dragged into ponzi scheme/bankruptcy court

[abbott]

dragged into ponzi scheme/bankruptcy court

I keep on thinking that this is a great learning experience for me, so I thought I would pass it along.... maybe you have had this happen to you...

You may remember an old post of mine where I was celebrating some big deal that I put together back in April/May last year and I thought it was great and may still be but it has put a target on my back and I am being dragged through some mud now.

It all started with a letter from the state bankruptcy court asking to review all my bank statements, contracts with independent contractors and contracts for sales that I have generated. This would make up about a 10 foot x 10 foot x 10 foot cube of paper, so I am still working on this request and trying to insure the data will be kept confidential and this is all in motion as I type. FYI, I did go paperless last June on all sales.

Anyway, let me rewind... this guy, I will call him X declared bankruptcy early last year. He had a similar business as mine and He had over 100 independent contracts selling for him. When he declared bankruptcy, it was discovered that he owed $100 million in debts and had done some questionable things like sold the same interest in companies and real estate to multiple people since 1995. Now being deemed a ponzi scheme, still under investigation from Federal Securities people

So the people working for him went out looking for a new place to work and 40 of them came to me. Some of the best producers in the state. I signed them up as independent contractors and they started working for my company.

So , I get a letter from state bankruptcy court in Nov. telling me they believe I paid X large somes of cash to get the contractors to work for me and that money should go to the creditors in the bankruptcy filing. Also, they are saying some of the money the contractors have earned while working for me may also go to the bankruptcy creditors. The letter I got from the state trustee from the bankruptcy court said "We believe you paid for these...." Why would they not say we are suspicious? They believe because X's girlfriend told the courts I paid. Well she just had her home and all her jewelry taken away because X bought them. Also, I had a friend buy a Harley from X and the state came and took that away as well.

So.... I am the poorest guy you know and I did not pay anybody shit, because I have no money and bank statements will prove that

Anyway... here is what really sucks.... $4,000 and counting in attorney bills to defend myself. And it is estimated that the state will spend at least $10,000 just fishing for money with me. So, the whole situation is not even close to break even for me as I borrowed $20k to put in new phone systems and furniture for the new crew, but I can see it coming together nicley if I can make it through this year.

So this whole thing is the attorney stimulus plan. It has already been said the creditors looking for 98 million will get zero because all the money colected so far will not cover attorney fees for the state.

I am sure this is not a great grammatical description of my drama, but I find it interesting. If the state does decide they are due money from sales made from contractors working for me, then I might just close the doors. My attorneys are telling me the chances of that happening are less than 1%. If that does happen then it will open the door for the state to go after a few other businesses as well.

I am learning my tax dollars will be used to prosecute me and that the state is happy to make beliefs from criminal's words.

here is a link regarding Mr X ...
http://www.krqe.com/dpp/news/crime/vaughan-ran-fraud-scheme-feds-allege (http://www.krqe.com/dpp/news/crime/vaughan-ran-fraud-scheme-feds-allege)

[Documad]

I don't understand your story. I don't understand why someone is coming after you for hiring independent contractors unless they had trade secrets or had signed some kind of contract with the bankrupt entity agreeing not to work for a competitor or something and maybe you're the competitor? It only makes sense if they're giving you some good info/goodwill that they had from the relationship with the bankrupt company and somehow it's benefitting you instead. That's the only way it makes sense to me, but I obviously am missing something.

ANYHOW -- if you're really under investigation by the feds or the state then I doubt your attorney would want you posting your story on the internet. You might want to talk to your attorney about who you can talk to and what you should say.

[abbott]

A. I should not post this story

B. I dont give a fuck and i have nothing to hide... worst case I move in with mom

C. It does not make sense to me, so why would it make sense to you... and in the end I expect a letter of apology, however I will get some lame letter saying ..."never mind"


Here is what makes sense... state bankruptcy court gets paid by the hour.

Finally this can't be any worse than my "cold chills on my balls" post

[checkyourprez]

can't you counter sue those sons a bitches for something?

[Documad]

sue who for what???

The part of the story that made sense to me is typical--you can't avoid your creditors by selling your assets on the cheap for fast cash. If my brother was in trouble with investors and sold me his nice car on the cheap, his creditors could probably void the sale and get the car back. If I helped my brother engage in fake sales to hide assets from the creditors I'd be concerned about possible criminal prosecution.

Should a guy like Madoff get to sell his vacation home to a friend or family member for less than market value or should the government take the vacation home to try and sell it to give some compensation to his victims? That sounds like the situation with the motorcycle in this example.

[abbott]

sue who for what? The moter cycle example was not really a friend, but just some guy I know ... so sorry to say he was a friend...... but it happend


i could sue X's girl friend for telling lies, but that is like getting blood from a turnip. she just lost her home and her jewelry...


the state has every right to fish for money and cast their net as wide as they like, so no lawsuit there.

[Kid Presentable]

This is probably the worst story I have ever read.