A tipster (send in your tips here) sent me a copy of a recent complaint against Neil Ruther, Persels & Associates, Joann Ruther, Adam Ruther, WMS Partners, Silo Point Holding, Silo Point, Patrick Turner, Mark Sapperstein, Westport Property Holdings, and Ruther Inner Harbor.
According to the suit filed in Maryland, My Professional Advice and Legal Advice Line were engaged in providing “debt relief and ancillary services” to the public.
In this and cases filed in 2009 the Plaintiffs stated that Ruther was their general counsel for more than a decade had exploited his position and “stole tens of millions of dollars from Plaintiffs for his own benefit and the benefit of Persels & Associates”.
“From January 9, 2009 to the end of the end of that year, Neil Ruther and his confederates diverted approximately $8,463,165 in profits from the Plaintiffs to Persels & Associates.”
“On or about December 23, 2009, Neil Ruther dropped the pretense that he was not the person who controlled Persels & Associates, and, within six weeks, he undertook a series of transactions by which he fraudulently conveyed approximately $5,230,000 of Persels & Associates stolen funds. Among other things:
- On February 4, 2010, Persels & Associates wired $500,000 to a law firm to be used for a capital contribution by Defendant Silo Point Holdings to Defendant Silo Point and for the release of Defendants Neil Ruther, Turner and Sapperstein from obligations under a cost overrun guaranty for the condominium project in Baltimore City known as Silo Point.
- On May 11, 2010, Persels & Associates transferred $180,000 to an entity that owned as airplane for Ruther to obtain an interest in the entity.
- On June 20, 2010, Persels & Associates wired $40,000 to Defendant Adam Ruther as a gift.
- On June 30, 2010, Defendant Neil Ruther opened an investment account with WMS in his name and in the name of Defendant JoAnn Ruther, as tenants by the entireties, and, on July 9 and 14, 2010, Persels a& Associates made three transfers to the account totaling $4,400,000.
- In 2010 and 2011, Defendant Neil Ruther fraudulently transferred large amounts of funds from the WMS account to and/or for the benefit of himself and Defendants Turner, Sapperstein, Westport Property Holdings and Ruther Inner Harbor.
- In 2011, Persels & Associates transferred approximately $100,000 to Defendant Sapperstein as a loan used in connection with the real estate development by Westport Property Holdings.”
Trial of the previous cases against Persels & Associates and Neil Ruther was scheduled to begin on May 3, 2011. On May 2nd, on the eve of the trial, Neil Ruther and Persels & Associates obtained the Plaintiffs’ agreement to dismiss the lawsuits by promising to pay $9 million unconditionally and promising to pay an additional $9 million upon the occurrence of a condition that has not yet taken place, for a total of $18 million.
Ruther caused Persels & Associates to pay only the first $1 million, which was required to be paid at the time of the execution of the Memorandum of Settlement. Once the Plaintiffs had dismissed their case against Ruther and Persels & Associates, however, Ruther and Persels & Associates chose not to honor their contractual obligations. Eight weeks after the execution of the Memorandum of Settlement, Neil Ruther and Persels & Associates were required to make a $1 million quarterly payment, but, claiming that they were without funds, they failed and refused to make the required payment, thereby accelerating the entire $8 million that is unconditionally owed. Ruther and Persels & Associates have now committed a substantial and material payment default, once again showing their contempt for their legal obligations.” – Source
This case was filed on August 9, 2011 by:
Law Offices of Arnold Weiner
2002 Clipper Park Road
Baltimore, MD 21211
Persels & Associaties Sued By My Professional Advice and Legal Advice Line for Diverting Money by Steve Rhode
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