RECEIVERSHIPS: US Ventures and Winsome Investment Trust
WAYNE KLEIN, RECEIVER FOR
US Ventures and Winsome Investment Trust
10 Exchange Place, Suite 502
Salt Lake City, UT 84111
Telephone: (801) 456-4591
|Updates: Descriptions of Recent Developments
April 4, 2014: In response to documents filed with the Court by Zaman Ali, seeking confirmation of a $100,000 claim, the Receiver filed a brief outlining why the Receiver believes Ali’s claim should be denied. The Receiver’s brief can be found here.
April 4, 2014: The Receiver and his counsel filed an application for payment of fees for work done between October 2013 and March 2014. The fee application is subject to approval by the CFTC and the Court. A copy of the fee application can be found here, along with Exhibit A,Exhibit B, and Exhibit C.
March 31, 2014: The district court today issued an order adopting the recommendations that the magistrate judge had made regarding Terry Harper and Wings Over the World. The district court found that Harper had 1) blatantly disregarded numerous orders to refrain from submitting frivolous filings, 2) refused to provide discovery responses, despite court orders to do so, and 3) failed to pay attorney fees to the Receiver. A copy of the order can be found here.
March 31, 2014: Roberto Penedo filed an appeal today of the judgment that the Receiver obtained against him in the amount of $197,000. A copy of the notice of appeal can be found here.
March 7, 2014: The Court today issued orders relating to two of the objections that had been filed opposing the distribution plan proposed by the Receiver. The Court denied Penedo’s claim for $4 million and instructed the Receiver to prepare proposed findings of fact to submit to the Court. A copy of the Penedo order can be found here. The Receiver has submitted the proposed findings to the Court. The Court has not yet issued an order with the findings. Penedo has filed an appeal of the judge’s March 7 ruling.
The Court issued a separate order giving Zaman Ali until March 27, 2014 to submit copies of bank records and other documents supporting his claim for $100,000. A copy of the Court order can be found here. Ali sent information to the Court on March 27, sending a one-page document. The Receiver subsequently made a filing with the Court explaining why Ali’s submission was inadequate. The Court has not yet issued a ruling on Ali’s claim.
March 5, 2014: A magistrate judge today issued a report and recommendation regarding the Receiver’s lawsuit against Terry Harper. The magistrate recited Harper’s obstruction of the Receiver’s efforts to recover funds and recommends that the district court enter default for the Receiver against Harper. Harper will have 14 days to submit objections to the recommended order. A copy of the magistrate’s report can be found here.
March 3, 2014: The Court today issued an opinion and order granting summary judgment to the Receiver against Roberto Penedo in the amount of $197,000. A copy of the Court order can be found here.
February 27, 2014: The Receiver has learned that the sentencing of Mr. Andres on his criminal conviction has been postponed without a new sentencing date being set. It is my understanding that the prosecutor and defense attorneys have agreed that Andres’ sentencing should be postponed until after the criminal trial of Mr. Holloway, which is scheduled to begin on July 8, 2014.
February 25, 2014: William Cornelius and his law firm, Cornelius & Salhab, have filed an appeal of the November 19, 2013 judgment that the Receiver obtained against them in the amount of $89,845.73. A copy of the notice of appeal can be found here.
February 17, 2014: The Receiver filed a motion today asking the Court to strike the attempt by Michelle Petty to amend her answer without permission of the court and her attempt to assert a claim against the receivership. A copy of the motion can be found here.
February 10, 2014: The Receiver filed his status report for the period of October 15, 2013 to January 15, 2014. A copy can be found here.
February 7, 2014: The Receiver filed a brief with the Court opposing the motion by Susan Johnson to have her claim approved—now 18 months after the claims filing deadline. The Receiver urges the Court to deny her motion because she missed the deadline, was a marketer of Winsome, made false statements on her late-filed claim form, and accepting new claims would cause significant delay and expense in efforts to make distributions to victims. A copy of the Receiver’s opposition can be found here.
February 4, 2014: The Court held a hearing today on the Receiver’s motion for approval to make an initial distribution to investors. The Receiver urged the Court to approve an initial distribution now. One of the investors appeared at the hearing and urged to Court to select a different distribution plan than the one recommended by the Receiver. The Court took the matter under advisement and will issue a decision later.
January 28, 2014: The Court issued an order today denying the motion by the Texas Law Firm Cornelius & Salhab to reconsider summary judgment that was granted in December. A copy of the order can be found here.
January 7, 2014: The criminal sentencing hearing for Robert Andres has been postponed to February 27, 2014 at 3:00.
January 3, 2014: The Court issued an order today denying a motion by Nunzio Bruno to vacate the summary judgment that the Court granted to the Receiver. The Court also entered judgment of $203,052.66 against Bruno.
January 3, 2014: The Court today approved the Receiver’s settlement with JoAnn Holly and her companies. A copy of the Court’s order can be found here.
December 26, 2013: In the lawsuit filed by the Receiver against Roberto Penedo, Penedo has stipulated that Winsome was operating as a Ponzi scheme. The Receiver agreed to withdraw his attempts to require Penedo to repay amounts Winsome paid to Fundacion Guatemalteco. The Court issued an order today implementing this stipulation, which includes Penedo withdrawing his motion for summary judgment. A copy of the Court’s order can be found here.
December 24, 2013: The Receiver filed a motion today seeking Court approval of a settlement with JoAnn Holly. The settlement recognizes that Holly lacks any income or assets to pay any amount to the Receiver. Accordingly, the Receiver will dismiss the lawsuit against her to cease spending legal fees on the litigation against her. A copy of the motion can be found here.
December 19, 2013: The law firm of King, King, & Jones filed its appeal brief today arguing that it should not be required to return money paid to it by Winsome for the criminal defense of Jesus Baca. A copy of the appeal brief can be found here.
December 18, 2013: The Court today issued two orders in connection with the Receiver’s litigation against Terry Harper. In one, the Court ordered Harper to pay $1,143.75 in attorneys’ fees for requiring the Receiver to respond to frivolous motions Harper had filed with the Court. A copy of that order can be found here. The Court also found Harper had failed to respond to discovery requests issued by the Receiver. The Court gave Harper 15 days to provide the discovery requested by the Receiver under threat of sanctions. A copy of this order can be found here.
December 17, 2013: The Court today set a hearing on the Receiver’s motion proposing a plan of distribution. The hearing is set for February 4, 2014 at 1:45 p.m. The Receiver will post information on the website after the hearing with the results of the hearing.
December 10, 2013: One of the claimants, RCH2, has filed a response to the Receiver’s motion for permission to make an initial distribution. RCH2 opposes the Receiver’s plan to allocate some of the recovered funds to all claimants and urges the Court to have distribution payments allocated solely using the rising tide distribution methodology. A copy of RCH2’s response can be found here.
November 26, 2013: The Court entered judgments today against Warren Chiu and Winnie Chiu. The judgment against Warren Chiu is for $767,570.63. A copy of the judgment can be found here. The judgment against Winnie Chiu is for $110,000. A copy of the judgment can be found here.
November 25, 2013: The Court today issued an order denying a motion by Nunzio Bruno to reconsider the Court’s ruling that Bruno needed to appear at the summary judgment in person. The Court also denied Bruno’s motion to require the judge to recuse or disqualify himself for bias. A copy of the Court’s opinion and order can be found here.
November 25, 2013: The Court entered findings of fact and conclusions of law as part of its summary judgment against Nunzio Bruno and in favor of the Receiver. The Court found that Bruno received $203,052.66 more from Winsome than the amount that he invested with Winsome and that those funds must be returned to the Receiver. A copy of the order can be found here.
November 25, 2013: The Court today granted the fee application of the Receiver and his counsel for the period from May through September 2013. A copy of the order can be found here.
November 22, 2013: The Court today issued an order granting the Receiver’s motion to strike frivolous motions submitted by Terry Harper. In addition to striking Harper’s filings, the Court ordered Harper to pay the Receiver’s attorneys’ fees in responding to Harper’s motions. A copy of the order can be found here.
November 18, 2013: The Court today entered an opinion and orders relating to Warren Chiu and PacificWin Investments. In the opinion, the Court entered a default judgment against PacificWin Investments in the amount of $160,000.00. The Court also entered judgment against Warren Winnie Chiu for their failure to comply with discovery obligations. A copy of the Court order can be found here.
November 13, 2013: The Court today issued a decision granting summary judgment to the Receiver against Texas attorney William T. Cornelius and his law firm, Cornelius & Salhab. The Court found that the monies paid by Winsome to Cornelius for the criminal defense of Jerome Carter was a fraudulent transfer and that Winsome received no benefit from the transfer of monies. The Court granted judgment to the Receivership for $89,845.73 plus costs, fees, and interest. A copy of the ruling can be found here.
November 8, 2013: The Receiver filed a motion today asking the Court to approve a distribution plan for a majority of the funds being held by the Receiver. The motion recommends implementation of a hybrid plan by which a portion of the money recovered to date will be distributed to all claimants on a pro-rata basis and some of the funds will be distributed using the rising tide distribution methodology. A copy of the motion can be found here. An exhibit was filed along with the motion. The exhibit shows how the funds would be distributed to each claimant under the plan proposed by the Receiver. The exhibit can be found here.
There are two claimants who are objecting to the Receiver’s recommendation that their claims be denied. The Receiver’s plan proposes that amounts that might otherwise be paid to these claimants be held in reserve until those objections are resolved by the Court. In this manner, distributions to other claimants will not have to be held up pending resolution of these two objections. If the court agrees with the objectors, the Receiver will pay them their share of the funds. If the court denies the objections, those monies will be available for further distribution to other investors.
October 31, 2013: The Court today entered a final judgment against Connie Patterson in the amount of $1,966,417.00. The Receiver has not yet found assets that he can attach in order to satisfy this judgment. A copy of the judgment can be found here.
October 30, 2013: The Court today entered default judgment against Kathryn Payton in the amount of $455,125. It is not known if the Receiver will find any assets that can be used to satisfy the judgment. A copy of the judgment can be found here.
October 29, 2013: The Receiver filed a motion asking the Court to compel Harper to respond to discovery requests issued by the Receiver and to provide documents sought in discovery. A copy of the motion can be found here.
October 28, 2013: The Receiver today filed a motion to strike five new filings by Terry Harper. The motion notes that the Court has ordered Harper to cease filing motions that address issues the Court has already ruled on. The Receiver asks the Court to impose sanctions on Harper for continuing to file frivolous motions that take up the Receiver’s time. A copy of the motion can be found here.
October 28, 2013: The Receiver today filed his reply brief in support of the Receiver’s motion for summary judgment against Roberto Penedo. The Receiver has sued Penedo, seeking the recovery of $197,000 paid to Penedo by Winsome. This lawsuit against Penedo is separate from the claim that Penedo has filed asserting a $4 million claim for a share of funds recovered by the Receiver. A copy of the Receiver’s brief can be found here.
October 25, 2013: The Court today issued an order adopting the report and recommendations of the magistrate judge that numerous court filings submitted by Terry Harper are frivolous. The court ordered that these filings be stricken from the record, ordered that Harper cease filing documents addressing issues that have already been ruled on by the Court, and granted the Receiver’s motion to amend the complaint against Harper. A copy of the Court order can be found here.
October 22, 2013: The Receiver filed his quarterly status report today. The report covers the period from July 15, 2013 to October 15, 2013. A copy of the report can be found here.
October 10, 2013: The Court approved the Receiver’s motion to finalize three settlement agreements. Two of the agreements were with defendants who had demonstrated that they had no assets. The third settlement will bring $10,000 in to the Receivership Estate. A copy of the order can be found here.
October 10, 2013: A federal magistrate judge issued a report and recommended decision denying 11 motions filed by Terry Harper that challenge the authority of the court, the receiver’s standing, and validity of the underlying complaint. The magistrate’s recommended decision states that: i) the Court has already ruled on these issues, ii) Harper’s motions violate court rules, and iii) if Harper continues filing frivolous motions such as these, the Court will impose sanctions. The report also recommends that the Receiver’s motion to amend the complaint to allege that Wings Over the World is an alter ego for Harper. A copy of the ruling can be found here.
October 9, 2013: The Receiver filed an application to be paid fees and expenses for the five months from May through September, 2013. A copy of the fee application can be found here.
October 1, 2013: The Receiver filed a motion asking the Court to approve three settlement agreements entered into by the Receiver. One settlement will bring $10,000 into the Receivership Estate while the other two reflect settlements with defendants who have proven that they have no assets. A copy of the motion can be found here.
September 10, 2013: The Court today granted the Receiver summary judgment against Ursula Andres. The ruling stated “the undisputed evidence in the record demonstrates that Winsome was acting as a Ponzi scheme and, therefore, the transfers made to defendant were made with actual intent to defraud.” The Court also rejected Mrs. Andres’ claim that the money she received was justified as compensation for services Robert Andres provided to Winsome. “[T]his and other courts have rejected similar claims that payments made as compensation for drawing in new investors to a Ponzi scheme constitute an exchange of reasonably equivalent value.” The ruling grants judgment against Mrs. Andres for $311,075.00. A copy of the ruling can be found here.
September 6, 2013: The Court entered a judgment today against Lewis Scogin, based on Scogin’s consent. The judgment is for $1,116,317.78. Scogin will be obligated to make payments pursuant to the judgment whenever his annual income exceeds $50,000. A copy of the judgment can be found here.
September 5, 2013: The Court today approved three settlement agreements the Receiver had negotiated with Nowak, Sarmiento, and Bassett. A copy of the order can be found here.
September 5, 2013: The judge overseeing the Receiver’s lawsuit against Michele Petty issued an opinion today denying her motion to dismiss, her request for a change of venue, and her motion for a more definite statement. The Court’s opinion can be found here.
August 26, 2013: The Receiver filed a motion with the Court asking for approval to finalize settlement of three of the lawsuits filed by the Receiver. The three settlements involve Gerald Nowak, Jose Sarmiento, and Judith Bassett. All three settlements involve payment of reduced amounts based on demonstrated financial hardship. The three settlements will bring $41,000 into the Receivership Estate. A copy of the motion can be found here.
August 23, 2013: The Court entered a default judgment today against William Ison for the $185,501.03 that he received from the Receivership Entities. The Receiver has not yet identified assets that Ison might have. A copy of the judgment can be found here. Separately, the Court also dismissed Patty Ison from the lawsuit due to her filing bankruptcy.
August 21, 2013: In the criminal case, Robert Andres entered a guilty plea today. As part of a plea agreement with the U.S. Department of Justice, Andres pleaded guilty to one count of wire fraud. This charge has a maximum sentence of 20 years in prison. Andres declared that he was, in fact, guilty of the scheme to defraud. He has agreed to pay restitution of up to $3.1 million (recognizing that it is unlikely he will ever be able repay much of that amount). Sentencing is set for January 7, 2014 at 2:30 p.m. Victims are welcome to attend the sentencing hearing and to make statements that they would like the judge to consider in sentencing. A copy of the plea agreement, including the admissions made by Andres as part of the plea, can be found here.
August 19, 2013: The Court today issued an order granting the Receiver’s motion for summary judgment against the Georgia law firm King & King & Jones. The Court decision found that Winsome had no obligation to pay King & King & Jones for its criminal defense of Enrique Baca and that Winsome received no benefit from the payment to the law firm. The Court entered judgment of $25,000 to the Receivership Estate. A copy of the order can be found here.
August 9, 2013: The tenth quarterly status report was filed today. It covers the period from April 16, 2013 to July 15, 2013. A copy can be found here.
August 8, 2013: The Receiver today filed a motion for summary judgment against Bruno, seeking recovery of the $203,000 in excess payments he received. A copy of the Receiver’s motion can be found here.
August 1, 2013: The Court today dismissed the Receiver’s lawsuit against Halo TV based on Halo’s initial compliance with its settlement agreement. A copy of the dismissal order can be found here.
July 30, 2012: The Court today entered an order dismissing the lawsuit against Lauren Bateman based on her settlement with the Receiver and payment of the settlement amount. A copy can be found here.
July 26, 2013: The Receiver today filed with the Court a response to a filing by Terry Harper challenging the jurisdiction of the Court over him. A copy of the Receiver’s response can be found here.
July 17, 2013: Today the Court issued an order granting summary judgment to the Receiver against Connie Patterson. The Court adopted the December 12, 2012 recommendations of a magistrate judge. The judgment against Patterson is in the amount of $1,472,425.96 plus prejudgment interest. The Court’s order can be found here. The magistrate’s recommended order can be found here.
July 16, 2013: Default judgment was entered today against Robert Quinton Cook and Onti Management Group in the amount of $26,366.00. Judgment was entered after the defendants filed to appear and defend themselves in the lawsuit filed by the Receiver. A copy of the motion can be found here.
July 12, 2013: The Court approved three settlement agreements today. The settlements are with Crouse, Bateman, and Scogin. A copy of the order can be found here.
July 12, 2013: The Court today approved paying fees and expenses to the Receiver and his counsel. A copy of the order approving the payment can be found here.
June 25,2013: The Tenth Circuit Appeals Court issued an order today dismissing the appeal filed by Terry Harper. The Court ruled that Harper’s appeal because the trial court case is still ongoing and final judgment had not been entered. A copy of the order can be found here.
June 21, 2013: The Court entered judgment against Clayton Lynn Ballard and Carol Ballard. The judgment is for $577,592.57, which is the amount paid to them by Winsome. The Ballards are required to provide annual financial information to the Receiver and to make payments to the Receiver if their income and assets exceed certain levels. A copy of the judgment can be found here.
June 19, 2013: The Receiver filed a motion seeking approval of three additional settlement agreements negotiated by the Receiver. The settlement agreements provide that i) James and Lorraine Crouse will pay $7,500 in settlement of the Receiver’s claims, ii) Lauren Bateman will return $7,5000 to the Receivership which she received in excess payments, and iii) Lewis Scogin consents to the entry of a judgment in the amount of $1,116,317.78. Scogin has submitted a hardship affidavit, asserting that he has no assets or income. Under the settlement agreement, whenever his income exceeds $50,000 per year, he will send payments to the Receivership. A copy of the motion can be found here.
June 13, 2013: The court today issued an order denying the motion to dismiss filed by Peter and Laurie Widmark. The Court said that the Receiver’s lawsuit against the Widmarks can continue in Utah, where the case was filed. A copy of the Court’s order can be found here.
June 6, 2013: The Receiver is providing the following update regarding the status of making distributions of recovered funds to investors:
Three objections to the recommended list of allowable claims have been filed with the Court. These objections must be resolved before any distributions can be made. One of the objections has been resolved with a stipulation that increases the claim amount of RCH2. On June 6, 2013, we had a full-day trial on Roberto Penedo’s claim that Winsome owes him $4.4 million relating to the Guatemala refinery that was being promoted by a different company, RIO Systems, Inc. The judge is expected to issue a ruling in the next few weeks on Mr. Penedo’s claim. For the third objection, the Receiver has submitted additional information to the judge on why Zaman Ali’s claim should be rejected. Mr. Ali has submitted information on why he believes his claim should be recognized. We don’t know when that objection will be resolved.
We cannot distribute any money until the Court has decided what share will go to each claimant. And that requires that we know the total amount of valid claims. So, until the objections are all resolved, we cannot ask the Court for permission to send out money. I am unhappy at the delay that is being caused by objectors wanting to claim a share of the recovery fund and how much time is having to be spent to respond to these objections, but it is important not to give a share of the recovered amount to those who do not deserve it. This decision ultimately will be made by the Court. I cannot predict when the payments might go out. It might be by the end of July and it might be several more months.
June 3, 2013: Terry Harper filed a notice of appeal of the Court’s denial of his motion to strike the lawsuit filed against him by the Receiver. A copy of his appeal notice can be found here.
May 31, 2013: The Receiver filed summary judgment today against Texas attorney William Cornelius and his law firm. The motion asks the Court to enter judgment to the Receiver for $89,845.73 that was paid to Cornelius. A copy of the motion can be found here.
May 31, 2013: The Receiver today filed a motion seeking summary judgment against Ursula Andres, the wife of Robert Andres. The motion asks the Court to enter judgment for the Receiver for the $311,075.00 that Ursula Andres was paid by Winsome and other companies controlled by Robert Andres. A copy of the motion can be found here.
May 31, 2013: An application for the payment of fees and recovery of expenses was filed today by the Receiver and his counsel. The application seeks payment for five months of work by the law firm and two months of work by the Receiver and his staff. A copy of the application can be found here.
May 29, 2013: The Receiver filed a motion today seeking summary judgment against Patty Ison for the $185,501.03 she was paid by Winsome. A copy of the motion can be found here.
May 28, 2013: The Court today signed an order approving the Receiver’s request for payment of his fees and reimbursement of his expenses for the period from January 2012 through January 2013. A copy of the order can be found here.
May 28, 2013: The Court today approved the settlements that the Receiver negotiated with Tsakas, Ballard, Halo TV, and Behles. A copy of the order can be found here.
May 21, 2013: The Court entered two orders today relating to the claims process. In the first, he ordered Zaman Ali to provide copies of accounting records showing the monies that were sent to his company, MCubed. A copy of that order can be found here. In the second, the Court approved a settlement between the Receiver and claimant RCH2 in which the Receiver agreed to allow RCH2 75% of the disputed claim relating to payments by Springridge, LLC. A copy of that order can be found here.
May 17, 2013: The Receiver consented to a motion filed today with the Court relating to the amount of claim of the Receiver for RCH2. RCH2 had objected to the Receiver’s determination to deny $435,000 of its claim. After extensive additional investigation, the Receiver determined that the vast majority of monies sent from Springridge, LLC to US Ventures was money that had come from investors in RCH2-related entities. The Receiver has agreed with RCH2 to allow raise its allowed claim to $3,423,538. This still represents a reduction in the amount originally claimed by RCH2. A copy of the motion can be found here and the stipulation can be found here.
May 14, 2013: The Court entered an order denying a motion to strike the Receiver’s lawsuit, which was filed by Terry Harper. The Court ruled that all of Harper’s objections had already been denied previously by the Court. A copy of the Court’s order can be found here.
April 29, 2013: The Receiver today filed a status report covering the period from December 16, 2012 to April 15, 2013. The report discusses the status of plans to make distributions, describes significant settlements obtained recently, and reports on litigation developments. A copy of the report can be found here.
April 26, 2013: The Receiver today filed a motion for summary judgment against Judith Bassett. A copy of the motion can be found here.
April 23, 2013: The Receiver today filed a motion seeking court approval to finalize four additional settlement agreements. These settlement agreements are with Daniel Behles for $62,500, Roxanne Tsakas for $10,000, Halo Film and TV for $15,000, and Clayton Ballard for a judgment that can be enforced against future assets. A copy of the motion can be found here.
April 19, 2013: The Court today ordered Warren Chiu, Winnie, Chiu, Stephen Chiu, Jennifer Chiu, and PacificWin to provide discovery responses to the Receiver by May 3, 2013. If those responses are not provided, the Court will consider requiring the Chius to pay the expenses of the Receiver in filing the motion to compel discovery. The Court also ruled that the requests for admission were deemed admitted since no response was filed. A copy of the court’s order can be found here.
April 19, 2013: The Receiver filed a motion for summary judgment against the Georgia law firm King, King and Jones, seeking recovery of payments made to it by Winsome for the law firm’s work in defending Erique Baca against criminal charges. A copy of the Receiver’s motion can be found here. King, King and Jones also filed a motion for summary judgment. Its motion can be found here.
April 2, 2013: The Receiver today filed an application with the court to be able to recover his expenses advanced on behalf of the receivership and to be paid fees for the his work and the work of his staff for the 13-month period from February 1, 2012 to February 28, 2013. A copy of the fee application can be found here. Accompanying exhibits can be found here.
March 28, 2013 On March 26, the Receiver filed a motion seeking Court approval to finalize eight settlement agreements. These eight agreements include some large settlements. Together, these agreements will bring over $2.4 million into the Receivership Estate. A copy of the motion can be found here. On March 28, the Court entered an order approving the settlements. A copy of the Court order can be found here.
March 27, 2013: The judge in the case against Terry Harper issued a decision denying Harper’s motion to dismiss the lawsuit. A copy of the ruling can be found here.
March 26, 2013: The Court today entered a judgment of $2,279,187.71 against Nancy Howe and Leo Renaud. A copy can be found here. The judgment was entered by default, after Howe and Renaud ceased defending themselves in the Receiver’s lawsuit against them. To date, the Receiver has not found any assets that can be used to satisfy the judgment.
March 25, 2013: The Court today entered a judgment against Nancy I. Howe and Leo Renaud. The orders were obtained by default, after Howe and Renaud failed to provide discovery and did not comply with court orders. The judgment is in the amount of $2,279,187.71. In addition, the Court ordered Howe and Renaud to reimburse the Receiver’s attorney $1,420.50 in fees and costs based on Howe and Renaud’s failure to provide discovery. A copy of the order can be found here.
March 14, 2013: The Court granted a default judgment against Aishwariya Enterprises, Inc. and in favor of the Receiver. The judgment is in the amount of $206,020.40. A copy of the judgment can be found here. The Receiver believes he is unlikely to find any assets to satisfy this judgment.
February 28, 2013: The Court today entered an order dismissing the Receiver’s lawsuit against Emmanuel Mbobi as a result of a settlement agreement signed with the Receiver on December 21, 2012, which was approved by the Court on January 7, 2013. A copy of the dismissal order can be found here.
February 27, 2013: The Court today entered a default judgment against Keith Shaffner in the amount of $362,188.78. This amount represents monies paid to Mildred Rogers and M&K Ventures, a company controlled by Shaffner. The estate of Mildred Rogers (Shaffner’s mother) was dismissed from the litigation because there did not appear to be an estate created. The Receiver previously obtained a judgment against M&K Ventures. Rex Shaffner, a brother, proved that improper payments did not go to him and he was dismissed from the litigation. This case is now concluded against these defendants. A copy of the judgment can be viewed here.
February 26, 2013: The Court today set a trial schedule for the objection that Roberto Penedo filed. Penedo has objected to the Receiver’s recommendations on who are allowable claimants that can share in the funds recovered by the Receiver. The court set the trial for June 6, 2013. Until this matter is resolved, the Receiver cannot finalize the amount of allowable claims.
February 11, 2013: The Receiver today filed a motion asking the court to grant summary judgment against Connie Patterson. The motion alleges that Patterson lacked good faith and should be required to return all amounts she received from Winsome. A copy of the motion can be found here.
February 8, 2013: Today the Receiver filed his response to the three claims objections. The Receiver’s response can be found here. His declaration in support of his motion can be found here. The Court has scheduled a status hearing on February 12, 2013 at 1:20.
February 4, 2013: A third objection was filed today, objecting to the Receiver’s recommendations on the claims process. This objection was filed after the deadline for making objections. The objection was filed by Zaman Ali. A copy can be found here.
January 24, 2013: The court today approved the fee application for Manning Curtis Bradshaw and Bednar, attorneys for the Receiver. A copy of the order can be found here.
January 22, 2013: RCH2, LLC filed an objection to the Receiver’s recommendation on the allowable claim amount. RCH2, through its court-appointed receiver, asks the Court to give it credit for payments sent to US Ventures by a company named Springridge, LLC. The Receiver will be responding to this objection. The RCH2 objection can be found here.
January 21, 2013 Robert Penedo filed an objection to the Receiver’s recommendation on the allowable claim amount. Penedo is asking the Court to grant its claim of $4,615,000 based on a contract Penedo had with RIO Systems. The Penedo objection can be found here.
January 16, 2013: The court today issued an order denying a motion for summary judgment filed by Nina Abdulbaki. Abdulbaki asked the court to rule that cash she provided to Andres in exchange for personal promissory notes should be counted against the payments she received from Winsome. The court allowed the Receiver to conduct further discovery about those transactions. A copy of the court’s order can be found here.
January 11, 2013: A federal judge today denied a motion to dismiss filed by Ravkind and Associates. Ravkind is a law firm that received monies from Winsome to pay for criminal defense services for an associate of Andres. The order denying the motion to dismiss found that the receiver could proceed with his lawsuit against Ravkind. A copy of the order can be found here.
January 4, 2013: The Receiver filed a motion today asking the court to approve two settlement agreements. In the first, John Cook agrees to repay $12,000 to the receivership. In the second, Emmanuel Mbobi demonstrated a financial inability to pay any monies but agreed to assist the receiver in other litigation. If the settlements are approved by the court, the lawsuits will be dismissed against both. A copy of the motion can be found here. A copy of the approval is here.
December 26, 2012: The Receiver today filed his status report with the Court for the period from September 16, 2012 to December 15, 2012. A copy of the report can be found here.
December 21, 2012: A magistrate judge today issued a recommended decision on the Receiver’s lawsuit against Connie Patterson. The magistrate found recommends that the Receiver’s motion for judgment against Patterson be granted. The recommendation will be acted upon by the district judge. A copy of the magistrate’s recommendation can be found here.
December 20, 2012: The Receiver filed his report on the claims process with the Court today. Copies of the report and the exhibits can be found here. Exhibit 3 shows all the claims by claim number. If you are a claimant, you should have already been informed by the Receiver whether he intends to recommend approval, reduction, or rejection of your claim. If the Receiver is recommending that your claim be reduced or rejected and you want to contest his recommendation, you will need to file an objection with the U.S. District Court. That objection will need to be filed by January 22, 2013. If you do file an objection with the Court, copies should be sent to the Receiver and those listed on the certificate of service at the end of the report.
December 17, 2012: The attorney for the receivership filed its fee application today. This application seeks reimbursement of fees and expenses incurred doing legal work for the receivership from August through November 2012. A copy of the fee application can be found here. The Court has set a hearing on January 22 at 10:30 a.m. to consider this application.
November 19, 2012: Today, the court issued an order denying a motion to dismiss filed by Lou Georges, an employee of US Ventures and the person who prepared the account statements. The ruling says the court has subject matter jurisdiction over the case and personal over Mr. Georges. A copy of the order can be found here.
November 13, 2012: The federal court today issued an order denying a motion by Lewis Scogin to dismiss the Receiver’s lawsuit against Scogin and his company, Covenant Family Trust. The District Court Judge Clark Waddoups adopted the recommended order from a magistrate. Copies of the magistrate’s recommendation and the court’s order can be found here.
November 2, 2012: The Receiver has learned that William Ison was arrested on October 17,2012 in Denver Colorado. On September 27, he was charged by a San Diego grand jury with 15 counts of wire fraud and criminal conspiracy. When he was arrested on October 17, the grand jury indictment was unsealed. The U.S. Attorney’s office in San Diego is prosecuting him and is seeking forfeiture of all proceeds he received as part of his conspiracy and fraud. A copy of the criminal indictment can be found here. The Receiver had sued Ison on January 17, 2012, seeking the return of $211,892.74 that he received from Winsome. The Receiver’s civil lawsuit is still pending
November 1, 2012: The Court today entered an order dismissing the Receiver’s lawsuit against Elgin Clemons and Tracy Hollingsworth, his wife, based on the settlement agreement approved by the Court on September 14, 2013. A copy of the dismissal order can be found here.
November 1, 2012: The Court today approved three settlement agreements entered into by the Receiver. These were with Michael Roulhac, Devon Dahlke, and Alison Frank. All three had demonstrated a financial inability to pay any amount to the Receivership. All three pledged cooperation and assistance in the Receiver’s efforts to recover assets. A copy of the court order can be found here.
October 30, 2012: The Receiver today filed a lawsuit against the Arkansas law firm Wright Lindsey & Jennings, LLP. The lawsuit alleges legal malpractice and breach of fiduciary duty by Wright Lindsey. The lawsuit seeks damages of $5.8 million from Wright Lindsey. A copy of the complaint can be found here.
September 27, 2012: The Receiver today filed with the Court the Seventh status report, summarizing the activities of the Receiver for the period from June 16, 2012 to September 15, 2012. A copy can be found here.
September 13, 2012: The Receiver today filed a motion seeking court approval for three new settlement agreements. In the first, Elgin Clemons has agreed to sell his home and give 87.5% of the net sale proceeds to the receiver. In the second, John Bassett will pay $13,000 in settlement of the Receiver’s claim that he was overpaid by $18,000. In the third, the Receiver has agreed to dismiss Ken Bussa based on his financial condition. Copies of the motion can be found here. The memorandum, which describes the settlement terms, can be found here. The motion was approved.
September 13,2012: The Court today approved the application for fees of the attorneys for the Receiver. This reflects litigation work by the law firm from January 31 to July 31. A copy of the order can be found here.
August 14, 2012: Today, the attorneys for the Receivership filed an application with the Court for permission to be paid their fees and expenses for work performed from February through July 2012. A copy of the fee application can be found here. The exhibits to the fee application can be found here.
July 27, 2012: On July 26, 2012, the Receiver filed a motion seeking court approval to finalize seven settlement agreements. On July 27, the Court granted the motion and approved the settlements. The settlements will bring $64,500.00 into the receivership estate. A copy of the Receiver’s motion can be found here and memorandum can be found here. A copy of the court’s order approving the settlements can be found here
July 13, 2012: The Receiver has learned that Mr. Andres was arrested just before July 4 based on allegations he had been violating the terms of his pre-trial release by soliciting additional monies from investors. He was released from custody on July 6. On July 13, a magistrate judge in Utah held a hearing on the violation. At the hearing, Mr. Andres apparently admitted that he violated the terms of his pretrial release. The magistrate imposed additional conditions on Mr. Andres’ continued release while awaiting trial. These include not contacting any investors, not seeking employment that involves handling funds of others, and not opening any lines of credit.
July 9, 2012: The Court today approved reimbursement of the expenses and payment of the fees of the Receiver for the period from May 1, 2011 to January 31, 2012. A copy of the order can be found here.
June 18, 2012: The judge hearing the lawsuit that the Receiver filed against Nina Abdulbaki issued an order today denying the motion to dismiss that she filed. The judge ruled that the lawsuit can proceed in Utah rather than being transferred to Texas. In addition, the Court ruled that the statute of limitations does not prevent the Receiver from seeking recovery of payments made to Abdulbaki. A copy of the court order can be found here.
June 15, 2012: The federal court today issued a ruling denying the motion to dismiss filed by a Texas attorney, William Cornelius. The Receiver had sued Cornelius to recover monies paid by Winsome to Cornelius for providing criminal defense services to Jerome Carter. Cornelius made five different arguments why the court should dismiss the Receiver’s lawsuit but the court rejected all five arguments. A copy of the opinion can be found here.
May 22, 2012: The Court has approved initiation of the claims process. Claimants may complete claim forms and send the claim forms and supporting documents to the Receiver. The deadline for submission of the claim forms is July 31, 2012. Documents relating to the claims process are available on the Receivership website for download. Claimants can also request that the Receiver mail copies of the documents. The claim form package consists of the following documents:
April 25, 2012: The Court today entered an order approving seven settlement agreements entered into by the Receiver.
April 23, 2012: The Receiver today filed a motion and memo with the Court seeking approval to finalize seven settlement agreements. These settlement agreements will bring over $340,000 to the Receivership Estate.
April 20, 2012: The Court today granted the CFTC’s request to strike Holloway’s motion to set aside the default judgment entered against US Ventures. The Court said Holloway cannot represent US Ventures because corporations can only be represented by attorneys, not officers.
April 12, 2012: The Court today approved payment to the Receiver’s counsel in the second fee application. These were for services from May 2011 through January 2012.
March 26, 2012: The Court today set a hearing for April 23, 2012 on the Receiver’s motion for approval to begin the claims process. If the claims process is approved at that time, the Receiver will ask the Court to extend the deadlines included in the original motion.
March 23, 2012: The Receiver today filed the fifth quarterly status report with the court. The report describes activities of the Receivership since December 15, 2011.
March 7, 2012: The Receiver dismissed the lawsuit that he filed against Thomas Balestrery based on Balestrery demonstrating that money sent to Winsome by another company, eBullion, was sent to Winsome for his benefit. A copy of the dismissal order can be found here.
March 7, 2012: The Receiver today filed a motion with the Court seeking permission to begin a claims process. The documents include a motion and memorandum describing the claims process proposed by the Receiver and copies of the claim form that the Receiver proposes to use can be found here. As soon as the Court approves the claim form and the claims process, the Receiver will e-mail copies to investors whose addresses the Receiver has and will post them on the website. Do not complete the proposed claim form that was submitted to the Court.
March 6, 2012: The Receiver today filed a motion asking the Court to approve payment of the balance of the first fee application (for work performed from January 25, 2011 to April 30, 2011) and to approve payment to the receiver’s attorneys for work the attorneys performed between January 31, 2011 and May 1, 2011. A copy of the application can be found here. The Receiver will file an application for his fees for work since May when more funds have been recovered.
February 21, 2012: The Court today entered two orders relating to the Receivership. The Court approved six settlement agreements that the Receiver has recently negotiated. The Court also entered an order requiring Andres to allow the Receiver to access documents on the Winsome computer, subject to certain conditions.
February 17, 2012: The Receiver today filed a motion asking the Court to approve six settlement agreements recently reached by the Receiver. The settlements are with CitiMortgage (whereby the Receiver will assist the bank in selling Andres’ home and dividing the proceeds), W. Erving (return of full $100,000 loan from Winsome), L. Sternheim (return of full $153,730 overpaid, plus $1,050 in court filing fees), I. Sternheim (return of full $33,000 overpaid), Kluger School (return of full $10,000 overpaid) See Receiver’s Note, and A. Kalil and S. Ponsler (return of full $25,000 overpaid). Copies of the motion and supporting memorandum.
January 31, 2012: The Receiver filed a motion with the Court asking for approval to finalize three settlement agreements. Under the first settlement, a law firm has paid the Receiver $425,000.00 in settlement of claims the Receiver might assert relating to legal fees that Winsome paid to the law firm. The second settlement involves an investor repaying $10,000 of the $15,000 he was overpaid. The third involves an investor repaying $7,500 of the $8,032 that he was overpaid. On January 31, 2012, the Court issued an order approving the settlements. Copies of the motion, memorandum in support, and court order can be found here. The memorandum in support provides a description of the settlements.
January 30, 2012: The New Mexico bankruptcy court issued an order approving the settlement between the Receiver and the bankruptcy trustee regarding the sale of the patent rights in Aerospace Consulting. The Receivership Court had approved the settlement earlier.
January 23, 2012: The Receiver today filed another group of lawsuits against people and companies who received funds improperly from US Ventures or Winsome. Those sued today include: Nordstrom Bank, Wycliff, American Express, Barrington/John Cook, Warren Chiu/PacificWin, Cook/Onti, Sarmiento/Grupo, and Lewis Scogin/Covenant Trust.
January 20, 2012: The Receiver today filed twelve new lawsuits against persons who received improper funds from Winsome or US Ventures. The lawsuits are against: Jesus Baca, John Bassett, Judith Bassett, Steven Hoskins, Norbert Keeney, Duane Kilburg, Forres McGraw, Michael Roulhac, Christina Scott, Summa Stelly, Christine Walker, and Patricia Winans.
January 18, 2012: The Receiver today filed 13 lawsuits against people and companies who are alleged to have received funds improperly from Winsome or US Ventures. The lawsuits name the following as defendants: Aishwariya Enterprises, Hendrick Barrett, David Story, Lou Georges, Roxanne Tsakas, Khiem Le, MME Group/Robert Righetti, Ryan Runia, Sacred Site Properties, William Smith, Ronda Beasore, Devon Dahlke, and Steven Stelly.
January 17, 2012: The Receiver filed 19 lawsuits today against people and companies that received improper funds from Winsome or USV. The lawsuits are against Kathryn Payton, Fundacion Guatemalteco, JoAnn Holly, King King & Jones, Rabbi Solomon Kluger School, William Ison, JKKB Enterprises, World Investment Strategies, Nunzio Bruno, Lauren Bateman, Jacki Barrientes, Allison Frank, Linh Nguyen, Assed Kalil & Steven Ponsler, Gerald Nowak, Kathy Grady, Jason Buck, Garry Smith, and Joshua Carmody.
January 11, 2012: The Receiver filed a lawsuit today against New Mexico attorney Daniel Behles and his law firm. Behles represented Winsome in connection with payments to Aerospace Consulting Corp. In the lawsuit the Receiver alleges that Behles received payments in excess of the value of work he performed for Winsome and breached his fiduciary duties to Winsome.
January 9, 2012: The Receiver today filed three more lawsuits seeking to recover funds paid improperly by Winsome. Those sued today include Ravkind and Associates (a Dallas law firm), Mark Bush (a resident of Houston), and Terry Harper (a third-party marketer).
January 4, 2012: The federal district court today issued an order “reappointing” the Receiver. This step was necessary to allow the Receiver to file a notice of the receivership in additional states where targets are located. The Receiver expects to file this notice in an additional six federal districts.
December 30, 2011: The Receiver today filed a motion with the federal court, asking the court to “re-appoint” him as Receiver. This is necessary in order to allow the Receiver to file notices of the receivership in another six federal districts. With these notices, the Receiver will be able to file suit against targets residing in those districts. The Receiver filed a motion, a brief in support, and a declaration signed by the Receiver.
December 29, 2011: The Receiver today filed his Fourth status Report to the Court, summarizing the Receiver’s activities from September 16 to December 15, 2011. The report discusses lawsuits filed, settlements reached, and plans of the Receiver going forward.
December 29, 2011: The Criminal Division of the U.S. Department of Justice is sending electronic letters to possible victims related to criminal charges the government recently filed against Robert Andres and Robert Holloway. The letters include an explanatory letter and a victim impact statement. The Department of Justice also has created specific Web pages that provide updates on the status of the criminal cases. The page for Andres can be accessed at www.justice.gov/criminal/vns/caseup/andresr.html and the page for Holloway at www.justice.gov/criminal/vns/caseup/hollowayr.html.
The victim impact statement is designed to help the Department of Justice gather information for its criminal prosecution. This is different from information the Commodity Futures Trading Commission or the Receiver might need for their work. We apologize that there may be duplication, but all of us have separate roles and will need different variations of the information for different purposes.
The Receiver encourages all investors to assist the Department of Justice by providing the information being requested. Please retain a copy of your victim impact statement and any documents you send to the Department of Justice. At this point, send copies only to the Department of Justice. If the CFTC or the Receiver needs this information later, you will be contacted.
While the Department of Justice letter does not list a deadline for submitting information, the Receiver encourages you to respond by the end of January. The information should be sent to Pamela Washington at the address listed in the letter.
December 23, 2011: The Receiver filed a motion asking the Court to permit him to review files on a Winsome computer that Robert Andres claimed were privileged. The legal memorandum accompanying the motion explains why the Receiver believes the computer files are records of Winsome and should be available to the Receiver.
Welcome to the Klein & Associates website! This page contains information regarding the Receivership: US Ventures and Winsome Investment Trust. On this page, you will find:
- Copies of the Court Order Appointing a Receiver and other Court filings about the Receivership;
- Copies of Status Reports and other notices the Receiver will file with the Court;
- Copies of lawsuits the Receiver will be filing, seeking to recover funds;
- Information relating to tax treatment of Ponzi scheme losses; and
- General information about the Receivership.
1. Appointment of Receiver/Litigation by CFTC
- 02.21.2012 Order Compelling Production Andres Hard Drive
- 01.04.2012 Order Reappointing Receiver
- 12.23.2011 Memo in support of Receiver’s Motion to Compel Production of Documents
- 12.23.2011 The Receiver’s Motion to Compel Production of Documents on Hard Drive of Robert Andres
- 10.19.2011 Court Order Denying Andres Motions
- 09.28.2011 Order Reappointing Receiver
- 09.27.2011 Receiver Memo in support of Reappointment
- 09.27.2011 Declaration in Support of Reappointment
- 09.27.2011 Motion for Reappointment of Receiver
- 07.01.2011 Court order denying Andres motions opposing default
- 03.07.2011 Preliminary Injunction Holloway
- 02.28.2011 Preliminary Injunction USV Winsome
- 02.28.2011 Default USV Holloway
- 02.28.2011 Hearing Summary
- 03.08.2011 Preliminary Injunction Andres
- 01.24.2011 CFTC Complaint against US Ventures, Winsome Investment Trust, Robert J Andres, and Robert L Holloway
- 01.24.2011 Motion for Asset Freeze and Appointment of a Receiver
- 01.24.2011 Memo Motion for SRO
- 01.25.2011 USV Order appointing Receiver and asset freeze
2. Status Reports to the Court
- 01.15.2014 Receiver’s Twelfth Report to the Court
- 09.30.2013 Receiver’s Eleventh Report to the Court
- 08.13.2013 Receiver’s Tenth Report to the Court
- 04.15.2013 Receiver’s Ninth Report to the Court
- 12.26.2012 Receiver’s Eighth Report to the Court
- 09.26.2012 Receiver’s Seventh Report to the Court
- 03.23.2012 Receiver’s Fifth Report to the Court
- 12.29.2011 Receiver’s Fourth Report to the Court
- 09.26.2011 Receiver’s Third Report to the Court
- 09.26.2011 Third Report Exhibit A
- 06.15.2011 Receiver’s Second Report to the Court
- 03.25.2011 Receiver’s Initial Report to the Court
3. Lawsuits filed by the Receiver
- 04.04.2014 Receiver’s Response to Ali Supplemental Informationa and Documents
- 03.31.2014 Order Granting Harper Default
- 03.31.2014 Penedo Notice of Appeal
- 03.05.2014 Harper Default Report and Recommended
- 03.03.2014 Order Granting Receiver’s Summary Judgment
- 01.03.2014 Bruno Judgment
- 01.03.2014 Order Denying Bruno Reconsideration
- 12.26.2013 Penedo Ponzi Stipulation
- 12.19.2013 King King Appeal Brief
- 12.18.2013 Harper Order Granting Receiver Attourney Fees
- 12.18.2013 Order to Compel Harper Discovery
- 11.26.2013 Warren Chiu Judgment
- 11.26.2013 Winnie Chiu Judgment
- 11.08.2013 Chiu, Warren Judgment Opinion
- 11.13.2013 Cornelius Summary Judgment
- 10.31.2013 Patterson Judgment
- 10.30.2013 Payton Default Judgment
- 10.29.2013 Motion Compel Harper
- 10.28.2013 Motion to Strike Harper Filings
- 10.28.2013 Receiver Reply to Penedo Summary Judgment
- 10.25.2013 Harper Order Striking Filings
- 09.10.2013 Order Granting Summary Judgment Ursula Andres
- 09.06.2013 Scogin Consent Judgment
- 09.05.2013 Order Denying Petty Dismissal
- 08.23.2013 William Ison Default Judgment
- 08.19.2013 King King & Jones Summary Judgment
- 08.08.2013 Motion for Summary Judgment and Memo in Support
- 08.01.2013 Order of Dismissal
- 07.30.2013 Bateman Lawsuit Dismissal Order
- 07.16.2013 Onti Management Default Judgment
- 06.25.2013 Harper Appeals Court Denial
- 06.21.2013 Ballard Judgment
- 05.31.2013 Andres, Ursula Motion for Summary Judgment
- 05.31.2013 Cornelius Motion for Summary Judgment
- 05.29.2013 Ison Motion for Summary Judgment
- 04.26.2013 Bassett, Judith Motion for Summary Judgment
- 04.19.2013 Chiu, Warren Order Compelling Discovery
- 04.19.2013 Receiver Motion for Summary Judgment King, King, and Jones
- 03.27.2013 Harper Order Denying Motion to Dismiss
- 03.26.2013 Howe Renaud Judgment
- 03.28.2013 Order Approving Settlements
- 03.26.2013 Receiver’s Motion for Eight Settlements
- 03.14.2013 Aishwariya Default Judgment
- 03.25.2013 Howe Default Order
- 02.27.2013 Keith Shaffner Default Judgment
- 02.11.2013 Patterson Motion for Summary Judgment
- 01.16.2013 Order Denying Abdulbaki Summary Judgment
- 01.11.2013 Order Denying Ravkind Motion to Dismiss
- 12.21.2012 Patterson Magistrate Recommendation Order
- 11.19.2012 Georges Order Denying Motion
- 11.12.2012 Order Denying Motion to dismiss
- 10.30.2012 WLJ Complaint
- 07.03.2012 Amended InnovativeTech Complaint
- 06.18.2012 Abdulbaki Order Denying Motion to Dismiss
- 04.20.2012 Order to Strike Motion
- 06.15.2012 Federal Court Order Denying Motion to Dismiss
- 03.07.2012 Balestrery Order of Dismissal
- 01.23.2012 American Express Complaint
- 01.23.2012 Barrington Capital Complaint
- 01.23.2012 Nordstrom Complaint
- 01.23.2012 Onti Management Complaint
- 01.23.2012 Pacificwin Complaint
- 01.23.2012 Sarmiento Carter Hall Grupo Corporativo Complaint
- 01.23.2012 Scogin and Covenant Family Trust Complaint
- 01.23.2012 Wycliffe Complaint
- 01.20.2012 Baca, Jesus Complaint
- 01.20.2012 Bassett, John and Annette Complaint
- 01.20.2012 Bassett, Judith Complaint
- 01.20.2012 Hoskins, Steven Complaint
- 01.20.2012 Keeney, Norbert Complaint
- 01.20.2012 Kilburg, Dwain Complaint
- 01.20.2012 McGraw, Forres Complaint
- 01.20.2012 Roulhac, Michael Complaint
- 01.20.2012 Scott, Christina Complaint
- 01.20.2012 Stelly, Summa and Jennifer Complaint
- 01.20.2012 Walker, Christine Complaint
- 01.20.2012 Winans, Patricia Complaint
- 01.18.2012 Aishwariya Enterprises Complaint
- 01.18.2012 Barrett, Hendrick Complaint
- 01.18.2012 Georges, Lou Complaint
- 01.18.2012 Le, Khiem Complaint
- 01.18.2012 Story, David Complaint
- 01.18.2012 Tsakas, Roxanne Complaint
- 01.18.2012 Beasore, Ronda Complaint
- 01.18.2012 Dahlke, Devon Complaint
- 01.18.2012 MME Group and Righetti, Robert Complaint
- 01.18.2012 Runia, Ryan Complaint
- 01.18.2012 Sacred Site Properties Complaint
- 01.18.2012 Smith, William Complaint
- 01.18.2012 Stelly, Steven TX Cane Services and SE TX Ethanol Mgmt Complaint
- 01.17.2012 Payton, Kathryn Complaint
- 01.17.2012 Penedo, Roberto and Fundacion Guatemalteco
- 01.17.2012 Holly, Joann A Day in Hollywood Complaint
- 01.17.2012 King, King & Jones Complaint
- 01.17.2012 Agraham, Aman Rodriguez, Luis and World Investment Strategies Convenient Solutions
- 01.17.2012 Bateman, Lauren Complaint
- 01.17.2012 Bogard, Jonathan and JKKB Enterprises Complaint
- 01.17.2012 Bruno, Nunzio Complaint
- 01.17.2012 Ison, William Ison, Patty and Grace Foundation Complaint
- 01.17.2012 Barrientes, Jacki Complaint
- 01.17.2012 Frank, Allison Complaint
- 01.17.2012 Kalil, Assed and Ponsler, Steven Complaint
- 01.17.2012 Nguyen, Linh Complaint
- 01.17.2012 Nowak, Gerald Complaint
- 01.17.2012 Buck, Jason Complaint
- 01.17.2012 Carmody, Joshua Complaint
- 01.17.2012 Grady, Kathy Complaint
- 01.17.2012 The Rabbi Solomon Kluger School Complaint
- 01.17.2012 Smith, Garry Complaint
- 01.11.2012 Behles Complaint
- 01.09.2012 Ravkind & Associates Complaint
- 01.09.2012 Bush, Mark and XTL LLC Complaint
- 01.09.2012 Harper, Terry and Wings of the World Ministries Complaint
- 01.05.2012 Shaffner, Keith Rex Estate of Mildred Rogers and M&K Venture LLC Complaint
- 12.14.2011 Howe, Nancy dba Howe Financial Tech and Renauld, Leo Complaint
- 12.14.2011 Cornelius, William and Cornelius & Salhab Complaint
- 12.13.2011 Pham, Lisa Complaint
- 12.13.2011 HaloTV & Film Complaint
- 12.13.2011 Crouse, James and Loraine Complaint
- 12.02.2011 Widmark, Peter and Laurie Complaint
- 12.02.2011 Sternheim, Leonard Complaint
- 12.02.2011 Sternheim, Isaac Complaint
- 12.02.2011 Sheppard, Mullin Complaint
- 12.02.2011 Petty, Michele Complaint
- 12.02.2011 Mbobi, Emmanuel Complaint
- 12.02.2011 Cruz, Arnel Phoebus Group LLC and SA2 Complaint
- 12.02.2011 Bussa, Kenneth Complaint
- 11.01.2011 Clemons, Elgins and Hollingsworth, Tracy Complaint
- 11.01.2011 Moore, Cindy and Lincoln Complaint
- 10.13.2011 Abdulbaki, Nina Complaint
- 10.13.2011 Adams, Nicole Complaint
- 10.13.2011 Balestrery, Thomas Complaint
- 10.13.2011 Dixon, Joseph Complaint
- 10.13.2011 Houston Zero Cold Storage Complaint
- 10.13.2011 Pitts, Mykal Complaint
- 10.13.2011 Runia, John Complaint
- 10.13.2011 Sellers, Al & Cherylynn Complaint
- 10.13.2011 Total Health and Suttman Complaint
- 08.24.2011 Ballard, Clayton Lynn RIO Systems Complaint
- 08.09.2011 Carter, Jerome Complaint
- 08.09.2011 Patterson, Connie Complaint
- 07.14.2011 Andres, Ursula Complaint
4. Settlements by the Receiver
- 01.03.2014 Receiver’s Fifteenth Settlement Order Approval
- 12.24.2013 Fifteenth Settlement Motion
- 10.10.2013 14th Order Approving Settlements
- 10.01.2013 Receiver’s Fourteenth Settlement Motion
- 09.05.2013 Order Approving Three Settlement
- 08.26.2013 Receiver’s Thirteenth Settlement Motion Filed
- 07.12.2013 Order Approving Settlement Agreements
- 06.19.2013 Receiver’s Twelfth Motion to Finalize Settlement Agreements
- 05.28.2013 Order Approving Settlements
- 04.23.2013 Receiver’s Eleventh Motion to Finalize Settlement Agreements
- 02.28.2013 Mbobi Dismissal
- 01.04.2013 Settlement Motion
- 11.11.2012 Clemons Dismissal Order
- 11.01.2012 Order Approving Settlement Agreements
- 09.14.2012 Order Approving Settlement
- 09.13.2012 Receiver’s Seventh Motion for Permission to Finalize Settlement Agreements
- 09.13.2012 Memo in Support of Receiver’s Seventh Motion
- 07.27.2012 Memo in Support of Sixth M. to Finalize Settlements
- 07.27.2012 Order Approving Settlement
- 07.27.2012 Sixth Motion to Finalize Settlements
- 04.25.2012 Court Settlement Order
- 04.23.2012 Fifth Motion for Permission to Finalize Settlement Agreements
- 04.23.2012 Memo in support of 5th Motion to Finalize Settlements
- 02.21.2012 Court Settlement Order
- 02.17.2012 Fourth Motion for Permission to Finalize Settlement Agreements
- 02.17.2012 Memo in Support of Fourth Settlement Motion
- 01.30.2012 Aerospace NM Court Approval
- 01.30.2012 Third Motion to Finalize Settlements
- 01.30.2012 Order Approving Settlement Agreements
- 01.30.2012 Memo in support of Settlement
- 12.13.2011 Aerospace/West Settlement Approval
- 11.07.2011 Receiver’s motion for approval of settlements
- 11.07.2011 Brief in support of motion to approve settlements
- 10.27.2011 Order Approving Settlement Agreements
- 10.26.2011 Memo in Support of Receiver’s Motion for Permission to Finalize Settlement Agreements
- 10.26.2011 Receiver’s Motion for Permission to Finalize Settlement Agreements
5. Lawsuits against the Receiver
- 02.25.2014 Cornelius Notice of Appeal
- 01.28.2014 Order Denying Cornelius & Salhab Motion for Summary Judgment
- 11.25.2013 Order Denying Bruno Motions to appear via telephone and for Judicial Recusal
- 11.25.2013 Findings of Fact & Conclusions of Law and Order Bruno Motion
- 11.22.2013 Harper Order Striking Granting Fees
- 10.10.2013 Harper Report and Recommendation
- 06.13.2013 Order Denying Widmark Motion for Dismissal
- 06.03.2013 Harper Notice of Appeal
- 05.14.2013 Order Denying Harper Strike Motion
- 04.19.2013 King King and Jones Motion for Summary Judgment
- 12.30.2011 Declaration of Receiver
- 12.30.2011 Memo in Support of Receiver Reappointment
- 12.30.2011 Receivers Second Motion for Reappointment
- 11.22.2011 Court order dismissing lawsuit by Cornelius
- 11.22.2011 Court opinion dismissing lawsuit by Cornelius
- 10.24.2011 Receiver Motion to Dismiss Cornelius Lawsuit
- 10.03.2011 Cornelius Lawsuit Against Receiver (Texas)
6. Criminal Proceedings
- 08.21.2013 Statement by Defendant RA
- 09.27.2012 Ison Criminal Charges
- 12.29.2011 Department of Justice explanatory letter
- 12.29.2011 Department of Justice Andres Holloway – Victim Impact Statement
- 12.07.2011 Robert J Andres Indictment
- 12.07.2011 Robert L Holloway Indictment
7. Claims Process
- 03.07.2014 Ali Claim Procedures Order
- 03.07.2014 Penedo Claim Denial Order
- 02.17.2014 Receiver Motion to Strike Petty Amended Answer
- 02.07.2014 Receiver’s Opposition to Susan Johnson Claim Motion
- 12.11.2013 RCH2 Objection to Initial Distribution
- 11.08.2013 Claims Distribution Plan
- 11.04.2013 Claim Procedure Exhibit
- 05.21.2013 Order to Provide Accounting
- 05.21.2013 Stipulation Regarding Partial Allowance of Claim
- 05.17.2013 Motion to Approve RCH2 Reduced Claim
- 05.17.2013 RCH2 Claim Stipulation
- 02.08.2013 Receiver Report and Response to Claim Objections
- 02.08.2013 Declaration in Support of Receiver Response to Claim Objections
- 02.04.2013 M Cubed Objection to Claims Procedures
- 01.22.2013 Objection of RCH2 to Receivers Recommendation of Allowable Claim
- 01.21.2013 Objection to Receivers Report and Recommendation on Claim
- 12.20.2012 Report and Recommendation on Claims Process
- 12.20.2012 Exhibits to Report and Recommendation
- 03.07.2012 Receiver Motion for Approval Proof of Claim
- 03.07.2012 Receiver Memo in Support of Proof of Claim
- 03.07.2012 Ex. A Proof of Claim form
- 03.07.2012 Ex. B Claim Review Guidlindes
- 03.07.2012 Ex. C Proof of Claim Review Form
8. Fee Applications/Other Court Filings
- 04.04.2014 Fee Application for Receiver and Receivers Counsel
- 04.04.2014 Exhibit A
- 04.04.2014 Exhibit B
- 04.04.2014 Exhibit C
- 11.25.2013 Fee Application Approved
- 09.30.2013 Fee Application
- 07.30.2013 Opposition to Notice of ‘Writ of Discovery’
- 07.12.2013 Order Approving Fee Application
- 05.31.2013 Receiver and Counsel Fee Application
- 05.28.2013 Fourth Fee Approval Order
- 04.03.2013 Fourth Fee Application
- 04.03.2013 Fourth Fee Applications Exhibits
- 02.26.2013 Order Scheduling Evidentiary Hearing
- 01.24.2013 Order Approving Application of Fees and Expenses for Receiver Counsel
- 12.17.2012 Attorney Fee Application
- 09.13.2012 Fee Approval Order
- 08.14.2012 Fee Application for Receiver Counsel
- 08.14.2012 Fee Application for Receiver Counsel Exhibits
- 07.09.2012 Order Approving Receiver’s Third Application for Fees
- 05.31.2012 Third Application for Fees
- 05.31.2012 Third Application for Fees Exhibit
- 04.12.2012 Second Fee Application Approval
- 03.06.2012 USV Second Fee Application
- 12.15.2011 Order approving fees
- 05.20.2011 First Fee Application
“The Receiver has settled its claims against Isaac Sternheim, Leonard Sternheim, and Rabbi Solomon Kluger School without any admission of any liability and acknowledge that Isaac Sternheim, Leonard Sternheim, and Rabbi Solomon Kluger were never alleged to have committed any illegal acts, but only received payments from Winsome after Winsome was insolvent.”
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.
- Article from March 18 2009 Wall Street Journal
- IRS Revenue Ruling 09-09
- IRS Revenue Procedure 09-20
- 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.
01/25/2011 STATEMENT FROM THE RECEIVER
On January 25, 2011, Wayne Klein was appointed as Receiver for:
- US Ventures
- Winsome Investment Trust
The appointment as Receiver was made by US District court Judge Bruce S Jenkins. The case was filed by the US Commodity Futures Trading Commission in Federal Court in Utah The Receiver is providing the following information that may be helpful to investors regarding the US Ventures and Winsome Investment Trust 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 US Ventures and Winsome Investment Trust. 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 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 more funds, 3) recovering any deposits 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 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 US Ventures and Winsome Investment Trust, 299 South Main, Suite 1300, Salt Lake City, UT 84111. The Receiver can be contacted at (801) 534-4455 or via e-mail at email@example.com
|Wayne Klein, Receiver
10 Exchange Place, Suite 502
Salt Lake City, UT 84111
Telephone: (801) 456-4591