The debt relief group 321 Loans that was shuttered by the court has generated a 4th interim report by the Receiver.
The update is below:
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1. The Court appointed Jonathan E. Perlman Temporary Receiver on May 9, 2017, and Permanent Receiver on May 17, 2017, over a nationwide enterprise that used 85 entities, 142 internet domain names, and 440 direct dial phone numbers, to extract more than $85 million from thousands of consumers by falsely promising to provide legitimate debt relief services. This Fourth Interim Report describes the Receiver’s and his team’s efforts and results, since his filing of the Third Interim Report on July 19, 2018.
2. When the Court appointed the Receiver in May 2017, the then Receivership Defendants had less than $900,000 in their bank accounts. Today, the Receiver’s account balance exceeds $13.111 million and total cash receipts from inception have increased by over $4.125 million since the last report to $18,450,085.30.1 The estimated value of all assets in the Receiver’s possession remains at $35 million.
3. Since the last report, the Receiver augmented the Receivership Estate through a broad range of forensic, investigatory, loan and property management, legal enforcement, and sale activities. For example, the Receiver and his professionals marshalled, marketed, and sold 10 parcels of property with a combined sale price of $3,156,560.00.
4. The Receiver and his professionals hope to increase cash receipts by $10 million over the next 6 months as the Receiver disposes of additional real estate and personal property.
5. The Receiver and his team continued to manage and operate Nantucket Cove, a residential real estate development in Beecher, Illinois, purchased with consumer monies that includes roads, 13 outparcel common areas, 114 vacant lots, and four partially constructed houses. The Receiver sold four of the vacant lots and retained TransWestern who is providing advisory and real estate brokerage services and has marketed and listed the development for sale. Several offers were recently received and negotiations are underway. The Receiver hopes to conclude selling this real estate development within the next 90 to 120 days.
6. On June 3, 2019, the Receiver filed lawsuits against PNC Bank and American Express seeking to recover over $35 million of Receivership assets on claims of fraudulent transfer, and as to PNC only, for aiding and abetting breach of fiduciary duty and conversion. The Receiver continues to investigate Receivership claims and other Receivership assets, and anticipates making demands and filing additional litigation claims against third parties.
You can read the full report below.