December 17, 2014: Alert: The following notice is being posted at the request of the U.S. Department of Justice. On August 6, 2014, a jury convicted Robert Holloway of four counts of wire fraud and one count of filing a false tax return. On August 21, 2013, Robert Andres pleaded guilty to one count of wire fraud. Robert Holloway and Robert Holloway were sentenced on December 17, 2014. As part of the sentencing proceeding, the court ordered Holloway and Andres to make restitution payments. Although there is substantial factual overlap between this criminal restitution process and the civil restitution process, they are legally separate processes. As a result, you may qualify to be added to the criminal restitution process if you did not submit a claim in the receivership claims process before the claims deadline set by the court in the receivership matter. If you are a victim of Robert Holloway and US Ventures or Robert Andres and Winsome Investment Trust and have not yet submitted a claim in the civil (Receivership) process please fill out the claim form that is attached here and submit to the Receiver by January 31, 2015, along with supporting documents. The Receiver will evaluate the claims and provide information about the claims to Department of Justice attorneys handling the Holloway and Andres criminal matters. If you have already submitted a claim you do not need to resubmit any information. The Receiver will provide the Department of Justice information on all of the claims received to date, including rejected claims. If you have questions, please contact retherington@kleinutah.com.
December 17, 2014: Today, the U.S. District Court sentenced Robert Holloway and Robert Andres on their criminal convictions. In both cases, the judge emphasized how much influence the victim impact statements had in his decision to impose significant sentences. Victims testified in both of the sentencing hearings.
- Holloway was sentenced to spend 225 months (18.7 years) in federal prison, followed by three years of supervised probation. He was ordered to pay $15.2 million in restitution. He must pay at least $15 per month while in prison and at least $150 per month following his release from prison. (For those doing the math, if he just pays the minimum, he will have restitution paid off in 8,444 years.) Numerous other restrictions will be imposed on his conduct following his release from prison.
- Andres was sentenced to spend 56 months in prison. The significantly lower sentence is based on his guilty plea to one felony and the substantial assistance Andres provided to federal prosecutors in the Holloway criminal case. After his release, he will be on supervised probation for three years. He must pay $3,291,310.29 in restitution, with minimum monthly payments of $15 while he is in prison and $150 after his release from prison. He also will be subject to numerous restrictions on his activities after release from prison, including a prohibition on acting in any fiduciary capacity. The judge noted that would prevent him from practicing law, although the judge might consider removing that restriction if it would help in increasing the amount of restitution he pays.
Restitution payments will be made to the U.S. Probation office.
December 2, 2014: The sentencing date on the criminal conviction of Robert Andres was changed today by the Court. His sentencing is now set for December 17, 2014 at 4:00 p.m.
December 1, 2014: The Receiver has learned that the sentencing hearing for Robert Andres will be on December 12, 2014 at 3:30. The sentencing of Robert Holloway will be on December 17, 2014 at 3:00. Both hearings will be in courtroom 7.300 at 351 S. West Temple, Salt Lake City, Utah. These hearings will be open to the public.
November 24, 2014: The Court today entered summary judgment in favor of the Receiver and against Lou Georges. The Court found that Georges received $48,500 in payments from Winsome and Bear & Bull without Winsome receiving any value from the payments to Georges. A copy of the order can be found here.
November 18, 2014: The Receiver filed a motion seeking to enforce a settlement agreement with Michele Petty. Petty agreed to pay $45,000 to the Receivership to settle the lawsuit filed by the Receiver and the settlement was approved by the Court, but Petty failed make the payment when it was due. The Receiver’s motion asks the Court to enter judgment against Petty, so the Receiver can begin collections efforts. A copy of the motion can be found here.
October 27, 2014: The Receiver filed the quarterly status report for the period from July 15, 2014 to October 15, 2014. A copy of the report can be found here.
October 3, 2014: The Court today issued an order approving the payment of fees and expenses of the Receiver and his counsel for the period of April through August 2014. A copy of the order can be found here.
September 30, 2014: In the lawsuit filed by the Receiver to recover funds paid to Peter Widmark, both the Receiver and Widmark filed motions for summary judgment today. A copy of the Receiver’s motion can be found here and a copy of Widmark’s motion can be found here.
September 30, 2014: The Receiver filed his appeal brief today in the appeal filed by Terry Harper. A copy of the Receiver’s brief can be found here.
September 25, 2014: The Court issued an order approving the settlement agreement with Michele Petty pursuant to which she will pay $45,000 to the Receivership Estate. A copy of the order can be found here.
September 23, 2014: The Receiver has learned that the hearing to impose a criminal sentence on Robert Andres has been postponed to December 19 based on medical treatments needed by Mr. Andres. The U.S. Department of Justice opposed the delay, but the Court granted Andres’s request. The Receiver understands that the sentencing of Robert Holloway is set for December 17, 2014. Mr. Holloway is in custody while awaiting sentencing.
September 23, 2014: A motion was filed today seeking approval from the Court to pay the fees and expenses incurred by the Receiver for the five-month period from April 1, 2014 to August 31, 2014. A copy of the fee application can be found here. The fee and expense summaries can be found here.
September 19, 2014: William Cornelis filed his reply brief today in his appeal of the judgment the Receiver obtained against him. This is the last briefing relating to the appeal. A copy of his brief can be found here.
September 9, 2014: The U.S. Commodity Futures Trading Commission filed a brief in support of the Receiver’s legal arguments in the appeal by William Cornelius. A copy of the CFTC’s appeal brief can be found here.
September 2, 2014: The Court today denied the claim filed by Susan Johnson in the amount of $321,642.00 on the grounds that her claim was filed late, she was a marketer for Winsome, and her claim contained false information. A copy of the order can be found here.
September 2, 2014: Based on the summary judgment order entered previously, the district court entered judgment today for the Receiver in the amount of $50,000. A copy of the judgment can be found here.
September 2, 2014: The Receiver filed his brief in the appeal by William Cornelius of the judgment awarded to the Receiver. A copy of the Receiver’s appeal brief can be found here.
August 27, 2014: The Court today granted summary judgment to the Receiver in his lawsuit against the Texas law firm Ravkind & Associates, allowing the Receiver to recover $50,000 paid to Ravkind by Winsome for the criminal defense of Albert and Cherylyn Sellers. The Court ruled that the payments by Winsome were actually fraudulent because Winsome received no benefit from these payments. A copy of the decision can be found here.
August 26, 2014: The Receiver filed a motion for summary judgment against Lou Georges today. A copy of the motion can be found here.
August 12, 2104: The Receiver filed his status report today for the period ending July 15, 2014, although several developments after July 15, 2014 are referenced in the report. A copy of the report can be found here.
August 6, 2014: Following a seven-day criminal trial, a jury this evening returned a verdict of guilty against Robert Holloway. The jury convicted Holloway of all five counts charged by the U.S. Department of Justice: four counts of wire fraud and one count of filing a false tax return. Sentencing is set for October 20, 2014. Holloway was taken into custody after the jury was excused and he will remain incarcerated until sentencing.
July 14, 2014: The Court issued an order denying the motion to intervene filed by Steve Bottorf and Daren Hamlin. Bottorf and Hamlin sought to intervene to claim a portion of the funds recovered by the Receiver. A copy of the order can be found here.
July 14, 2014: The Tenth Circuit Court of Appeals issued its ruling today affirming the $25,000 judgment the Receiver obtained against the Atlanta law firm King, King & Jones. A copy of the appeals court ruling can be found here.
July 10, 2104: The Court approved two settlement agreements proposed by the Receiver. A copy of the Court’s order can be found here.
July 3, 2014: The Receiver filed a motion today seeking Court approval of two new settlement agreements. The agreements, with Jennifer Chiu and Stephen Chiu, will bring $40,800 into the Receivership Estate. A copy of the motion can be found here.
June 30, 2014: The Court signed an order today authorizing the Receiver to make an initial distribution of $2.3 million to investors who submitted claims. A copy of the order can be found here. Checks to valid claimants should arrive within the next two weeks. More information about the distribution plan can be found in the entry dated November 8, 2013.
June 30, 2014: The Court signed an order denying the claim of Zaman Ali. The order finds that Ali failed to provide sufficient documentation to prove the validity of his claim and that he had received funds from other investors as a marketer for Winsome. A copy of the order can be found here.
June 30, 2014: Roberto Penedo has filed an appeal of the Court order denying his claim for a portion of the funds recovered by the Receiver. A copy of the appeal notice can be found here.
June 23, 2014: The Receiver learned that Terry Harper has filed an appeal of the judgment that the Receiver obtained against him. A copy of Harper’s notice of appeal can be found here.
June 20, 2014: The Receiver today filed his reply brief in support of his motion for summary judgment against Ravkind & Associates, a Texas law firm. A copy of the brief can be found here.
June 18, 2014: The Receiver filed with the court his brief opposing the motion to intervene filed by Steve Bottorf and Daren Hamlin. A copy of the opposition brief can be found here.
June 16, 2014: The US Commodity Futures Trading Commission filed a response today opposing the effort by Steve Bottorf and Daren Hamlin to intervene in the receivership action. A copy of the CFTC’s response can be found here.
June 13, 2014: The Court issued an order denying an amended motion to dismiss by Michele Petty. The order also granted the Receiver’s motion to strike Petty’s amended answer and jury demand, but denied the Receiver’s motion to require Petty to provide a clearer explanation of the claims in her defense. A copy of the order can be found here.
June 6, 2014: The Court has set a hearing date for June 25, 2014 at 1:30 p.m. to consider the pending motion to allow the Receiver to make an initial distribution of funds to investors. The Receiver will post a summary of the results of the hearing after the hearing.
June 6, 2014: The Court entered an order denying the claim filed by Roberto Penedo. In its order, the Court ruled that Penedo did not provide sufficient evidence that he was entitled to a claim of $4,418,000 and did not show that his lobbying services benefitted Winsome. As a result, the Court denied Penedo’s claim. A copy of the order can be found here.
June 6, 2014: The Court entered judgment in favor of the U.S. Commodity Futures Trading Commission against US Ventures, Winsome, Robert Holloway and Robert Andres. The judgment includes multiple findings, including:
- Winsome and Andres fraudulently solicited investors,
- Andres, Holloway, and the companies misappropriated investor funds,
- US Ventures and Holloway sustained significant overall trading losses,
- Defendants used false account statements to conceal their misappropriation and trading losses, and
- Defendants violated the commodities laws by engaging in fraudulent practices.
As a result, the Court a) ordered that the defendants cease violating commodity laws, b) ordered the defendants to pay $12 million in restitution, and c) imposed a civil penalty of $32,370,000 on defendants. A copy of the judgment can be found here.
June 2, 2014: The Tenth Circuit Court of Appeals issued an order today dismissing the appeal filed by Robert Penedo based on Penedo’s failure to prosecute the appeal. A copy of the order can be found here.
June 2, 2014: A motion to intervene in the Receivership matter was filed today by Steve Bottorf and Daren Hamlin. The motion appears to seek to allow Bottorf and Hamlin to submit a claim in the claims process. A copy of the motion can be found here.
May 30, 2014: The Court entered judgment today against Terry Harper and Wings Over the World in the amount of $336,470.07. A copy of the judgment can be found here.
May 30, 2014: The Court entered an order today requiring Susan Johnson to submit additional documentation relating to her motion that her late-filed claim be approved. A copy of the order can be found here.
May 21, 2014: The Court issued an order today denying Forres McGraw’s motion to vacate the judgment that had been entered against him on April 15, 2014. A copy of the order can be found here.
May 21, 2014: The court held a hearing on May 20, 2014 to consider the fee application of the Receiver and his counsel for work from October 2013 to March 2014. Today the Court issued an order approving the fee application. A copy of the Court’s order can be found here.
May 9, 2014: The Court entered judgment today against Mykal Pitts in the amount of $332,298.00. A copy of the judgment can be found here. The Receiver will try to locate assets that can be used to satisfy the judgment.
May 9, 2014: The Receiver filed a motion for summary judgment today in his lawsuit against the Texas law firm Ravkind & Associates. The motion asks the Court to grant judgment in favor of the Receivership Estate in the amount of $50,000.00, for payments from Winsome to Ravkind for legal fees for Al and Cherylyn Sellers. A copy of the motion can be found here.
May 2, 2014: The Receiver filed with the Court his brief explaining why the summary judgment entered against Forres McGraw should remain in effect, despite an email from McGraw sent to the Court. A copy of the Receiver’s brief can be found here.
April 29, 2014: The Receiver today filed a status report describing actions in the Receivership during the period from January 16, 2014 to April 15, 2014. A copy of the report can be found here.
April 21, 2014: The U.S. Commodity Futures Trading Commission filed a motion today asking the Court to enter default judgments against U.S. Ventures, Winsome, Robert Holloway, and Robert Andres. The CFTC seeks permanent injunctions against the defendants, an order that the defendants pay restitution of $12 million, and impositions of civil penalties. A copy of the CFTC motion can be found here.
April 15, 2014: The Court today granted summary judgment to the Receiver against Forres McGraw, the CPA who prepared account statements for investors at the request of Robert Holloway. The Court also entered a separate judgment against McGraw in the amount of $123,598.00. A copy of the findings of fact and conclusions of law can be found here. The judgment can be found here.
April 8, 2014: The clerk of the court today entered a default certificate against Terry Harper. A copy of the default can be found here. The Receiver will now ask the Court to enter default judgments against Harper and Wings Over the World.
April 4, 2014: In response to documents filed with the Court by Zaman Ali, seeking confirmation of a $100,000 claim, the Receiver filed a brief outlining why the Receiver believes Ali’s claim should be denied. The Receiver’s brief can be found here.
April 4, 2014: The Receiver and his counsel filed an application for payment of fees for work done between October 2013 and March 2014. The fee application is subject to approval by the CFTC and the Court. A copy of the fee application can be found here, along with Exhibit A,Exhibit B, and Exhibit C.
March 31, 2014: The district court today issued an order adopting the recommendations that the magistrate judge had made regarding Terry Harper and Wings Over the World. The district court found that Harper had 1) blatantly disregarded numerous orders to refrain from submitting frivolous filings, 2) refused to provide discovery responses, despite court orders to do so, and 3) failed to pay attorney fees to the Receiver. A copy of the order can be found here.
March 31, 2014: Roberto Penedo filed an appeal today of the judgment that the Receiver obtained against him in the amount of $197,000. A copy of the notice of appeal can be found here.
March 7, 2014: The Court today issued orders relating to two of the objections that had been filed opposing the distribution plan proposed by the Receiver. The Court denied Penedo’s claim for $4 million and instructed the Receiver to prepare proposed findings of fact to submit to the Court. A copy of the Penedo order can be found here. The Receiver has submitted the proposed findings to the Court. The Court has not yet issued an order with the findings. Penedo has filed an appeal of the judge’s March 7 ruling.The Court issued a separate order giving Zaman Ali until March 27, 2014 to submit copies of bank records and other documents supporting his claim for $100,000. A copy of the Court order can be found here. Ali sent information to the Court on March 27, sending a one-page document. The Receiver subsequently made a filing with the Court explaining why Ali’s submission was inadequate. The Court has not yet issued a ruling on Ali’s claim.
March 5, 2014: A magistrate judge today issued a report and recommendation regarding the Receiver’s lawsuit against Terry Harper. The magistrate recited Harper’s obstruction of the Receiver’s efforts to recover funds and recommends that the district court enter default for the Receiver against Harper. Harper will have 14 days to submit objections to the recommended order. A copy of the magistrate’s report can be found here.
March 3, 2014: The Court today issued an opinion and order granting summary judgment to the Receiver against Roberto Penedo in the amount of $197,000. A copy of the Court order can be found here.
February 27, 2014: The Receiver has learned that the sentencing of Mr. Andres on his criminal conviction has been postponed without a new sentencing date being set. It is my understanding that the prosecutor and defense attorneys have agreed that Andres’ sentencing should be postponed until after the criminal trial of Mr. Holloway, which is scheduled to begin on July 8, 2014.
February 25, 2014: William Cornelius and his law firm, Cornelius & Salhab, have filed an appeal of the November 19, 2013 judgment that the Receiver obtained against them in the amount of $89,845.73. A copy of the notice of appeal can be found here.
February 17, 2014: The Receiver filed a motion today asking the Court to strike the attempt by Michelle Petty to amend her answer without permission of the court and her attempt to assert a claim against the receivership. A copy of the motion can be found here.
February 10, 2014: The Receiver filed his status report for the period of October 15, 2013 to January 15, 2014. A copy can be found here.
February 7, 2014: The Receiver filed a brief with the Court opposing the motion by Susan Johnson to have her claim approved—now 18 months after the claims filing deadline. The Receiver urges the Court to deny her motion because she missed the deadline, was a marketer of Winsome, made false statements on her late-filed claim form, and accepting new claims would cause significant delay and expense in efforts to make distributions to victims. A copy of the Receiver’s opposition can be found here.
February 4, 2014: The Court held a hearing today on the Receiver’s motion for approval to make an initial distribution to investors. The Receiver urged the Court to approve an initial distribution now. One of the investors appeared at the hearing and urged to Court to select a different distribution plan than the one recommended by the Receiver. The Court took the matter under advisement and will issue a decision later.
January 28, 2014: The Court issued an order today denying the motion by the Texas Law Firm Cornelius & Salhab to reconsider summary judgment that was granted in December. A copy of the order can be found here.
January 7, 2014: The criminal sentencing hearing for Robert Andres has been postponed to February 27, 2014 at 3:00.
January 3, 2014: The Court issued an order today denying a motion by Nunzio Bruno to vacate the summary judgment that the Court granted to the Receiver. The Court also entered judgment of $203,052.66 against Bruno.
January 3, 2014: The Court today approved the Receiver’s settlement with JoAnn Holly and her companies. A copy of the Court’s order can be found here.
