trudeau civil case document 857 thru 859 receivers motion for entry of an order approving sale of...
DESCRIPTION
More documents in the Kevin Trudeau civil case; filed on April 28, 2014. These are regarding the pending sale of the Global Information Network (GIN) to AXS Consulting, LLC. Here the receiver explains in more detail than in previous docs why they want to sell GIN to AXS and not to others. Also, as discussed previously, they want to sell GIN "free and clear." (Hence the document title: RECEIVER’S MOTION FOR ENTRY OF AN ORDER APPROVING SALE OF GIN CLUB ASSETS FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES.) Deadline for filing objections to the sale is May 12, and a hearing will be held, and the sale presumably finalized, on May 27.TRANSCRIPT
-
GIN Network Truth (the smart group)
UNITED STATES DISTRICT COURT FOR
THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
KEVIN TRUDEAU,
Defendant.
)
)
)
)
)
)
)
)
)
)
Case No.: 03-C-3904
Hon. Robert W. Gettleman
RECEIVERS MOTION FOR ENTRY OF AN ORDER APPROVING SALE OF GIN
CLUB ASSETS FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES
Robb Evans & Associates LLC, in its capacity as the court-appointed receiver for the
assets of Kevin Trudeau and the Trudeau Entities et al. (the Receiver), by and through its
undersigned counsel, hereby moves for entry of an order (the Motion) approving the sale of
certain receivership assets related to the operation of the Global Information Network (the GIN
Club) free and clear of all liens and encumbrances. In support of its Motion, the Receiver states
as follows:
I. INTRODUCTION
1. In this motion, the Receiver seeks approval to sell substantially all of the assets of
the GIN Club to an investment group consisting of current GIN Club members for $200,000 in
cash, plus a percentage of future member dues paid in monthly installments over the next 12
months. The assets to be sold largely consist of intangible property, including intellectual
property owned by the GIN Club as well as its membership databases, but also include the used
office furniture and equipment located at the GIN Clubs offices in Westmont, Illinois. The sale
is in the best interests of the receivership estate in that it affords the receivership estate an
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 1 of 20 PageID #:15658
-
GIN Network Truth (the smart group)2
upfront cash payment, while also providing a share of future income derived from the GIN
Clubs assets. By contrast, none of the other offers received by the Receiver provided for a
similar initial cash payment and instead relied exclusively on a share of uncertain future income.
The Receiver seeks approval to sell such assets free and clear of any liens or other
encumbrances, with such liens, if any, attaching to the proceeds of the sale in the same amount
and priority as currently exists. The Receiver is unaware of any such liens. Taking into account
the declining membership of the GIN Club and its limited operational history following the
discontinuation of its improper affiliate program and misleading marketing, the proposed sale
more that adequately reflects the fair market value of the GIN Club assets, and, in the Receivers
sound business judgment, constitutes the highest and best offer for those assets. Accordingly,
the Receiver urges the Court to approve the proposed sale.
II. BACKGROUND
A. THE RECEIVERSHIP ESTATE.
2. On July 13, 2012, the FTC moved to hold Defendant Kevin Trudeau (Trudeau)
in contempt for failing to comply with the Courts June 2, 2010 order directing Trudeau to pay to
the Federal Trade Commission (FTC) $37.6 million corresponding to the consumer loss
resulting from Trudeaus contumacious infomercial marketing of the Weight Loss Cures book.
(FTC Contempt Motion [Dkt. #481].)
3. Following nearly a year of discovery and a subsequent evidentiary hearing, the
Court granted the FTCs motion holding Trudeau in contempt. (Order [Dkt. #729].) As part of
its findings, the Court held that Trudeau had created and controlled a number of domestic and
offshore entities through which he operated the GIN Club, including GIN USA Inc. (GIN),
Global Information Network FDN (Global), and Website Solutions USA Inc. (Website
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 2 of 20 PageID #:15659
-
GIN Network Truth (the smart group)3
Solutions) (collectively with Trudeau, the GIN Sellers). (FTC Findings II.A.2 & B [Dkt.
#713].)1 The Court also found that Trudeau controlled Trudeau Approved Products, Inc.
(TAP). (Id. II.A.4.) The GIN Sellers together with TAP shall be referred to as the Sellers.
4. In order to maximize recovery to consumers and pursuant to its order dated
August 7, 2013 (the Receivership Order), the Court appointed Robb Evans & Associates LLC
as the receiver over Trudeaus Assets and the Trudeau Entities (as those terms are defined in
the Receivership Order). (Receivership Order IV [Dkt. #742].) Each of the Sellers is a
Trudeau Entity under the Receivership Order and thus part of the receivership estate. (Id.
I.(9).)
B. THE GIN CLUB OPERATIONS.
5. The Court authorized the Receiver to operate the GIN Club, but only to the extent
it could be operated legally and without loss to the receivership estate. (Id. V(12).) The Court
also authorized the Receiver to sell, liquidate, or auction any marketable Assets of Trudeau or
the Trudeau Entities, or the Trudeau Entities themselves. (Id. V(13).) Accordingly, as
previously reported to the Court and the GIN Clubs members, the Receiver has been working to
stabilize the GIN Club so that it could be operated as a legal and financially stable company and
ultimately transferred to new owners for a fair price. (See, e.g., Kane Decl. 4 & Ex. A
(Receivers 12/13/2014 Announcement); Receivers Second Report [Dkt. #815] at 4.)2 The
Receiver echoed those intentions a number of times, including in a January 6, 2014 message to
GIN Club members explaining: [i]t is the intention of the Receiver to get permission from the
1 The Court adopted Findings II through VI and Conclusions I through IV of the FTCs proposed findings of fact and conclusions of law. (7/26/2013 Order at (2) [Dkt. #729].) 2 Kane Declaration or Kane Decl. refers to the Declaration of Brick Kane in Support of the Receivers Motion to Sell the GIN Club Assets Free and Clear of All Liens, Claims and Encumbrances filed concurrently with this Motion. Kane Ex. __ refers to the corresponding exhibit attached to the Kane Declaration.
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 3 of 20 PageID #:15660
-
GIN Network Truth (the smart group)4
Court to transfer GIN operations for a fair price to a new owner or ownership group which may
include GIN members. (Kane Decl. 4 & Ex. B (Receivers 1/6/2014 Announcement).)
6. At the outset of the Receivership, the GIN Club had substantial pre-receivership
claims against it totaling at least $ 9.5 million.3 (Kane Decl. 5.) Under the Receivership Order,
the Receiver was precluded from paying any such pre-receivership debts without additional court
approval and such amounts remain unpaid. (Receivership Order V.(7).) Such pre-receivership
debts may include, among other things, claims by GIN Club members and affiliates to certain
bonus and incentive payments under various member recruitment programs, including Go Getter,
Summer Sales Bonanza, Summer Sales Bonanza Sponsor, Get 3 Program, Newsletter, Weekly
Audio Rewards, Cruise voucher recipients, Visionary and Founder bonuses, Lazy Man order
refunds and Inner Circle bonuses. (See Kane Decl. 5 & Ex. B (Receivers 1/6/2014
Announcement.)
7. The Receiver took a number of steps to stabilize the GIN Clubs finances.
Working with the GIN Clubs management, the Receiver reduced overhead expenses by, among
other things, reducing staffing levels to appropriate levels. (Receivers Second Report [Dkt. #
815-1] at 2.) The Receiver canceled a member cruise scheduled for January 2014 where there
were insufficient funds to pay otherwise required deposits. (Receivers First Report [Dkt. #747-
1] at 18-19.) The Receiver approved expenditures to fund a Family Reunion conference in
Washington D.C. in October 2013 that resulted in a net surplus to the GIN Club. (Receivers
Second Supplemental Report [Dkt. #785-1] at 1.) The Receiver continued the GIN Clubs pre-
receivership relationship with the Hybrid Group to provide various educational and social events
for the GIN membership. In November 2013, the Receiver hired the former GIN Events and
3 Nothing in this Motion is intended to admit the validity of any particular pre-receivership claim.
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 4 of 20 PageID #:15661
-
GIN Network Truth (the smart group)5
Education Manager as Chief Operating Officer to assist the Receiver and members of the
management team in creating a path to offer membership events that are cost-beneficial for
members and to upgrade some of the training curriculum. (Receivers Second Report [Dkt.
#815-1] at 1.)
8. Further, the Receiver addressed concerns, echoed by the FTC and the Court,
regarding the legality of certain aspects of the GIN Club. The Receiver independently evaluated
the GIN Clubs Affiliate Program, including the expert report of economist Peter Vander Nat
prepared for the FTC. (Kane Decl. 6; see also FTC Resp. to Mot. To Intervene [Dkt. #808] at
Ex. C (Vander Nat Report).) The Receiver concluded that the then-existing Affiliate Program,
which paid commissions to affiliates for recruiting additional members, likely amounted to an
illegal pyramid scheme. (Kane Decl. 6.) Accordingly, on November 30, 2013, the Receiver
terminated the Affiliate Program and ceased paying commissions. (Id.) The Receiver paid the
last commission payments in December 2013 for commissions earned in November 2013. (Id.)
The Receiver also took steps to remove questionable statements and income claims from the GIN
Clubs website, including posting a disclaimer on the website stating that contrary to references
made in GINs marketing materials to a GIN Council consisting of a group of purported
billionaires that endorsed the GIN Club training materials, the Receiver had uncovered no
evidence that such a council in fact existed. (Receivers Second Report [Dkt. #815-1] at 1.)
9. Although the Receiver has been able to operate the GIN Club profitably since
assuming control, the GIN Club has experienced a substantial decline in membership from its
peak in 2011 when the GIN Club had a total of 37,268 combined members and affiliates.
(Receivers First Report [Dkt. 747-1] at 14.) That downward trend has continued since the
appointment of the Receiver, the termination of the Affiliate Program, and in the face of active
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 5 of 20 PageID #:15662
-
GIN Network Truth (the smart group)6
campaigns by various groups of former members to encourage other members to discontinue
payment of their dues. (Kane Decl. 7.) In August 2013, the GIN Club had 7,153 dues paying
members and by December 31, 2013, after the Receiver paid the final Affiliate Program
commissions, the GIN Club had 4,736 dues paying members. (Receivers Second Report [Dkt. #
815-1] at 2.)
C. THE RECEIVERS MARKETING OF THE GIN CLUBS ASSETS.
10. Given the unique nature of the GIN Club, the Receiver determined that the most
likely buyers, as well as those who placed the highest value on the GIN Clubs assets, were
among existing GIN Club members. (Kane Decl. 8.) Accordingly, on March 17, 2014, the
Receiver announced that it was soliciting written letters of intent to purchase the assets of the
GIN Club. (Id. 8 & Ex. C.)
11. In response to its requests for proposals, the Receiver received nearly 20
inquiries expressing interest in acquiring the GIN Clubs assets. (Kane Decl. 9.) The Receiver
declined to pursue a number of offers that included substantial and unlikely contingencies, such
as proposals that all members contribute $1,000 to purchase the GIN Clubs assets. (Id. 9.)
The Receiver also rejected offers that sought to purchase only certain assets of the GIN Club,
such as its membership list, for amounts far less than their value. (Id. 9.) Other more
substantial offers submitted to the Receiver proposed consideration consisting exclusively of
future installment payments determined as a percentage of net profits, with no initial cash
payment. (Id. 10.)
12. Finally, AXS Consulting, LLC (the Purchaser), consisting of an investment
group of current GIN Members who have a long-time association with the GIN Club, proposed
to purchase substantially all of the GIN Clubs assets for consideration of $200,000 cash at
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 6 of 20 PageID #:15663
-
GIN Network Truth (the smart group)7
closing, plus installment payments for twelve months of 8% of existing member dues and 4% of
new member dues. (Id. 11.) No other offer proposed a similarly substantial up-front payment
at closing. (Id.) Exercising its business judgment, the Receiver deemed the offer from the
Purchaser to be the highest offer and in the best interests of the receivership estate. (Id. 13.)
D. THE ASSET PURCHASE AGREEMENT.
13. After arms-length negotiations, the Sellers and Purchaser entered into that certain
Asset Purchase Agreement dated April 16, 2014 (the APA), subject to court approval. (Kane
Decl. 14.) A true and correct copy of the APA is attached as Exhibit D to the Kane
Declaration. Given the Receivers widely distributed requests for offers and as a necessary
inducement to the Purchaser, such sale shall not be subject to overbidding. (Id.)
14. The principal terms of the APA are as follows:
Consideration. The Purchaser shall pay the sum of $200,000 plus twelve monthly payments calculated as the monthly aggregate of (a) 8% of gross collected membership dues for the calendar month ending on the day preceding the due date of each Purchase Price Installment for all GIN Club members who were members as of the Closing Date; and (b) 4% of gross collected membership dues for the calendar month ending on the day preceding the due date of each Purchase Price Installment for all GIN Club members who become members of GIN Club after the Closing Date. Assets to be Acquired by Purchaser. The Purchaser shall purchase from the Sellers, the Sellers right, title and interest in:
(a) all training materials owned by any of the GIN Sellers, whether in hard copy or electronic format, including but not limited to all audio and video recordings, printed materials, webinars, website and website content, marketing materials, audio and video masters, and any physical copies of such audio, visual or printed materials located at the five Training Material Locations (as defined in the APA) (collectively, the Training Materials), excluding any Training Materials determined by the Court, FTC or Receiver to constitute a violation of the Federal Trade Commission Act or other applicable law; (b) all GIN customer databases which evidence or itemize past or current GIN members, associates or affiliates regardless of their past or present
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 7 of 20 PageID #:15664
-
GIN Network Truth (the smart group)8
membership status in the GIN Club, and all rights to payment of initial membership fees, monthly dues and all other revenue derived from GIN Club members, associates or affiliates based upon such membership, association or affiliation (the Membership Databases); (c) all intellectual property owned or licensed by any of the GIN Sellers and used in connection with the GIN Club, if any exists, consisting of trademarks, copyrights, trade names and logos (the Intellectual Property); (d) all information technology owned by any of the GIN Sellers which was created or acquired in connection with the past or present operations of any of the GIN Sellers and used in connection with the GIN Club, including but not limited to customized code, passwords, software programs, database information, customer files and business reports (collectively, the Information Technology), excluding any Information Technology determined by the Court, FTC or Receiver to constitute a violation of the Federal Trade Commission Act or other applicable law; (e) all furniture, office equipment, supplies, computers, telephone systems and audiovisual equipment owned by any of the GIN Sellers presently located at the Westmont Offices (the Furniture and Equipment); and (f) all finished products owned by TAP located at the Duarte Property (as defined in the APA) consisting of approximately 3,300 30-day supplies of nutritional supplements (the TAP Assets). The Training Materials, Membership Databases, Intellectual Property, Information Technology, Furniture and Equipment, and TAP Assets shall be collectively referred to as the Purchased Assets.
AS IS Sale. The Purchased Assets are sold AS IS without representations or warranties by the Sellers, express or implied, with respect to any matter relating to the Purchased Assets. Free and Clear Sale. The Purchased Assets shall be transferred to the Purchaser free and clear of all Encumbrances and Liabilities except for any Encumbrances that may exist as a result of the storage or warehousing of the TAP Assets. Assumption of Liabilities. The Purchaser shall assume all liabilities arising from and after the closing date out of or relating to the Purchasers ownership or operation of the Purchased Assets, including claims that use of the Purchased Assets by the Purchaser infringes on the rights of any third party; and liabilities for taxes in connection with the acquisition of the Purchased Assets or attributable to the ownership or operation of the Purchased Assets after the closing date.
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 8 of 20 PageID #:15665
-
GIN Network Truth (the smart group)9
15. In light of the substantial disputed and undisputed pre-receivership obligations
potentially owed by the Sellers, exceeding any reasonable estimate of the value of the Purchased
Assets, the Purchaser expressly required that the order approving the sale provide that the
Purchased Assets shall be transferred to the Purchaser free and clear of any and all
Encumbrances or Liabilities (as those terms are defined in the APA), including but not
limited, to any claims (known or unknown), including those that may be asserted by current or
past members, associates or affiliates with respect to the GIN Club. (Kane Decl. Ex. D (APA) at
6.1(b).)
E. Notice Procedures.
16. On April 17, 2014, the Receiver issued a joint statement with the Purchaser to the
GIN Club members announcing the APA. (Kane Decl. 16 & Ex. E.) On April 21, 2014, the
Receiver filed its Motion for Entry of an Order (A) Setting Hearing for Approval of the Sale of
GIN Club Assets and (B) Approving the Form and Manner of Notice [Dkt. #853] (the Notice
Procedures Motion). As approved by the Court, in addition to the parties to this case, the
Receiver provided notice of the sale to the following: (i) all known disputed and undisputed
creditors of the Sellers; (ii) all persons who are members or affiliates of the GIN Club; and (iii)
all persons who submitted expressions of interest in response to the Receivers March 17, 2014
request for letters of intent. (Kane Decl. 17.) Specifically, the Receiver electronically sent the
Notice of Sale to the last known email addresses of 24,130 individuals associated with the GIN
Club membership list. Additionally, the Receiver sent 833 copies of the Notice of Sale via first
class U.S. Mail to the last known address of disputed and undisputed creditors of the Sellers.4
4 Because some individuals fell into more than one category of persons to whom the Receiver provided notice, those individuals may have received both electronic and hard copies of the
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 9 of 20 PageID #:15666
-
GIN Network Truth (the smart group)10
The Objections to the proposed sale are to be filed no later than 5:00 p.m. (CDT) on May 12,
2014 (the Objection Deadline). A final hearing to approve the APA is presently set for May
27, 2014, at 1:30 p.m. (CDT). As such, parties in interest will be afforded no less than 17 days
notice prior to the Objection Deadline and 31 days notice prior to the final hearing.
17. The Receiver now requests the Court approve and confirm the sale of the
Purchased Assets to the Purchaser on the terms set forth in the APA, free and clear of all liens,
claims, and encumbrances as in the best interests of the receivership estate and authorize the
Receiver to take all necessary steps to the conclude such sale.
III. BASIS FOR RELIEF
A. THE COURT SHOULD APPROVE THE SALE OF THE PURCHASED ASSETS AS IN THE BEST
INTERESTS OF THE RECEIVERSHIP ESTATE.
18. A federal district court presiding over an equity receivership exercises the
traditional, common law powers of equity and thereby has broad powers in fashioning
appropriate relief. Liberte Capital Group, LLC v. Capwill, 462 F.3d 543, 551 (6th Cir. 2006); see
also Fed. R. Civ. P. 66 (The practice in the administration of estate by receivers . . . shall be in
accordance with the practice heretofore followed in the courts of the United States or as provided
in rules promulgated by the district court.). Arising from that authority, the Court is empowered
to order the sale of receivership property. See SEC v. American Capital Invs., Inc., 98 F.3d
1133, 1144 (9th Cir. 1996) (approving receivers decision to sell receivership estate property),
abrogated on other grounds, Steel Co. v. Citizens for a Better Environment, 523 U.S. 83 (1998)
It is generally conceded that a court of equity having custody and control of property has the
power to order a sale of the same in its discretion. The power of sale necessarily follows the
Notice of Sale. Also, as of the filing of this Motion, approximately 2,207 of the emails sent by the Receiver were returned as undeliverable. (Kane Decl. 17.)
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 10 of 20 PageID #:15667
-
GIN Network Truth (the smart group)11
power to take possession and control of and to preserve property, resting in the sovereignty and
exercised through courts of chancery, or courts having statutory power to make the sale. Id.
(quoting 2 Clark on Receivers 482 (3d ed. 1992)) (emphasis omitted); see also SEC v. Elliot,
953 F.2d 1560, 1566 (11th Cir. 1992) (authorizing receivers disposal of receivership assets).
19. The Court also has wide discretion to set the terms and procedures used to sell
personal property so as to maximize the proceeds from such sales. See U.S. v. Stonehill, 83 F.3d
1156, 1160 (9th Cir. 1996) (holding that district court had discretion under 28 U.S.C. 2004 to
tailor requirements for selling personal property); United States v. Branch Coal Corp., 390 F.2d
7, 10 (3d Cir. 1968) (holding that courts exercise of discretion in setting terms and conditions
for judicial sales will be undisturbed other than for abuse of discretion). Under 28 U.S.C.
2004, the Court is afforded discretion to order the sale of personal property without imposing the
same procedural requirements set for the sale of real property. 28 U.S.C. 2004 (providing that
sale of personal property shall follow requirements of sale of real property unless the court
orders otherwise.). In determining whether to approve a sale, the Court may take into account
the unique facts and circumstances surrounding the proposed sale, including the precarious
financial condition of the assets being sold. Tanzer v. Huffines, 412 F.2d 221, 222-223 (3d Cir.
1969) (approving expedited sale in the absence of financial appraisal and limited notice in light
of corporations deteriorating financial condition). Indeed, in overseeing a receivership, the
Court must make rules which are practicable as well as equitable. See SEC v. Hardy, 803 F.2d
1034, 1039 (9th Cir. 1986).
20. The Court should approve the proposed sale of the Purchased Assets to the
Purchaser as in the best interests of the receivership estate. As a threshold matter, in locating a
willing buyer, the Sellers faced a number of obstacles stemming from the unique nature of the
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 11 of 20 PageID #:15668
-
GIN Network Truth (the smart group)12
assets being offered for sale. First, the Purchased Assets largely consists of unique intangible
property that are not readily valued. For example, because of the Sellers incomplete records, the
Sellers cannot (and under the APA do not) warrant the existence of any specific intellectual
property such as trademarks, copyrights, trade names or logos. (See Kane Decl. Ex. D (APA)
1.1(c) (if any exists) & 4.1 (limiting warranties and representations of Sellers to the existence
of authority to enter into the APA).) Further, given the relatively recent and necessary changes
to the GIN Club described above, including the termination of the questionable Affiliate Program
and discontinuation of the use of misleading income claims from the GIN Club marketing, the
Sellers had little relevant operational history to provide potential buyers to forecast the GIN
Clubs future performance. Moreover, in the wake of the prolonged uncertainty regarding the
future of the GIN Club, the GIN Club has experienced a sustained trend of declining
membershipthe primary source of the GIN Clubs revenues. (See Receivers Second Report
[Dkt. # 815-1] at 2 (describing decline in membership during course of receivership).)
21. Notwithstanding these obstacles, under the terms of the proposed sale, the
receivership estate will receive immediate cash consideration of $200,000, plus a percentage of
future membership dues over the course of the next twelve months. (See Kane Decl. Ex. D
(APA) 2.1.) Exercising its sound business judgment, the Receiver deems the proposed sale to
be the highest and best offer received. Critically, the proposed sale appropriately balances risks
to the receivership estate by ensuring a certain minimum recovery ($200,000 cash due at closing)
while also providing an additional return based on the GIN Clubs actual future performance.
(Kane Decl. 13.) No other competing offer similarly guaranteed the receivership estate a
substantial minimum recovery. (Id. 11.)
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 12 of 20 PageID #:15669
-
GIN Network Truth (the smart group)13
22. Additionally, given the Purchasers strong and lengthy connection with the GIN
Club and investment in the success of the GIN Club, as reflected by the Purchasers substantial
up-front payment, the Purchaser has both the familiarity and incentive to successfully operate the
GIN Club thereby maximizing the value of the installment payments due the Sellers. (Id. 13.)
By contrast, bidders that proposed to rely exclusively on a share of future revenue without
committing to a substantial up-front payment had less incentive to maximize future revenues in
turn making the value of offers relying solely on a share of such revenues more uncertain.
23. To induce the Purchaser to enter into the APA, the Sellers agreed to omit any
provisions providing for overbidding. The Receiver had already publicly invited offers for the
Purchased Assets without receiving any other competing bids that guaranteed the receivership
estate a similar recovery. (Id. 14.) As such, overbidding would have been unlikely to result in
any material increase in price while potentially risking the loss of the Purchasers offer and
attendant recovery for the receivership estate. (Id.) The Purchaser is unaffiliated with the
Receiver and the terms of the APA were proposed, negotiated, and entered into without
collusion, in good faith, and from arms length bargaining position. (See id. 12, 14.)
24. Indeed, having exposed the Purchased Assets to the marketplace by widely
soliciting bids from likely buyers who were most familiar with the assets, the consideration
provided by the proposed sale reflects the fair market value of the Purchased Assets. See Bank of
America Nat. Trust and Sav. Assn v. 203 North LaSalle Street Partnership, 526 U.S. 434, 457
(1999)(recognizing that the best way to determine value is exposure to a market). As such, the
Court should approve the proposed sale to the Purchaser on the terms set forth in the APA as in
the best interests of the receivership estate.
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 13 of 20 PageID #:15670
-
GIN Network Truth (the smart group)14
B. THE COURT HAS THE AUTHORITY TO SELL THE ASSETS FREE AND CLEAR OF LIENS
AND ENCUMBRANCES.
25. It has long been recognized that a federal court presiding over a receivership may
authorize the assets of the receivership to be sold fee and clear of liens and related claims. See
Regions Bank v. Egyptian Concrete Co., No. 03-cv-1260, 2009 WL 4431133, at *7 (E.D. Mo.
Dec. 1, 2009) (collecting authority); see also Miners Bank of Wilkes-Barre v. Acker, 66 F.2d
850, 853 (2d Cir. 1933) (A court of equity, under proper circumstances, has the power to order
a receiver to sell property free and clear of all encumbrances.). Under Local Rule 66.1, the
Court is to administer receivership estates similar to that in bankruptcy cases. Local Rule 66.1.
As a cornerstone of federal bankruptcy law, bankruptcy courts, which, like courts administering
receivership estates, are courts of equity, may authorize the sale of estate assets free and clear of
liens and interests. 11 U.S.C. 363.
26. Here, the Receiver is unaware of any perfected security interests in any of the
Purchased Assets. (Kane Decl. 15.) Nevertheless, any such liens or interests shall attach to the
proceeds of the sale in the same amount, and with the same validity, extent and priority as
currently exists. As the proposed sale reflects the market value of the Purchased Assets and as
any existing liens are to be transferred to the proceeds, no creditors will be prejudiced by such
sale. Accordingly, the Court should exercise its equitable power to approve the proposed sale
free and clear of all liens and encumbrances.
WHEREFORE, Robb Evans & Associates LLC, in its capacity as court-appointed
Receiver, respectfully requests the Court enter an order substantially in the form of attached
Exhibit 1: (a) granting the Motion; (b) approving the sale of the Purchased Assets by private sale
to the Purchaser under the terms of the APA; (c) providing the Purchased Assets shall be
transferred to the Purchaser free and clear of all liens and encumbrances, if any, with such liens
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 14 of 20 PageID #:15671
-
GIN Network Truth (the smart group)15
to attach to the proceeds of the sale in the same amount, and with the same validity, extent and
priority as currently exists; (d) authorizing the Receiver to execute all documents and
instruments necessary or convenient to complete, implement, effectuate and close the sale of the
Purchased Assets to the Purchaser; and (e) granting such other relief as the Court deems just and
proper.
Dated: April 28, 2014 Respectfully submitted,
ROBB EVANS & ASSOCIATES LLC,
RECEIVER
By: /s/ Blair R. Zanzig (One of Its Attorneys)
Blair R. Zanzig (No. 6273293) John Hiltz (No. 6289744) Kathy Wantuch (No. 6294034)
HILTZ WANTUCH & ZANZIG LLC
53 West Jackson Blvd., Suite 205 Chicago, Illinois 60604 Telephone: 312.566.9008 Fax: 312.566.9015
Counsel for Robb Evans & Associates LLC, in
its capacity as Receiver
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 15 of 20 PageID #:15672
-
GIN Network Truth (the smart group)
CERTIFICATE OF SERVICE
I, Blair R. Zanzig, an attorney, hereby certify that, on the 28th day of April 2014, I caused
a true and correct copy of the foregoing Receivers Motion For Entry of an Order Approving
Sale of Gin Club Assets Free And Clear of All Liens, Claim and Encumbrances to be served via
the Courts electronic case filing system on the following:
Kimball Richard Anderson [email protected] Thomas Lee Kirsch, II [email protected] Andrew Sullivan [email protected] Michael Mora [email protected] Jonathan Cohen [email protected] Amanda B. Kostner [email protected] David OToole [email protected]
/s/ Blair R. Zanzig
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 16 of 20 PageID #:15673
-
GIN Network Truth (the smart group)
EXHIBIT 1
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 17 of 20 PageID #:15674
-
GIN Network Truth (the smart group)
UNITED STATES DISTRICT COURT FOR
THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
KEVIN TRUDEAU,
Defendant.
)
)
)
)
)
)
)
)
)
)
Case No.: 03-C-3904
Hon. Robert W. Gettleman
ORDER APPROVING SALE OF GIN CLUB ASSETS
FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES
This matter coming to the Court on the Receivers Motion For Entry of an Order
Approving the Sale of the GIN Club Assets Free and Clear of All Liens, Claims and
Encumbrances (the Motion); the Court having reviewed the Motion and Declaration of Brick
Kane in Support of the Motion; all parties in interest having due notice; and the Court being
otherwise fully advised as to the premises;
It is hereby ORDERED:
1. The Motion is granted;
2. As the APA was negotiated, proposed and entered into without collusion, in good
faith, and from arms length bargaining positions the sale of the Purchased Assets by private sale
to the Purchaser under the terms of the APA is approved. 1
3. Immediately upon satisfaction of all of the conditions set forth in the APA, the
Purchased Assets sold to Purchaser pursuant to the APA shall be transferred to Purchaser free
1 Unless otherwise defined herein, all capitalized terms shall have the meaning ascribed to them in the Motion.
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 18 of 20 PageID #:15675
-
GIN Network Truth (the smart group)
and clear of all Encumbrances (as defined in the APA) and free and clear of any and all
Liabilities (as defined in the APA), including but not limited, to any claims (known or
unknown), past, present or asserted or to be asserted by current or past members, associates or
affiliates with respect to the GIN Club, except for any Encumbrance that may exist as a result of
the storage or warehousing of the TAP Assets;
4. Any currently existing liens or encumbrances on the Purchased Assets shall attach
to the proceeds of the sale in the same amount, and with the same validity, extent and priority as
currently exists.
5. The Receiver is authorized and directed to execute all documents and instruments
necessary or convenient to complete, implement, effectuate and close the sale of the Purchased
Assets to the Purchaser.
6. The Court retains jurisdiction to resolve any controversy or claim arising out of or
relating to this Agreement, or the breach hereof.
7. The APA and the transactions contemplated thereby may be specifically enforced
against and binding upon, and not subject to rejection or avoidance by, the Sellers or their
respective successors and assigns.
DATED: May __, 2014 ENTER:
_______________________________________ UNITED STATES DISTRICT COURT JUDGE
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 19 of 20 PageID #:15676
-
GIN Network Truth (the smart group)
Prepared by: Blair R. Zanzig (ARDC # 6273293) HILTZ WANTUCH & ZANZIG LLC West Jackson Blvd., Suite 205 Chicago, Illinois 60604 Counsel for Robb Evans & Associates LLC, in its capacity as Receiver
Case: 1:03-cv-03904 Document #: 857 Filed: 04/28/14 Page 20 of 20 PageID #:15677
-
GIN Network Truth (the smart group)
UNITED STATES DISTRICT COURT FOR
THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
KEVIN TRUDEAU,
Defendant.
)
)
)
)
)
)
)
)
)
)
Case No.: 03-C-3904
Hon. Robert W. Gettleman
DECLARATION OF BRICK KANE IN SUPPORT OF RECEIVERS
MOTION FOR ENTRY OF AN ORDER APPROVING SALE OF GIN CLUB
ASSETS FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES
I, Brick Kane, state as follows:
1. I am President of Robb Evans & Associates LLC (the Receiver), the court-
appointed receiver in the above-captioned action. I am one of the deputies responsible for the
day-to-day supervision and administration of the receivership estate, including the investigation
of assets and potential assets of the receivership estate and the sale of such assets.
2. I submit this declaration in support of the Receivers Motion for Entry of an Order
Approving Sale of GIN Club Assets Free and Clear of All Liens, Claims and Encumbrances.
3. Except where indicated otherwise, I base this declaration on my personal
knowledge, including on information I have gained from the books and records of the
receivership estate and receivership entities. If called as a witness in this matter, I could and
would competently testify to the matters set forth below.
4. Since its appointment, the Receiver has been working to stabilize the operations
of the Global Information Network (the GIN Club) so that it could be operated as a legal and
financially stable company and ultimately transferred to new owners for a fair price. The
Case: 1:03-cv-03904 Document #: 858 Filed: 04/28/14 Page 1 of 6 PageID #:15678
-
GIN Network Truth (the smart group)2
Receiver communicated those intentions to the members of the GIN Club on a number of
occasions, including in announcements to the GIN Club members dated December 13, 2013 and
January 6, 2014. A true and correct copy of the December 13, 2013 announcement is attached to
this declaration as Exhibit A. A true and correct copy of the January 6, 2014 announcement is
attached to this declaration as Exhibit B.
5. At the outset of the Receivership, the GIN Club had substantial pre-receivership
claims against it, both disputed and undisputed, totaling at least $9.5 million. Such pre-
receivership debts may include claims by GIN Club members and affiliates to certain bonus and
incentive payments under various member recruitment programs, including Go Getter, Summer
Sales Bonanza, Summer Sales Bonanza Sponsor, Get 3 Program, Newsletter, Weekly Audio
Rewards, Cruise voucher recipients, Visionary and Founder bonuses, Lazy Man order refunds
and Inner Circle bonuses.
6. In light of concerns regarding the legality of certain aspects of the GIN Clubs
operations, the Receiver evaluated the GIN Clubs Affiliate Program, including the expert
report of economist Peter Vander Nat prepared for the FTC. The Receiver concluded that the
then-existing Affiliate Program, which paid commissions to affiliates for recruiting additional
members, likely amounted to an illegal pyramid scheme. Accordingly, on November 30, 2013,
the Receiver terminated the Affiliate Program and ceased paying commissions. The Receiver
paid the last commission payments in December 2013 for commissions earned in November
2013.
7. The GIN Club has continued to experience a decline in membership since the
appointment of the Receiver, the termination of the Affiliate Program, and in the face of active
Case: 1:03-cv-03904 Document #: 858 Filed: 04/28/14 Page 2 of 6 PageID #:15679
-
GIN Network Truth (the smart group)3
campaigns by various groups of former members to encourage other members to discontinue
payment of their dues.
8. Given the unique nature of the GIN Club, the Receiver determined that the most
likely buyers, as well as those who placed the highest value on the GIN Clubs assets, were
among existing GIN Club members. Accordingly, on March 17, 2014, the Receiver announced
that it was soliciting written letters of intent to purchase the assets of the GIN Club. A true and
correct copy of the Receivers March 17, 2014 announcement is attached to this declaration as
Exhibit C.
9. In response to its requests for proposals, the Receiver received nearly 20
inquiries expressing interest in acquiring the GIN Clubs assets. The Receiver declined to pursue
a number of offers that included substantial and unlikely contingencies, such as proposals that all
GIN Club members contribute $1,000 to purchase the GIN Clubs assets. The Receiver also
rejected offers that sought to purchase only certain assets of the GIN Club, such as its
membership list, for amounts far less than their value.
10. The Receiver received two offers that proposed consideration consisting
exclusively of future installment payments determined as a percentage of net profits, with no
initial cash payment. The Receiver deemed these offers to be highly speculative because they
required the Receiver to turn over operational control of the GIN Club thereby depriving the
Receiver of control over expenses that would, in part, determine the net profit.
11. Finally, AXS Consulting, LLC (the Purchaser) proposed to purchase
substantially all of the GIN Clubs assets for consideration of $200,000 cash at closing, plus
installment payments for twelve months of 8% of existing member dues and 4% of new member
dues. No other offer proposed a similarly substantial up-front payment at closing.
Case: 1:03-cv-03904 Document #: 858 Filed: 04/28/14 Page 3 of 6 PageID #:15680
-
GIN Network Truth (the smart group)4
12. Upon information and belief, the Purchaser consists of an investment group of
current GIN Members who have a long-time association with the GIN Club. The Purchaser is
unaffiliated with the Receiver.
13. The Receiver deems the Purchasers offer to be the highest and best offer received
because, among other things, the proposed sale ensures a certain minimum recovery to the
receivership estate by providing a substantial cash payment at closing, while also providing an
additional return based on the GIN Clubs actual future performance. Further, given the
Purchasers strong and lengthy connection with the GIN Club and willingness to make a
substantial initial cash payment, the Purchaser appears to have both the familiarity and incentive
to successfully operate the GIN Club thereby maximizing the value of the proposed installment
payments.
14. After good faith, arms-length negotiations, the Sellers and Purchaser entered into
that certain Asset Purchase Agreement dated April 16, 2014 (the APA), subject to court
approval. A true and correct copy of the APA is attached to this declaration as Exhibit D. To
induce the Purchaser to enter into the APA, the APA omits any provisions providing for
overbidding. Given that the Receiver had already publicly invited other offers for the GIN
Clubs assets without receiving any other competing bids that guaranteed the receivership estate
a similar recovery, the Receiver believes that overbidding would have been unlikely to result in
any material increase in price while potentially risking the loss of the Purchasers offer and
attendant recovery for the receivership estate.
15. The Receiver is unaware of any perfected security interests in any of the assets to
be transferred to the Purchaser under the APA.
Case: 1:03-cv-03904 Document #: 858 Filed: 04/28/14 Page 4 of 6 PageID #:15681
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858 Filed: 04/28/14 Page 5 of 6 PageID #:15682
-
GIN Network Truth (the smart group)
CERTIFICATE OF SERVICE
I, Blair R. Zanzig, an attorney, hereby certify that, on the 28th day of April 2014, I caused
a true and correct copy of the foregoing Declaration of Brick Kane in Support of Receivers
Motion For Entry of an Order Approving Sale of Gin Club Assets Free And Clear of All Liens,
Claim and Encumbrances to be served via the Courts electronic case filing system on the
following:
Kimball Richard Anderson [email protected] Thomas Lee Kirsch, II [email protected] Andrew Sullivan [email protected] Michael Mora [email protected] Jonathan Cohen [email protected] Amanda B. Kostner [email protected] David OToole [email protected]
/s/ Blair R. Zanzig
Case: 1:03-cv-03904 Document #: 858 Filed: 04/28/14 Page 6 of 6 PageID #:15683
-
GIN Network Truth (the smart group)
EXHIBIT A
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 1 of 34 PageID #:15684
-
GIN Network Truth (the smart group)
CLICK HERE TO VIEW THIS E-MAIL AS A WEB PAGE
FOR ACCESS TO THE LINKS BELOW, PLEASE LOG IN TO YOUR GIN ACCOUNT HERE
MESSAGE FROM THE RECEIVER
Dear GIN Members:
The Receiver has been advised that certain Members of GIN have engaged in a concerted effort toencourage other Members to discontinue payment of their monthly dues in hopes this would somehowderail the efforts of the Receiver. The Receiver would like to take this opportunity to clarify our currentand future plans with regards to the operations of GIN.
As most of you know, on August 7, 2013 the U.S. District Court for the Northern District of Illinoisentered an Order Appointing a Receiver and Implementing Ancillary Relief (Order). The Orderappointed Robb Evans & Associates LLC as Receiver over the assets of Kevin Trudeau, including butnot limited to Global Information Network FDN, Website Solutions USA, and all Trudeau Entitieswhether foreign or domestic. A copy of the Order can be viewed on our website atwww.robbevans.com.
Section V of the Order outlines the duties and authority of the Receiver. Subsection 12 reads inpertinent part, "Continue to conduct the businesses of any Trudeau Entity, but only to the extent it ispossible to operate such businesses legally and profitably..." (Emphasis added). Under the directionof the Receiver, GIN has made a number of changes in its Marketing approach. These changes aredesigned to meet the first criteria in Section 12, that is, that the business must be run legally. GIN staffis working diligently to design an enhanced Member benefits program which includes, among otherthings, the expansion of GIN's accredited education curriculum, providing a wider variety of educationtopics and event formats, sponsoring local and major events, trainings, recognition and facilitatingnetworking opportunities designed for overall personal growth and improvement.
The second duty of the Receiver under Section 12 of the Order requires the Receiver to determine ifthe company can be operated profitably. Actions by a few rogue Members encouraging otherMembers to stop paying dues constitutes a violation of the Order as it interferes with the duties of theReceiver.
It is the Receiver's hope that GIN will survive as a true club and become financially stable so that it cancontinue in operation for many years to come. Assuming GIN can become financially stable and beoperated profitability, it is the intention of the Receiver to get permission from the Court to transfer GIN
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 2 of 34 PageID #:15685
-
GIN Network Truth (the smart group)
operations for a fair price to a new owner or ownership group. The Receiver's oversight of the GINoperations could then be terminated and GIN would be operated by the new owners.
Efforts to disrupt these initiates and the continued business operations of GIN can unfairly penalizethousands of other Members that are currently engaged in GIN's training system and the new Memberbenefits.
The receiver supports recommendations from the GIN staff to create a new GIN Round Table madeup of seven individuals elected by active Members in good standing. Members that are loyal andremain optimistic about the future of GIN would make good candidates to serve on the GIN RoundTable. There are a tremendous number of rumors and misinformation being circulated by a fewMembers. The Receiver recognizes the need to support a strong interchange of ideas and informationwith Members that "know and understand" the field. The GIN Round Table would provide a forum thatcould help to defuse the rumors and present factual information. The Receiver would be willing toparticipate in a monthly conference call with the GIN Round Table.
As a reminder, the Receiver is here for the purpose of stabilizing the organization, providing guidanceso that it can be operated legally and become financially stable with the end goal being to transfer GINoperations for a fair price and end our oversight.
NOTE: ACCORDING TO THE INFORMATION GATHERED BY THE RECEIVER OF THE GLOBAL INFORMATION NETWORK, THEENTITY REFERRED TO AS THE GIN COUNCIL DOES NOT EXIST AND THEREFORE ANY REFERENCE OR ENDORSEMENT OFTHIS ENTITY BY ANY OF THE GLOBAL INFORMATION NETWORKS PREVIOUS TRAINERS/HOSTS SHOULD NOT BEINTERPRETED AS AN ENDORSEMENT, BENEFIT OR PART OF THE TRAINING CURRICULUM OF THE GIN ORGANIZATION. GINSAFFILIATE PROGRAM MAY ALSO BE REFERRED TO IN PAST TRAININGS OR EDUCATIONAL MATERIALS. GINS AFFILIATEPROGRAM OFFICIALLY ENDS ON NOVEMBER 30, 2013.
CLICK HERE TO AVOID RECEIVING FUTURE E-MAILS FROM US.
1
LikeLike
ShareShare
Tweet 0 Recommend this on Google
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 3 of 34 PageID #:15686
-
GIN Network Truth (the smart group)
EXHIBIT B
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 4 of 34 PageID #:15687
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 5 of 34 PageID #:15688
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 6 of 34 PageID #:15689
-
GIN Network Truth (the smart group)
EXHIBIT C
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 7 of 34 PageID #:15690
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 8 of 34 PageID #:15691
-
GIN Network Truth (the smart group)
EXHIBIT D
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 9 of 34 PageID #:15692
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 10 of 34 PageID #:15693
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 11 of 34 PageID #:15694
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 12 of 34 PageID #:15695
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 13 of 34 PageID #:15696
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 14 of 34 PageID #:15697
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 15 of 34 PageID #:15698
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 16 of 34 PageID #:15699
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 17 of 34 PageID #:15700
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 18 of 34 PageID #:15701
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 19 of 34 PageID #:15702
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 20 of 34 PageID #:15703
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 21 of 34 PageID #:15704
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 22 of 34 PageID #:15705
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 23 of 34 PageID #:15706
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 24 of 34 PageID #:15707
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 25 of 34 PageID #:15708
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 26 of 34 PageID #:15709
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 27 of 34 PageID #:15710
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 28 of 34 PageID #:15711
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 29 of 34 PageID #:15712
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 30 of 34 PageID #:15713
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 31 of 34 PageID #:15714
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 32 of 34 PageID #:15715
-
GIN Network Truth (the smart group)
EXHIBIT E
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 33 of 34 PageID #:15716
-
GIN Network Truth (the smart group)
Case: 1:03-cv-03904 Document #: 858-1 Filed: 04/28/14 Page 34 of 34 PageID #:15717
-
GIN Network Truth (the smart group)
UNITED STATES DISTRICT COURT FOR
THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
KEVIN TRUDEAU,
Defendant.
)
)
)
)
)
)
)
)
)
)
Case No.: 03-C-3904
Hon. Robert W. Gettleman
NOTICE OF MOTION
PLEASE TAKE NOTICE that, on Tuesday, May 27, 2014, at 1:30 p.m., or as soon
thereafter as counsel may be heard, the undersigned shall appear before the Honorable Robert W.
Gettleman, United States District Court for the Northern District of Illinois, Eastern Division, or
such other judge as may be sitting in his place in Courtroom 1703, 219 S. Dearborn Street,
Chicago, Illinois 60604, and shall present the Receivers Motion for Entry of an Approving
Sale of GIN Club Assets Free and Clear of All Liens, Claims and Encumbrances, a copy of
which is hereby served upon you.
Dated: April 28, 2014 Respectfully Submitted,
ROBB EVANS & ASSOCIATES LLC,
RECEIVER
By: /s/ Blair Zanzig
(One of Its Attorneys)
Blair R. Zanzig (No. 6273293)
John F. Hiltz (No.6289744)
Kathy Wantuch (No. 6294034)
HILTZ WANTUCH & ZANZIG LLC
53 West Jackson Blvd., Suite 205
Chicago, Illinois 60604
Telephone: 312.566.9008
Fax: 312.566.9015
Counsel for Robb Evans & Associates LLC,
Receiver
Case: 1:03-cv-03904 Document #: 859 Filed: 04/28/14 Page 1 of 2 PageID #:15718
-
GIN Network Truth (the smart group)
CERTIFICATE OF SERVICE
I, Blair R. Zanzig, an attorney, hereby certify that, on the 28th day of April, 2014, I
caused a true and correct copy of the foregoing Notice of Motion to be served through the
Courts Electronic Case Filing System on the following:
Kimball Richard Anderson
Thomas Lee Kirsch, II
Andrew C. Sullivan
Michael Mora
Jonathan Cohen
Amanda B. Kostner
David OToole
/s/ Blair R. Zanzig
Case: 1:03-cv-03904 Document #: 859 Filed: 04/28/14 Page 2 of 2 PageID #:15719