For those who may not remember, TimMcCallan was a high flyer and powerful figure in the debt relief space in the early days. He has intertwined history with Andris Pukke
I was recently asked if he was released so I took a look at the latest court documents. The answer would be a big nope.
The recent filing says, “Defendant Timothy McCallan was jailed for contempt of court on October 23, 2017, and remains in custody. On July 31, 2019, more than 21 months later, McCallan filed a motion seeking release.”
Apparently you can only be held for a maximum of 18-months for contempt for “failure to give testimony or provide information.”
The court has ruled McCallan is locked away for other reasons and he could be there seemingly indefinitely.
The document says, “Wilkins has produced evidence in this case that McCallan has been concealing his assets, in part with a scheme to buy and sell gold coins–which he has not truthfully disclosed to the Court. Gold has great monetary value, can easily be bought, sold, concealed or transferred, without leaving an audit trace–perfect for McCallan’s purposes here.”
“McCallan has proven himself quite adept at moving money, gold coins, and other things of value, staying one step ahead of the Trustee. As was demonstrated through the Trustee’s effort to acquire the funds held in the Wells Fargo bank account, as soon as the Trustee learned of the account, he moved the money, leaving the Trustee and creditors frustrated. The Court has ordered McCallan to turn over his money and property to the Trustee. McCallan attempts to couch this proceeding solely in terms of answers to interrogatories, which are always historical, hence leaving the Trustee forever one step behind. McCallan has been under an order to turn over his ill-gotten gains since May 25, 2018–he cannot credibly argue either ignorance or surprise.”
“In this Court’s May 23, 2018 Memorandum Decision, the Court stated that “[t]he evidence shows and the Court finds that McCallan has secreted millions of dollars’ worth of money and property in locations presently unknown to the Trustee. Until he discloses all of his property and turns over all of his ill-gotten gains, he remains in contempt. (Doc. 707, p. 34) (italics added).
In this Court’s Order of October 2, 2018, it states that “the Trustee has produced a massive amount of evidence supporting her contention that McCallan is and remains in contempt for his failure to turn over his assets to her. The Court has determined that McCallan has secreted assets with a value of $16.2 million and has ordered and continues to order that they be turned over to the Trustee. McCallan’s efforts in the future should be geared towards returning his ill-gotten gains to the Trustee so that she can distribute them to McCallan’s many victims. Once the money is turned over, the Court will release McCallan.”
The position of McCallan’s lawyer at a September 17, 2019 hearing appears to be McCallan is an innocent victim here. The attorney said, “The problem I have is that I don’t believe the Court, I don’t believe the trustee, I don’t believe anybody can point to the asset that has been specifically ordered and been told we can’t do, we won’t do. So, Your Honor, the question becomes what thing can be given? What thing can be done?”
To which the judge responded, “The thing to be done is for McCallan to turn over his assets. McCallan keeps moving his money and property and changing their form. For example, he buys and sells gold coins, changing their form between that and cash, all in an effort to thwart the Trustee. The Trustee’s accountant has identified 150 different bank accounts used by McCallan–and the total keeps growing. The form of McCallan’s assets is not known to the Trustee–that is what she is trying to find out, with a view of getting them turned over to her so she can convert McCallan’s property, in whatever form, into cash, so that it may be distributed to creditors. McCallan’s argument that the Trustee doesn’t know where his assets are or what form they are in is not a valid argument to show he is not in contempt, rather it is a taunt.”
“McCallan has complained that the Court keeps moving the goal posts, changing both its reasoning for why he is held in contempt and what he must do to purge himself. To be sure, there was a significant change once McCallan filed facially complete answers to interrogatories and responses to the Trustee’s request for production of documents. This was discussed at length by the Court on May 25, 2018. (Doc. 716, pp. 216-223) (Transcript of proceedings May 25, 2018). As McCallan keeps moving his assets and concealing their whereabouts from the Trustee, she must necessarily adjust to a constantly moving playing field. McCallan cannot continually hide and secrete assets on the one hand and then complain, on the other, that the Trustee continues to chase him. The Court need not and should not make the Trustee stand still while McCallan continues to secrete assets.”
His release was denied.