The SEC has been involved from the beginning of the BK process, this is nothing new, and has been addressed in numerous other filings.
We have,
over the past several months, worked in close cooperation with the SEC to get
control of our corporate records. These documents were being adversely held by
Davis Accounting, which is a defendant in a pending lawsuit for turnover of our
books and records and over $58,000 in funds which it has refused to turn over. The
SEC, with CKMC’s approval, seized all 56 boxes of documents located at Davis
Accounting. The SEC, with CKMC’s approval, transferred the documents to
Washington where they were completely sorted and electronically copied. Copies of
all documents are now in CKMC’s possession and the SEC and CKMK are
discussing where to store all the originals safely. This has benefited the estates
considerably because we were able to get all of our historical corporate information
electronically stored and copied so that we can conduct historical forensic analysis
and create our consolidated financial statements for at least 3 years.
(i) We recently reached agreement with the IRS to store all our original
documents in Salt Lake City at the IRS’ office. The IRS agreed to give us full
access to the documents at any time. This saves the Debtors money for storage
facilities and insures the safekeeping of the documents. It also demonstrates the
close cooperation the Debtors have established with the IRS and SEC
AI
