Federal Court appointed - RECEIVER
Petitions to sell Petters watches, cars/ items
of L Reynolds (
here)(here)(here)(here)
PGW rejects lease (
here)

Doug Kelley puts in for his Receiver Expenses Motion (
here)
details (
here) Gary Hansen gives Frank Vennes status report
(
here) seeking expenses(here) There are details in the DK
report Jeffries and others -
real strange indeed!

Lancelot BK reports on Petters (here) seeks permission to depose
Homeland Security etc
(here) & (here) Lancelot as gets permission to
keep certain items secret (
here) and settles issues around Bell etc
(
here)
A Federal Receiver is a Fiduciary, who cannot be sued except for
gross negligence or willful misconduct. Douglas Kelly is federal
fiduciary and he "IS" accountable!
He is a former member of the
Dept of Justice - and he knows Better than to perpetrate such a power
grab!!!!
To see an example of the right way for Receiverships
to be conducted  see (
here ) and ( here )
This page will discuss/ focus upon the erroneous
endeavors of the current Federal Court appointed
Receiver in the Petters cases.

Originally, the Federal authorities had petitioned ( here )
the Minn District Court to appoint a Receiver to make sure
that the Petters paper trails and monies did not vanish.

Such an approach was an overreach from the very
beginning - as Tom Petters had already resigned from the
controlling companies.

Seizing the day quite literally, the District Court Justice
(Her Honor Montgomery) appointed Douglas Kelly as
Receiver and went "
way" beyond the scope of the Fed's
requested "
Temporary Restraining Order" ("TRO") ( here ).

Justice Montgomery reached into her bag of authority and
pulled a judicial rabid rabbit out the hat. Her Honor did
supplicate that
the Receiver could seize, sell and put into
Bankruptcy any and all Petters companies
.

This, mind you, was without any guilty plea or grand jury
indictment and conviction of Tom Petters or his companies of
any wrong doing. (
The US Attorney & Petters agreed to extend
the time to hold the Grand Jury Indictment hearing
(here))

Most assuredly, Her Honor and the Receiver would be in
deeper pooh,
if, by chance, Petters is found not guilty (even
if by technicality
)! For then she would have sold the assets of
an non-guilty person.

Her Honor stated no legal background, framework or case
history for her actions - she just simply did what she wanted
to do. To have a finding of fact and conclusion of Law - A
Justice must cite the appropriate authority - a Court may not
simply enjoy "
dicta" by stipulating in an abusive manner - this
is what this Court says - so shall it be!

As if such
abuse of discretion was not enough. Her
Honor Montgomery also stipulated that Douglas Kelly (
the
appointed Receiver
) was granted the unheard of right to have
Judicial Immunity. As if such were a commodity like candy -  
that the Court could had out willy nilly!

In the meantime, several companies (Hedge Funds etc)
that did go by the proper legal framework, for Petters
defaulting on hundreds of millions in secured (
purportedly)
payments -did appoint
a Receiver in the state of ILL, to
collect on its debt.

So the Receiver simply trounced the ILL court and placed
Petters companies into bankruptcy in MN - with what
appeared to be "
nunc pro tunc" paperwork.

The ironic issue is,
as a legal mandate - putting the Petters
companies into bankruptcy "
technically" voids the Receiver!
American BAR
Association
discussion
Federal Court
Receivers
( here )
Federal Rule
Civil Procedure
(Fed R C P) 17
Party authorized
by Statute
( here )
A Federal
Receiver can
ONLY be
appointed under
FED R C P 66
( here )
General Rules
concerning
Federal Receiver
( here )
Who cannot
handle
individuals
or general
partnerships
and can
ONLY act as
agent of a FED
Agency entitled
to funds such
as  the IRS
or SEC
As stipulated within
the
American Bar
Association
reflections on
Federal Receiverships
the filing of
a bankruptcy case
voids and makes
moot
appointments
of a Receiver.

Wherefore the
Bankruptcy
Court assumes
authority
under
US Title 28 Section
1334

Thus the automatic
"stay"under
11 USC Section 362
provisions also applied
to
Receivers as well -
giving
the Federal Bankruptcy
Court supreme
authority in all matters

Please see
Section IV of
the Receiver discussion
(
here )
District Court
Judge
Montgomery
appoints
another
Receiver
in the Petters F
Vennes cases
( Gary Hansen )
and hands out to
Mr Hansen
another
unlawful grant of
Judicial
Immunity!
( here )
MN Dist Court
Judge
Montgomery
Order to appoint
Receiver and
Seize
( here )
NEWS
Acorn ( here ) and LG Electronics (here) file Objections to Receivers Motion
to Amend
[expand] as the Receiver counters ( here )
Note - the Receiver erroneously states it is doing so on behalf of US Attorney


The recent Indictment of Petters ( here )
Partially seeks to Justify the Receiver's position as an Agent to
seize Petters assets to be forfeit for the Government - it was this Editor's
desire to point out how corrupt the "system" participants can be - when they
act as if an Estate is "theirs" to squander. A Federal Receiver can only be
appointed to collect for a specific Federal Court approved client. In this case
the Receiver was seizing and selling = even though the initial US Attorney
request was just to make sure that the Petters assets and evidence trails did
not vanish.
They have crossed the Line and we all anxiously await the
Receiver's long overdue report on the status of Petters' assets

Section 341 Creditors meeting Transpired
 November 25, 2008 (here )   
challenges to the Receiver's validity was only a matter of time!
WEB-Editor's Note: Power Grabs for Millions in fees
while there are many battles about to ensue; the US
Trustee has now challenged the Receiver's validity in
the Bankruptcy Case (
by the Law the Receiver is Moot)
- Acorn, Zenith, Interlachen and Ritchie are all multi
million and billion dollar power houses used to getting
their way and are taking heat for their involvement from
all angles.  - The big issue here is the quagmire of
affairs, while it serves billable hours well to battle
everywhere; the only place this battle belongs is the
Bankruptcy Court - the Sun Country Loan issues stink.
It is a Breach of Fiduciary duty if one arm of Petters is
permitted to loan money to the other - Period! Sun
Country can borrow the money elsewhere or close
down! = Sooner or later, a collaborative group of
counsels will put Petters personally into bankruptcy,
make the Receiver moot et al; then the Real Wars shall
Begin!
Receiver puts
Motion in
Bankruptcy case
to Reject Petters
Co FL lease
 (
here
)
The Creditors are
refused review of
Petters accounts and
purportedly are told
by the Receiver
there's only $9k left

(pg 14 (
here ))
Receivers Motion to
Amend
( here )  
Cert of Service [???]
(is that all?)(
here )
Receiver Memorandum
of Law to clarify
Receiver's role in
bankruptcy (
here )
Doug Kelley represented
Ponzi schemer LaFavre
and stated that he too
(LaFavre) was a victim
see ST article
( here )
NEWS
Receiver Hansen's 1st Report on status of Assets of Vennes (here)




NEWS
-Receiver Kelley Motion for Fees  $1 million + ( here )
Court approves Receiver Douglas Kelly expenses
and Directs to go after insurance (
here )
Joint approval (including Defendant) of sale of Car Wash (
here )
Court approves Receiver Hansen's (Vennes) fees (
here )






Judge States She is Happy with 1st Reports  ( here )
US Attorney puts in  Appearance in PCI Bankruptcies (
here )
Receiver Douglas Kelley 1st Report on Status Petters Assets etc ( here )
There is hell to pay - if this is all of the assets to be recovered. The Report appears
to be
inadequate - but Finally - a place to start to get to the real meat of what is
going on!
Only took a few days for the Receiver's [thorough] initial report  in the
Lancelot Bankruptcy ( here )
NEWS  -- Lancelot Case in Illinois
Statement of Financial Affairs (SOFA) ( here )
Schedule A Liabilities and Assets Lancelot
stating Petters item $930 Million (
here )
Court approves certain
expenses for Petters and
his Cohorts
( here )
NEWS Bankruptcy Court
approves appointment of
US Trustee
(here )
NEWS - Receivers
Motion for foreclosure
on  properties (
Here )
NEWS = MN Ct grants
Receiver's Motion to
modify (expand)
Powers (
here )  &LG
moves to Clarify
(
here) (here) & (here)
Colorado Ponzi schemer "Rick" Dryer gets
135 Years in Prison - Denver Biz Journal
(here)
Status by Receiver Gary Hansen for [defendant] Vennes (
here)
Receiver Doug Kelley 2nd report Petters (
here)

Banks are sued for Ponzi Schemes (here)
Ritchie Capital Issues of Appeal (here)
and remarks about Trustee (
here)
Doug Kelley Objection to Ritchie Motions (
here)

Judge approves of Receiver Fees (
here) whilst the Bankruptcy
Judge approves of Lindquist as DK Trustee counsel (
here)

A Receiver cannot be a Trustee and the American Bar Association
(
here ) provides the details on the reasons why. All efforts by
Doug Kelley to justify his grabbing the reigns is a
color of law
breach as
a Federal Receiver may only be appointed for a Federal
position in equity
(ie SEC/IRS/FDIC)

NEWS Justice Kishel today quashed Ritchie Capital's Motion to
Compel the Receiver DK to report all the facts (
here) whilst the
Unsecured Creditors attorney pushes for DK to be the Trustee
(
here) The Dept of Justice and ABA state a Receiver cannot be a
Trustee
(here) & (here) -Power, cronyism and corruption - an
ardent, overt enemy of US Americans all!

MN Biz Journal reports
(
here ) that Judge
Montgomery approved
sale of Petters Magazines
- $4.6 million annual asset
for only $275,000

Note - Receiver
Petitions to Sell
Petters assets
( here )

LG Electronics (Philips)
Petitions Montgormery
for relief
( here )

Zenith has also
petitioned for relief
Hedge Funds respond with
Emergency Bankruptcy
Motion
( here )
Receiver Errors (here)