Catching Up: Receiver’s Reports & Criminal Case

Holy crap.  Nearly 6 months behind.  I think we can do most of this in one post.  I’ll cover the what’s left of the criminal case and then cover the three Receiver’s reports that have been released.  I’m also temporarily removing the “By the Numbers” page so I can have a chance to update all the numbers.

When we last saw the Dickhead Duo, they were freshly incarcerated and we were awaiting the restitution hearing.  Well, the hearing has come and gone and Ed & Joel owe $124,542,945.55 in restitution combined.

The Fifth, Sixth and Seventh Receiver’s reports were filed.  To date, he Receiver has settled with 41 Net Winners and has recovered $13,924,461.03 with another $2,375,571.86 due in payment arrangements and $1,690,000 in settlements pending court approval. In the The Receiver states that he has sent another 36 demand letters. The percentage of settlements vs the amount of letters sent is 52.6% and 12 complaints have been filed.  The higher the percentage, the better.  Since there are 36 letters outstanding, 50-ish% is really good.  The percentage of cases filed vs total claims is only 15.8% and the rate of active cases vs the total claims is 3.9%.  The lower these two percentages, the better.  It’s more costly to take people to court, so the fewer claims that reach that point the better.

The ATM business is down to 182 plus 57 non-operating machines. If you’re wondering why the number dropped so dramatically, 21 were removed due to terminated leases and age of the machines.  During the periods covered by the three reports (July-March), the ATM business pulled in a net income – that’s income minus the associated expenses – of $210,999.88 total.  March had a net loss of $3,328 due to an adjustment payment of $17,838.07 to a hotel chain because of a clause in the contract prior to the Receiver taking over. In the fifth report, the Receiver believed that they would have a letter of intent for sale by the end of the year.  There is no mention of it any longer so it seems that the sale fell through.

There doesn’t appear to be much to report with Oasis.  From what I gather, those involved with Oasis are dragging their feet.  The Receiver has managed to get partial accounting and documents, but nothing substantial. It looks like he’s building up to make claims against Robert Keller (the guy who ran Oasis’ day-to-day operations, prior to the take-over), Fiji Rentals as well as Damian Perillo, Fiji’s principal.  So far, it looks like these two shifted trailers owned by Oasis into Fiji.  Allegedly.  I should probably put that there.  The Receiver issued a demand and they seem to be cooperating for now.  He plans on filing a complaint if they don’t produce the documents he needs or don’t reach a settlement.

At the end of January, the Receiver put Joel’s house up for sale for $1,199,000.  It quickly sold for $1,265,000.  The escrow closed in April and the net proceeds were $396,752.29.  So, it sounds like Joel had a mortgage on the property.  They bought it in 2001 for $750,000.  I guess… yeah.  If he took out a 30 year mortgage back in 2001, with 20% payment and a 7% interest rate…the principal owed at time of sale would be something like $427k.  But that leaves about $965k.  Joel probably had a second mortgage and there could have been repairs that needed to be done that affected the take-home.  Can a girl get a redacted HUD Settlement Statement?  No?  Damn.  Well, we can at least be thankfully that he wasn’t up-side down on the mortgage.

City National Bank (CNB from here on out) is now getting its name batted around.  NASI had their accounts with them for nearly the entire duration of the business and at least two CNB executives invested with NASI.  Allen Matkins, the lawyer currently handling this shitstorm with NASI has a potential conflict of interest, so the Receiver will have to hire special counsel to deal with CNB.

That doesn’t catch us up on other fronts, but I’ll keep chipping away at it.



  1. I really appreciate you keeping us informed. Would be nice if the Reciever would did the same.

    1. The Receiver posts his reports up on his site. Like a lot of court documents, they’re dry and a bit repetitive which can make them intimidating for a lot of people. I don’t think he’s in a position to informally summarize his filings. It’d be the legal equivalent to dividing by zero.

    2. I would like an update from the Receiver concerning our retribution. What happening? We all would like to know

  2. Received a small check (like 0.2% of what I lost) today from the US Treasury referencing Gillis and Weisner. Anyone else receive any checks? Any idea what it is for>? Would think that if it was as a result of collections from the receivership the money would be coming from the receiver

    1. I heard we won’t be seeing any money until the end of this year. I don’t know how they are splitting up the money. Does anyone know more specifics?

      1. I imagine that they’ll be basing your checks on your percentage of loss. For example:
        There were only two victims: Bob and Paul. Bob lost $20 and Paul lost $80, bringing the total loss to $100. Bob represents 20% of the total losses, and Paul 80%. The Receiver manages to recover $10, which represents 10% of the total loss. So, Bob and Paul would get $2 and $8, respectively.

        Of course, we won’t know how wrong I am until July-ish when the Receiver files the procedure with the court.

    2. The latest report states that they won’t be wrapping up the clawbacks until July-ish. At that point, they have to file a motion with the court approving the procedure and then it’ll happen after it gets approved. I pulled a fresh copy of the docket last night and there’s no sign of the motion so nothing would have been paid to victims by the Receiver yet.

      You may recall that the Dickwad Duo were required to pay restitution of about $125 million. I suspect the check is from that, but I’m in no position to say with any certainty.

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