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Northwest Territorial Mint - Page 13
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Thread: Northwest Territorial Mint

  1. #121
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    There has been a whole series of letters and court tapes from hearings which ended last Friday December 7th.

    No telling what will come of this if anything, but keeping up with all the detail is interesting and the Bankruptcy judge in a number of session Friday did address a number of issues.

    I only listened to the last session which was a two hour tape and the most interesting by far as the judge spent almost the entire time demanding answers from several different attorneys and the trustee and wants them as declarations to the court by the middle of January so he will have a couple weeks to go over everything before their February 1st meeting.

    These attorneys are not only the ones for the trustee but also the attorney for the creditors committee is also in potential hot water. As he and the attorney for the trustee both seemed to have violated client privileges by sharing information that was like the defense and prosecutor sharing information and the creditors attorney allowing the trustees lawyer to question members of the creditors committee which he had no right according to the judge without their consent. So he was very interested in who knew what and when according to emails flying around and who violated these confidentiality agreements put in place. But if nothing comes of all this information, then it is nothing but smoke and mirrors to cover everyone's ass. Only time will tell.

    If things actually turn ugly for these people through the court, I'll post all the detail later for everyone to read, I just don't trust anyone in these bankruptcy cases from what I've seen over the past couple years.

    Just a hint of what the judge raised an issue with and wants an explanation for: why did the trustee tell everyone for some 18 months that NWTM was a solvent company and he was restructuring it to bring it out of bankruptcy and over the past few months it has turned in to a insolvent company and has been all along. He said these two statements do not agree and wants to know why and if he had known this a long time ago he wouldn't have agreed to many of their request.

    None of this will end up helping anyone that is on the hook from NWTM, as the amount of money all the blood suckers are requesting amounts to something like five million dollars and there is only something like three million left.

    Whoops someone is not going to get paid for all their work as in the trustee, the legal team he has hired and his company working for him doing some of the work, plus the creditors attorney.

    You wouldn't believe the amount of money they spent on legal fees going after just one employee who was judged to be basically insolvent which they knew before hand and yet they spent a fortune going after her and the judge made a real issue of sound judgment out of things like that.
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

  2. #122
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    As an addition to the above message, the following information was posted today listing many of the items discussed and the declarations required. This is being posted in two parts because it was just over the size limit

    The characters listed below are as follows:

    Calvert is the Trustee running the show at NWTM

    Gearin is the attorney representing the trustee side

    Mr Smith is the US Trustee, but has little to say or do in this hearing

    Judge Alston is the overlord or God who decides who will or will not get paid and anything else he desires

    Northrup is the attorney representing the UCC or creditors committee

    Wagner was an executive with NWTM helping the re-organization

    Mr. Bressler was a co-owner of Medallic Art with Ross Hansen and silent partner and silently got shoved out to sea by the Judge

    Diane Erdmann is the co-defendant in the bankruptcy case and criminal trials

    Ross Hansen is the go-defendant in the bankruptcy case and criminal trials and also the owner of NWTM

    Bill Hansen if that's how his name is spelled is or was a member of the UCC as the co-chair until he resigned last year, apparently no relation with Ross.

    Cascade Capital is a company owned by Calvert the trustee

    There are a few other names but of no real significance
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

  3. #123
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    Part two


    The final portion started with Mr. Smith from the U.S. Trustee's office stating that his office has met with Calvert and Gearin (but did not say when), regarding fees and allegations. He said that the U.S. Trustee's office has already either taken actions or not taken them, as deemed appropriate given the case and circumstances, and the resources of his office. I find this odd, as just a few hours before that statement, Smith found out (unless he already knew) about the $250K loss Calvert did not report. Maybe that not insuring a $250,000 package is a simple business decision.

    Judge Alston then mentioned that there are a lot of questions, and he is going to have each party file declarations responding to many of the questions. He said that he is considering the letters of the former and previous member of the UCC, but not considering my letters (as he does not consider me a creditor), a decision which I respect. The main takeaway of the hearing was that Calvert, Gearin, and Northrup are going to have to file declaration(s) with statements as well as some documents to back up their positions. Calvert and Gearin need to re-file their fee applications broken down by category.

    Among the declarations needed are:


    •In October, 2017 fee applications were filed, but Gearin said that they would be addressed when the value of the company was more certain. But no value was conferred. How should fee applications be viewed then?

    •Calvert needs to declare whether he auctioned or consigned goods, which would have required reporting in the monthly operating reports (MORs), and court approval.

    •Calvert needs to explain why he reimbursed $31K of expenses that were not disclosed on the MORs, and the authority on which he did that.

    •Calvert needs to explain the store inventory, where it is, when it was acquired.

    •Calvert/Gearin need to explain why they said that the estate was administratively solvent, when they said that it was insolvent, and why they made certain statements related to that.

    •Calvert/Gearin need to supply non-privledged emails regarding the resignation of the UCC co-chair in March, 2017.

    •Gearin needs to explain why the Trustee went after Diane Erdmann for the AmEx claims, rather than AmEx (who is solvent and would have fewer defenses).

    •Calvert needs to address whether he knew of Wagner's plan to take over the China business in 2016, and to include a copy of the plan. Calver also needs to address what his concerns were in March, 2018 when he asked K&L Gates how to best manage Sierra Mint.

    •Calvert must address the issue with the dies, and how he said there were 400,000 (Gearin said that they could not find any contract showing that the China dies are property of NWTM). Calvert also stated that Lin-Jung Feng (a/k/a Yong Tuo) sells goods to NWTM.

    •Calvert must explain why if he said this was a Ponzi scheme, no avoidance actions were taken. Alston mentions payments of $45K, $500K+ and others to individuals.

    •An explanation must be provided as to why the Dayton lease was assumed, which Calvert said was an above market lease, and substantial fees were billed for that.

    •Calvert has to explain extraordinary expenses, as required by 2016-1(a)(7). These include photography, a garbage container, that sound like Calvert fronted money with short-term loans (reimbursing himself before admin claims.

    •Calvert must explain why he paid Amicus Law Group, who Gearin said were Calvert's personal tax attorneys.

    •Calvert must address payments to two employees/consultants, including a $6,000 even payment for "meals-travel" after a $310.80 payment was made for meals.

    •Calvert must address a $1,000 cash payment to an employee of his, and why it was not disclosed as a payment to a professional, why the box wasn't checked on the MOR.

    •Calvert must address why in August, 2016 $26,000 of payments were made to Edgar Chacon as "Exp. Reports". Calvert stated at the hearing that he, um, doesn't recall what those were.

    •Professionals must include in declarations all payments to lawyers, auctioneers, consultants, and any other professionals not approved by the court, with date and explanation of each payment, and copies of any documents or agreements with them, and emails/communications requesting them.

    •They must address all payments made to Calvert's Cascade Capital and employees, with date and reason for payment.

    •They must address all payments made to Wagner and Chacon, with date and reason, except for normally salary.

    •They must address all payments made to Ms. Fleet and Ms. Johnson (except for salary payments), and Mr. Mannelly

    •Northrup must include why there was no forensic audit

    •Northrup must include whether the UCC approved the omission of a paragraph in a motion.

    •Northrup must address a call about a settlement agreement with Mr. Bressler, after the judge denied a settlement agreement.

    •Northrup must address whether the UCC wanted him to take action to have Calvert removed as Trustee, and if so, why no action was taken.

    •Northrup must include in his declaration a copy of his email response to the UCC co-chair that requested Northrup to take action to remove Calvert.

    •Northrup must reconstruct what happened with a settlement agreement that needed to be kept from Ross Hansen, and why it was not promptly brought before the court as the agreement required.

    •Gearin and Northrup must check to see if Northrup sent Gearin the email that the co-chair sent, and confirm or deny that they received it at any time.

    •Northrup must address whether he authorized Gearin to contact UCC members about disclosures to Ross Hansen.

    •Gearin must produce a copy of the Wagner contract that Gearin reviewed

    •Calvert needs to explain why the Dayton lease was assumed. Calvert tried answering that they studied another option, liked it, but didn't have the money. But Judge Alston said he already did not accept that with a prior decision.

    •Calvert needs to address why Cascade is billing for things that ppear to be Trustee duties, such as backing up videos, and why someone from Cascade should be paid to come to the court (unless as a witness).

    •Calvert needs to address why Cascade was billing for reviewing Proof of Claims in July 2017.

    •Calvert needs to address why a solvency analysis was necessary.

    •Calvert needs to explain why categories for billings changed from the October, 2017 fee application to the 2018 fee application. He should redline what categories changed.

    •Calvert needs to address some extraordinary expenses, such as the fee to the outfit in India that did data entry, not a normal business expense.

    desired, and dismissed it, but asked Wagner to stay, and that Wagner has done an outstanding job.

    Gearin said that in May, 2018 there were discussions with Wager regarding having Sierra Mint help liquidate the China inventory, and there was a draft of a contract at that time, but Calvert said nothing was finalized.

    When Northrup was asked if the UCC voted for a forensic audit of Calvert's books, he said "not formally." Northrup said that the financial advisor was to test projections in a reorganization plan, and that none of the Seattle-based advisors were willing to take the engagement. Barrick was proposed by Petteys. When Judge Alston asked Northrup if he discussed the resignation of the UCC co-chair with the U.S. Trustee's office, Northrup said "I don't remember if I did, I think I did, if I didn't Gearin probably did or may have."

    The UCC co-chair resigned, apparently because he leaked confidential information to Ross Hansen. However, Judge Alston points out that the information (that a settlement agreement was signed) does not seem that it could have been confidential, since in the agreement Calvert says that he will promptly apply to the court for approval of the agreement, which would make it public. When Northrup was asked why it needed to be kept from Ross Hansen, Northrup couldn't respond, saying he would "need to re-construct this".

    Neither Gearin nor Northrup could recall if Northrup emailed Gearin a copy of the letter that the UCC co-chair sent to Northrup asking him to take action to remove Calvert. Judge Alston stated "I'm concerned [Northrup] ratted out a client".

    Judge Alston pointed out that it appears that Gearin may have been contacting people represented by counsel without authorization (violating basic rules of professional conduct). Gearin couldn't remember if he got permission ("I cannot remember is if I got an affirmative sign-off from Northrup or not." at 1:17:45ish), but then his memory goes from failing to crystal clear at 1:19:10ish: "I'll have to go back to look at the records. I believe I had a conversation with Northrup before I sent that, in fact I am sure I did, I had a conversation before I sent that email and I told him what I was going to do, so he was aware that I was going to send this email to each of the committee members. I copied him on that, I requested that they each produce a packet of information and they complied, including [the UCC co-chair]."

    The hearing ended with everyone agreeing to have supplemental declarations by January 18, 2019 for a February 1, 2019 hearing.
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

  4. #124
    Join Date
    May 2007
    Location
    Atlanta
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    Criminal Trial Moved to June, 2019

    January 8, 2019 12:25PM EST

    The Ross Hansen and Diane Erdmann criminal trial has been postponed to June 10, 2019 at 9:00AM.

    Hansen and Erdmann had requested the trial to be continued to October 21, 2019. While the judge agreed that a continuation would be necessary to ensure proper justice, he did not feel that it was necessary to delay until October.



    As an update, Charles McAllister from Bullion Direct is scheduled to go on trial May 13th, 2019. He is facing up to 50 years which he'll never get as it would be a life sentence for him.

    It all depends on the prosecutors, but Hansen didn't violate some of the potential laws McAllister did with ripping off IRA accounts, if that's a federal offense.

    It's hard to believe how much these guys ripped off from honest hard working men and women and yet Tulving only served a couple years.
    Last edited by valerb; 11th January 2019 at 00:59.
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

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