The following is a rather detailed report about yesterday's court session (and, no, it doesn't come from RB):
Today SLH and I (anvil) went to the court house. We had lunch and waited outside for RA to arrive. Around 2pm, RA, Babs and Tifford arrived via taxi. Both SLH and I took pics of them with our cell phones.
More than likely, we were obvious as RA kept looking over at us. After they went into the court house, we went in. We were directly behind them in the security line. After getting through security, we found Lynch's court room where Tifford was emersed in dialogue with Leslie Hughes of the SEC. RA and Bab's were most likely stashed in the witness room.
There were several cases before ours, so we waited in the court room. RA, Babs, Brian, Tiff and Gundy all sat in the back row. I made the mistake of moving SLH and myself to the front row (only 3 rows). A mistake, because we had to turn around to see RA's reaction to certain things said by the judge and gundy.
In any event, it was our turn. There were two rows of table in front of us for attorneys. The back row was filled with defense attorneys including Tifford. The other attorneys were for Sandu, Medriattta and Neuhaus. The judge took care of housekeeping issues and moved on to some questions from non-RA attorneys.
The first issue was Gundy. Judge let Tiff off of representing Gundy and let his new lawyer in. The new lawyer needed time to get up to speed, judge agreed and Gundy was off the agenda.
Sandu's attorney has issues because he has no one to collaborate with. Medriatta has proposed a settlement with the SEC and DOJ to become a witness against RA and Gundy in criminal court. Neuhaus's attornery informed the judge that Neuhaus wants to cooperate as well.
I should mentioned that during this proceeding, RA did not look
remorseful, but definitely sullen.
Thanks to the guys who went.
Given everyones anticipation, I am going to quickly summarize, and fill in the details tomorrow.
1. NSS never came up, not one mentioned.
2. Tifford made a big announcement at least in his mind.
3. He announced that RA has resigned
4. He announced that he had a check for RA to pay the court $30K now, $10K a month or 20% of his gross income monthly, sell his new condo and give equity ($600-800K) to the court, and he is trying to borrow $1.5MM from people to give to the court.
5. Apparently in Florida, there is some strange joint tenancy and
Tifford said that Babs has agreed to give the proceeds from the sale of the condo to the court.
6. judge basically said that this is a modest proposal given Janes report, who was there.
7. SEC said, that Babs two weeks ago sold $500k of jewelry, but did not offer that up as payment. Apparently separate assets here.
8. New date is Jan. 11th for hearing on whether RA is making effort on repaying the money. Judge would prefer they settle, but he clearly pointed out that alot of money has been paid to RA this year.
9. Judge basically said RA and Gundy is guilty of fraud and lying to shareholders and public and that is an accepted fact.
10. Threatening emails to Jane have been sent to US Marshall for
investigation.
11. Jane said that LEF is gone and she has proposals for rest of assets that she wants to talk to the judge about. She said reditors will basically get nothing.
12. Judge said that he biggest concern in contempt was RA continuing to lie and issuing illegal shares. Not that is moot. All that is left is disgorgement and told SEC and Tifford to deal with it. As well as gundy. All RA bank records are going to forwarded to SEC.
Bottom line, nothing left but the shell and the $700MM judgement,
which was not mentioned today. RA is moving on to the next chapter, criminal trial.
