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ScottBurns

Unsecured Creditors' Committee
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Posts: 14
Reply with quote  #1 
Hello all.  I am Scott Burns.  I am a layperson just like you all who has apparently lost a lot of money.

The court appointed me, Mr. McCann, and Mr. Suzuki to the creditors committee.  At present, we know nothing more than you do.  I will post updates here if that is OK with Joshua (just spoke with him and it is okay).

I have already received a bunch of email.  I CANNOT ANSWER THEM ALL.  Please understand.  I have a family, a job, and other obligations.

I am not a lawyer.  The committee will hire a lawyer to be paid from the community "pot."  Dan Bensimon and Joe Martinec are already, I assume, being paid from the community funds.  The less strain we place on that "pot", the greater chance of seeing any money in the future.

THanks,

Scott Burns




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nobody

Senior Member
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Posts: 360
Reply with quote  #2 
Thank you for stepping up, I'm sure all of us here appreciate that anything at all is being done.

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shooter magaven

Senior Member
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Posts: 138
Reply with quote  #3 
Welcome Scott, glad your here. Although I wish none of us were.
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ScottBurns

Unsecured Creditors' Committee
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Posts: 14
Reply with quote  #4 
I just spoke with Valerie Wenger, the attorney that will be conducting the meeting on August 25th.  She stated that she would record the meeting and send me the file to post here for everyone to listen to.

Scott Burns
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shooter magaven

Senior Member
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Posts: 138
Reply with quote  #5 
Quote:
Originally Posted by ScottBurns
I just spoke with Valerie Wenger, the attorney that will be conducting the meeting on August 25th.  She stated that she would record the meeting and send me the file to post here for everyone to listen to.

Scott Burns


Mighty nice of her. I would imagine that in most cases a forum hosted by an interested party of a bankruptcy case for the "victims" to share knowledge would be unusual. So I can assume she is aware this forum exists?
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JG

Administrator
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Posts: 960
Reply with quote  #6 
Quote:
Originally Posted by ScottBurns
I just spoke with Valerie Wenger, the attorney that will be conducting the meeting on August 25th.  She stated that she would record the meeting and send me the file to post here for everyone to listen to.


Excellent -- that makes my life easier. I was going to jump through a few minor hoops to get a copy, but this will probably be quite a bit quicker and easier.

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ScottBurns

Unsecured Creditors' Committee
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Posts: 14
Reply with quote  #7 
The court attorney suggested the following reply to all the emails I have received:

I am a member of the Unsecured Creditors Committee in the BullionDirect, Inc. bankruptcy case.  My fiduciary duty is to take actions which benefit all unsecured creditors.  I therefore do not represent you individually.

 

I cannot check to see if you are listed as a creditor, nor can I check the amount of your claim, nor can I check to see if any metals you believe you own are in the vault.  By Court order, none of the metals in the vault can be moved at this time.


She also suggests filing a proof of claim, however I think you should wait until we have more info.  You also may want to have a lawyer do the proof of claim due to possible errors you may make in the wording of your claim.

Scott Burns





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robertmbeard

Member
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Posts: 81
Reply with quote  #8 
Welcome, Scott. 

One recommendation I have for the Unsecured Creditors' Committee is to petition the court to convert from Ch. 11 restructuring to Ch. 7 liquidation for the debtor-in-possession [BDI].  My 2 reasons for this are:

1)  The restructuring plan by Bensimon rests critically [and laughably] on the ability to find a sucker to buy the Nucleo trading software patent for upwards of $34 million, since that is the latest estimate of liabilities BDI owes creditors.  Patent protection is typically for 20 years;  so, the 1999 Nucleo patent should expire in about 4 years.  Plus, no ethically run business will pay an exorbitant price for any software or patent by BDI or Nucleo, once the FBI arrests and indicts Charles McAllister on over 6000 counts of fraud and theft.  If there is any current market value to the software patent, which I expect is much less than $1 million, there will be absolutely no market value once the Feds catch up to McAllister, resulting in significant negative media coverage and reputation to anything labeled Bullion Direct or Nucleo...

2)  At the exorbitant compensation levels of CEO Bensimon [$300/hr and 7 month possible bonus of $150,000], his staff, and his lawyer, there will be almost no remaining liquid assets of BDI to redistribute to Charles McAllister's crime victims as tiny partial restitution, if Ch. 11 is allowed to run for 7 months before logically switching to Ch. 7 liquidation. 

Based on the above points, my logic tells me that immediate Ch. 7 liquidation is the proper course for this screwed-up situation.  Just my 2 cents' worth...
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nobody

Senior Member
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Posts: 360
Reply with quote  #9 
To the extent that it matters, I concur - I actually would be surprised to see the IP fetch any substantial value - and it can be put up for auction with notice to potentially interested buyers.

With the caveat that I'd encourage the UCC to reserve sufficient funds to explore recovery against former officers and other persons or entities to the extent investigation seems likely to indicate criminal wrongdoing.
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JG

Administrator
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Posts: 960
Reply with quote  #10 
Quote:
Originally Posted by robertmbeard
... Patent protection is typically for 20 years;  so, the 1999 Nucleo patent should expire in about 4 years. 


FWIW, USPTO shows it as filed May 17, 2001. It was also extended 1,626 days per a joint stipulation in Civil Action 10-0313 (ESH) in the U.S. District Court for the District of Columbia. So there could be another 10 years left (patent expirations are notoriously difficult to figure out).
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tboll

Senior Member
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Posts: 292
Reply with quote  #11 
JG, this is absolutely great news that Scott will be communicating directly to the Forum.  Can I suggest that you set up a "Scott's Corner" or something like that where he can POST news/messages to the forum in one spot and we can readily reference back to them rather than making each item a forum topic or risking some of his posts buried too deep in the thread.  We can always pull (copy) an item from his News/Messages posting and make it into a topic so that we can commentate on it.  Just a suggestion.

PS:  I think some of the feedback to Scott that has been posted by forum members is EXCELLENT and I'm glad he has lent his ear to hear them.  (or eyes to see, whatever)
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ChevyRacer

Member
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Posts: 94
Reply with quote  #12 
Thanks for taking on this responsibility, Scott, and good luck. Feel free to IM me (or anyone else, I would assume) if you have any questions or need more info about the case.
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ScottBurns

Unsecured Creditors' Committee
Registered:
Posts: 14
Reply with quote  #13 
I looks like Jesse Moore will end up representing the creditors committee.  His fee is $335/hr.  He has extensive experience with bankruptcy and banking law. 

http://www.dykema.com/professionals-jesse_tyner_moore.html

As a separate matter, IRA account holders may have a case as a class action against Equity Institutional, but he would not specifically comment on that.  He did say that looking into that would be in the benefit of all the creditors because recovery from Equity would leave more funds to be distributed to non IRA claimants.

Scott
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ScottBurns

Unsecured Creditors' Committee
Registered:
Posts: 14
Reply with quote  #14 
Robert,

I was thinking that if the company could be traditionally restructured under new management, then that may be the only way we could be made whole over time.

Scott
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plankton

Member
Registered:
Posts: 65
Reply with quote  #15 
  • Thanks Scott for stepping up and helping us out of the fiasco.
  • I concur that Chap7 is more realistic.
  • All 'Chuck's assets including his 6 shell LLCs, etc are all suspect because they were most likely funded by money that was not his to spend.
  • Metal sent to 'Chuck' for storage wasn't his, isn't his and needs to be returned ASAP.  If it is no longer in Storage then it needs to be bought at current market prices and stored (or shipped if there is a Product Draw).
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