The bankruptcy trustee in the Chapter 11 bankruptcy cases involving Safe Trust Financial, P & E Solutions and Vertexsoft Corporation requested an emergency motion on May 19, 2011 to seize the companies and convert the bankruptcy filings to a terminal Chapter 7 case.
Unfortunately this almost guarantees the clients of those debt relief companies, as creditors’, will receive little in the way of refunds. I’ve yet to see a Chapter 7 bankruptcy case of a debt relief company have enough assets remaining for consumer refunds.
In the Motion, Trustee Kapila seeks conversion of three Chapter 11 cases to Chapter 7 cases: (i) In re P & E Solutions Company, Case No. 11-13244-JKO; (ii) In re Vertexsoft Corporation, Case No. 11-13248, JKO; and (ii) In re Safe Trust Financial, Inc., Case No. 11- 13252-JKO. Because these cases were not commenced as involuntary cases under Chapter 11, nor have these cases been converted to cases under Chapter 11 other than on the Debtors’ requests, and for the reasons stated on the record, which are incorporated in this order, the Court finds that cause exists to convert these three Chapter 11 cases to Chapter 7 cases and that conversion is in the best interests of the Debtors’ creditors. – Source
In the notice filed today, the P & E Solutions meeting of creditors is scheduled for June 29, 2011 at noon at the U.S. Courthouse, 299 E Broward Blve, #411, Ft Lauderdale, FL 33301. – Source. The meeting for Safe Trust Financial and Vertexsoft Corporation will be held at the same place and time.
The deadline for consumers, as creditors, to file claims with the court to recover money paid will be September 27, 2011.
The case includes a notice of payment to FBL Associates in the amount of $100,000 for worked performed by FBL before the date of the conversion from the Chapter 11 to Chapter 7 bankruptcy. Information on how to file a claim for money owed you can be obtained from:
PO Box 14213
Ft Lauderdale, FL 33302
Telephone number: 954−761−8707
Kapila is the same trustee that handled the Louis Pearlman bankruptcy case.
Debtor P & E is in the business of selling debt settlement software, Expert Settlement Professional (“ESP”), which offered an optional prepaid legal type service to its Subscription Customers across the country. Debtor Vertexsoft also allegedly licensed the ESP software from P & E, and then relicensed it to consumers. Included among these subscription services is legal counseling and legal representation to the Subscription Customers in claims brought by their creditors, and as necessary. These Subscription Customers who enrolled in this program would fund an escrow account held at Note World, LLC, and subsequently used to fund the credit card settlements.
FBL Provides Network of Legal Services: FBL is in the business of administering and providing legal services to consumers in the unsecured debt consolidation industry and is owned by Attorney, Frank B. Linder, Esq. FBL consists of a network of attorneys that provides contract legal services to debt consolidation and resolution services to customers of the Debtors. Mr. Linder’s Affidavit is offered in support of this Motion, and is found in the record at DE 61.
On January 1, 2010, P & E entered into a Legal Referral Services Agreement (“Agreement”), whereby this Debtor contracted FBL to provide legal services to the Debtor’s Subscription Customers, including the customers of both P & E and VERTEXSOFT, in the form of legal representation with respect to debt defense. See Agreement attached hereto as Exhibit A. – Source
The most recent balance sheets for each company can be found here; Vertexsoft Corporation, P & E Solutions, P & E Solutions Exhibit (Anthony Passero & Kevin Ellis were both paid $11,000 each for April.), and Safe Trust Financial.
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