Current Cases
Coadum Advisors
The fraudulent scheme Coadum Advisors, Inc., was shut down by the U.S. Securities and Exchange Commission (SEC) on the afternoon of January 3, 2008. On the recommendation of the SEC, U.S. District Judge Orinda Evans appointed Pat Huddleston and Huddleston Law Firm as Receiver for Coadum Advisors and related companies. At 9:00 a.m. on the morning of January 4, 2008, Huddleston and a team from Investor's Watchdog arrived at the Salt Lake City offices of Coadum, removed the president of the company, Thomas Repke, and began interviewing employees, securing electronic evidence and identifying and securing assets. More than $30 million dollars in investor money is at stake.
Cornerstone Ministries
On February 10, 2008, in the United States Bankruptcy Court for the Northern District of Georgia, Cornerstone Ministries Investments, Inc. (“CMI”) filed a petition under Chapter 11 of the Bankruptcy Code. On February 27, 2008, the United States Trustee appointed an Official Committee of Creditors Holding Unsecured Claims, which has been inquiring into the business, assets and liabilities of CMI. On December 23, 2008, U.S. Bankruptcy Judge Robert E. Brizendine granted the U.S. Trustee’s Motion to Appoint a Chapter 11 Examiner, and on December 30, 2008, Judge Brizendine appointed Pat Huddleston to fill that role.
Direct Connection
The U.S. Federal Trade Commission alleges that Direct Connection Consulting, Inc., Digicom, LLC, and the principals of those businesses, Joann Winter and Elliot Borenstein, violated the Federal Trade Commission Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act by charging consumer credit cards without authorization and misleading consumers. The FTC halted the telemarketing operation on May 13, 2008. On the recommendation of the FTC, United States District Judge Timothy Batten appointed Pat Huddleston and Huddleston Law Firm as Receiver for Direct Connection and Digicom.
Nations Warranty and JW&P Consulting
United States District Judge Beverly Martin, on recommendation
of the U.S. Securities and Exchange Commission, appointed
Pat Huddleston and Huddleston Law Firm as Receiver for Nations Warranty Group, Inc., and JW&P Consulting, LLC, on October 2, 2008. The SEC alleges that the defendants violated the registration and anti-fraud provisions of the federal securities laws in connection with offering promissory notes, promising annualized returns of between 48 percent and 60 percent per year. Huddleston took control of the businesses the same day. A hearing to consider the SEC's Motion for a Preliminary Injunction is scheduled for October 9. Huddleston expects to file his first interim report as Receiver in the case in November 2008. Both the SEC's complaint and the Order appointing Huddleston as the Receiver are available on this site.
Success Trust
In January 2007, the SEC shut down Success Trust Holdings (STH), a scam run by Archie Paul Reynolds who raised more than $5 million by promising investors that they would be able to pay off their home mortgages early by investing in his scam. On the recommendation of the SEC, U.S. District Judge Richard Story appointed Pat Huddleston and Huddleston Law Firm as Receiver to take control of the business and gather assets for eventual distribution to defrauded investors.