Securities and Exchange Commission v. Nadel et al
Filing
1361
STATUS report Receiver's Twenty-Second Interim Report by Burton W. Wiand. (Attachments: # 1 Exhibit A - Standardized Fund Accounting Report, # 2 Exhibit B - Receivership Assets Sold or Otherwise Disposed, # 3 Exhibit C - Chris Moody's Assets, # 4 Exhibit D - Neil Moody's Assets)(Perez, Jared)
EXHIBIT B
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Real Property/Business Operations
Venice Jet Center, LLC
("VJC")
VJC was an operating business
and airfield that included a flight
school, fueling service, hangar
rentals, and a café.
$1,960,169
loan from
Northern Trust
Bank
On January 20, 2010, the Court approved the sale of VJC's
$540,780.88 plus
assets and an agreement with Northern Trust Bank (Doc. 321).
elimination of
In pertinent part, VJC’s assets were sold to Tristate Aviation
over
Group of Florida, LLC for (1) $300,000 cash at closing; (2) a
approximately
$250,000 unsecured promissory note payable over a term of
$1,960,169 in
debt
three years; (3) resolution of a $1,960,169 loan with Northern
Trust Bank; and (4) assumption of prosecution of a "Part 16
Complaint" subject to an offset of the note obligations to the
Receiver for up to $50,000 for expenses and costs actually
incurred in connection with efforts to resolve all disputes with
the City of Venice, including the Part 16 Complaint.
599 North Lime Avenue,
Sarasota, Florida
A building owned by Lime Avenue
Enterprises, LLC that housed a
flower shop owned by A Victorian
Garden Florist, LLC
A mortgage owed
to Ron Carter and
James Neal with a
remaining
balance of
approx. $600,000
On May 26, 2011, the Court approved the conveyance of this
building and the remaining assets of the florist to Messrs.
Carter and Neil in exchange for the elimimation of over
$600,000 in debt and a claim of over $1,160,000 against the
Receivership estate (Doc. 633).
Page 1 of 14
Elimination of
over $600,000 in
debt obligations
and a claim of
over $1,160,000
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Loan from M&I
Bank for
approximately
$3,000,000
Disposition
Amount
Received/
Waived
Home Front Homes, LLC
Home Front Homes was engaged
in the business of manufacturing,
marketing, and selling energyefficient homes.
512 Paul Morris Drive,
Englewood, Florida
A building owned by Home Front Loan from
On March 10, 2010, the Court approved the conveyance of this
Elimination of
Homes on Lot 81 of the Morris
Regions Bank for building to William Bishop in exchange for the release of all
over $790,000 in
Industrial Park
approx. $80,000 claims against the Receivership estate (Doc 355).
debt obligations
and loan from
William Bishop
with a balance of
approx. $700,000
200 Grandview Trail,
Thomasville, Georgia
Approximately 14 acres which
encompassed 45 lots, 44 of which
were undeveloped; one held a
single family home
Loans from
Thomasville
National Bank
with balance
owed in excess of
$759,000
On January 6, 2010, the Court granted the Receiver's motion to $109,128.75 plus
sell certain of Home Front Homes' assets and approve an
elimination of
agreement with M&I Bank (Doc. 293). In relevant part, (1)
over $3,000,000
in debt
South American Development Corporation agreed to purchase
certain assets for $250,000, with $150,000 to be paid at
closing and a zero interest promissory note secured by the
assets due December 18, 2010 for the $100,000 balance; and
(2) M&I agreed to waive over $3,000,000 in debt obligations
and forego any deficiency claims against the Receivership
estate in exchange for 65% of the cash and note proceeds after
the Receiver's collection of $12,000 for expenses incurred.
On February 26, 2010, the Court approved the sale of this
Elimination of
property for $725,000 and an agreement with Thomasville
over $759,000 in
National Bank wherein the bank agreed to accept the purchase debt obligations
price less commissions in exchange for a full settlement of all
amounts owed under the loans and the waiver of all claims
against the Receivership estate (Doc. 352).
Page 2 of 14
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Land Lot 11 of the 23rd
Land District of Grady
County, Georgia
Approximately 33.296 acres of
undeveloped land
None known
On April 25, 2011, the Court approved the sale of this property
for $135,000 (Doc. 620).
$123,717.84
2433 West Main Street,
Tupelo, Mississippi
A building owned by Scoop Real
Estate, LP that was being leased
to a Starbucks
None known
On February 22, 2011, the Court approved the sale of this
building for $715,000 (Doc. 601).
$651,216.18
5 McCollum Station,
Newnan, Georgia
A gas station that consisted of
None known
approximately two acres of land
and a 3,500 square-foot building
On August 4, 2010, the Court approved the sale of this
property for, in pertinent part, a purchase price of $1,725,000
and payment of $25,000 by the buyer to the Receiver for legal
fees and costs associated with the buyer’s failure to close a
previous transaction (Doc. 451).
$1,750,000.00
22 Nantucket Circle,
Oberlin, Ohio
1,450 square-foot single family
residence
None known
On September 6, 2011, the Court approved the sale of this
property for $100,000 less pro-rated real estate taxes for 2011
up to the date of closing (Doc. 651).
$98,383.30
774 North Jefferson Ave. Residential condominium in
Sarasota, Florida
Jefferson Pines
None known
On May 18, 2011, the Court approved the sale of this
condominium for $55,000 (Doc. 630).
$48,347.79
4905 Waters Edge,
Raleigh, North Carolina
None known
On April 17, 2012, the Court approved the sale of this building
for $950,000 (Doc. 819).
A building that was leased to
Electronic Data Systems
Page 3 of 14
$898,699.91
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
841 South Main Street,
Graham, North Carolina
A building that was being leased
to a Rite-Aid Pharmacy
$2,655,000
interest-only loan
from Wells Fargo
Bank
On May 8, 2012, over Wells Fargo's objection, the Court
entered an order granting the sale of this building for
$2,400,000. The proceeds of the sale were held in reserve
until Wells Fargo’s claim to them was resolved. On June 21,
2017, the Court approved a partial settlement agreement
between the Receiver and Wells Fargo wherein the Receiver
agreed to disburse the sale proceeds less expenses of $4,900
in the amount of $2,224,563.15 to Wells Fargo (Doc. 1296).
$4,900 and
elimination of
approximately
$2,655,000 in
debt obligations
780 Woodlake Blvd.
Tazewell, Tennessee
An undeveloped lot in a golf
community
None known
On April 5, 2012, the Court approved the sale of this property
for $45,000 (Doc. 811).
$40,322.86
15576 Fruitville Road,
Sarasota, Florida
Residential property
$209,264.92 due
on loan from
Northern Trust
Bank, as of July
15, 2013
On July 18, 2013, the Court approved the sale of this property
for $181,500 and an agreement with Northern Trust Bank
wherein the bank agreed to accept 60% of the net sale
proceeds in full satisfaction of the loan with the remaining 40%
of the net proceeds to be paid to the Receiver (Doc. 1044).
$68,450.55
$377,749.50 due
on loan from
Freddie Mac
(serviced by Wells
Fargo Bank), as of
July 31, 2013
On July 18, 2013, the Court approved the sale of this property
for $750,000 and approved the Receiver's intent to satisfy the
outstanding amount on the Freddie Mac loan at closing with
the balance of the sale proceeds going to the Receivership
estate (Doc. 1043).
$322,677.60
30393 Upper Bear Creek Residential property
Road, Evergreen,
Colorado
Page 4 of 14
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
None known
Disposition
On October 1, 2013, the Court granted the Receiver's motion
to sell Respiro's assets (Doc. 1075) to Martix Medical, LLC
("Matrix") for $65,000, subject to a possible decrease of the
purchase price by $250 for each deficient and/or missing
patient file. Matrix reviewed Respiro’s files and deducted (i)
$6,750 based on both missing and deficient files, and (ii)
$12,500 for amounts billed by Matrix since assuming control of
Respiro but which had been paid to Respiro. This resulted in a
net purchase price of $45,750. Matrix paid this amount to the
Receivership on October 4, 2013.
Amount
Received/
Waived
Respiro, Inc.
Headquartered in Sarasota,
Florida, this company provided
home respiratory services and
medical equipment products.
Tradewind, LLC.
Tradewind owned and controlled $876,505.30 due On March 27, 2014, the Court granted the Receiver's motion
31 hangars at the Newnanon a loan with the to sell Tradewind's assets (Doc. 1110) to a private buyer for
Bank of Coweta $1,200,000, and the Court approved the resolution of the
Coweta airport in Georgia.
outstanding balance of the Bank of Coweta loan from the
proceeds of the sale. The resolution of this loan balance also
resolved a claim submitted by the bank in the claims process.
The Receivership received the net amount of $322,482.43
from the sale.
$322,482.43
Fairview, North Carolina
Residential property
$257,270.59
Remaining
principal balance
of approximately
$248,941.73 on
loan from Branch
Banking and Trust
Company
("BB&T")
On November 18, 2014, the Court approved the sale of this
property for $287,500 (Doc. 1151). On July 28, 2015, the Court
approved a settlement agreement wherein the parties agreed
that the Receiver would pay BB&T $10,000 to resolve BB&T's
claim to any portion of the sale proceeds for this property
(Doc. 1187). The remainder of the sale proceeds was
deposited into the Receivership accounts.
Page 5 of 14
$45,750.00
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
464 Golden Gate Point,
Unit 703, Sarasota,
Florida
Residential property
Primary mortgage
loan in the
amount of
$956,000 and a
home equity line
of credit with an
initial balance of
$880,000
On April 29, 2015, the Court approved the sale of this property $41,664.90 and
for $2,300,000 and approved the Receiver's request to hold
elimination of
the proceeds until disputes regarding the proceeds are
over $1,800,000
resolved (Doc. 1177). On June 21, 2017, the Court entered an
in debt
order approving a settlement agreement between Wells Fargo
obligations
Bank and the Receiver subject to a stipulation between Wells
Fargo Bank and La Bellasara Condominium Association wherein
the Receiver agreed to disburse the sale proceeds less costs of
$41,664.90 from the sale of the property in the amounts of
$2,003,030.69 to the bank and $103,109.60 to the
condominium association (Docs. 1296, 1297).
3343 U.S. Route 2 and
3353 U.S. Route 2,
Marshfield, Vermont
Two adjacent parcels of real
property
Federal tax lien
for $49,710.12
and property
taxes of
$12,066.69 in
arrears
On March 16, 2016, the Court approved the sale of these
properties for $90,000 free and clear of the federal tax lien and
approved the Receiver's request to satisfy the outstanding
property taxes from the sale proceeds. The Receiver
recovered the net amount of $69,242.55 after payment of the
property taxes and costs associated with the sale (Doc. 1230).
Laurel Preserve,
North Carolina
Twenty-three lots intended for
the development of home-sites
$1,900,000
interest only loan
from Wells Fargo
Bank
On June 21, 2017, the Court approved a settlement between
$254,073.76 plus
the Receiver and Wells Fargo Bank wherein the parties agreed
elimination of
that Wells Fargo could either (1) pay the Receiver expenses for
$1,900,000
in debt
maintaining the property, in the amount of $254,073.76, in
exchange for the Court's lifting the injunction and authorizing
Wells Fargo to foreclose on the property; or (2) waive its
security interest in the property in favor of the Receiver (Doc.
1296). Wells Fargo opted to pay the Receiver $254,073.76 on
September 29, 2017 and foreclosed on the property.
Page 6 of 14
$69,242.55
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
211 Church Street,
Thomasville, Georgia
.12 acre undeveloped lot
None known
On April 2, 2018, the Court approved the donation of this lot to
Habitat for Humanity (Doc. 1356).
North Stevens Street,
Thomasville, Georgia
1.17 acre undeveloped lot
None known
On April 2, 2018, the Court approved the sale of this lot for
$5,500 (Doc. 1356).
Page 7 of 14
Amount
Received/
Waived
$0.00
$5,500.00
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Aircraft and Vehicles
Helicopter
1997 Schwietzer 300
None known
Sold for $200,000 (Doc. 100).
$200,000.00
Airplane
1971 Cherokee Piper PA-28-140
None known
Sold for $27,500 (Doc. 433).
$27,500.00
Airplane
1978 Cessna 152
None known
Sold for $9,000 (Doc. 581).
$9,000.00
Airplane
1977 Baron
None known
Sold for $65,000 (Doc. 491).
$65,000.32
Airplane
1996 Learjet 31A
Loan with
General Electric
Corporation for
approx. $2.4
million
Returned in exchange for the cancellation of the outstanding
debt (Doc. 119).
Cancellation of
debt of
approximately
$2.4 million
Airplane
1992 Citation
Loan with VFS
Returned in exchange for the cancellation of the outstanding
Financing, Inc. for debt (Doc. 119).
approx. $2.1
million
Cancellation of
debt of
approximately
$2.1 million
Car
2008 Mercedes-Benz E63
Leased
The Receiver surrendered this car to the respective leasing
Waiver of penalty
company without penalty and without the lessor retaining any
and claim
claim to Receivership assets (Doc. 67).
Car
2009 Volkswagen EOS
Leased
On March 19, 2009, the Court granted the Receiver's motion
to surrender this car to the respective leasing company
without penalty and without the lessor retaining any claim to
Receivership assets (Doc. 89).
Page 8 of 14
Waiver of penalty
and claim
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Car
2008 Maserati Gran Turismo
Leased
On March 3, 2009, the Court granted the Receiver's motion to Waiver of penalty
surrender this car to the respective leasing company without
and claim
penalty and without the lessor retaining any claim to
Receivership assets (Doc. 52).
Van
1999 White Ford Van
None known
Sold for $500. Given the dimunitive value of this vehicle, the
Receiver was authorized to sell it without further approval
from the Court (see Order, Doc. 97).
Van
2003 White Dodge Van
None known
Sold for $2,000. Given the dimunitive value of this vehicle, the
Receiver was authorized to sell it without further approval
from the Court (see Order, Doc. 97).
$2,000.00
Truck
2002 Silver Jeep Liberty
(damaged)
None known
Sold for $1,000. Given the dimunitive value of this vehicle, the
Receiver was authorized to sell it without further approval
from the Court (see Order, Doc. 97).
$1,000.00
Jeep
1998 Jeep Wrangler
None known
Sold for $4,500. Given the dimunitive value of this vehicle, the
Receiver was authorized to sell it without further approval
from the Court (see Order, Doc. 97).
$4,500.00
Car
2006 Green Subaru Legacy
Outback
None known
On March 24, 2010, the Court approved the sale of the Subaru
for $16,500 (Doc. 371).
$16,500.00
Jeep
1997 "Barbie" Jeep Wrangler
None known
On March 2, 2010, the Court approved the sale of the Barbie
Jeep for $7,875 (Doc. 357).
$7,875.00
ATV
2004 John Deere Buck 4x4
None known
Sold for $3,300. Given the dimunitive value of this vehicle, the
Receiver was authorized to sell it without further approval
from the Court (see Order, Doc. 97).
$3,300.00
Page 9 of 14
$500.00
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Utility Vehicle
2001 Kawasaki Mule 4x4
Model 3010
None known
Sold for $4,325. Given the dimunitive value of this vehicle, the
Receiver was authorized to sell it without further approval
from the Court (see Order, Doc. 97).
$4,325.00
Car
2009 BMW 535i
Payoff balance of
$13,433.88 on
loan with BMW
Financial Services
BMW, previously used by Paul Downey in connection with
Quest, was sold for $17,000.00 (Doc. 1050). After payment of
the outstanding loan on the vehicle, the Receiver recovered
$3,566.12.
$3,566.12
Car
2007 Lexus LS
None known
Seized from Donald and Joyce Rowe and sold for $26,750 at a
sheriff's public auction. After payment of fees and costs, the
Receiver recovered $24,605.25 from the sale.
$24,605.25
Other Assets Recovered
Marguerite J. Nadel
Revocable Trust UAD
8/2/2007
The Receiver's investigation
None known
revealed that this trust was
funded entirely with proceeds of
Nadel's scheme.
On February 11, 2009, the Court expanded the Receivership to
include the trust (Doc. 44). The Receiver took control of the
account and transferred the funds into Receivership accounts.
$381,142.34
Three Bank Accounts
Three bank accounts jointly held None known
in Marguerite and Art Nadel's
name, which had been frozen at
the beginning of the Receivership
On July 12 , 2012, the Court entered an order denying Mrs.
Nadel's motion for relief from the freeze order for these three
accounts (Doc. 884). On July 17, 2012, the Court entered an
order directing the banks to transfer all money held in these
accounts to the Receiver (Doc. 887). On August 3, 2012,
$28,384.84 was transferred to the Receiver from these three
accounts. The accounts are now closed.
$28,384.84
Page 10 of 14
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Three Bank Accounts
Two bank accounts held in Art
Nadel's name and one bank
account held in the name of the
Clark-Nadel Revocable Trust,
which had been frozen at the
beginning of the Receivership
None known
On August 4, 2015, the Court entered an order granting the
Receiver's motion for possession of these bank accounts and
modifying the asset freeze to permit Wells Fargo Bank to
release the money in the accounts to the Receiver and close
the accounts (Doc. 1189). On August 19, 2015, the Receiver
received $13,610.94, which was the total amount held in these
accounts.
$13,610.94
Jewelry
39 pieces of various jewelry
obtained from Queen's Wreath
Jewels, Inc., Mrs. Nadel, Sharon
Moody, and another profiteer
None known
On March 11, 2011, the Court approved the sale of the jewelry
by public auction (Doc. 608). Through an auction held by Leslie
Hindman Auctioneers on April 10 and 11, 2011, the Receiver
successfully sold all 39 pieces for a total of approximately
$643,890. After payment of commission and other related
expenses, the Receivership estate netted approximately
$591,883.85 from the sale of this jewelry.
$591,663.85
Office Furniture
Miscellaneous used office
furniture obtained from
Receivership Entities' offices
None known
Given the dimunitive value of this furniture, the Receiver was
authorized to sell it without further approval from the Court
(see Order, Doc. 97).
$3,500.00
Home Front Homes
Assets
Miscellaneous assets of Home
Front Homes that were not
included in the asset purchase
agreement. These assets
included a pick-up truck, two
small free standing storage
structures, and a telephone
system.
None known
Given the dimunitive value of these items, the Receiver was
authorized to sell them without further approval from the
Court (see Order, Doc. 97).
$7,600.00
Page 11 of 14
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Computer Equipment
Miscellaneous dated and used
computer equipment obtained
from the Sarasota office
None known
Given the dimunitive value of this equipment, the Receiver
was authorized to sell it without further approval from the
Court (see Order, Doc. 97). The Receiver is selling pieces as he
is able though the internet and other means.
$763.00
Piano
Yamaha baby grand piano
None known
On August 1, 2012, the Receiver filed a motion seeking the
Court’s approval of the sale of the piano for $9,900 (Doc. 891),
which the Court granted on August 2, 2012 (Doc. 892).
$9,900.00
Paintings
Various paintings obtained from
David Band in connection with a
settlement involving transfers
from Donald Rowe
None known
The paintings were sold at auction. The Receiver recovered
$1,146 from the sale of the paintings.
$1,146.00
Receivables/Notes/Securities
Bonds.com Promissory
Five promissory notes from
Notes and Shares of Stock Bonds.com in the total amount
outstanding of $1,840,636 made
payable to the Moodys and
Valhalla Investment and
approximately 7,582,850
unrestricted shares of Bonds.com
stock
On April 13, 2012, the Court approved the Receiver's
agreement between him and Bonds.com for the repayment of
debt, termination of rights, and repurchase of securities (Doc
816). In pertinent part, the agreement (1) retired all of the
indebtedness of Bonds.com to the Receivership as reflected in
the promissory notes in exchange for payment of $2,250,000
within five days of entry of the order approving the
agreement; and (2) allowed Bonds.com to repurchase the
shares of stock for payment of $5,000.
Page 12 of 14
$2,255,000.00
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Flagship Global Health,
Inc. ("Flagship")
Promissory Note
A convertible promissory note in
the amount of $250,000 from
Flagship to Valhalla Investment
Partners
Flagship filed for relief under Chapter 7 of the Bankruptcy
Code. The Receiver submitted a claim for $149,300.91, which
was the outstanding balance of the note including accrued and
unpaid interest. The claim was allowed for the full amount
claimed. On July 19, 2012, the Receiver recovered $94,525.40,
representing 63.3120% of the Receiver’s claim, in full
satisfaction of the claim.
$94,525.40
MAM Software Group
Stock
5,564 shares of ADNW stock,
which became Aftersoft and is
now known as MAM Software
The Receiver learned that these shares were escheated to the
State of Florida in March 2012. The state liquidated these
shares in July 2012. The Receiver submitted a claim to these
shares and received a check for $12,797.20 in March 2013,
which is the amount the state had obtained from the sale of
the shares.
$12,797.20
Endai Marketing Growth, 67,000 shares of Endai stock held
Inc. ("Endai") Stock
in the name of Valhalla
Investment Partners
The Receiver obtained an appraisal for the Endai shares, which
found that the Receivership’s Endai holdings were worth
approximately $6,578.24. On August 31, 2012, the Court
approved an agreement for the sale of these shares to Endai
for $15,000 (Doc. 903).
$15,000.00
First America Bank Corp. 36,000 shares held in the name of
("First America") Stock
Neil Moody
On May 5, 2015, First America was acquired by HCFB Holding
Company. The plan of merger provided for approximately $33
million for all outstanding shares of First America. The
consideration per share was $8.00. This was an all cash tender
with no other options. The Receiver redeemed the shares held
by the Receivership for the total amount of $288,000.
$288,000.00
Page 13 of 14
Receivership Assets Sold or Otherwise Disposed
Asset
Description of Asset
Loans/Liens
Disposition
Amount
Received/
Waived
Additional MAM Software 106,299 shares of MAM Software
Group Stock
Group held in the name of the
Neil Moody Trust
In May 2018, the Receiver learned of a tender offer by MAM
Software Group that occurred in or around November 2015
through which Neil Moody received $59,692.50 in exchange
for tendering 106,299 shares titled in the name of his trust. In
response to a demand by the Receiver, Mr. Moody sent
$59,692.50 to the Receiver by wire transfer on June 4, 2018.
$59,692.50
TRD Land 43, LLC
On May 4, 2017, Chris Moody informed the Receiver that the
Chris Moody Trust received a payment of $4,800 from TRD
Land 43, LLC in connection with this investment. Mr. Moody
timely turned this payment over to the Receiver.
$4,800.00
3.22% Limited Partnership
Interest
Page 14 of 14
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