Darius Banasik has misplaced management over Qyral to the court-appointed Receiver. Or no less than he has legally.
Following a “whirlwind of courtroom filings” and “unworkable” relationship between Banasik and the Receiver with respect to working Qyral, the Receiver approached the courtroom for instruction.
As a part of that method, the Receiver requested the granted Restricted Receivership be transformed to a common Receivership.
In response to the Receiver’s submitting, the courtroom directed Banasik (proper) and Plaintiff Hanieh Sigari to reply by 9am on August twenty third.
Sigari responded in help of the final Receivership movement. Banasik opposed however filed after the acknowledged deadline.
Sigari moved to strike Banasik’s late response, which the courtroom granted on August twenty sixth.
From the identical submitting;
The Court docket GRANTS Sigari’s movement to strike Banasik’s response as premature.
Provided that the previous few months of expertise with a restricted receivership have confirmed unworkable, the Court docket finds that the state of affairs has modified such {that a} common receivership is now applicable.
The Receiver shall have full and sole management over all facets of Qyral’s operations. Neither Sigari nor Banasik (the “Events”) shall exert any operational management over Qyral.
On September thirtieth, the Receiver filed a Standing Report noting;
Each Sigari and Banasik have opened their very own firms which compete with Qyral.
I consequently advocate that Qyral wind down operations.
BehindMLM coated Sigari’s Ellie MD launch in Might 2024.
I’m unaware of Banasik’s new firm (not listed on his LinkedIn and social media seems to be in any other case deserted).
In any occasion a month in a while October twenty eighth, the Receiver filed an ex-parte movement searching for sanctions towards Banasik.
Maybe not surprisingly, the Receiver alleged Banasik had didn’t adjust to the courtroom’s earlier “common Receivership” order.
[Banasik] nonetheless has not given the Receiver entry to Qyral’s service provider accounts or turned over income or login info.
Solely Defendant [Banasik] possesses the account info for Qyral’s web site and service provider accounts and has refused to show over that info to the Receiver regardless of the Receiver’s quite a few requests.
As well as, Defendant continues to refuse to show over Qyral’s income and entry to its income, regardless of the quite a few requests by the Receiver to take action.
Banasik’s obvious failure to adjust to the earlier courtroom order seems tied to him nonetheless receiving revenue by means of Qyral.
Each Defendant [Banasik] and Plaintiff Hanieh Sigari have confirmed that they agree the Receiver ought to shut down Qyral’s operations.
Each events are working competing companies with Qyral, and Qyral’s income has been declining since April 2024.
Presently, the one concern of rivalry is that the Receiver (and Plaintiff [Sigari]) want to stop Qyral’s operations instantly by taking down the web site, ceasing to simply accept bank card funds (cancelling Shopify, Firestorm, and different service provider accounts), and ceasing any and all bank card subscriptions which are robotically charged.
However, Defendant [Banasik] intends to proceed working Qyral for a number of weeks and proceed to gather its income and receivables.
A listening to on the Receiver’s sanctions movement is scheduled for November twenty second.
On November twelfth, Banasik filed his opposition to the Receiver’s sanctions movement.
Defendant [Banasik] has no intention of “persevering with to function Qyral;” he’s absolutely cognizant that he has no authority to take action, because the Court docket’s aforementioned Order Re Receivership makes completely clear.
What Defendant has requested of the Receiver is that Qyral stay working on a restricted foundation, in order that Banabrands might refund clients and absolutely account for something because of the receivership property, and that its accounts could also be settled.
Banabrands is an organization, seemingly run by Banasik’s kinfolk, which based on the Receiver Banasik “engaged to handle Qyral.
The Receiver has made it clear that Qyral ought to nonetheless be shut down instantly, and the Receiver has absolutely the authority- and, extra importantly, the ability- to do this.
The Receiver has made no effort to speak with Banabrands relating to the turnover of funds, or to terminate the present Enterprise Providers Settlement that Qyral entered into with Banabrands properly earlier than the Order Re Receivership was entered by the Court docket.
In responding to the Receiver’s assertion that he had refused to show over Qyral’s web site and service provider account particulars, and considerably disingenuously I really feel, Banasik states he
just isn’t Banabrands, and has no real interest in Banabrands.
Banabrands itself owns Qyral’s IP (and has because the formation of the corporate), and retains a proprietary fee processing system that the Defendant has no management over.
Accordingly, he can’t give entry to one thing that he doesn’t need to the Receiver.
The Enterprise Providers Settlement between Qyral and Banabrands acknowledges that Qyral doesn’t have an current fee processing infrastructure and Banabrands would offer that for that as a part of Banabrands’ companies to Qyral.
Furthermore, Banabrands outlined that any and all bank card processing danger and legal responsibility, beneath that settlement, can be borne by Banabrands.
Due to this fact fee processing is a part of the Banabrands service and never beneath the management of Defendant.
In prior communications with the Qyral Receivership, Banabrands has been represented by Paul Banasik. Paul Banasik is Darius Banasik’s brother.
In associated information, GoDaddy has been dismissed as a defendant.
GoDaddy put forth it shouldn’t be a defendant as a result of it had not “acquired ill-gotten funds” or had any alleged wrongdoing made towards it.
The courtroom agreed and granted GoDaddy’s dismissal movement on September tenth.
Our subsequent replace on Qyral proceedings will observe the courtroom’s scheduled November twenty second contempt movement listening to.