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saxster

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Posts: 106
Reply with quote  #1 

I wrote a note this morning to Dan Bensimon and Joe Martinec, informing them of my new address and asking when the distribution from the BDI Trust would occur. I recall that the damaged parties from this fiasco would receive an annual distribution from the profits of the new company. So far, I haven't received a single red cent. Here is the new place to send inquiries per the response I received today:

Since the Plan was approved by the Court, Dan Bensimon and Joe Martinec have no longer been involved with BDI.  There is a Litigation Trustee, Greg Milligan, who is now in charge of everything.  I am copying him on this e-mail so that he is aware of your current address, and you will have his contact information for future reference.  Thank you.

 

Birdie White, CLA, Paralegal
MARTINEC, WINN & VICKERS, P.C.
611 S. Congress Avenue, Suite 450
Austin, TX 78704-1771
(512) 476-0750/FAX (512) 476-0753
E-MAIL ADDRESS:
 white@mwvmlaw.com
http://www.mwvmlaw.com 

 

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saxster

Senior Member
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Posts: 106
Reply with quote  #2 
Also, I have received this reply:

"BDI improperly spent deposit monies and sold customer metals before filing bankruptcy.  Pursuant to the Disclosure Statement approved by the Bankruptcy Court, at the time of the bankruptcy filing in 2015, BDI’s assets had dwindled to less than $1 million, and total obligations were approximately $25 million.

 Since my appointment, I've liquidated the inventory on hand at the time I was appointed and I've engaged counsel to investigate the potential litigation claims that could result in further funds available for distribution to customers/creditors.  I do not anticipate a distribution in this matter until all assets are fully administered (which means all litigation is finalized) and that could take an extended period of time.

 At the time I was appointed, the Trust received the turnover of all available cash from BDI of approximately $110,000, and as of June 15, the Trust’s cash balance was approximately $485,000.   Other than possible profit sharing from the future operations of Bullion Universe, potential litigation recoveries are the only expected source of additional recoveries to increase the cash balance available for distribution to customers/creditors.

 

There will be a distribution at some point for approved customer/creditor claims to get a pro-rata portion of their money back, but we won’t know when or how much until we determine whether we can recover additional funds through future litigation or settlement of litigation claims.

 Thanks,

 Greg Milligan  

BullionDirect Litigation Trust
(512) 626-1818 - Cell

gmilligan@harneypartners.com

http://www.harneypartners.com

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tboll

Senior Member
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Posts: 292
Reply with quote  #3 
So translated I think that mean mom essentially brought the software and the lawyers and bankruptcy administrators will split the remaining estate assets.  JG, do you think we can write off the loses now?
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harley_52

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Posts: 130
Reply with quote  #4 
Okay, so we are (almost) totally screwed, just as expected.  Does anybody know if Charles is going to be prosecuted, or if he's going to get away with this crime unpunished as some of us have suspected all along?
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JG

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Posts: 960
Reply with quote  #5 
Quote:
Originally Posted by tboll
So translated I think that mean mom essentially brought the software and the lawyers and bankruptcy administrators will split the remaining estate assets.  JG, do you think we can write off the loses now?


It would take an expert to make that decision properly. That said, if someone wanted to take the loss at this point, I think writing off the majority of the loss (perhaps 90% or so) on their taxes at this point it would seem defendable, given that the company from what I can tell has not done any business yet.

The litigation trust does have some assets, and there are possible avenues of recovery, but at this point the trustee of the litigation trust would likely need to comment on that.

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JG

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Posts: 960
Reply with quote  #6 
Quote:
Originally Posted by harley_52
Okay, so we are (almost) totally screwed, just as expected.  Does anybody know if Charles is going to be prosecuted, or if he's going to get away with this crime unpunished as some of us have suspected all along?


I hope that the FBI and CFTC aren't so impotent as to drop a $25M fraud investigation without an extremely good reason ("We found a stash of $25M of metal in the vault in their old location, someone must have overlooked it" counts, "Uh, this was too much work for the rookies we gave the case to, they couldn't figure out if metal really was stolen" does not count).

That said, there are very slight hints that someone might still be pursuing what happened (compared to the NWT Mint case, where there are neon lights shouting that there is an active investigation). I do know that this is on the radar of at least one person in the government that would be involved in a criminal case.

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