Holton Buggs has been sanctioned for failing to cooperate with the Merchants Area Receiver.
As detailed by the Receiver in his February fifth Second Report;
Defendant Buggs refused to offer data concerning his property as required by the Courtroom’s orders, and he refused the Receiver’s makes an attempt to depose him concerning his property.
Because of this, the Receiver filed a Movement for Order to Present Trigger towards Buggs .. that was heard by Justice of the Peace Enjolique A. Lett on December 18, 2024.
After listening to, on December 27, 2024, the Justice of the Peace issued an Order for Sanctions discovering that Defendant Buggs violated the SRO and ordering that Buggs present the data required underneath the SRO to the Receiver, seem for an asset deposition, and pay a financial sanction of $9,583.40.
Beneath risk of additional sanctions, Buggs (proper) lastly complied with the court docket’s orders on January thirteenth.
On January 13, 2025, Defendant Buggs supplied the Receiver with a monetary assertion and supporting paperwork that he labeled a “work in progress” and an “interim report”.
On January 16, 2025, Defendant Buggs gave his asset deposition to the Receiver.
The Receiver notes that, as of February fifth, Buggs hasn’t paid his sanctions penalty to the Merchants Area Receivership.
By means of his lawyer, Buggs claims his “property are frozen and subsequently he can’t pay the sanction”.
In response to this the Receiver cites Buggs asset deposition, whereby Buggs claims confirmed he was nonetheless incomes “about $100,000” a month by way of iBuumerang.
Whether or not the court docket takes additional motion towards Buggs stays to be seen.
Within the meantime, the Receiver has recognized the next property of Buggs which may be topic to forfeiture:
- two residential properties in Houston, Texas
- three “Fifth Ward” vacant tons in Houston, Texas
- a residential property in Tampa, Florida
- a Muhammad Ali portray
- “numerous luxurious branded watches”
- “a number of gadgets of knickknack Buggs recognized”
- a 2020 Tesla
- a Spyder GS bike
- a SeeDoo pace boat
- cash put down on the acquisition of three condos in Miami, Florida
- a glock gun
- an undisclosed amount of money
- fairness funding in numerous start-up corporations
- cash owed to Buggs from Organo Gold
- designer garments and furnishings
- potential enterprise property and
- enterprise pursuits
Different factors of curiosity within the Receiver’s report embrace:
- defendant Juan Herman, aka JJ Herman, has fled to Dubai, leaving two properties behind that may very well be topic to forfeiture;
- Fredirick Teddy Joseph Safranko and David William Negus-Romvari stay in violation of the court docket’s orders and are in hiding; and
- Alejandro Santiestaban, aka Alex Santi and Archie Rice have failed to offer full monetary data to the Receiver, prompting submitting of a contempt movement on January twenty ninth.
It must also be famous that numerous The Merchants Area defendants, together with Mike Sims, asserted their Fifth Modification proper when pressed on particulars of their property.
This means a few of The Merchants Area Defendants are anticipating associated legal expenses.
On that notice, Teddy Safranko (proper) David Negus-Romvari seem to nonetheless be attempting to defraud shoppers by way of TrueBlueFX.
As a part of efforts to maintain the Ponzi going, in the direction of the tip of its run The Merchants Area knowledgeable traders it had been offered to TrueBlueFx.
On the outset of this case, the TrueBlueFX web site was on-line and nonetheless holding itself out as actively buying and selling.
The Receiver obtained management of the TrueBlueFX web site and had it redirected to the Receiver’s web site.
TrueBlueFX started a brand new web site with a brand new host and continues to carry itself out as actively buying and selling. The Receiver has contacted the host and is in search of to acquire management of the brand new web site.
The Receiver believes the TrueBlueFX web site is being operated by Defendants Safranko and/or Negus-Romvari in blatant violation of the Courtroom’s orders.
Neither Dealer Area nor TrueBlueFX have turned over any monetary data to the Receiver as required by the Courtroom’s orders.
With respect to clawback proceedings towards The Merchants Area net-winners, the Receiver writes he’s
persevering with to collect financial institution data to determine the recipients of false income.
Particular to promoters of The Merchants Area;
The Receiver is investigating the investor funds paid in commissions.
No matter whether or not the salespersons knew or ought to have recognized that Dealer’s Area or the opposite Defendant entities had been being operated illegally, the commissions the salespersons obtained are recoverable as fraudulent conveyances.
The Receiver recognized roughly 12 “sponsors” who labored with Defendant Sims in soliciting traders to Merchants Area and the Receiver’s lawyer despatched every of those individuals a duplicate of the related court docket orders and a requirement that they every present an accounting of monies they obtained because of introducing traders to Merchants Area.
Lastly, with respect to The Merchants Area victims submitting claims, the Receiver writes;
The Receiver is working along with his workforce on a claims course of to suggest to the Courtroom that can allow traders in Merchants Area to submit their claims to the receivership for participation within the distribution of property recovered within the receivership.
The Receiver anticipates this proposed claims process will probably be submitted to the Courtroom inside the subsequent 30 days. The Receiver expects to obtain greater than 5,000 claims.
Keep tuned for updates as BehindMLM continues to cowl the CFTC’s The Merchants Area Ponzi case.