be found here.

    October 9, 2013: The Receiver filed his first fee application for payment of fees and expenses for him and his counsel for the first six months of the Receivership. A copy of the application can be found here. The fees must be approved by the Court.

    October 3, 2013: The Receiver today asked the Court for approval to conduct an auction to sell 85 acres of undeveloped land in Fairfield, Utah. The Receiver has an offer of $251,000.00 for the property. The auction will determine whether others are willing to pay a higher price. A copy of the motion can be found here.

    September 30, 2013: The Court signed an order approving the sale of Autumn Ridge Phase 2 to a buyer. After payment of past due property taxes and costs of closing, the Receivership Estate expects to receive approximately $445,000.00. A copy of the court order approving the sale can be found here.

    September 25, 2013: The court signed an order authorizing the Receiver to conduct an auction to sell 8.3 acres of land owned by the Receivership in Fairfield, Utah. The date of the auction has not yet been set. Information about the property can be found in the property sale box at the top of the web page. A copy of the court order can be found here.

    September 12, 2013: The Receiver filed a lawsuit today against 14 persons who hold “Assignments of Beneficial Interest” in the Autumn Ridge property in Eagle Mountain, Utah. The lawsuit asks the Court to declare that the assignments of beneficial interest are not valid liens on the property, so the proceeds from the sales of this property can be available for distribution to all investors, not just those holding these assignments. A copy of the lawsuit can be found here. Additional lawsuits will be filed in the near future relating to other properties.

    September 11, 2013: The Receiver filed a notice with the Court that the second appraisal for the Riverbend property in Middleton, Idaho, estimated the value at $1.2 million, still far below the $3.7 million loan from the lender. The Receiver renewed his request that the Court approve a settlement agreement with the lender to relinquish the property to the lender in exchange for the lender agreeing not to seek to recover the deficiency from the Receivership Estate. A copy of the notice can be found here.

    September 10, 2013: Following a hearing held September 9, 2013, the Court today signed an order authorizing the Receiver to abandon the receivership’s interest in five inner city homes and lots in Toledo, Ohio; Cleveland, Ohio; and Chicago, Illinois. A copy of the order can be found here.

    September 9, 2013: The Receiver filed a lawsuit today against Aaron Olsen and Utah Land Banks, LLC, seeking recovery of $178,945.73 paid to these defendants by National Note. A copy of the lawsuit can be found here.

    September 4, 2013: Paul Hawkins, a customer of Old Glory Mint, has filed a motion seeking to intervene in the receivership action. Hawkins wants the Court to lift the stay of litigation so he can file suit against former officers in an effort to recover the value of silver he had leased to Old Glory. A copy of the motion to intervene can be found here. The Court has set a hearing on this motion for September 20.

    September 3, 2013: The Receiver filed a lawsuit today against three holders of assignments of beneficial interest in the Farrell Business Park in Arizona. All other holders of assignments of beneficial interest previously released their claims, leaving only these three holders. The lawsuit seeks the release of an assignment of beneficial interest given to these holders. The Receiver believes the assignment of beneficial interest is not a valid lien on the property and that the proceeds from the sale of this lot should be available for distribution to all investors. A copy of the lawsuit can be found here.

    September 3, 2013: The Court approved the fourth group of settlement agreements proposed by the Receiver. A copy of the Court’s order can be found here.

    August 28, 2013: The Receiver filed a motion today seeking approval of seven new settlement agreements negotiated by the Receiver. These settlements will bring $105,000 into the Receivership Estate. A copy of the motion can be found here.

    August 27, 2013: The Court has approved the sale of the lot and partially-built cabin at Elkhorn Ridge (lot #1). The cabin and lot sold for $155,000. A copy of the order can be found here.

    August 22, 2013: The Receiver filed a motion seeking Court approval to abandon five distressed homes and vacant lots in Ohio and Illinois. The motion explains the Receiver’s unsuccessful efforts to market these properties and why the Receiver believes these properties have no value to the Receivership. A copy of the motion can be found here.

    August 13, 2013: The Receiver filed his fourth status report for the period from April 1, 2013 to June 30, 2013. A copy of the report can be found here.

    August 6, 2013: The Receiver filed a lawsuit today against Harvest Time Ministries. The lawsuit seeks the release of an assignment of beneficial interest given to Harvest Time on Elkhorn Lot #48 in Oneida County, Idaho. The Receiver believes the assignment of beneficial interest is not a valid lien on the property and that the proceeds from the sale of this lot should be available for distribution to all investors. A copy of the lawsuit can be found here.

    August 5, 2013: The Receiver today filed a motion for summary judgment in the lawsuit filed by the True Kirk Trust against the Receivership. The Kirk Trust is seeking ownership of the Twin Pines apartments in Brigham City, Utah. The Receiver’s motion argues that the Kirk Trust does not have a security interest in the property. A copy of the Receiver’s motion can be found here. The Kirk Trust also filed a motion for summary judgment.

    August 1, 2013: The motion to intervene that had been filed by a group calling itself the National Note Investor Committee was withdrawn today. A copy of the withdrawal can be found here.

    July 31, 2013: The Court today approved an auction for Unit #215 at Expressway Business Park. A copy of the Court order can be found here.

    July 29, 2013: The Receiver filed a notice with the Court summarizing the results of the auction of Expressway Business Park Unit #305. The auction resulted in an increase in the sales price from $64,000 to $69,000. A copy of the notice can be found here.

    July 29, 2013: A motion was filed today seeking court approval to conduct an auction for the sale of Expressway Business Park Unit #215. The Receiver obtained an offer of $112,500 for the warehouse condominium and seeks to conduct an auction to determine whether higher bids are offered. A copy of the motion can be found here.

    July 29, 2013: The Receiver filed a notice today summarizing the results of the auction of Farrell Business Court units 109-111. The report explains that there were no other bidders at the auction so the property was sold to the original bidder. A copy of the notice can be found here.

    July 23, 2013: The Receiver filed a motion seeking court approval to hold an auction to sell a one-acre parcel of land owned by the Receivership on Little Cottonwood Road in Salt Lake City. An offer to purchase the land for the appraised value of $211,000 has been delivered to the Receiver. The Receiver seeks to hold an auction to see if a higher price can be obtained and if not, to sell the property to the original bidder. A copy of the motion can be found here.

    July 19, 2013: A joint brief by the Securities and Exchange Commission and the Receiver was filed today opposing the motion by a group of investors to intervene in the receivership case. A copy of the joint brief can be found here.

    July 19, 2013: The U.S. Securities and Exchange Commission filed a motion for summary judgment against Wayne Palmer today. The motion asks the Court to find that Palmer violated the federal securities laws and to award judgment to the SEC. A copy of the SEC’s motion can be found here.

    July 17, 2013: The Receiver filed a motion today asking the Court to appoint an appraiser for the Riverbend property in Middleton, Idaho. This appraisal will assist the Receiver and the Court in determining whether the Receivership Estate has any equity in the property. A copy of the motion can be found here.

    July 17, 2013: The Receiver today filed a notice of withdrawal of his motion for the sale of a 85-acre parcel of land near Fairfield Utah. The withdrawal was necessary because the buyer withdrew its offer. The Receiver will resume marketing efforts on the property. A copy of the notice of withdrawal can be found here.

    July 15, 2013: The Receiver filed a motion seeking approval of the sale of Autumn Ridge Phase II. This motion seeks approval for the sale of the property to the original buyer for the same price, but without any ties to agreements for the sale of water. A copy of the motion can be found here.

    July 10, 2013: The Receiver today filed a motion seeking Court approval to conduct an auction to sell 85 acres of land in Fairfield, Utah. The offer is for two parcels of land in the Receivership Estate for $251,670.00. The Receiver seeks to hold an auction to determine whether others are willing to bid a higher price. A copy of the motion can be found here.

    July 10, 2013: The Court today approved a settlement agreement relating to Expressway Business Park Unit #204. Under the agreement, the Receiver will release the property back to the lender because the amount owed to the lender is more than the property is worth. A copy of the Court’s order can be found here.

    July 10, 2013: The Court today entered an order approving ten settlement agreements negotiated by the Receiver. These ten settlements will bring $146,280.55 into the Receivership Estate and will result in the elimination of claims that might otherwise be asserted against funds recovered. A copy of the order can be found here.

    July 8, 2013: The Receiver filed a motion today seeking approval to finalize ten settlement agreements that have been negotiated by the Receiver. Seven of these settlements will bring approximately $145,000 into the Receivership Estate. One represents a waiver by the Receiver based on demonstrated hardship and the other two represent offsets of overpaid amounts against losses in other investment accounts, with the investors agreeing to waive all claims against any further recovery. A copy of the motion can be found here.

    July 8, 2013: The Receiver filed a motion today seeking approval of an agreement to release Expressway Business Park unit #204 to the lender. The Receiver’s motion explains that the property was appraised at $105,000, but more than $131,000 is owed to the lender. A copy of the motion can be found here.

    July 8, 2013: The Receiver filed a “Notice of Auction” relating to the planned auction of the Bandana cabin. A copy of the Notice of Auction can be found here. The “Auction Procedures” can be found here. The auction is set for August 9 at 1:00, to see if any bids are submitted that are higher than the $260,000 that has been offered for the property.

    July 8, 2013: The Receiver filed a motion today seeking permission to sell the cabin at Elkhorn (Lot #1), near Malad, Idaho. This property has been the subject of several prior purchase agreements. The offer is for $155,000, substantially higher than the appraised value of $132,000. The Receiver is also seeking Court approval for the language of the legal notice to be published in the newspaper soliciting higher offers. A copy of the motion can be found here.

    July 2, 2013: A motion to intervene in the Receivership action and in the SEC’s lawsuit was filed today. The motion was filed by an attorney representing a group of investors. The attorney also filed a motion opposing the Receiver’s motion to release property in Middleton, Idaho to the lender who is owed more than the property is worth. A copy of the motion to intervene can be found here.

    June 25, 2013: The Receiver filed the following lawsuits today:

    June 24, 2013: Additional lawsuits were filed today by the Receiver:

    June 21, 2013: Another 41 lawsuits were filed on June 20 and 21, 2013. Most of these lawsuits are against overpaid investors. Some of the lawsuits also seek judicial declarations that assignments of beneficial interest held by the defendants are not valid liens on real estate. Other lawsuits are against persons who received funds from National Note and who refused to explain the purposes of the payments. The lawsuits filed are:

    June 20, 2013: The Receiver filed the following lawsuits today:

    June 19, 2013: The Receiver filed additional lawsuits today against the following:

    June 19, 2013: The Receiver filed a renewed motion seeking approval of a settlement agreement to convey the Riverbend property in Middleton, Idaho to the lender. The renewed motion addresses questions raised by the Court at a hearing on the first motion. The Court has set a hearing for July 3 on the motion. A copy of the motion can be found here.

    June 19, 2013: The Receiver filed another nine lawsuits today against overpaid investors. They include:

    June 18, 2013: The Court today approved six settlement agreements that have been negotiated by the Receiver. Some of these involve recovery of full amounts from overpaid investors, others involve reduced recoveries and waivers of claims that otherwise might be asserted against the Receivership Estate. A copy of the Court’s order can be found here.

    June 17, 2013:  The Receiver filed an additional 20 lawsuits today seeking recovery of overpayments from investors who received distributions in excess of the amount of their investment principal.  Some of these lawsuits also seek declarations that assignments of beneficial interest held by the investors are invalid and seek the recovery of commissions paid.  A copy of the lawsuits can be viewed by clicking on the hyperlinks below.  As with previous lawsuits, these lawsuits seek the recovery of the full amount of distributions paid to these defendants, not just the overpayments.  The lawsuits filed today were:

    June 14, 2013: The Court approved an auction to be held for the sale of the Bandana cabin that is owned by the Receivership. An opening offer of $260,000 has been received. An auction will be held to determine whether higher offers are received. A copy of the order can be found here.

    June 13, 2013: The Receiver today filed another 12 lawsuits. These are against investors who received more in distributions than the amount of their investments. These lawsuits seek the full amount paid to these investors by National Note.

    June 7, 2013: The Receiver filed an additional 11 lawsuits over the last two days. These lawsuits name as defendants the following individuals:

    For the investors that are overpaid, the lawsuits filed by the Receiver seek the return of all payments sent to the investors by National Note. Some of the investors may be able to demonstrate that they acted in good faith in receiving the excess payments and were not aware of problems at National Note when they withdrew their funds. If so, the Receiver likely will be able to recover only the excess payments, not all payments to them.

    June 6, 2013: The Receiver filed a lawsuit today against Joel Blakeslee and the Blakeslee Family Living Trust, of Nevada. The lawsuit seeks the return of $125,193.03 in commissions and distributions paid to Blakeslee by National Note. A copy of the lawsuit can be found here. This is the first of what is expected to be scores of lawsuits filed by the Receiver against overpaid investors, those who received commissions, and recipients of other payments by National Note.

    May 28, 2013: The Receiver filed a motion today seeking Court approval of six additional settlement agreements. If approved by the Court, these agreements will result in more than $210,000 being paid to the Receivership Estate, the waiver of over $600,000 in potential claims, and the releases of liens on real estate valued at $1,290,000. A copy of the motion describing the settlements can be found here and the Receiver’s declaration can be found here.

    May 22, 2013: The Receiver filed a notice of the results of the sale of unit 105 of the Farrell Business Park. An auction was conducted that resulted in a sale for $92,000, which was $10,000 higher than the original offer price. After paying four and a half years’ of property taxes, sales commissions, and closing costs, the Receivership received $70,392.98. This money will be held in a reserve account pending resolution of claims asserted against the property. A copy of the notice can be found here.

    May 21, 2013: The Court today signed an amended order allowing the Receiver to begin filing lawsuits seeking the recovery of funds for the receivership estate. The types of lawsuits the Receiver can now bring include actions against overpaid investors, holders of liens on properties, commission recipients, credit card companies, charitable and religious groups who received funds, borrowers, professionals who provided services to National Note, insiders, and others. A copy of the new order can be found here.

    May 20, 2013: The Receiver filed a motion today seeking Court approval for the sale of the Bandana cabin in Fruitland, Utah. The property was appraised at $260,000. An offer of $260,000 was presented to the Receiver through Wayne Palmer. The Receiver is asking the Court for approval to conduct a public auction, to solicit the highest price for the property. An auction date will be set after the Court approves the auction procedure and the form of the notice. A copy of the motion can be found here.

    May 20, 2013: The Court issued an order granting the motion to reappoint the Receiver. This step is necessary to allow the Receiver to file notice in other jurisdictions where people that the Receiver intends to sue are located. A copy of the Order is found here.

    May 20, 2013: The Court today signed an order approving eight settlement agreements negotiated by the Receiver. Most of these agreements are with overpaid investors and will result in bringing additional funds into the receivership estate. A copy of the order can be found here.

    May 20, 2013: The Receiver filed a notice with the Court today describing the results of the sale of the Clearview Business Park. The gross sales price was $737,000. After payment of closing costs and owners association dues ($1,119.30), real estate commissions ($40,535.00), a construction lien ($12,415.33), and property taxes for four and a half years ($91,634.94), the net sale proceeds were $591,295.43. These proceeds will be held in a reserve account pending resolution of ABIs on the property. A copy of the notice can be found here.

    May 15, 2013: The Receiver filed a motion seeking Court approval of a proposed sale of the Autumn Ridge Phase II subdivision in Eagle Mountain, Utah. The buyer, Wren Holdings, will pay $538,000 for the property. The Receiver previously had three appraisals performed on the property. These appraisals averaged $432,056 for the property. The Receiver will publish notice of this proposed sale in the newspaper. Other bids are welcome, but competing bids must be at least 10% higher than the proposed sales price and must be submitted within ten days of the newspaper notice. The motion can be found here. The Receiver has included a declaration and four exhibits. Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4.

    May 14, 2013: The Receiver today filed a motion asking the Court to reappoint him as Receiver. This step is necessary to enable the Receiver to file notices of his appointment as receiver in 26 additional federal court districts. By filing notices of the receivership in these other districts, the Receiver will have jurisdiction to sue companies and individuals in that district to recover funds that were paid out improperly. A copy of the motion can be found here.

    May 3, 2013: The Court today authorized the sale of 17 of the 19 lots at Autumn Ridge Development in Eagle Mountain, Utah. A copy of the Court’s order can be found here.

    May 2, 2013: The court today approved the sale and auction procedures for the sale of the East Meadows mobile home park in Vernal, Utah. An opening offer of $1,025,000 has been accepted by the Receiver. An auction will be held on June 10, 2013 at 1:00 at the property in Vernal, to see if any other bidders will submit a higher bid. Bidders must prequalify by June 6 in order to participate in the auction. A copy of the Court’s order can be found here.

    May 2, 2013: The third status report for the period from January 1, 2013 to March 31, 2013 was filed today. The report summarizes activities of the Receivership during the first quarter, including progress in selling properties and plans for the upcoming months. A copy of the report can be found here. Exhibit A lists the entities in the Receivership. A copy can be found here. Exhibit B shows the current status of each property in the Receivership Estate. A copy can be found here.

    May 2, 2013: The Court today approved the Receiver’s settlement agreement relating to land adjacent to the Elkhorn Ridge development near Malad, Idaho. Under the approved agreement, the Receiver will return approximately 59 acres of land to the seller. The Receiver will obtain clear title to approximately 217 acres that were under contract. One parcel of land that was being purchased is being divided, so the seller and the Receiver will each have clear title to separate properties. A copy of the order can be found here.

    April 29, 2013: The Receiver filed a motion today seeking court approval of a settlement agreement with the owners of land adjacent to the Elkhorn development near Malad, Idaho. The settlement relates to five parcels of land totaling 278 acres. Elkhorn Ridge, LLC had agreed to purchase all five parcels, but had only paid for three of them and a portion of a fourth. Under the settlement agreement, the Receivership will keep the first three parcels. The fifth parcel will be deeded back to the sellers. The fourth parcel will be divided into two sections with the Receivership retaining approximately 43 acres and the seller getting 9 acres. A copy of the motion can be found here.

    April 24, 2013: The Receiver filed a motion seeking court approval to relinquish ownership of property in Middleton, Idaho to the lender. National had borrowed $3.7 million from the lender to purchase Riverbend Estates in Middleton, Idaho. That loan is in default. The amount owed to the lender is now over $5 million, but the property appraised for only $1 million. The lender has agreed that if the Receivership will relinquish control of the property to it, the lender will not assert any claim against the Receivership Estate for the $4.1 million in losses the lender has suffered. A copy of the Receiver’s motion to approve the settlement agreement with the lender can be found here.

    April 22, 2013: On April 22, 2013, the Court approved the Receiver’s plan to conduct auctions to sell two properties. The Receiver has an offer to purchase Expressway Business Park unit #305 in Spanish Fork, Utah for $64,000. Order Approving Expressway Business Park unit #305 Auction. An auction will be held May 30 at the property to determine whether anyone will submit a higher bid. The Receiver also has an offer to purchase property in Duchesne County called Outpost/Indian Canyon for $148,222.56. Order Approving Indian Canyon Auction. An auction will be held May 31 to determine whether anyone will submit a higher bid. Information about these auctions and copies of the court orders can be found in the box labeled Property Auction Notices.

    April 22, 2013: The Receiver filed a motion seeking Court approval of eight preliminary settlement agreements. Seven of these settlement agreements are with investors who were overpaid. These settlement agreements will bring $213,037.36 into the Receivership Estate and will reduce the amount of claims that might be filed against the estate. The eighth settlement agreement would allow the Receiver to pay off a lien against the Indian Canyon property for 75% of the amount owed to the lender. A copy of the motion can be found here.

    April 15, 2013: The Court today signed an order approving the sale of the partially-built cabin at Elkhorn Ridge Lot #1, near Malad, Idaho for $143,000. A copy of the order can be found here.

    April 12, 2013: The Court today gave final approval for the Receiver to sell the two vacant building lots on 900 West in Salt Lake City to the Salvation Army for $70,000. A copy of the Court’s order can be found here.

    April 12, 2013: The Receiver filed a motion today seeking court approval to hold an auction to sell Unit 305 at Expressway Business Park. The Receiver has received an initial bid of $64,000 and will hold an auction to see if any higher bids are received. A copy of the Receiver’s motion can be found here.

    April 8, 2013: A motion was filed today seeking approval to sell the Indian Canyon/Outpost property in Duchesne, Utah to Duchesne County for $148,222.56. Notice of the proposed sale will be published in the newspaper and an auction will be held to invite higher bids. A copy of the motion can be found here.

    April 5, 2013: Wayne Palmer today filed an objection to the Receiver’s motion to be able to begin filing lawsuits. A copy of his objection can be found here. The order allowing the Receiver to begin filing lawsuits has already been signed by the judge.

    April 5, 2013: The Receiver filed a motion today seeking approval to sell a condominium located in Manhattan, Montana. The Receiver obtained three appraisals of the property, which showed an average appraised value of $40,500. The Receiver has accepted an offer to purchase the property for $51,000. A copy of the motion can be found here.

    April 5, 2013: The Receiver filed a motion today seeking approval to sell the East Meadows Mobile Home Park in Vernal, Utah at a public auction. The Receiver has accepted an initial offer of $1,025,000.00 for the park and the mobile homes owned by the Receivership. If the motion is approved by the Court, a public auction will be held at which higher offers will be solicited. A copy of the motion can be found here.

    March 29, 2013: The Court entered an order approving a settlement agreement between the Receiver and the lien holders for Expressway Business Park Unit 109. The Receiver will relinquish title on that property to the lien holders because the receivership had no equity. The lien holders agreed to not make any claim against the Receivership Estate. A copy of the Court’s order can be found here.

    March 29, 2013: The Court entered an order granting the receiver authority to commence filing lawsuits. A copy of this order can be found here.

    March 28, 2013: The Court issued an order allowing American Pension Services to intervene in the receivership action. The Court will allow American Pension Services to file a lawsuit against the Receiver. A copy of the order can be found here.

    March 27, 2013: The Receiver filed a motion today seeking Court approval of a settlement agreement relating to Unit 109 at Expressway Business Park. Because the property is worth less than the amount owed on the property, the Receiver wants to release the property to the lien holder. The property appraised at $140,000, but the lien holder has a first deed of trust on that unit in the amount of $143,792.28. The lien holder will pay all past due property taxes and will release all claims to any funds recovered by the Receiver. A copy of the order can be found here.

    March 21, 2013: The Court today approved the sale of three lots in the Elkhorn development near Malad, Idaho. A copy of the court order can be found here.

    March 18, 2013: The Receiver filed a motion today seeking permission to sell 17 of the 19 lots at the Autumn Ridge subdivision in Eagle Mountain. Nine lots will be sold to one builder for $333,000. An additional eight lots will be sold to another builder for $296,000. The Receiver has asked the court for permission to publish notice of the proposed sales and soliciting higher offers for these 17 lots.

    March 8, 2013: The Court today approved publication of notice of the Receiver’s proposal to sell two vacant lots on 900 West in Salt Lake City. The Receiver proposes to sell the lots for $70,000 to the Salvation Army. The Receiver will publish notice of the sale in the newspaper, inviting other bids that are at least 10% higher. The Court set a hearing at 1:10 on April 12, 2013 to determine whether to accept this offer.

    March 8, 2013: The Court today approved the form of publication notice, the auction procedures, and the sale of 12 units at Farrell Business Park, in Gilbert Arizona. The 12 units will be sold to seven different buyers. Each sale will be subject to an auction held on April 25, 2013 at the property. The initial bids that will form the starting bids are:

    • Units 103-104: $153,261.36
    • Unit 105 $82,000.00
    • Unit 106 $82,000.00
    • Unit 107 $$85,000.00
    • Units 109-111 $240,000.00
    • Units 113-114 $164,000.00
    • Units 115-116 $160,000.00

    Copies of the court orders approving the sale, the auction procedures, and the notice of auction can be found in the property sale box at the top of the website.

    February 27, 2013: The Court today approved the Receiver’s agreement to abandon his interests in 3.94 acres of land on Little Cottonwood Road in Salt Lake City in favor of First National Bank of Layton, based on the property having a valid first lien greater than the value of the property. First National Bank has agreed to not seek any deficiency from the Receivership Estate or file any claim for recovery based on this its lien on this property. A copy of the court order can be found here.

    February 27, 2013: Today the Receiver filed his answer to the intervention complaint filed by the Kirk Trust. The Trust claims a first position lien on the Twin Pines apartment buildings in Brigham City, Utah. The Receiver also filed a counterclaim, asking the Court to rule that the Trust’s lien is invalid. A copy of the Receiver’s answer and counterclaim can be found here.

    February 26, 2013: The Court today approved publishing notice of the proposed sales of Elkhorn lots 4, 5, and 48 and set a hearing for March 19, 2013 at 10:00 to consider the Receiver’s motion to sell these properties. The Receiver has received offers of $35,000 for lot #4, $80,000 for lot #5, and $80,000 for lot #48. Higher offers are invited. A copy of the Court order can be found here.

    February 26, 2013: The Receiver filed his second status report for the period covering October 1, 2012 through December 31, 2012. A copy of the report can be found here. Attached to the status report is a chart showing the status of property sales as of February 18, 2013. The property chart can be found here.

    February 18, 2013: The Receiver filed a motion with the Court seeking approval to sell a warehouse condominium in Mesa, Arizona. The warehouse condominium is an unfinished building having 8 warehouse units. The building was recently appraised at $580,000. The Receiver obtained multiple offers for the building and these competing bidders bid the price up to $737,000. The Receiver is recommending that the Court authorize a public auction of the building. If no other qualified bidders offer more than $737,000, he is requesting the building be sold to the current high bidder for $737,000. A copy of the motion and the bid procedures can be found here.

    February 15, 2013: The Court today approved the sale of the National Note office building in West Jordan. A copy of the order can be found here.

    February 7, 2013: Today the Receiver filed a motion seeking court approval to sell Elkhorn lot #1 to the backup buyer. The buyer who had offered $143,100 to purchase the lot and partially-built cabin withdrew his offer after an objection filed by Palmer resulted in additional delays in approval by the Court. The backup offer is for $130,000. A copy of the motion can be found here.

    February 6, 2013: The Receiver filed a motion today seeking approval of a process to sell the 19 developed building lots at Autumn Ridge (Eagle Mountain, Utah). The motion seeks approval of an agreement with two builders that will buy lots, build on them, then buy additional lots as the earlier lots sell. A copy of the motion can be found here.

    January 31,2013: The Receiver and First National Bank filed a joint motion asking the Court for approval to release two parcels of land on Cottonwood Road in Salt Lake City to the bank based on the lien held by the bank. The bank has agreed to not seek any deficiencies against the Receivership Estate, will pay all property taxes and other costs of the transfer, and will not make any claim on the Receivership recovery fund. A copy of the motion can be found here.

    January 24, 2013: The Court today signed an order allowing the Kirk Family Trust to intervene in the Receivership Action. With that intervention, the Kirk Trust has now filed a lawsuit against the Receiver seeking to require the Receiver to transfer a Brigham City, Utah apartment building to the Kirk Trust. A copy of the court order can be found here.

    January 22, 2013: The Receiver filed his memorandum opposing the efforts by American Pension Services to intervene in the receivership case. A copy of the Receiver’s opposition can be found here.

    January 22, 2013: The Court today approved the legal notice to be published giving notice that an offer has been received for the National Note office building and inviting higher bids. A copy of the court notice can be found here. The Court has set a hearing on the sale for February 14, 2013 at 10:30.

    January 18, 2013: The Receiver today filed a motion asking the court to approve the sale of the National Note office building in West Jordan, Utah. The sale is for $285,000, the amount of the appraisal. The court filing includes the motion, a declaration by the receiver, and a motion for approval to publish notice of the proposed sale. Copies of these documents can be found here.

    January 16, 2013: The court today entered an order granting the Receiver’s motion to relinquish title to a cabin in Sanpete County, Utah. The cabin was valued at $115,000, but had a first mortgage of $218,718.12. The Receiver will execute a quitclaim deed to the property and the lienholder will pay all back property taxes and expenses associated with the transfer. A copy of the order can be found here.

    January 3, 2013: The Receiver filed his response today explaining why the sale of the Elkhorn Lot should be allowed to proceed despite the objection filed by Palmer. A copy of the receiver’s reply can be found here.

    December 28, 2012: American Pension Services filed a motion today with the court seeking permission to intervene in the receivership action. A copy of APS’s motion can be found here.

    December 28, 2012: The Receiver today filed a motion seeking approval to sell three properties in the Elkhorn Ridge development near Malad, ID. The motion seeks approval to sell lot #4 (which is a vacant lot) for $35,000, lot #5 (with a partially completed cabin) for $80,000, and lot #48 (with a partially completed cabin) for $80,000. Copies of the receiver’s motion can be found here and his declaration in support of the motion here.

    December 28, 2012: Wayne Palmer today filed an objection to the Receiver’s proposed sale of one of the building lots and partially-completed cabin at the Elkhorn development near Malad, Idaho. A copy of Palmer’s objection can be found here. The court has a hearing at 2:30 on January 4, 2012 to consider the Receiver’s motion for permission to sell this property.

    December 24, 2012: The Receiver today filed a brief with the Court opposing efforts by True Kirk to intervene in the receivership action. Mr. Kirk seeks to intervene as part of his effort to have the Court declare that he has a valid lien on an apartment building owned by the receivership estate in Brigham City, Utah. A copy of the brief can be found here.

    December 12, 2012: The Court today authorized the Receiver to publish notice of offers that the Receiver has accepted on two properties in Summit Park, Utah and Malad, Idaho. The notice invites others to submit higher offers. A copy of the order is attached. The court will hold a hearing January 4, 2013 at 2:30 to decide whether to approve the sales.

    December 10, 2012: An auction will be held at the offices of National Note on Friday, December 14, 2012 at 10:00 a.m. Any investors are welcome to come participate in the auction. All contents of the office will be auctioned, including furniture, wall hangings, coins, office supplies, etc. The offices are at 1549 W. 7800 South.

    November 14, 2012 The Receiver today filed a motion asking the court to approve the sale of a property in Idaho. The property is in the Elkhorn Ridge development near Malad, Idaho. The property has a partially-constructed cabin. The property was appraised at $135,000. The Receiver has negotiated an agreement to sell the property to a buyer for $130,000, subject to approval by the Court. The Receiver expects to use some of the proceeds from the sale of this property to satisfy conditions imposed by the Oneida County Planning and Zoning Commission so that the subdivision can received final approval and additional lots can be sold. Attached are copies of the motion, the memorandum describing the proposed sale, and a declaration by the Receiver.

    November 12, 2012: The Receiver filed his initial status report and liquidation plan with the court today. The 66-page report identifies the actions the Receiver has taken to date, describes the properties he has identified as belonging to the Receivership Estate, and lays out the next steps in the Receivership. A copy of the report can be found here, Exhibit 1, Exhibit 2, Exhibit 3, Exhibit 4.

    October 10, 2012: The court today granted the receiver’s motion requiring Wayne Scholle to account for silver taken from the Old Glory Mint. A court hearing has been set for November 7, 2012. A copy of the court’s order can be found here.

    September 6, 2012: The Court entered an order granting the motion of First National Bank of Layton to intervene in the lawsuit brought by the SEC.

    August 31, 2012: At a hearing on August 24, 2012, the Court considered a motion by the Receiver to release certain entities from the Receivership Estate and to allow the Receiver to release a property that had no equity to a lien holder. On August 31, 2012 the Court signed an order allowing two of the entities (Top Flight, LLC and Expressway Owners Association) to be released from the Receivership. The Court denied the request to release the property, instructing the Receiver to provide more information to support his motion

    August 21, 2012: Today, the Receiver met with many of the owners of units at Expressway Business Park. He explained the background of the SEC lawsuit and the information available on the website set up by the Receiver. He explained steps he has taken on an interim basis to minimize the effect of the receivership on the owners at Expressway. He described the actions he has taken to keep the owners’ association operating and his plans to turn the operations of the common areas back to the owners on October 1. He explained the motion he has filed to release the owners’ association from the receivership estate and indicated that the motion will be heard by the Court on August 24. He explained his long term plans to sell the units still owned by National Note and the land surrounding Expressway. He encouraged the owners to select new officers for the owners’ association and for them to make plans to take over control of all common areas by October 1. In the interim, members still need to pay their dues to the Receiver. After the meeting, the owners met to select representatives to take over control of the owners’ association.

    August 17, 2012: Preliminary Injunction Hearing Canceled: On August 16, 2012, Wayne Palmer signed a stipulation with the SEC, consenting to the entry of a preliminary injunction. This means that Mr. Palmer is not challenging the court orders freezing the assets of National Note and appointing a receiver. On August 17, 2012, the court entered orders of preliminary injunction against Mr. Palmer and National Note. The entry of these orders means that the orders entered by the Court on June 25, 2012 regarding the assets and business of National Note will remain in effect until the final trial on the SEC’s lawsuit. The Court has canceled the hearing set for August 24 regarding entry of a preliminary injunction. The Court will still hold a hearing on August 24 on: i) the SEC’s request for changes to the order appointing a receiver and ii) the Receiver’s motion for permission to release three entities from the Receivership Estate and to finalize a settlement agreement involving a property in Brigham City, Utah.

    August 13, 2012: The Receiver today filed a motion with the Court asking the Court to release from the Receivership Estate three entities and also asking the Court to approve a settlement agreement reached regarding a property. The Receiver is asking the Court to release Top Flight, LLC from the Receivership Estate as Top Flight is an entity owned by persons not tied to the ownership or management of National Note. Top Flight owned an airplane that was being leased to Mr. Palmer. By releasing Top Flight from the Receivership Estate, the Receivership will be relieved of any obligation to make lease payments on the airplane, to provide insurance, or to maintain the airplane. The Receiver is also asking that Expressway Business Park Owners Association and Farrell Business Park Association be released from control of the Receiver. These are owners’ associations that need to care for common areas of commercial properties that National Note had previously sold. The Receiver intends to turn control of these common areas to the owners, so the Receiver will not have to spend time or money managing these common areas. Finally, the Receiver has reached agreement to transfer an old apartment complex in Brigham City, Utah to a Trust that has a $400,000 security interest in the property. The Trust purchased promissory notes from National Note and obtained a first position deed of trust on the property. The property recently appraised at $330,000. Because the Trust has a $400,000 security interest, the Receiver determined that the Receivership Estate had no net equity in the property, so there would be no benefit to continuing to assert control over and operate the apartment complex. The Receiver agreed to transfer ownership of the property to the Trust. In return, the Trust has agreed to waive all claims for recovery from the Receivership Estate. The Receiver will retain all rents collected before the transfer and the small balance in the bank account of this entity. A copy of the motion and memorandum can be found here. The Court has set a hearing on the motion for August 24, 2012 at 9:30.

    August 8, 2012: The Receiver has prepared answers to Frequently Asked Questions. It is hoped that this FAQ will help investors understand the nature of receiverships and what to expect in this case. In addition, many investors have inquired about their retirement accounts being held with a custodian, wanting to know if there are alternatives to paying high, ongoing account maintenance fees for an asset that has lost much of its value. If you are such an investor, it may be advisable to seek independent guidance from your tax advisor on these issues.

    ATTENTION OWNERS AND TENANTS OF EXPRESSWAY BUSINESS PARK: On Tuesday, August 21, 2012 at 5:00 p.m. there will be a meeting of owners and tenants at Expressway Business Park. The meeting will be held at the sales office, unit 206. The address is 1002 North 1100 East, Spanish Fork, UT. The purpose of the meeting is for the Receiver to explain his plans for Expressway and to discuss how to return control of the common areas to the owners association. The Receiver will answer questions from tenants. For those who are unable to attend, a summary of the meeting will be prepared and posted on the website.

    July 9, 2012: The Court today entered an order extending the temporary restraining order, order freezing assets, and the order appointing receiver. The court set a hearing on August 24, 2012 at 9:30 on the SEC’s motion for a preliminary injunction. Mr. Palmer consented to the entry of the order. The hearing is open to the public.

    July 5, 2012: The court hearing set for July 9 has been postponed at the request of Mr. Palmer. Mr. Palmer has requested additional time to prepare for the hearing, which is now set for August 24, 2012 at 9:30 a.m. In the meanwhile, Mr. Palmer has consented to the continuation of the orders freezing assets and appointing a receiver.

    June 28, 2012: The Receiver has prepared a questionnaire to gather information about those who had dealings with National Note, Wayne Palmer, or companies affiliated with National Note. A copy of the questionnaire can be found here. A PDF version can be found here. We ask that you complete the questionnaire and return it to us so we can have correct contact information for you and have information about the nature of your transactions with the companies and Mr. Palmer.

    June 25, 2012 Wayne Klein was appointed as Receiver for National Note of Utah, LC and the assets of Wayne LaMar Palmer. The order appointing the Receiver can be found here.

    The SEC press release can be found here.

     

    Welcome to the Klein & Associates website! This page contains information regarding the Receivership: National Note, LC. On this page, you will find:

      1. Updates: Descriptions of Recent Developments
      1. Copies of the Court Order Appointing a Receiver and other Court filings about the Receivership;
      1. Copies of Status Reports and other notices the Receiver will file with the Court;
      1. Copies of lawsuits the Receiver will be filing, seeking to recover funds;
      1. Information relating to tax treatment of Ponzi scheme losses; and
      1. General information about the Receivership.

     

    COURT FILINGS:

    1. Lawsuit by the SEC, Appointment of Receiver

    2. Settlement Agreements

    3. Litigation by Receiver

    4. Intervention Litigation

    5. Receiver Status Reports

    6. Property Sales/Objections

    7. Other Information and Communications

    8. Fee Application

    TAX INFORMATION

    Dear Investor:

    On March 17, 2009 the IRS announced significant tax relief for victims of Ponzi schemes. The ability to take tax deductions for past years and future years has been greatly expanded. I have added information here that will help you understand the new tax relief and that your accountants and tax advisors can use in determining how to deduct losses from this scheme.

    1. Article from March 18 2009 Wall Street Journal
    2. IRS Revenue Ruling 09-09
    3. IRS Revenue Procedure 09-20
    4. Testimony To Congress By A Top IRS Official Explaining the New Tax Relief Procedures

    This information is being posted for investor information. The Receiver has no opinion on how individual investors treat their investment for tax purposes. Investors are urged to contact their own tax professionals for advice on tax treatment of their situation.

    06/25/2012 STATEMENT FROM THE RECEIVER

    On June 25, 2012 Wayne Klein was appointed as Receiver for:

    1. National Note of Utah, LC
    2. The assets of Wayne LaMar Palmer

    The appointment as Receiver was made by US District court Judge Bruce S Jenkins. The case was filed by the Securities and Exchange Commission in US District Court in Utah The Receiver is providing the following information that may be helpful to investors regarding the National Note of Utah, LC Receivership:

    What is a Receiver? A Receiver is a person appointed by a court to take control of companies or assets. This prevents any further dissipation or misuse of the assets and begins the process that hopefully will lead to recovering money that can be used to pay investors and other creditors. As the Receiver, it is my duty to gather and protect the assets of National Note of Utah, LC. I am experienced in analyzing investment programs, having served as Receiver in previous cases, Director of the Utah Division of Securities, Chief of the Utah Attorney General’s Commercial Enforcement Division, and Chief of the Idaho Securities Bureau. I do not work for the SEC, National Note, or any of the parties in the lawsuits that have been filed.

    What will the Receiver do now? The immediate tasks for the Receiver are: 1) locating the assets and records of the companies and transferring them to my control, 2) conducting an analysis of the company’s operations to determine where the funds were expended and determining what claims, if any, the company may have against third parties to recover funds, 3) recovering any balances in brokerage or bank accounts, 4) seeking to recover any improper payments made to others, 5) selling any assets of the company, and 6) recommending to the Court a plan to distribute funds the Receiver is able to recover. The Receiver expects to be able to take advantage of work already done in gathering and analyzing information.

    When can I get my money back? How much? It is too early to say how much, if any money the Receiver will be able to locate and recover. The Receiver will analyze the records of the company, including bank records, and identify where assets might be. The Receiver will then seek to recover those assets. The Receiver also must evaluate claims against the company, such as investor claims. It will likely take many months to completely gather and evaluate this information. It is not possible to determine, at this early date, what funds, if any, will be located and returned.

    How can I keep informed about what the Receiver is doing? The Receiver must file regular progress reports with the court. Those reports are public information and will be shared with investors. The Receiver will post these reports, copies of court filings, and other information about the receivership on its web site: http://www.kleinutah.com Investors are encouraged to check the web site for updated information.

    How do the Receiver and his staff get paid? We are paid out of assets of the estate, generally from monies we recover. All payments to the Receiver must be approved by the Court.

    What information will the Receiver want from me? The Receiver will be sending investors a form requesting information about your investments and asking for copies of documents you received from the company. If there is information you think the Receiver should know now, before he finishes his preliminary review of records of the company, you can send them to the Receiver at: Wayne Klein, Receiver for National Note of Utah, LC, 299 South Main, Suite 1300, Salt Lake City, UT 84111. The Receiver can be contacted at (801) 534-4455 or via e-mail at wklein@kleinutah.com

    CONTACT INFORMATION:

    Wayne Klein, Receiver
    10 Exchange Place, Suite 502
    Salt Lake City, UT 84111
    Telephone: (801) 456-4591
    E-mail: wklein@kleinutah.com