ahmet sandikci federal trial 04/26/2012 @ 9:30 am courtroom 8-a tampa fed court

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AHMET SANDIKCI FED TRIAL

Saint Petersburg, FL

#1 Feb 17, 2012
The day is soon to be upon us folks where this foreigner who has scammed many americans will be going to trial in federal court. The public is invited or those he has ripped off. Sandikci post many videos about entrepreneaur of the year and others videos about himself that are lies to the media and to the public. Sandikci has used every bit of this false information to mislead the public so he could rip them off with his ponzi scheme. If you were a victim you just might want to attend this hearing. Watch this scum lose everything possibly even his freedom and then be deported.
Person Scamed by Sandikci

Saint Petersburg, FL

#2 Feb 17, 2012
Folks the day is here where this turk muslim will finally be getting his fate. He has ripped off, scamed his last american. It is my strong belief that Sandikci will be indicted after the above trial for even more crimes.
Joseph V Rainier

Tarpon Springs, FL

#3 Feb 29, 2012
Person Scamed by Sandikci wrote:
Folks the day is here where this turk muslim will finally be getting his fate. He has ripped off, scamed his last american. It is my strong belief that Sandikci will be indicted after the above trial for even more crimes.
God Bless Ahmet Sandikci !

UNITED STATES COURT OF APPEALS

FOR THE SECOND CIRCUIT

S U M M A R Y O R D E R

THIS SUMMARY ORDER WILL NOT BE PUBLISHED IN THE FEDERAL REPORTER AND MAY NOT BE CITED AS PRECEDENTIAL AUTHORITY TO THIS OR ANY OTHER COURT, BUT MAY BE CALLED TO THE ATTENTION OF THIS OR ANY OTHER COURT IN A SUBSEQUENT STAGE OF THIS CASE, IN A RELATED CASE, OR IN ANY CASE FOR PURPOSES OF COLLATERAL ESTOPPEL OR RES JUDICATA.

At a stated Term of the United States Court of Appeals for the Second Circuit, held at the United States Courthouse, Foley Square, in the City of New York, on the 29th day of May,

one thousand nine hundred and ninety-six.

Present: HONORABLE AMALYA L. KEARSE,

HONORABLE RALPH K. WINTER,

HONORABLE GUIDO CALABRESI,

Circuit Judges.

__________

UNITED STATES OF AMERICA,

Appellee ,

- v.- Nos. 95-1577

96-1312

JOSEPH RAINIER,

Defendant-Appellant
Joseph V Rainier

Tarpon Springs, FL

#4 Feb 29, 2012
My Profile EX Convict

UNITED STATES COURT OF APPEALS

FOR THE SECOND CIRCUIT

S U M M A R Y O R D E R

THIS SUMMARY ORDER WILL NOT BE PUBLISHED IN THE FEDERAL REPORTER AND MAY NOT BE CITED AS PRECEDENTIAL AUTHORITY TO THIS OR ANY OTHER COURT, BUT MAY BE CALLED TO THE ATTENTION OF THIS OR ANY OTHER COURT IN A SUBSEQUENT STAGE OF THIS CASE, IN A RELATED CASE, OR IN ANY CASE FOR PURPOSES OF COLLATERAL ESTOPPEL OR RES JUDICATA.

At a stated Term of the United States Court of Appeals for the Second Circuit, held at the United States Courthouse, Foley Square, in the City of New York, on the 29th day of May,

one thousand nine hundred and ninety-six.

Present: HONORABLE AMALYA L. KEARSE,

HONORABLE RALPH K. WINTER,

HONORABLE GUIDO CALABRESI,

Circuit Judges.

__________

UNITED STATES OF AMERICA,

Appellee ,

- v.- Nos. 95-1577

96-1312

JOSEPH RAINIER,

Defendant-Appellant
Page 1

Largo, FL

#5 Mar 14, 2012
1
UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
In re: Case No. 8:11-bk-07915-MGW
Chapter 7
AHMET SANDIKCI,
Debtor.
__________
DONALD F. WALTON, Adv. No. 12-ap-______-MGW
United States Trustee for Region 21,
Plaintiff,
v.
AHMET SANDIKCI,
Defendant.
__________
UNITED STATES TRUSTEE'S COMPLAINT
OBJECTING TO THE ENTRY OF THE DEBTOR’S DISCHARGE
Donald F. Walton, the United States Trustee for Region 21, through the
undersigned counsel, files this complaint against AHMET SANDIKCI (the “Defendant”),
and alleges:
JURISDICTION AND VENUE
1. This complaint is filed pursuant to 11 U.S.C.§§ 727(a)(2)(A),(a)(3)
(a)(4)(A),(a)(5) and Rule 7001(4), Federal Rules of Bankruptcy Procedure.
2. This Court has jurisdiction to hear this case under 28 U.S.C.§§ 157 and
1334 and 11 U.S.C.§ 727.
3. This is a core proceeding under 28 U.S.C.§ 157(b)(2).
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 1 of 16
2
4. Venue is proper under 28 U.S.C.§ 1409.
5. The United States Trustee has standing to bring this action pursuant to 11
U.S.C.§§ 307 and 727(c).
6. The Defendant is the Debtor in the above captioned Bankruptcy Case and
resides at 4816 Alternate 19, Palm Harbor, Florida 34683.
GENERAL ALLEGATIONS
7. On April 27, 2011 (the “Petition Date”), the Defendant filed a voluntary
petition under Chapter 11 of the Bankruptcy Code.(Doc. No. 1).
8. On May 11, 2011, the Defendant’s attorney’s filed a verified statement to
his application to be employed as Defendant’s counsel, which states “that the law firm
received $4,500 for legal services and filing fees as well as an Assignment of Sales
Proceeds in the amount of $13,000 prior to employment of Palm Harbor Law Group,
P.A”.(Doc. No. 21).
9. Attached to the verified statement is an Irrevocable Partial Assignment of
Sales Proceeds which reflects that “for valuable consideration Client hereby irrevocably
assigns and transfers to Law Firm $13,000 (the “Proceeds”) received or to be received by
Client from the sale of stocks owned by the Client and held in Scottrade account no.
71624574 (the “Stocks”).(Doc. No. 21-1).
10. On May 18, 2011, the Defendant filed his Schedules and Statement of
Financial Affairs, which were signed under penalty of perjury.(Doc. No. 26).
11. On Schedule A, the Defendant declares interest in real property, a
condominium, with a stated current value of $80,000.
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 2 of 16
3
12. On Schedule B, the Defendant declares personal property with a stated
current value of $43,000.
13. On Schedule B, item two (2), the Defendant declares an interest in a
Wachovia Bank checking account valued at $1,500 and a Bank of America
debtor-in-possession checking account valued at $21,000.
14. On May 26, 2011, the Defendant amended Schedule B to include a
Scottrade Account valued at $105,000.
15. The Defendant’s Schedule D reflects one (1) creditor holding a secured
claim in the amount of $25,307, which consist of a mortgage on the Defendant’s
homestead.
16. The Defendant’s Schedule E reflects one (1) creditor holding an unsecured
priority claim in the amount of $79,000, which consist of a business debt related to Form
1040 taxes for December 2007.
17. The Defendant’s Schedule F reflects unsecured nonpriority claims in the
amount of $140,506.07.
18. On Schedules I and J respectively, the Defendant declares that his total net
monthly income is $3,000 and his monthly expenditures total $2,630.45.
19. On Statement number one (1), the Defendant declares gross income in the
amount of $96,000 in 2009 from employment and operation of a business.
20. On Statement number one (1), the Defendant declares gross income in the
amount of $56,000 in 2010 from employment and operation of a business.

Page 2

Largo, FL

#6 Mar 14, 2012
21. On Statement number one (1), the Defendant declares gross income in the
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 3 of 16
4
amount of $14,400 year to Petition Date in 2011 from employment and operation of a
business.
22. On Official Form 22B, number two (2), the Defendant reflects gross
wages in the amount of $3,600.
23. On Statement of Financial Affairs number eight (8), the Defendant
declares losses from gambling within one year immediately preceding the
commencement of this case as $10,000 at the Seminole Hard Rock Casino in Tampa,
Florida in the year 2010.
24. Based upon records currently available to the United States Trustee
from Seminole Hard Rock Casino, the Defendant incurred losses from gambling in the
amount of $302,115 from the period of April 27, 2010 through April 26, 2011.
25. Based upon the records currently available to the United States Trustee
from Seminole Hard Rock Casino, the Defendant incurred losses from gambling in the
amount of $155,875 during 2010.
26. Based upon the records currently available to the United States Trustee
from Seminole Hard Rock Casino, the Defendant incurred losses from gambling in the
amount of $146,240 during 2011.
27. On Statement of Financial Affairs number ten (10), the Defendant declares
that no other property has been transferred either absolutely or as security within two
years immediately preceding the commencement of this case.
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 4 of 16
5
28. On May 25, 2011, the Court held a final hearing to consider the
employment application of the Defendant’s attorney, Joel S. Treuhaft.(Doc. No. 19 and
21).
29. At this hearing on May 25, 2011, the United States Trustee brought to the
court’s attention the fact that the Scottrade account had not been disclosed on the
Defendant’s schedules.
30. On May 26, 2011, the Defendant filed an amendment to Schedule B, line
two (2) to reflect interest in a Scottrade account valued at $105,000.
31. On May 26, 2011, prior to the initial meeting of creditors in the Chapter
11 case, the Defendant amended Statement number ten (10) to reflect transfers valued at
$25,000, including a Rolex watch and framed art/currency, to his pre-petition attorney,
Robert Eckard, in October 2010.
32. On May 26, 2011, the Defendant attended and submitted to an
examination under oath at the meeting of creditors in the Chapter 11 case. The meeting
was concluded.
33. At the meeting of creditors held on May 26, 2011, the Defendant testified
that the amount of gambling losses in 2010 was only $10,000.
34. At the meeting of creditors held on May 26, 2011, the Defendant testified
that he had no winnings from gambling in the year prior to the Petition Date.
35. At the meeting of creditors held on May 26, 2011, the United States
Trustee questioned the Defendant at least three times as to whether the Defendant made
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 5 of 16
6
any other transfers of property within the two (2) years preceding the Petition Date, other
than to Robert Eckard, Esq.
36. On all three opportunities when questioned by the United States Trustee,
the Defendant denied any other transfers of property within the two (2) years preceding
the Petition Date, except to state that he had also given Robert Eckard, Esq. some office
chairs.
37. When the Defendant was asked by a creditor directly about any other
vehicles he may have owned within the prior two (2) years, the Defendant, then and only
then, disclosed the fact that he transferred a 2008 Mercedes 63 AMG CLS to a car
dealership for $42,000 in September 2010.
38. The 2008 Mercedes 63 AMG was titled in the name of the Defendant.
39. On July 22, 2011, the United States Trustee filed a motion to dismiss or
convert the Chapter 11 case (Doc. No. 45), which this Honorable Court granted on
September 30, 2011.(Doc. No. 71).
40. On October 3, 2011, the Court entered an order converting the case to
Chapter 7.(Doc. No. 73).
Page 3

Largo, FL

#7 Mar 14, 2012
41. Shari Jansen (the "Trustee") was appointed to serve as Chapter 7 Trustee
and continues to serve in that capacity.
42. The Defendant attended and submitted to an examination under oath at the
initial meeting of creditors in the Chapter 7 case scheduled on November 1, 2011. This
meeting was continued to November 29, 2011.
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 6 of 16
7
43. During the meeting of creditors held on November 1, 2011, the Defendant
testified that he had no idea how much money he makes and relies on his accountant to
provide this information.
44. At the meeting of creditors held on November 1, 2011, the Defendant
testified that he didn’t know how much money had been lost gambling at the Hard Rock
Casino.
45. At the meeting of creditors held on November 1, 2011, the Defendant
testified that the source of the funds used for gambling was a combination of funds
obtained from his business, personal, and Scottrade accounts.
46. At the meeting of creditors held on November 1, 2011, the Defendant
testified that on February 9, 2011, he received a wire transfer in the amount of $150,000
for personally owned collectible currency (multiple notes) sold by the Defendant.
47. The Defendant attended and submitted to an examination under oath at the
first continued meeting on November 29, 2011. This meeting was continued to December
6, 2011, to allow time for the Defendant to provide documents to the Trustee.
48. During the meeting of creditors held on November 29, 2011, the Defendant
testified that he transferred funds from his business operating accounts to his personal
Scott Trade account.
Page 3

Largo, FL

#8 Mar 14, 2012
49. The Debtor’s Scottrade account reflects deposits in the amount of
$301,000 from the period of September 15, 2009 through December 31, 2009.
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 7 of 16
8
50. The Debtor’s Scottrade account reflects deposits in the amount of
$490,900 from the period of January 1, 2010 through December 31, 2010.
51. The Debtor’s Scottrade account reflects deposits in the amount of
$65,000 from the period of January 1, 2011 through February 24, 2011.
52. The Debtor’s Scottrade account reflects deposits in the amount of
$65,000 from the period of October 1, 2010 through March 31, 2011 (the current monthly
income look back period)(the “CMI Period”).
53. On December 2, 2011, the Defendant filed an amendment to his Statement
number ten (10) to reflect the transfer of the 2008 Mercedes valued at $35,000.
54. On December 6, 2011, the Trustee concluded the Chapter 7 meeting of
creditors.
55. The deadline to oppose discharge was first set for January 3, 2012.
56. The Court granted the United States Trustee’s first motion to extend
deadline for sixty (60) days from the first deadline set for filing a motion to dismiss
pursuant to 11 U.S.C.§ 707(b)(3) and for filing a complaint objecting to discharge
pursuant to 11 U.S.C.§ 727 through and including March 5, 2012.(Doc. No. 92 and 95).
Count I
11 U.S.C.§ 727(a)(2)(A)
(Transfer and Concealment of Property of the Estate)
57. The Plaintiff realleges paragraphs 1 through 56 inclusive, and incorporates
them by reference.
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 8 of 16
9
58. Item 2 of Schedule B directs the Defendant to list checking, saving or
other financial accounts, certificates of deposit, or shares in bank, savings and loans,
thrift, building and loan, and homestead associations, or credit unions, brokerage houses
or cooperative.
59. On the Petition Date and on May 18, 2011, the date on which the
Defendant filed his Schedules and Statements, the Defendant and the Defendant’s
Attorney knew that the Scottrade account existed.
Page 4

Largo, FL

#9 Mar 14, 2012
60. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed property of the debtor by failing to disclose the Scottrade
account.
61. Statement of Financial Affairs, number one (1), directs the Defendant to
state the gross amount of income the debtor has received from employment, trade, or
profession, or from operation of the debtor’s business, including part-time activities
either as an employee or in independent trade or business, from the beginning of this
calendar year to the date this case was commenced.
62. Official Form 22B, in regards to calculation of current monthly income,
directs the Defendant to include all figures which reflect average monthly income
received from all sources, derived during the six calendar months prior to filing the
bankruptcy, ending on the last day of the month before the filing.
63. Based on information and belief that will be the subject of further
discovery, the deposits into the Scottrade account are income of the type that should have
been reported on Statement of Financial Affairs number one (1) or two (2).
64. Based upon the records currently available to the United States Trustee,
the Defendant’s income during the CMI Period would average $10,833 per month.
65. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed property of the debtor by failing to disclose his total gross
income for 2009, 2010, and year to Petition Date of 2011on Statement of Financial
Affairs number one (1) or two (2).
66. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed property of the debtor by failing to disclose his total gross
income during the CMI period.
67. Statement of Financial Affairs, number eight (8), directs the Defendant to
list all losses from fire, theft, other casualty or gambling within one year immediately
preceding the commencement of this case or since the commencement of this case.
66. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed property of the debtor by failing to disclose his total gross
income during the CMI period.
67. Statement of Financial Affairs, number eight (8), directs the Defendant to
list all losses from fire, theft, other casualty or gambling within one year immediately
preceding the commencement of this case or since the commencement of this case.
68. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed the transfer of property of the Defendant by failing to
disclose the total amount of gambling losses on Statement of Financial Affairs number
eight (8).
Page 5

Largo, FL

#10 Mar 14, 2012
69. Statement of Financial Affairs, number ten (10), directs the Defendant to
list all other property, other than property transferred in the ordinary course of the
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 10 of 16
11
business or financial affairs of the debtor, transferred either absolutely or as security
within two years immediately preceding the commencement of this case.
70. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed the transfer of property of the Defendant by failing to
disclose the transfer of the 2008 Mercedes within one (1) year prior to the Petition Date
until questioned at the meeting of creditors.
71. The Defendant, with the intent to hinder, delay, or defraud a creditor or an
officer of the estate, concealed the transfer of property of the Defendant by failing to
disclose the transfer of his personally owned collectible currency in exchange for
$150,000 within one (1) year prior to the Petition Date.
WHEREFORE, the United States Trustee respectfully requests that the Court
enters a judgment denying the Defendant’s discharge pursuant to 11 U.S.C.§
727(a)(2)(A), and grants other such relief that the Court deems appropriate.
Count II
11 U.S.C.§ 727(a)(3)
(Failure to Preserve Books and Records)
72. The Plaintiff realleges paragraphs 1 through 56 inclusive, and incorporates
them by reference.
73. During the meeting of creditors held on November 1, 2011, the Defendant
testified that he had no idea how much money he makes and relies on his accountant to
provide this information.
Page 5

Largo, FL

#11 Mar 14, 2012
74. At the meeting of creditors held on November 1, 2011, the Defendant
testified that he didn’t know how much money had been lost gambling at the Hard Rock
Casino.
75. The Defendant failed to substantiate the information presented in his
Schedules and Statements regarding his gambling losses and income from all sources.
76. The Defendant failed to keep or preserve recorded information from which
the Defendant’s financial condition might be ascertained.
WHEREFORE, the United States Trustee respectfully requests that the
Court enters a judgment denying the Defendant’s discharge pursuant to 11 U.S.C.§
727(a)(3), and grants other such relief that the Court deems appropriate.
Count III
11 U.S.C.§ 727(a)(4)(A)
(False Oaths or Accounts)
77. The Plaintiff realleges paragraphs 1 through 56 inclusive, and incorporates
them by reference.
78. Item 2 of Schedule B directs the Defendant to list checking, saving or
other financial accounts, certificates of deposit, or shares in bank, savings and loans,
thrift, building and loan, and homestead associations, or credit unions, brokerage houses
or cooperative.
79. On the Petition Date and on May 18, 2011, the date on which the
Defendant filed his Schedules and Statements, the Defendant and the Defendant’s
Attorney knew that the Scottrade account existed.
Case 8:12-ap-00191-MGW Doc 1 Filed 03/05/12 Page 12 of 16
13
80. The Defendant made a false statement under penalty of perjury on
his Schedule B by failing to initially disclose his interest in the Scottrade account.
81. Statement of Financial Affairs, number one (1), directs the Defendant to
state the gross amount of income the debtor has received from employment, trade, or
profession, or from operation of the debtor’s business, including part-time activities
either as an employee or in independent trade or business, from the beginning of this
calendar year to the date this case was commenced.
82. Official Form 22B, in regards to calculation of current monthly income,
directs the Defendant to include all figures which reflect average monthly income
received from all sources, derived during the six calendar months prior to filing the
bankruptcy, ending on the last day of the month before the filing.
83. Based on information and belief that will be the subject of further
discovery, the deposits into the Scottrade account are income of the type that should have
been reported on Statement of Financial Affairs number one (1) or two (2).
84. Based upon the records currently available to the United States Trustee,
the Defendant’s income during the CMI Period would average $10,833 per month.
85. The Defendant made a false statement under penalty of perjury on his
Statement number (1) by failing to disclose his total gross income for 2009, 2010, and
year to Petition Date of 2011 on Statement of Financial Affairs number one (1) or two (2)
86. The Defendant made a false oath under penalty of perjury at the meeting
of creditors by failing to disclose the accurate amount of gross income for 2009, 2010,
and year to Petition Date of 2011.
87. The Defendant made a false statement under penalty of perjury on his
Official Form 22B by failing to disclose his accurate income during the CMI Period.
88. Statement of Financial Affairs, number eight (8), directs the Defendant to
list all losses from fire, theft, other casualty or gambling within one year immediately
preceding the commencement of this case or since the commencement of this case.
89. The Defendant made a false statement under penalty of perjury in his
Statement of Financial Affairs number eight (8) by failing to disclose the accurate
amount of gambling losses in the year preceding the Petition Date.
Federal Reporter

Saint Petersburg, FL

#13 Mar 18, 2012
UPDATE!!!

Order Scheduling Pretrial Conference. Mailed to the Plaintiff for Service on Parties.. Pre-Trial Conference set for 5/15/2012 at 09:30 AM at Tampa, FL - Courtroom 8A, Sam M. Gibbons United States Courthouse, 801 N. Florida Avenue. Signed on 3/6/2012 (Chatham, Wendy)(Entered: 03/06/2012)
Federal Reporter

Saint Petersburg, FL

#14 Mar 18, 2012
TRIAL UPDATE!!

Order Continuing and Rescheduling Trial on Complaint to Determine Dischargeability (related document(s)21). Hearing scheduled for 6/14/2012 and 6/15/12 at 09:30 AM at Tampa, FL - Courtroom 8A, Sam M. Gibbons United States Courthouse, 801 N. Florida Avenue. Signed on 3/2/2012 (Chatham, Wendy) Modified on 3/2/2012 (Chatham, Wendy).(Entered: 03/02/2012)
Federal Reporter

Saint Petersburg, FL

#15 Mar 18, 2012
AHMET SANDIKCI TRIAL UPDATE!!!!

Order Continuing and Rescheduling Trial on Complaint to Determine Dischargeability (related document(s)21). Hearing scheduled for 6/14/2012 and 6/15/12 at 09:30 AM at Tampa, FL - Courtroom 8A, Sam M. Gibbons United States Courthouse, 801 N. Florida Avenue. Signed on 3/2/2012 (Chatham, Wendy) Modified on 3/2/2012 (Chatham, Wendy).(Entered: 03/02/2012)
de james

Davenport, FL

#16 Aug 26, 2012
I we have always said, only 2 options available for sandikci. its been 4 years and the justice system rope is getting tighter..and will i will spend any amount to see it through. "till the end"
just to protect innocent people.
de james

Davenport, FL

#17 Aug 26, 2012
hopfully the funds i have spent has saved some people from being defrauded. ahmet is proven to be a poor example of a human being..with no morals.and no ethics..watch for update....be very sceptical with buying or selling from this man. im not just a plaintiff , but have docs proving this man has committed fraud many times.
FEDERAL REPORTER

Saint Petersburg, FL

#18 Sep 19, 2012
Ahmet Sandikci is scheduled for trial on October 30, 2012 courtroom 8A in the U.S. District Court in Tampa Florida. The sam artist fate is coming soon. Sandikci is a con artist, thief and a liar. He has tried many times to slander the name of a Joseph Rainier in an attempt to get the heat off of him. I highly suggest that you don't let the postings of media coverage and photos of Sandikci mislead you. It all was bought by Sandikci in an attempt to give him some ind of standing so he can continue his fraud upon americans. BEWARE!!!
Victim

Tarpon Springs, FL

#19 Jan 5, 2013
go to uwpi.org to view the federal court ruling on Ahmet Sandikci
Victim

Tarpon Springs, FL

#20 Jan 5, 2013
www.uspi.org corrected web page go there to view federal court ruling. www.uspi.org
Gulf Mexico News Reporter

Saint Petersburg, FL

#22 Feb 2, 2013
careful notes and considered the testimony of the witnesses
2 and their demeanor and credibility of the various witnesses.
3 I reviewed the extensive documentary evidence and
4 considered carefully the post-trial submissions, both of
5 which were excellent, on the issues involved. And based on
6 that, I'm prepared and will now make my findings of fact and
7 conclusions of law.
8 This case involves the not unusual situation of a
9 fairly complicated series of transactions done without the
10 assistance of counsel at any stage of the parties' dealings.
11 In such cases, a Court must analyze the facts established by
12 the evidence and determine the legal consequences of the
13 parties' actions.
14 And, here, the facts regarding the parties'
15 transactions really are not in material dispute. In fact,
16 the Defendant admits in his answer that he's indebted to the
17 Plaintiffs collectively in the amount of $3,691,000, subject
18 to certain unspecified setoffs.
19 The parties have also stipulated that from
20 November 2, 2007 and March 1, 2008, Dennis and Robert Detrie
21 transferred $500,000 to the Debtor for the purchase and sale
22 of rare currency. Between March 26th, 2008 and August --
23 excuse me, October 26th, 2008, Dennis and Robert Detrie,
24 either individually or through entities they owned,
25 transferred an additional 1.2 million to the purchase and
sale of rare currency. Daniel Schmidt also transferred
2 $200,000 to the Debtor for the purchase and sale of rare
3 currency during that same period.
4 Some of the funds that Dennis Detrie transferred
5 to the Debtor were used to buy rare currency for a retail
6 currency store that Dennis Detrie, DeJames Builders and the
7 Debtors opened on Worth Avenue in Palm Beach, Florida, in
8 April 2008. DeJames Builders paid for the material to build
9 out the store and also performed the labor.
10 The Debtor repaid Detrie the initial 500,000 that
11 was transferred to him, along with some profit, but the
12 Plaintiffs were never repaid the additional $1.2 that they
13 transferred, nor do they have any of the currency that was
14 supposedly purchased with their money.
15 It is now up to the Court to sift through the
16 facts to determine what legal construct is most appropriate
17 for the relationship between these parties. The parties
18 dispute the nature of the relationship. The Plaintiffs say
19 they had a joint venture with the Debtor. The Debtor says
20 that the money the Plaintiffs transferred to him were merely
21 a series of loans.
22 Determining whether the transfer of funds was part
23 of a joint venture or merely a loan or a series of loans is
24 critical because it affects whether the debt owed to the
25 Plaintiffs is dischargeable under Section 523(a)(4).
523(a)(4) excepts from discharge any debt for fraud or
2 defalcation while acting in a fiduciary capacity, and
3 embezzlement or larceny.
4 There are no allegations of larceny. So the debt
5 owed to the Plaintiffs is nondischargeable:(1) if the
6 Debtor committed fraud or defalcation while acting in a
7 fiduciary capacity; or (2) if the debt resulted from
8 embezzlement. The Plaintiffs can satisfy the fiduciary
9 requirement by proving the existence of a joint venture.
10 And, here, the evidence is overwhelming that the parties
11 were part of a joint venture or a series of joint ventures.
12 To begin with, this issue was previously litigated
13 in State Court in connection with a motion to appoint a
14 Receiver and for injunctive relief. And the State Court
15 specifically determined that the Debtor solicited DeJames
16 Builders' involvement as a joint venture partner in retail
17 rare currency business.

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