| 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 ) |
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| 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) |