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:
- Cover letter from the Receiver
- Instruction sheet
- Claim form PDF Excel (which can be completed on the computer or handwritten)
- Guidelines the Receiver will use in evaluating claims.
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.