December 26, 2013: Leon Harward, owner of West Side Enterprises, has filed a motion asking the Court to reconsider allowing him to intervene in the Receivership litigation. Harward had West Side Enterprises assign its rights in the Expressway Business Park to Harward and now asks the Court to reverse its prior decision denying him the right to intervene. A copy of Harward’s motion can be found here.
December 9, 2013: The Court today approved the Receiver’s first request for reimbursement of expenses and payment of fees for the work of the Receiver and his counsel for work performed between June and December 2012. The Court overruled the objections that Palmer had filed. A copy of the order can be found here.
December 5, 2013: The Court held a hearing today on the Receiver’s motion to sell the home in Temple, Georgia and approved the sale. A copy of the Court order can be found here.
December 4, 2013: The Court today granted the motion by Barclay Associates to intervene in the Receivership litigation. Barclay is the lender for and lien holder on the Riverbend property in Middleton, Idaho. A copy of the Court’s order can be found here.
November 21, 2013: The Court today denied a motion to dismiss filed by Steve Van Gordon. The Court ruled that the U.S. District Court has jurisdiction over the Receiver’s lawsuit seeking recovery from Van Gordon. A copy of the Court’s ruling can be found here.
November 21, 2013: The Court today issued an order denying the motion to intervene filed by a group of 40 investors. The order followed a hearing on November 15 at which the Court heard arguments on the request to intervene. A copy of the Court’s order can be found here.
November 15, 2013: A motion to intervene was filed today by Barclay Associates. Barclay is the lender on property owned by the Receivership Estate in Middleton, Idaho. Barclay’s motion states that it seeks to intervene to get a declaration of its security interests in the property and to seek possession of the property. A copy of Barclay’s motion can be found here. A copy of the lawsuit that Barclay intends to file, along with copies of the documents supporting its claim of a security interest, can be found here.
November 15, 2013: The Receiver filed a notice today with the Court describing the results of the auction of the Cottonwood property. A copy of the notice can be found here.
November 14, 2013: The Court today signed an order denying the motion to intervene filed by Leon Harward and West Side Enterprises. The order follows a hearing held on November 12, 2013. A copy of the court order can be found here.
November 13, 2013: Default Judgment Granted. The Court today granted the Receiver judgment by default in the amount of $10,153.44 against Stephen Braun. A copy of the judgment can be found here.
November 13, 2013: The SEC began administrative proceedings today against Julie Palmer Martin. Those proceedings seek a determination whether Martin violated the federal securities laws. A copy of the order initiating these SEC proceedings can be found here.
November 8, 2013: The Receiver filed a motion today seeking court approval to sell a home owned by the Receivership Estate in Temple, Georgia. The home appraised for $125,000 and an offer has been received for $125,000. A copy of the motion can be found here.
November 4, 2013 The Receiver filed the fifth status report with the Court today. This report covers activities from July 1, 2013 to September 30, 2013. A copy of the report can be found here.
October 31, 2013: The Court issued an order today approving the 11 settlement agreements recently negotiated by the Receiver. A copy of the order can be found here.
October 30, 2013: The Receiver filed a motion today asking the Court to approve 11 settlement agreements that have been negotiated by the Receiver. If approved, these settlements will bring $69,000 into the Receivership estate and result in the release of a $125,000 deed of trust on a property in the receivership estate. A copy of the motion can be found here.
October 28, 2013: The Court today approved the sale of the 1-acre property on Little Cottonwood Road to the high bidder at the auction. The high bid was $291,000.00. A copy of the order can be found here.
October 23, 2013: The Receiver has withdrawn his motion seeking to conduct an auction for the 85-acre parcel of land in Fairfield. The buyer withdrew his offer when the City of Fairfield denied the buyer’s application for permission to use the property for the buyer’s intended business. A copy of the motion can be found here.
October 23, 2013: The Court approved holding an auction for the sale of Elkhorn Lot #2, near Malad, Idaho. The opening bid at the auction will be $31,500. The Receiver will publish notice of the auction in the newspaper and set an auction date. A copy of the Court’s order can be found here.
October 22, 2013: The Receiver filed a motion seeking court permission to consummate the sale of the Cottonwood Road property to the high bidder at the auction. The auction bidding started at $211,000 and resulted in a high bid of $291,000. A copy of the motion can be found here.
October 21, 2013: A motion was filed today by Leon Harward and Westside Enterprises, seeking to intervene in the Receivership matter. The motion indicates that Harward and Westside want the Court to pay Harward a share of all Expressway properties sold by the Receiver. A copy of the motion can be found here.
October 21, 2013: The Receiver filed a motion today seeking Court approval to conduct an auction to sell Elkhorn Lot #2. An offer of $31,500 has been received for this vacant building lot near Malad, Idaho. The Receiver seeks to hold an auction to see if any higher offers are received. A copy of the motion can be found here.
October 9, 2013: An attorney representing defendants in 22 lawsuits filed by the Receiver has filed a motion seeking to intervene in the Receivership litigation. The motion seeks to allow these defendants to participate in the court case considering the SEC’s lawsuit against Mr. Palmer while also continuing the 22 lawsuits individually. A copy of the motion can be found here.
October 9, 2013: The Court granted the motion by Paul Hawkins to intervene in the receivership matter to allow Hawkins to file suit against former officers and employees of National Note and its affiliates. Hawkins agreed to conditions that will ensure that his lawsuit will not cause the receivership to expend time and money relating to his litigation and he has waived any claims against the receivership estate. A copy of the Court’s order can be found here.
October 9, 2013: The Receiver filed his first fee application for payment of fees and expenses for him and his counsel for the first six months of the Receivership. A copy of the application can be found here. The fees must be approved by the Court.
October 3, 2013: The Receiver today asked the Court for approval to conduct an auction to sell 85 acres of undeveloped land in Fairfield, Utah. The Receiver has an offer of $251,000.00 for the property. The auction will determine whether others are willing to pay a higher price. A copy of the motion can be found here.
September 30, 2013: The Court signed an order approving the sale of Autumn Ridge Phase 2 to a buyer. After payment of past due property taxes and costs of closing, the Receivership Estate expects to receive approximately $445,000.00. A copy of the court order approving the sale can be found here.
September 25, 2013: The court signed an order authorizing the Receiver to conduct an auction to sell 8.3 acres of land owned by the Receivership in Fairfield, Utah. The date of the auction has not yet been set. Information about the property can be found in the property sale box at the top of the web page. A copy of the court order can be found here.
September 12, 2013: The Receiver filed a lawsuit today against 14 persons who hold “Assignments of Beneficial Interest” in the Autumn Ridge property in Eagle Mountain, Utah. The lawsuit asks the Court to declare that the assignments of beneficial interest are not valid liens on the property, so the proceeds from the sales of this property can be available for distribution to all investors, not just those holding these assignments. A copy of the lawsuit can be found here. Additional lawsuits will be filed in the near future relating to other properties.
September 11, 2013: The Receiver filed a notice with the Court that the second appraisal for the Riverbend property in Middleton, Idaho, estimated the value at $1.2 million, still far below the $3.7 million loan from the lender. The Receiver renewed his request that the Court approve a settlement agreement with the lender to relinquish the property to the lender in exchange for the lender agreeing not to seek to recover the deficiency from the Receivership Estate. A copy of the notice can be found here.
September 10, 2013: Following a hearing held September 9, 2013, the Court today signed an order authorizing the Receiver to abandon the receivership’s interest in five inner city homes and lots in Toledo, Ohio; Cleveland, Ohio; and Chicago, Illinois. A copy of the order can be found here.
September 9, 2013: The Receiver filed a lawsuit today against Aaron Olsen and Utah Land Banks, LLC, seeking recovery of $178,945.73 paid to these defendants by National Note. A copy of the lawsuit can be found here.
September 4, 2013: Paul Hawkins, a customer of Old Glory Mint, has filed a motion seeking to intervene in the receivership action. Hawkins wants the Court to lift the stay of litigation so he can file suit against former officers in an effort to recover the value of silver he had leased to Old Glory. A copy of the motion to intervene can be found here. The Court has set a hearing on this motion for September 20.
September 3, 2013: The Receiver filed a lawsuit today against three holders of assignments of beneficial interest in the Farrell Business Park in Arizona. All other holders of assignments of beneficial interest previously released their claims, leaving only these three holders. The lawsuit seeks the release of an assignment of beneficial interest given to these holders. The Receiver believes the assignment of beneficial interest is not a valid lien on the property and that the proceeds from the sale of this lot should be available for distribution to all investors. A copy of the lawsuit can be found here.
September 3, 2013: The Court approved the fourth group of settlement agreements proposed by the Receiver. A copy of the Court’s order can be found here.
August 28, 2013: The Receiver filed a motion today seeking approval of seven new settlement agreements negotiated by the Receiver. These settlements will bring $105,000 into the Receivership Estate. A copy of the motion can be found here.
August 27, 2013: The Court has approved the sale of the lot and partially-built cabin at Elkhorn Ridge (lot #1). The cabin and lot sold for $155,000. A copy of the order can be found here.
August 22, 2013: The Receiver filed a motion seeking Court approval to abandon five distressed homes and vacant lots in Ohio and Illinois. The motion explains the Receiver’s unsuccessful efforts to market these properties and why the Receiver believes these properties have no value to the Receivership. A copy of the motion can be found here.
August 13, 2013: The Receiver filed his fourth status report for the period from April 1, 2013 to June 30, 2013. A copy of the report can be found here.
August 6, 2013: The Receiver filed a lawsuit today against Harvest Time Ministries. The lawsuit seeks the release of an assignment of beneficial interest given to Harvest Time on Elkhorn Lot #48 in Oneida County, Idaho. The Receiver believes the assignment of beneficial interest is not a valid lien on the property and that the proceeds from the sale of this lot should be available for distribution to all investors. A copy of the lawsuit can be found here.
August 5, 2013: The Receiver today filed a motion for summary judgment in the lawsuit filed by the True Kirk Trust against the Receivership. The Kirk Trust is seeking ownership of the Twin Pines apartments in Brigham City, Utah. The Receiver’s motion argues that the Kirk Trust does not have a security interest in the property. A copy of the Receiver’s motion can be found here. The Kirk Trust also filed a motion for summary judgment.
August 1, 2013: The motion to intervene that had been filed by a group calling itself the National Note Investor Committee was withdrawn today. A copy of the withdrawal can be found here.
July 31, 2013: The Court today approved an auction for Unit #215 at Expressway Business Park. A copy of the Court order can be found here.
July 29, 2013: The Receiver filed a notice with the Court summarizing the results of the auction of Expressway Business Park Unit #305. The auction resulted in an increase in the sales price from $64,000 to $69,000. A copy of the notice can be found here.
July 29, 2013: A motion was filed today seeking court approval to conduct an auction for the sale of Expressway Business Park Unit #215. The Receiver obtained an offer of $112,500 for the warehouse condominium and seeks to conduct an auction to determine whether higher bids are offered. A copy of the motion can be found here.
July 29, 2013: The Receiver filed a notice today summarizing the results of the auction of Farrell Business Court units 109-111. The report explains that there were no other bidders at the auction so the property was sold to the original bidder. A copy of the notice can be found here.
July 23, 2013: The Receiver filed a motion seeking court approval to hold an auction to sell a one-acre parcel of land owned by the Receivership on Little Cottonwood Road in Salt Lake City. An offer to purchase the land for the appraised value of $211,000 has been delivered to the Receiver. The Receiver seeks to hold an auction to see if a higher price can be obtained and if not, to sell the property to the original bidder. A copy of the motion can be found here.
July 19, 2013: A joint brief by the Securities and Exchange Commission and the Receiver was filed today opposing the motion by a group of investors to intervene in the receivership case. A copy of the joint brief can be found here.
July 19, 2013: The U.S. Securities and Exchange Commission filed a motion for summary judgment against Wayne Palmer today. The motion asks the Court to find that Palmer violated the federal securities laws and to award judgment to the SEC. A copy of the SEC’s motion can be found here.
July 17, 2013: The Receiver filed a motion today asking the Court to appoint an appraiser for the Riverbend property in Middleton, Idaho. This appraisal will assist the Receiver and the Court in determining whether the Receivership Estate has any equity in the property. A copy of the motion can be found here.
July 17, 2013: The Receiver today filed a notice of withdrawal of his motion for the sale of a 85-acre parcel of land near Fairfield Utah. The withdrawal was necessary because the buyer withdrew its offer. The Receiver will resume marketing efforts on the property. A copy of the notice of withdrawal can be found here.
July 15, 2013: The Receiver filed a motion seeking approval of the sale of Autumn Ridge Phase II. This motion seeks approval for the sale of the property to the original buyer for the same price, but without any ties to agreements for the sale of water. A copy of the motion can be found here.
July 10, 2013: The Receiver today filed a motion seeking Court approval to conduct an auction to sell 85 acres of land in Fairfield, Utah. The offer is for two parcels of land in the Receivership Estate for $251,670.00. The Receiver seeks to hold an auction to determine whether others are willing to bid a higher price. A copy of the motion can be found here.
July 10, 2013: The Court today approved a settlement agreement relating to Expressway Business Park Unit #204. Under the agreement, the Receiver will release the property back to the lender because the amount owed to the lender is more than the property is worth. A copy of the Court’s order can be found here.
July 10, 2013: The Court today entered an order approving ten settlement agreements negotiated by the Receiver. These ten settlements will bring $146,280.55 into the Receivership Estate and will result in the elimination of claims that might otherwise be asserted against funds recovered. A copy of the order can be found here.
July 8, 2013: The Receiver filed a motion today seeking approval to finalize ten settlement agreements that have been negotiated by the Receiver. Seven of these settlements will bring approximately $145,000 into the Receivership Estate. One represents a waiver by the Receiver based on demonstrated hardship and the other two represent offsets of overpaid amounts against losses in other investment accounts, with the investors agreeing to waive all claims against any further recovery. A copy of the motion can be found here.
July 8, 2013: The Receiver filed a motion today seeking approval of an agreement to release Expressway Business Park unit #204 to the lender. The Receiver’s motion explains that the property was appraised at $105,000, but more than $131,000 is owed to the lender. A copy of the motion can be found here.
July 8, 2013: The Receiver filed a “Notice of Auction” relating to the planned auction of the Bandana cabin. A copy of the Notice of Auction can be found here. The “Auction Procedures” can be found here. The auction is set for August 9 at 1:00, to see if any bids are submitted that are higher than the $260,000 that has been offered for the property.
July 8, 2013: The Receiver filed a motion today seeking permission to sell the cabin at Elkhorn (Lot #1), near Malad, Idaho. This property has been the subject of several prior purchase agreements. The offer is for $155,000, substantially higher than the appraised value of $132,000. The Receiver is also seeking Court approval for the language of the legal notice to be published in the newspaper soliciting higher offers. A copy of the motion can be found here.
July 2, 2013: A motion to intervene in the Receivership action and in the SEC’s lawsuit was filed today. The motion was filed by an attorney representing a group of investors. The attorney also filed a motion opposing the Receiver’s motion to release property in Middleton, Idaho to the lender who is owed more than the property is worth. A copy of the motion to intervene can be found here.
June 25, 2013: The Receiver filed the following lawsuits today:
June 24, 2013: Additional lawsuits were filed today by the Receiver:
- 106th Southtowne Hotel Mgmt: $103,061.20
- American Express: $1,393,225.05
- AT&T Universal Card: $62,853.24
- Haslam, Kent: $153,681.69
- Key Bank Card Services: $43,941.77
- Larsen, Reed; Kinjurushi; $2,404,807.08
- Palmer, Christy: $598,950.00
- Palmer, Cory: $90,632.00
- Palmer, Dan: $90,632.00
- Palmer, Debra: $90,632.00
- RC Willey Home Furnishings: $41,273.77
- Thomas, Karen: $249,292.31
- Wagner, Victor: $503,742.40
- Ken Palmer: $18,527.00
- Robert Mitchell: $129,782.82
- Jackie Clayton: $62,500.00
- Valerie Bills: $91,032.00
- Christopher Affleck: $67,147.97
June 21, 2013: Another 41 lawsuits were filed on June 20 and 21, 2013. Most of these lawsuits are against overpaid investors. Some of the lawsuits also seek judicial declarations that assignments of beneficial interest held by the defendants are not valid liens on real estate. Other lawsuits are against persons who received funds from National Note and who refused to explain the purposes of the payments. The lawsuits filed are:
- Estate of Robert Sher: $311,146.57
- Dave Sieverts: $595,868.13
- Brian Spires: $149,661.47
- James Shoen:$140,906.55
- Duane Slaughter: $294,254.78
- Dale Himmer: $229,379.42
- Deborah West: $389,489.66
- Douglas Heiner: $292,380.63
- Carolyn Flynn: $54,154.54
- Jim Condie: $70,759.23
- Hans Berger: $30,381.92
- Timothy McKenna: $116,465.20
- Sherman Mehlhoff: $52,211.67
- Sarah Mortensen: $48,010.05
- Ashley Nielsen: $626,591.41
- Carla Whitehouse: $53,592.85
- Larry Lofthouse: $831,062.66
- Bernard Heishman: $146,918.35
- Edyth Heishman: $28,361.82
- Takeo Iwamoto: $82,040.30
- Lynda Davis: $116,297.83
- Judy Hansen: $80,100.17
- Harry Cousins: $310,246.58
- Donald Stoker Estate: $62,063.86
- Mont Palmer: $1,137,847.66
- Isaac Bickmore: $63,552.06
- Lawrence Lloyd: $145,921.70
- Senor Mortensen: $64,429.91
- Glen Sudbury Estate: $619,256.07
- Thomas Schultz: $437,894.59
- Innovative Services: $20,000.00
- Kleen Water Power: $35,000.00
- Bruce Taylor: $17,500.00
- Richard Madsen: $15,850.00
- Drew Brinar: $234,192.60
- Chad Colbert: $84,000.00
- Karen Maloney: $25,000.00
- Michelle Anderson: $68,569.28
- Wilton Battles: $25,376.82
- Brian Brady:$25,348.38
- Kim LaValley: $41,914.49
June 20, 2013: The Receiver filed the following lawsuits today:
- David Sefton: $22,476.71
- Jim Sandberg: $68,730.42
- Tom Rutledge: $61,431.71
- Jeremy Reid: $211,176.51
- Colt Perrin: $222,337.88
- Ralph Peiris: $203,702.16
- Roy Payne: $47,564.60
June 19, 2013: The Receiver filed additional lawsuits today against the following:
- Barth, Sara: $176,279.55
- Lovato, Joe and Catherine: $232,465.85
- Mackey, Joe: $325,425.47
- Marlowe, Joe: $129,241.75
- McDonald, Analee: $31,683.44
- Myer, Eric: $55,404.11
- Myer, Fred: $160,708.86
- Nelson, Edda: $50,051.22
- Van Palmer: $152,481.64
- Ray MacCord: $153,397.44
June 19, 2013: The Receiver filed a renewed motion seeking approval of a settlement agreement to convey the Riverbend property in Middleton, Idaho to the lender. The renewed motion addresses questions raised by the Court at a hearing on the first motion. The Court has set a hearing for July 3 on the motion. A copy of the motion can be found here.
June 19, 2013: The Receiver filed another nine lawsuits today against overpaid investors. They include:
- Thornton, Janice and Richard: $726,622.02
- Vega, Tony and Canales, Sonia: $132,145.58
- Wells, Christine: $71,962.20
- Wells, Doug and C&O Wells Trust: $398,722.11
- Wirtala, Russ: $278,807.41t
- York, Brian J.: $87,533.17
- York, James C.: $141,019.17
- Young, Scott T.: $148,360.27
- Zane, Allan; Sano Investment Group; Atlas Red Realty: $218,173.68.
June 18, 2013: The Court today approved six settlement agreements that have been negotiated by the Receiver. Some of these involve recovery of full amounts from overpaid investors, others involve reduced recoveries and waivers of claims that otherwise might be asserted against the Receivership Estate. A copy of the Court’s order can be found here.
June 17, 2013: The Receiver filed an additional 20 lawsuits today seeking recovery of overpayments from investors who received distributions in excess of the amount of their investment principal. Some of these lawsuits also seek declarations that assignments of beneficial interest held by the investors are invalid and seek the recovery of commissions paid. A copy of the lawsuits can be viewed by clicking on the hyperlinks below. As with previous lawsuits, these lawsuits seek the recovery of the full amount of distributions paid to these defendants, not just the overpayments. The lawsuits filed today were:
- Baclet, Jeff: $55,221.92
- Andreason, Max: $199,636.99
- Bladen, Ryan: $20,775.94
- Braun, Stephen: $254,108.23
- Buchman, Joe: $68,066.93
- Butters, Kay and Sharon: $399,719.26
- Chung, Hong: $85,098.55
- Dale, Evan: $61,632.69
- Bawden, Eric: $139,943.97
- Elliott, Charles: $34,496.45
- Evans, Scott: $111,880.82
- Fabrizius, Harley: $28,144.13
- Flynn, Mark: $124,322.92
- Garrett, Lois: $42,874.36
- Bawden, Hal: $426,069.97
- Huene, Don: $136,526.31
- Inlow, Clifford: $78,160.27
- Licciardo, Mark; Mueller, Linda, Remcor: $150,519.86
- Livingston, LaVon: $106,199.83
- Welliver, Jennifer: $37,743.15
June 14, 2013: The Court approved an auction to be held for the sale of the Bandana cabin that is owned by the Receivership. An opening offer of $260,000 has been received. An auction will be held to determine whether higher offers are received. A copy of the order can be found here.
June 13, 2013: The Receiver today filed another 12 lawsuits. These are against investors who received more in distributions than the amount of their investments. These lawsuits seek the full amount paid to these investors by National Note.
- Lei Chen and Shaowei Wan: $81,769.32
- Glendale Eaton and the Eaton Living Trust: $62,091.78
- Kenneth Ford and Ford Family Trust: $155,280.81
- Theodore Fuller and Fuller Family Foundation: $199,056.48
- Dennis Heaton: $1,580,160.08 and Jane Heaton: $137,657.53
- Barbara Hoaglin: $31,269.17
- Charles Howe and Howe Family Trust: $1,606,355.37
- Robert Meldrum: $37,308.50
- Richard and Larissa Powell: $155,062.64
- Richard Schutte and Schutte Trust: $226,498.63
- Steve and Marilyn Van Gordon: $635,883.53
- John Young: $51,902.17
June 7, 2013: The Receiver filed an additional 11 lawsuits over the last two days. These lawsuits name as defendants the following individuals:
- Ralph Ball: seeking recovery of $5,200 in commissions paid to him.
- Marilyn Corbett: seeking recovery of $137,000 in payments to her.
- Anthony Fenison: seeking recovery of $125,290.04 in payments.
- Amin Haq: seeking recovery of $10,000 in commissions paid to him.
- Manohack Keeton: seeking recovery of $54,843.34 paid to her.
- Timothy Keeton: seeking recovery of $129,524.61.
- James Keller: seeking recovery of $10,000 in commissions paid to him.
- Lori and Robert McCool: seeking recovery of $956,845.27.
- Catherine Noyes: seeking recovery of $40,000.
- Visanti Peiris: seeking recovery of $128,052.59.
- Terry Stallman: seeking recovery of $110,146.09.
For the investors that are overpaid, the lawsuits filed by the Receiver seek the return of all payments sent to the investors by National Note. Some of the investors may be able to demonstrate that they acted in good faith in receiving the excess payments and were not aware of problems at National Note when they withdrew their funds. If so, the Receiver likely will be able to recover only the excess payments, not all payments to them.
June 6, 2013: The Receiver filed a lawsuit today against Joel Blakeslee and the Blakeslee Family Living Trust, of Nevada. The lawsuit seeks the return of $125,193.03 in commissions and distributions paid to Blakeslee by National Note. A copy of the lawsuit can be found here. This is the first of what is expected to be scores of lawsuits filed by the Receiver against overpaid investors, those who received commissions, and recipients of other payments by National Note.
May 28, 2013: The Receiver filed a motion today seeking Court approval of six additional settlement agreements. If approved by the Court, these agreements will result in more than $210,000 being paid to the Receivership Estate, the waiver of over $600,000 in potential claims, and the releases of liens on real estate valued at $1,290,000. A copy of the motion describing the settlements can be found here and the Receiver’s declaration can be found here.
May 22, 2013: The Receiver filed a notice of the results of the sale of unit 105 of the Farrell Business Park. An auction was conducted that resulted in a sale for $92,000, which was $10,000 higher than the original offer price. After paying four and a half years’ of property taxes, sales commissions, and closing costs, the Receivership received $70,392.98. This money will be held in a reserve account pending resolution of claims asserted against the property. A copy of the notice can be found here.
May 21, 2013: The Court today signed an amended order allowing the Receiver to begin filing lawsuits seeking the recovery of funds for the receivership estate. The types of lawsuits the Receiver can now bring include actions against overpaid investors, holders of liens on properties, commission recipients, credit card companies, charitable and religious groups who received funds, borrowers, professionals who provided services to National Note, insiders, and others. A copy of the new order can be found here.
May 20, 2013: The Receiver filed a motion today seeking Court approval for the sale of the Bandana cabin in Fruitland, Utah. The property was appraised at $260,000. An offer of $260,000 was presented to the Receiver through Wayne Palmer. The Receiver is asking the Court for approval to conduct a public auction, to solicit the highest price for the property. An auction date will be set after the Court approves the auction procedure and the form of the notice. A copy of the motion can be found here.
May 20, 2013: The Court issued an order granting the motion to reappoint the Receiver. This step is necessary to allow the Receiver to file notice in other jurisdictions where people that the Receiver intends to sue are located. A copy of the Order is found here.
May 20, 2013: The Court today signed an order approving eight settlement agreements negotiated by the Receiver. Most of these agreements are with overpaid investors and will result in bringing additional funds into the receivership estate. A copy of the order can be found here.
May 20, 2013: The Receiver filed a notice with the Court today describing the results of the sale of the Clearview Business Park. The gross sales price was $737,000. After payment of closing costs and owners association dues ($1,119.30), real estate commissions ($40,535.00), a construction lien ($12,415.33), and property taxes for four and a half years ($91,634.94), the net sale proceeds were $591,295.43. These proceeds will be held in a reserve account pending resolution of ABIs on the property. A copy of the notice can be found here.
May 15, 2013: The Receiver filed a motion seeking Court approval of a proposed sale of the Autumn Ridge Phase II subdivision in Eagle Mountain, Utah. The buyer, Wren Holdings, will pay $538,000 for the property. The Receiver previously had three appraisals performed on the property. These appraisals averaged $432,056 for the property. The Receiver will publish notice of this proposed sale in the newspaper. Other bids are welcome, but competing bids must be at least 10% higher than the proposed sales price and must be submitted within ten days of the newspaper notice. The motion can be found here. The Receiver has included a declaration and four exhibits. Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4.
May 14, 2013: The Receiver today filed a motion asking the Court to reappoint him as Receiver. This step is necessary to enable the Receiver to file notices of his appointment as receiver in 26 additional federal court districts. By filing notices of the receivership in these other districts, the Receiver will have jurisdiction to sue companies and individuals in that district to recover funds that were paid out improperly. A copy of the motion can be found here.
May 3, 2013: The Court today authorized the sale of 17 of the 19 lots at Autumn Ridge Development in Eagle Mountain, Utah. A copy of the Court’s order can be found here.
May 2, 2013: The court today approved the sale and auction procedures for the sale of the East Meadows mobile home park in Vernal, Utah. An opening offer of $1,025,000 has been accepted by the Receiver. An auction will be held on June 10, 2013 at 1:00 at the property in Vernal, to see if any other bidders will submit a higher bid. Bidders must prequalify by June 6 in order to participate in the auction. A copy of the Court’s order can be found here.
May 2, 2013: The third status report for the period from January 1, 2013 to March 31, 2013 was filed today. The report summarizes activities of the Receivership during the first quarter, including progress in selling properties and plans for the upcoming months. A copy of the report can be found here. Exhibit A lists the entities in the Receivership. A copy can be found here. Exhibit B shows the current status of each property in the Receivership Estate. A copy can be found here.
May 2, 2013: The Court today approved the Receiver’s settlement agreement relating to land adjacent to the Elkhorn Ridge development near Malad, Idaho. Under the approved agreement, the Receiver will return approximately 59 acres of land to the seller. The Receiver will obtain clear title to approximately 217 acres that were under contract. One parcel of land that was being purchased is being divided, so the seller and the Receiver will each have clear title to separate properties. A copy of the order can be found here.
April 29, 2013: The Receiver filed a motion today seeking court approval of a settlement agreement with the owners of land adjacent to the Elkhorn development near Malad, Idaho. The settlement relates to five parcels of land totaling 278 acres. Elkhorn Ridge, LLC had agreed to purchase all five parcels, but had only paid for three of them and a portion of a fourth. Under the settlement agreement, the Receivership will keep the first three parcels. The fifth parcel will be deeded back to the sellers. The fourth parcel will be divided into two sections with the Receivership retaining approximately 43 acres and the seller getting 9 acres. A copy of the motion can be found here.
April 24, 2013: The Receiver filed a motion seeking court approval to relinquish ownership of property in Middleton, Idaho to the lender. National had borrowed $3.7 million from the lender to purchase Riverbend Estates in Middleton, Idaho. That loan is in default. The amount owed to the lender is now over $5 million, but the property appraised for only $1 million. The lender has agreed that if the Receivership will relinquish control of the property to it, the lender will not assert any claim against the Receivership Estate for the $4.1 million in losses the lender has suffered. A copy of the Receiver’s motion to approve the settlement agreement with the lender can be found here.
April 22, 2013: On April 22, 2013, the Court approved the Receiver’s plan to conduct auctions to sell two properties. The Receiver has an offer to purchase Expressway Business Park unit #305 in Spanish Fork, Utah for $64,000. Order Approving Expressway Business Park unit #305 Auction. An auction will be held May 30 at the property to determine whether anyone will submit a higher bid. The Receiver also has an offer to purchase property in Duchesne County called Outpost/Indian Canyon for $148,222.56. Order Approving Indian Canyon Auction. An auction will be held May 31 to determine whether anyone will submit a higher bid. Information about these auctions and copies of the court orders can be found in the box labeled Property Auction Notices.
April 22, 2013: The Receiver filed a motion seeking Court approval of eight preliminary settlement agreements. Seven of these settlement agreements are with investors who were overpaid. These settlement agreements will bring $213,037.36 into the Receivership Estate and will reduce the amount of claims that might be filed against the estate. The eighth settlement agreement would allow the Receiver to pay off a lien against the Indian Canyon property for 75% of the amount owed to the lender. A copy of the motion can be found here.
April 15, 2013: The Court today signed an order approving the sale of the partially-built cabin at Elkhorn Ridge Lot #1, near Malad, Idaho for $143,000. A copy of the order can be found here.
April 12, 2013: The Court today gave final approval for the Receiver to sell the two vacant building lots on 900 West in Salt Lake City to the Salvation Army for $70,000. A copy of the Court’s order can be found here.
April 12, 2013: The Receiver filed a motion today seeking court approval to hold an auction to sell Unit 305 at Expressway Business Park. The Receiver has received an initial bid of $64,000 and will hold an auction to see if any higher bids are received. A copy of the Receiver’s motion can be found here.
April 8, 2013: A motion was filed today seeking approval to sell the Indian Canyon/Outpost property in Duchesne, Utah to Duchesne County for $148,222.56. Notice of the proposed sale will be published in the newspaper and an auction will be held to invite higher bids. A copy of the motion can be found here.
April 5, 2013: Wayne Palmer today filed an objection to the Receiver’s motion to be able to begin filing lawsuits. A copy of his objection can be found here. The order allowing the Receiver to begin filing lawsuits has already been signed by the judge.
April 5, 2013: The Receiver filed a motion today seeking approval to sell a condominium located in Manhattan, Montana. The Receiver obtained three appraisals of the property, which showed an average appraised value of $40,500. The Receiver has accepted an offer to purchase the property for $51,000. A copy of the motion can be found here.
April 5, 2013: The Receiver filed a motion today seeking approval to sell the East Meadows Mobile Home Park in Vernal, Utah at a public auction. The Receiver has accepted an initial offer of $1,025,000.00 for the park and the mobile homes owned by the Receivership. If the motion is approved by the Court, a public auction will be held at which higher offers will be solicited. A copy of the motion can be found here.
March 29, 2013: The Court entered an order approving a settlement agreement between the Receiver and the lien holders for Expressway Business Park Unit 109. The Receiver will relinquish title on that property to the lien holders because the receivership had no equity. The lien holders agreed to not make any claim against the Receivership Estate. A copy of the Court’s order can be found here.
March 29, 2013: The Court entered an order granting the receiver authority to commence filing lawsuits. A copy of this order can be found here.
March 28, 2013: The Court issued an order allowing American Pension Services to intervene in the receivership action. The Court will allow American Pension Services to file a lawsuit against the Receiver. A copy of the order can be found here.
March 27, 2013: The Receiver filed a motion today seeking Court approval of a settlement agreement relating to Unit 109 at Expressway Business Park. Because the property is worth less than the amount owed on the property, the Receiver wants to release the property to the lien holder. The property appraised at $140,000, but the lien holder has a first deed of trust on that unit in the amount of $143,792.28. The lien holder will pay all past due property taxes and will release all claims to any funds recovered by the Receiver. A copy of the order can be found here.
March 21, 2013: The Court today approved the sale of three lots in the Elkhorn development near Malad, Idaho. A copy of the court order can be found here.
March 18, 2013: The Receiver filed a motion today seeking permission to sell 17 of the 19 lots at the Autumn Ridge subdivision in Eagle Mountain. Nine lots will be sold to one builder for $333,000. An additional eight lots will be sold to another builder for $296,000. The Receiver has asked the court for permission to publish notice of the proposed sales and soliciting higher offers for these 17 lots.
March 8, 2013: The Court today approved publication of notice of the Receiver’s proposal to sell two vacant lots on 900 West in Salt Lake City. The Receiver proposes to sell the lots for $70,000 to the Salvation Army. The Receiver will publish notice of the sale in the newspaper, inviting other bids that are at least 10% higher. The Court set a hearing at 1:10 on April 12, 2013 to determine whether to accept this offer.
March 8, 2013: The Court today approved the form of publication notice, the auction procedures, and the sale of 12 units at Farrell Business Park, in Gilbert Arizona. The 12 units will be sold to seven different buyers. Each sale will be subject to an auction held on April 25, 2013 at the property. The initial bids that will form the starting bids are:
- Units 103-104: $153,261.36
- Unit 105 $82,000.00
- Unit 106 $82,000.00
- Unit 107 $$85,000.00
- Units 109-111 $240,000.00
- Units 113-114 $164,000.00
- Units 115-116 $160,000.00
Copies of the court orders approving the sale, the auction procedures, and the notice of auction can be found in the property sale box at the top of the website.
February 27, 2013: The Court today approved the Receiver’s agreement to abandon his interests in 3.94 acres of land on Little Cottonwood Road in Salt Lake City in favor of First National Bank of Layton, based on the property having a valid first lien greater than the value of the property. First National Bank has agreed to not seek any deficiency from the Receivership Estate or file any claim for recovery based on this its lien on this property. A copy of the court order can be found here.
February 27, 2013: Today the Receiver filed his answer to the intervention complaint filed by the Kirk Trust. The Trust claims a first position lien on the Twin Pines apartment buildings in Brigham City, Utah. The Receiver also filed a counterclaim, asking the Court to rule that the Trust’s lien is invalid. A copy of the Receiver’s answer and counterclaim can be found here.
February 26, 2013: The Court today approved publishing notice of the proposed sales of Elkhorn lots 4, 5, and 48 and set a hearing for March 19, 2013 at 10:00 to consider the Receiver’s motion to sell these properties. The Receiver has received offers of $35,000 for lot #4, $80,000 for lot #5, and $80,000 for lot #48. Higher offers are invited. A copy of the Court order can be found here.
February 26, 2013: The Receiver filed his second status report for the period covering October 1, 2012 through December 31, 2012. A copy of the report can be found here. Attached to the status report is a chart showing the status of property sales as of February 18, 2013. The property chart can be found here.
February 18, 2013: The Receiver filed a motion with the Court seeking approval to sell a warehouse condominium in Mesa, Arizona. The warehouse condominium is an unfinished building having 8 warehouse units. The building was recently appraised at $580,000. The Receiver obtained multiple offers for the building and these competing bidders bid the price up to $737,000. The Receiver is recommending that the Court authorize a public auction of the building. If no other qualified bidders offer more than $737,000, he is requesting the building be sold to the current high bidder for $737,000. A copy of the motion and the bid procedures can be found here.
February 15, 2013: The Court today approved the sale of the National Note office building in West Jordan. A copy of the order can be found here.
February 7, 2013: Today the Receiver filed a motion seeking court approval to sell Elkhorn lot #1 to the backup buyer. The buyer who had offered $143,100 to purchase the lot and partially-built cabin withdrew his offer after an objection filed by Palmer resulted in additional delays in approval by the Court. The backup offer is for $130,000. A copy of the motion can be found here.
February 6, 2013: The Receiver filed a motion today seeking approval of a process to sell the 19 developed building lots at Autumn Ridge (Eagle Mountain, Utah). The motion seeks approval of an agreement with two builders that will buy lots, build on them, then buy additional lots as the earlier lots sell. A copy of the motion can be found here.
January 31,2013: The Receiver and First National Bank filed a joint motion asking the Court for approval to release two parcels of land on Cottonwood Road in Salt Lake City to the bank based on the lien held by the bank. The bank has agreed to not seek any deficiencies against the Receivership Estate, will pay all property taxes and other costs of the transfer, and will not make any claim on the Receivership recovery fund. A copy of the motion can be found here.
January 24, 2013: The Court today signed an order allowing the Kirk Family Trust to intervene in the Receivership Action. With that intervention, the Kirk Trust has now filed a lawsuit against the Receiver seeking to require the Receiver to transfer a Brigham City, Utah apartment building to the Kirk Trust. A copy of the court order can be found here.
January 22, 2013: The Receiver filed his memorandum opposing the efforts by American Pension Services to intervene in the receivership case. A copy of the Receiver’s opposition can be found here.
January 22, 2013: The Court today approved the legal notice to be published giving notice that an offer has been received for the National Note office building and inviting higher bids. A copy of the court notice can be found here. The Court has set a hearing on the sale for February 14, 2013 at 10:30.
January 18, 2013: The Receiver today filed a motion asking the court to approve the sale of the National Note office building in West Jordan, Utah. The sale is for $285,000, the amount of the appraisal. The court filing includes the motion, a declaration by the receiver, and a motion for approval to publish notice of the proposed sale. Copies of these documents can be found here.
January 16, 2013: The court today entered an order granting the Receiver’s motion to relinquish title to a cabin in Sanpete County, Utah. The cabin was valued at $115,000, but had a first mortgage of $218,718.12. The Receiver will execute a quitclaim deed to the property and the lienholder will pay all back property taxes and expenses associated with the transfer. A copy of the order can be found here.
January 3, 2013: The Receiver filed his response today explaining why the sale of the Elkhorn Lot should be allowed to proceed despite the objection filed by Palmer. A copy of the receiver’s reply can be found here.
