This is not a precedent setting event.
William F Perkins, the court appointed receiver for the Colon End Parenthesis (C.E.P.) Clayton Kimbrell and Trevor Reed autosurf scam carried out a successful, although drawn out, clawback of funds from many insiders and players.
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A lawsuit was filed in U. S. Bankruptcy Court in Atlanta yesterday for the recovery of transfers of CEP funds totaling approximately $1.5 million. The defendants named are Trevor Reed, Ginger Phillips Reed, Earl Reed, Clayton Kimbrell, Greg Kimbrell, Russell Phillips, Jessica Phillips, Chris Barany and Cliff Barany.
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I am defining “creditors” who will receive this initial mailing to be all participants that CEP records indicate have a net positive cash balance as discussed
in FAQ #5.
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I filed a lawsuit yesterday against SureInvest LLC and its principals, Michael Donaker, Kyle Herron and Tammy Dowell, seeking the return of approximately $1,753,000 transferred to them during 2007.
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I have filed 33 lawsuits in the Bankruptcy Court (two more to go) in this first round of recovery suits against investors. We are pursuing all distributions to these defendants. I am not attaching the complaints here due to volume, although I understand that some have probably been picked up off the docket and are being circulated about the forums. This group includes Caroline, Bart and Heidi Strittmatter, Israel Lagares, Daniel May, Gary Schrier, Marcus Petrelli, Regina & Gary Johnson, Dustin Fennell, Thomas Hall, Maurice Usenbor, Max Gonzalez, Troy Winters, Pamela Anderson, Curtis Greek, E-Business (Alwine), Hobson Black, Wilfried Owatoye, Patricia Bruno, William Nugent, Skye Karls, Shad Foss, Wilmer Michael Wrenn, Bill Holcombe, Andrew Hockenbrock, Jevard Hitch, Brenda Bumgardner, Jace Wingard, Greg Collier, Jim Pratt, Denise Higgins, Howard C. Phillips, and Gareth Lodge. This group received distributions in excess of $2.5 million with over $2.0 million of that amount appearing to be in excess of their investment.
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The last month has been extremely busy. I have filed another 27 lawsuits on preference issues totaling $1.5 million and written 64 demand letters for the return of approximately $1.1 million. I am sure that when the deadlines pass on the demand letters on October 5 and October 12 that many more lawsuits will become necessary.
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The following people have not responded in a substantive manner to my demand for their return of the fictitious profits that they removed from CEP Trust in the amounts shown. If, in my judgment, I receive no meaningful response from these individuals by the end of this week, Friday, December 7, 2007, then I will proceed with more formal legal remedies as stated in the demand letters. These individuals pocketed a total of $503,000 of “profits” from CEP Trust.
JEAN ANDERSON, $28,113.85
JOSHUA ANDERSON, $16,368.67
PENNY AULD, $27,961.52
RONALD VILLA / AURELIO, INC., $15,492.08
KELLY BEAUCHAMP, $29,495.95
KEITH BEAUCHAMP, $23,625.00
KENNETH BOYD, $29,759.14
KENNETH BROWN, $16,970.04
DAVID FERNANDEZ, $23,946.76
GARY HARBIN, $25,082.00
CINDY HENRYSON, $24,919.24
KELLY HIGGINS, $23,437.76
CHARLES HOLDER, $23,040.41
NOEL HURD, $17,650.00
JOEL KANTOR, $18,321.77
RUTH ANN MCDONALD, $15,436.18
APRIL PATTIE, $24,611.39
REBECCA PROSCH, $19,855.98
DELFIN RODRIGUEZ, $19,728.25
PAUL STANSEL, $25,936.70
SHARM STILTZ, $22,153.34
DAVID STUCKE, $15,339.73
DOUG WHYTE, $15,723.04
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The Receiver's lawsuit against CEP participants Gary and Susan Schreier for amounts in excess of $200,000 was tried on August 20, 2009. On January 6, 2010, U.S. Bankruptcy Judge James Massey ruled in favor of the Receiver and awarded judgments against Gary Schreier in the amount of $149,474; against Susan Schreier in the amount of $148,529; and against The Schreier Family Retirement Assets LLC in the amount of $161,695. The judgment awards are duplicative against the parties and the Receiver is entitled to only one satisfaction of the judgments, not to exceed approximately $230,000.
SEC v. Colon End Parenthesis Trust LLC