Partial List of Previous Case Experience

SEC v. Sunwest Management, Inc. et al.,

The SEC sought a receivership and turnaround professional after they alleged that a large operator of retirement care facilities in 34 states was operating as a Ponzi-like scheme. In all, the company was accused of defrauding over 12,000 investors and creditors for $1.2 billion in claims. Ultimately, the company was placed into bankruptcy to shed unprofitable investments and then restructured and sold, leading many of the investors to receive more than 100 percent of their original investment.

SEC v. Health Maintenance Centers, Inc. et al.

An operator of medically integrated health clubs was accused of selling unregistered securities that raised over $91 million from 7,000 investors in just seven years, with most of the money being used to finance a grossly extravagant lifestyle for the accused fraudsters in what has been called the largest stock fraud in Washington State history. From assets of $47,000 at appointment, more than $30 million was recovered and disbursed to investors.

SEC v. C. Wesley Rhodes and Rhodes Econometrics, Inc. et al.

Investment advisor that was accused of using a Ponzi scheme to steal $36 million from just over 80 investors. The funds were found to have been used to purchase expensive property, collector cars, jewelry and to pay for an extravagant wedding and vacations.

SEC v. Global Online Direct, Inc. et al.

The SEC sought a monitor to review the business activities of two farmers purporting to be operating a successful distressed merchandise resale business. Once onsite, it was quickly determined that no beneficial activities were occurring and the business was actually operating as a Ponzi scheme, having solicited nearly $45 million dollars in unregistered investments from over 10,000 domestic and international investors. The case was converted to a receivership and the assets were liquidated for the benefit of investors.

SEC v. Alexander James Trabulse and Fahey Fund, L.P. et al.

Hedge fund manager accused of using clients’ money to pay for personal expenses. There were in excess of 100 clients that had invested over $10 million. An investment ledger was provided, but it contained significant missing information and a full forensic accounting was required.

FTC v. Merchant Processing, Inc. et al.

A credit card processing company was accused of unlawful trade practices by offering misleading and altered contracts. We took possession of the business, replaced all fraudulent contracts, wound down a dog racing operation, filed delinquent tax returns and ultimately sold the business, allowing us to make all victims whole and writing a multi-million dollars check to the U.S. Treasury.

FTC v. Merchant Consolidated Savings, Inc. et al.

A business offering credit card consolidation services was accused of charging large fees while failing to assist most consumers, leaving them in more debt than before working with the company. Ultimately, we shut down and liquidated the business and calculated the total loss for consumers of the business.

FTC v. Consumer Advocates Group Experts, LLC et al.

A company was accused of predatory practices through its mortgage assistance programs. In reality, the business charged consumers large up-front fees and provided little to no assistance with their mortgages. Ultimately, we shut down and liquidated the business and calculated the total loss for consumers of the business.

FTC v. Consumer Advocates Group Experts, LLC et al.

City of West Linn v. Elma Magkamit

An employee within the city of West Linn was accused of embezzling nearly $2 million from city bank accounts. A full forensic accounting was undertaken to determine the extent of the loss and the method of concealment to prevent future losses.

In re WJ Hoyt et al.

Hoyt and Sons Ranch Properties was landlord to other related entities who operated a complex “phantom cow” scheme. The subject properties included nine ranches covering thousands of acres and numerous leases for additional grazing land. The terms of a landlord's lien require possession; in this case, the property subject to the lien was living cattle grazing on land spread throughout four states. Our solution was to mobilize a group of retirees in motor homes to physically stay with the cattle at locations in Oregon, Idaho, Nevada, and California. In other actions, we systematically listed ranch properties for sale, corrected U.S. Forest Service and Bureau of Land Management lease issues to preserve lease rights for each ranch and negotiated a settlement. More than $5 million was collected. In a 1999 indictment for mail fraud, bankruptcy fraud, and money laundering, the perpetrators were charged with selling thousands of adult female breeding cows that “they never had, and which did not exist.” Our efforts as Trustee helped ensure that the principal architect of the scheme was sentenced to a lengthy term in federal prison.

In re South Star Oil Company

A chain of 17 gas stations and convenience stores in bankruptcy that required renegotiating leases, selling properties, fixing DEQ issues and working with vendors to ensure product availability.