Expo Holdings Inc. (EXPH)

[Santa Barbara Broker]

Acc...in real estate the Feds stand in front of EVERYBODY. No matter when they show up. The County, the State, the banks holding firsts....even local tax collectors from said County and State. Nobody gets paid till the Feds hit the till. I have to believe it's the same in business. Meaning even though the Expo loan from Southern Community came well before the Fed asset lien, SC may no longer have any claim to any D&D equity in the repossession of financed property. They may have recourse to make a claim for any remaining proceeds above and beyond what the Federal government is owed after they auction off 100% of D&D Displays (and lets face it...Expo Holdings for all practical purposes) assets. They may also try and make a case to reclaim the non-equity portion of appraised value providing they get a chance to have it professionally appraised before seizure. SC can certainly go after Brown and Harrs personal assets though as I seem to recall they had to sign off on the loans to originate them in the first place. But the Feds are merciless...as a broker involved in commercial leasing I have seen the results after they sweep through a business seizure. It's like a swarm of locusts hitting a grain field...not even a paperclip left in the carpet when they are gone. Brown and Harrs are too stupid to be afraid of them, but they should be afraid. Very afraid.....

Regardless of who ends up with what, this will result in two other probable factors likely to benefit humanity in general. 1) No bank in their right mind will ever lend Expo, Brown or Harrs a dime again in their entire lives without liquid, frozen assets as collateral and 2) the reputations and personal credit ratings of Brown and Harrs (and any other officers of Expo Holdings) may be so impaired by this entire lien process and the consequences that follow it that they will never be able to be an officer or chair or serve on a public corporate board ever again. Gee...I wonder if it could be super stud sock puppet CEO Jimmy Kendrick waiting in the wings for his newly formed LLC CIMA? He likely wanted a clean pirate ship to start sailing the discounted stock sale seas from all along which is the reason he likely bailed on Expo, right? Here's his big chance, LOL.

It's also interesting to see the new "CIMA" entity was registered on August 1, 2011...a single day before the Federal lien was registered. That must have been a mad flurry of paperwork flushed back and forth between attorneys and agents in NC and NV. Sorry Mr. Brown, but I doubt a one day prior "transfer of assets" is going to protect you from the long arms of Uncle Sam. Although it will certainly and quite seriously pizz off a whole lot of the good folk at the Treasury Department, who, despite their absolute love of paperwork, will not be pleased to again have to go after what they may have once thought they had locked down. Now, if that is indeed the reason CIMA LLC was set up, can we expect a wholesale Brown/Harrs fire sale on every piece of equipment owned by Expo Holdings that was/is/will be transferred into CIMA LLC from D&D and/or Expo? Hell, knowing that CIMA LLC is set up, is there any equipment LEFT at the company at this point? FLUSH!:

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=1u4aO9iPo5oZM8kF4OGyhw%253d%253d&nt7=0

So, YO-HOOOOO! All you "boots on the ground" out there? At least the ones that weren't hired guns for Brown's staged P&D warehouse tours and such...NOW might be a good time to drop by and see if all those nifty routers and table saws and non-Ebayed nail guns are still whirring away pumping sawdust doghouses out the door, ya think? What say team...warm up the digital cameras and pull on those track shoes for another plywood stacked Expo warehouse tour? Go EXPO! All the above IMHO.