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.