On October 24, 2019, Phase One was to identify Blackacre’s accounts and disburse funds as soon as possible. The motions delayed that work until December 18, 2019. As of March 26, all uncontested disbursements have been made. Approximately $9,351,477.21 was received by me and $7,455.264.24 was disbursed from the receivership estate. I retained $1,248,814.65. Phase Two is begun to transfer $22,700 in fees into the Receivership accounts. All of these amounts are approximately correct and we are verifying everything. There were 36 active accounts in two banks and 54 people with interests, and some commingled money in the Master/Escrow account with Capital One Bank. In addition, there are 33 inactive accounts at Capital One Bank and AXOS Bank. Most have, in my opinion, fees owing to Blackacre. Finally, last week, it may have become necessary to look into the MVB Bank account to trace funds, as explained below.
The Courts are scheduling motions, with a few exceptions and we are asking to have two motions heard in a conference telephone call. If you have not done so, call Dennis Chapman at 703-273-5303 and give him your available dates. One motion is to approve $29,921.90 as payment of my fees and costs for the last quarter of 2019. To date, I have been paid nothing. The other motion is to consolidate into the Boyer case law suits filed by Mr. Rivera and Mr. and Mrs. Tsuchida and to stay discovery and motions until the accountants have completed their work. The comments I received on the fee motion is the fee and costs are “conservative” and “reasonable”. With the Covid-19 virus delays, I expect shortly to file a motion for work in the first quarter of 2020. Attorneys representing Mr. Boyar and Mr. and Mrs. Tsuchida oppose the motion to stay. They want to have 80% of the money received by Blackacre paid to them. (I was unaware of the Rivera lawsuit and disbursed 80% to him in December). I am asking the Judge whether they should be paid now in accordance with the December 18 order or sometime later. I am preparing a financial analysis of the impact of that on all other accounts to pay now. If the Judge includes them, I also will pay two persons who had small amounts of money comingled in the Master/Escrow account.
Last week, I participated in a conference call with Robert Levenson, John Percil (the forensic accountant) and Dennis Chapman of my law firm. Mr. Levenson said he was lapping, but it was unintentional and it may have occurred in the MVB Bank accounts and before November 2018. He was asked about a subaccount in Capital One Bank named “Interim Blackacre”, which he opened on November 14, 2018 and deposited into it by January $1,975,016.51. He could not identify with certainty the source of that deposit. He thought it was from closing the MVB Bank account and transferring to Capital One Bank customers’ money. We have not found a similar sum withdrawn from the MVB Bank in that time frame or that much was in MVB Bank by mid-November. Mr. Levenson also paid Mr. Boyar $120,000 from this account, but we cannot trace Mr. Boyar’s money into the MVB Bank account or into the Interim – Blackacre account or out of the Capital One Bank Master/Escrow account.
The forensic accountant is focusing on the Capital One Bank accounts, including subaccounts and to date CST Group’s bill is $16,800. I asked Mr. Percil a foreseeable conclusion date and was told “May”. However, I am not optimistic. The work is immense, Blackacre’s records are poor and Mr. Levenson’s answers last week may extend the work that is needed.
The Courts are scheduling motions, with a few exceptions and we are asking to have two motions heard in a conference telephone call. If you have not done so, call Dennis Chapman at 703-273-5303 and give him your available dates. One motion is to approve $29,921.90 as payment of my fees and costs for the last quarter of 2019. To date, I have been paid nothing. The other motion is to consolidate into the Boyer case law suits filed by Mr. Rivera and Mr. and Mrs. Tsuchida and to stay discovery and motions until the accountants have completed their work. The comments I received on the fee motion is the fee and costs are “conservative” and “reasonable”. With the Covid-19 virus delays, I expect shortly to file a motion for work in the first quarter of 2020. Attorneys representing Mr. Boyar and Mr. and Mrs. Tsuchida oppose the motion to stay. They want to have 80% of the money received by Blackacre paid to them. (I was unaware of the Rivera lawsuit and disbursed 80% to him in December). I am asking the Judge whether they should be paid now in accordance with the December 18 order or sometime later. I am preparing a financial analysis of the impact of that on all other accounts to pay now. If the Judge includes them, I also will pay two persons who had small amounts of money comingled in the Master/Escrow account.
Last week, I participated in a conference call with Robert Levenson, John Percil (the forensic accountant) and Dennis Chapman of my law firm. Mr. Levenson said he was lapping, but it was unintentional and it may have occurred in the MVB Bank accounts and before November 2018. He was asked about a subaccount in Capital One Bank named “Interim Blackacre”, which he opened on November 14, 2018 and deposited into it by January $1,975,016.51. He could not identify with certainty the source of that deposit. He thought it was from closing the MVB Bank account and transferring to Capital One Bank customers’ money. We have not found a similar sum withdrawn from the MVB Bank in that time frame or that much was in MVB Bank by mid-November. Mr. Levenson also paid Mr. Boyar $120,000 from this account, but we cannot trace Mr. Boyar’s money into the MVB Bank account or into the Interim – Blackacre account or out of the Capital One Bank Master/Escrow account.
The forensic accountant is focusing on the Capital One Bank accounts, including subaccounts and to date CST Group’s bill is $16,800. I asked Mr. Percil a foreseeable conclusion date and was told “May”. However, I am not optimistic. The work is immense, Blackacre’s records are poor and Mr. Levenson’s answers last week may extend the work that is needed.
