Recently I reported on a suit filed 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. See Persels & Associaties Sued By My Professional Advice and Legal Advice Line for Diverting Money.
Today I received additional public documents filed in the case from a tipster (send in your tips here).
This document is a motion for summary judgment. This document alleges that the Defendants entered into a binding and enforceable agreement to settle the litigation on the eve of trial and then defaulted. After the settlement was signed, obligatory subsequent payments were not made in accordance with the agreement.
This failure to cure the default and make the agreed upon payments then escalated this matter, that would have otherwise remained secret.
The production of documents in this case appears to arise as a result of the suit to enforce the monies agreed to be paid.
What is interesting is how CareOne Ascend One and Bernie Dancel were named in the litigation settlement agreement, not as parties, but as a factor in continuing the relationship with Persels & Associates and how that impacted the ability of Percels & Associates to pay more.
It is shown in this new document received that Neil Ruther and Persels & Associates, in accordance with the settlement agreement, agreed to pay the following amounts.
The document received by me today contains a copy of the signed settlement agreement. Images of those pages are below. You can click on the image to see a larger view.
The settlement document above specifically references CareOne, Bernie Dancel and Ascend One Corporation as part of the income calculations.
But the document goes further to say:
Persels & Associates will make commercially reasonable efforts to continue the relationship with CareOne. Beginning in 2016, if Persels & Associates or Neil Ruther continue a relationship, directly or indirectly, with CareOne, Bernie Dancel or any AscendOne entity MPA shall be paid:
$2,250,000 paid $562,500 per quarter in 2016
$2,250,000 paid $562,500 per quarter in 2017
$2,250,000 paid $562,500 per quarter in 2018
$2,250,000 paid $562,500 per quarter in 2019
Total of all payments is $18 million.
Interestingly, Ruther has the right to settle the debt built into the agreement.
In addition, as part of this signed agreement, Neil Ruther’s compensation is capped.
Apparently Persels & Associates held stock in My Professional Advice, Inc. (“MPA”) and as part of this agreement, must return it.
The agreement states that until MPA has been paid in full, Persels & Associates will make reasonable efforts to maintain a referral relationship between Persels & Associates, on one hand, and Ascend One, its subsidiaries and affiliates and Bernie Dancel, on the other hand.
According to the accounting schedule attached, Persels & Associates made over $78 million in legal fees from their DSP which I am assuming is debt settlement program. – Source
One thing is for certain, I doubt this matter is over yet.
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