Tuesday, December 29, 2009

Kelly & Carrie Rogers Lower Sale Price of Home


Kelly G Rogers and Carrie S Rogers have lowed the selling price of their home at 8 Riva Ridge in Frisco, Texas. The new selling price is now $2,999,000, reduced from $3,200,000. The listing agent is the "Jan Richey Team".

According to Zillo, this 10,675 square foot home at 8 Riva Ridge has a value range of between $534,750-$727,260, with a current value of $713,000...which seems very low. In comparison, the home at 7 Riva Ridge is a 12,081 square foot home that's been on Zillo for 340 days (which means it's been overpriced and everyone knows it) is valued between $1,168,805 to $1,509,090. It has a current Zillo value of $1,479,500 and is listed at $2,499,900. So it appears in the midst of this  economic downturn, the Rogers are in no hurry to sell this home at a listing price of $2,999,000.

Interestingly, this home has been at the epicenter of the problems created for Kelly and Carrie Rogers. You could call it the "Contributing Factor". For example, in the "Thompson " lawsuit, investors claim; ...although it is undisputed that the $180,000 received from the operator was the property of the company, Rogers testified that he "borrowed" the $180,000 for his personal use. According to Rogers, the $180,000 was used for home improvement. To date, Rogers has provided no promissory note or other evidence that he "borrowed" the money. Further, Rogers has so far repaid none of the money.

And in the State of Texas v Kelly Rogers’s indictment, the State identified transfers from the Lionheart Energy LLC checking account; specific monetary transactions described in the indictment for misapplication of fiduciary property as follows;

Check #992 to Pool Environments on 3/11/2005 = $26,661.00
• Check #998 to Pool Environments on 3/29/2005 = $30,000.00

The Rogers' make the claim that the inability to refinance the $1,200,000 construction loan that matured in February of 2009 resulted in the bankruptcy filing of Kelly G Rogers on July 27th of 2009. However, apparently it didn't wipe out Carrie S Rogers because she was not included in the bankruptcy filing. Yet in the papers filed on 12/4/2009, it states; Unfortunately, the cost of the home exeeded $1,800,000, wiped out all the Rogers' available cash and life savings, caused even more indebtedness, and the home is still not finished. It did say Rogers', didn't it?

In the end, it boiled down to the "Big Dream" home that finally sunk the Amway Dream Machine.

Wednesday, December 9, 2009

Falcon Ten Energy, LLC and Kelly Gordon Rogers


In an earlier story called; "Thomson Lawsuit Creditors sue Kelly Gordon Rogers: Claims Fraud and Embezzlement", 20 investors filed a motion to have the bankruptcy trustee in Kelly G Rogers’s bankruptcy grant a "2004 examination". The purpose was to help the group
determine the whereabouts of $180,000 of business money that was returned to Kelly Rogers’s personal account.

In terms of this investment, Rogers solicited money to fund a supposed entity called "Falcon Energy, LLC-Buck Hamilton Series" but there is no evidence that the entity was ever created. According to the case; it is presently unclear as to the status or nature of the company. Although Rogers solicited investments in a limited liability company, and Rogers had each of the investors execute both a subscription agreement and an LLC agreement, it is unclear if Rogers actually formed the entity. A review of the Nevada Secretary of State records indicates there is no entity named "Falcon Energy, LLC-Buck Hamilton Series". A review of the Texas Secretary of State records likewise establishes there is no entity with that name. As such, it is unclear as to the exact nature of the relationship between the plantiffs and Rogers. Rogers raised $1,400,000 from Plaintiffs, ostensibly for the purchase of membership interests in the company. 

According to the motion; Amazingly, when testifying in response to a 2004 examination request made by this group to the Trustee presiding over Rogers’s bankruptcy, Rogers testified; he did, in fact, "Form a Company" but could not remember where? Rogers further testified that documents reflecting the formation of the company could be found in his prior office space, which has been taken by the landlord. Rogers have since participated in an examination of the records located in Rogers’s prior office space and have yet to locate any records of the company".

Today we came across a Nevada LLC created on March 15th, 2007 called Falcon Ten Energy, LLC. This goes along with the other entity called Falcon Energy, LLC created on March 29th, 2007. We're not sure why these two entities were created but this raises the question; why did Kelly G Rogers create Falcon Ten Energy, LLC and did this corporation receive any of the funds invested in the "Falcon Energy-Buck Hamilton Series" project?

Monday, December 7, 2009

Kelly G Rogers Bankruptcy update IV


Kelly G Rogers filed his Voluntary Chapter 11 case in the United States Bankruptcy Court for the Eastern District of Texas, Sherman Division ("Court") on July 6, 2009, Case No 09-42152. Kelly G Rogers is an individual whose main assets consists of a home, investments and his ability to generate income. Rogers purposes to pay its current indebtedness by restructuring certain indebtedness and by selling his home.

Kelly G Rogers Bankruptcy Original report or Update I, Update II and Update III. and Update IV.

Kelly G Rogers submits this Disclosure Statement pursuant to Section 1125 of the Code to all known Claimants of Kelly Gordon Rogers for the purpose of disclosing that information which the Court has determined is material, important, and necessary for Creditors of Debtor in order to arrive at an intelligent, reasonably informed decision in exercising the right to vote for acceptance or rejection of the Kelly G Rogers Plan of Reorganization dated December 4, 2009 (“Plan”). This Disclosure Statement describes the operations of Kelly Rogers contemplated under the Plan.

Chapter 11 is the principal reorganization chapter of the Code. Pursuant to Chapter 11, Kelly G Rogers is authorized to reorganize its business for its own benefit and that of the creditors and equity interest holders. Formulation of a Plan is the principal purpose of a Chapter 11 reorganization case. A Plan sets forth the means for satisfying claims against and interests in Kelly Rogers. After a Plan has been filed, it must be accepted by holders of claims against, or interests in, Kelly G Rogers. Section 1125 of the Code requires full disclosure before solicitation of acceptances of a Plan. This Disclosure Statement is presented to Claimants to satisfy the requirements of Section 1125 of the Code.

Acceptance of the Plan by the Creditors and Equity Interest Holders is important. In order for the Plan to be accepted by each class of claims, the creditors that hold at least two thirds (2/3) in amount and more than one-half (½) in number of the allowed claims actually voting on the Plan in such class must vote for the Plan and the equity interest holders that hold at least two-thirds (2/3) in amount of the allowed interests actually voting on the Plan in such class must vote for the Plan. Chapter 11 of the Code does not require that each holder of a claim against, or interest in, the Debitor,  vote in favor of the Plan in order for it to be confirmed by the Court. The Plan, however, must be accepted by: (i) at least the holder of one (1) class of claims by a majority in number and two-thirds (2/3) in amount of those claims of such class actually voting; or (ii) at least the holders of one (1) class of allowed interests by two-thirds (2/3) in amount of the allowed interests of such class actually voting.

History and Background as told by Rogers

The Chapter 11 Bankruptcy filing of Kelly Rogers was a direct result of his inability to obtain a mortgage for the refinance of a Bank of Texas construction loan that matured on Febuary 1, 2009.

On February 1, 2008 Kelly Rogers obtained a $1,200,000 loan for the construction and renovation of his homestead. The loan was to mature in one year. Rogers’ Builder, Mike Brown of Angel Properties, LLC represented to Rogers that the cost of the home construction and renovation would be $1,200,000, and that it could be completed in one year.

Unfortunately, the cost of the home exceeded $1,800,000, wiped out all of Rogers’ available cash and life savings, caused even more indebtedness, and the home is still not finished. Angel Properties filed a lien against the home despite having abandoned the project, breached its contract, and misappropriated insurance funds due to Rogers. When the Bank of Texas Construction loan matured the bank extended the maturity date, hoping that Rogers would obtain a mortgage. However, when Angel Properties filed a lien against Rogers’ home, no bank would refinance, and Angel Properties refused to release, or even reduce, its’ lien until. Then the Bank of Texas posted the property for a foreclosure sale on July 7, 2009.

Beginning in July, 2006 Mr. Rogers had a falling out with his business partner, Richard Weyand. Rogers believed Weyand had been stealing money from the companies in which they were partners, without Rogers’ knowledge. On a day in July, Weyand coordinated a lock out of Mr. Rogers from his office, and Debtor asserts began a campaign to disparage him to all of the company’s investors, saying that he had embezzled funds. Kelly G Rogers would show that he did not embezzle any funds. Kelly Gordon Rogers believes one of Mr. Weyand’s attorneys, Larry Boyd convinced the District Attorney to indict Mr. Rogers almost five years after the complained of activities. The crush of these criminal allegations has severely hampered Mr. Roger’s ability to obtain work.

At the time of the lock out, Mr. Rogers lost a significant portion of his income. Unfortunately, he had already begun the teardown phase of his home remodeling project, and could not stop the building without suffering the entire loss of the rest of the home. Because he could no longer afford to build the home out of cash flow, he obtained the $1,200,000 loan from Bank of Texas.

An arbitration proceeding ensued between Weyand and Debtor, the cost for these legal proceedings exceeded $120,000 in legal fees, of which Mr. Rogers paid over $50,000. Mr. Rogers asserts there was no evidence presented at the arbitration that he had committed any actual fraud, or embezzled any funds. Rather, the evidence clearly he asserts demonstrated that he paid into the companies over $800,000 of his own money, in excess of the commissions he received for raising the companies start up capital. However, there was some evidence that he participated in handing out the Private Placement Memorandum, which turned out to have incorrect facts stated in it. It was shown that he did not prepare the PPM, nor did he have any knowledge that any of the facts were not completely accurate. All of the Plaintiffs testified that they relied upon Richard Weyand for the information, and they all knew that Mr. Rogers was not the source of the PPM facts. However, the arbitration resulting a finding against the Kelly G Rogers for approximately $715,000 and against Mr. Weyand for more than $14,000,000.

After July, 2006 he obtained employment at Noble Royalties, Inc. as Senior Vice President of Acquisitions, and made approximately $200,000 per year in Salary and benefits. During the time of Rogers’ employment at Noble he also participated as a working interest owner in various oil and gas wells through his company Falcon Energy, LLC. All of the wells that he invested in, and solicited other people to invest with him, turned into dry holes, except the Good 15-1 which was an asset of Falcon Energy, LLC – Buck Hamilton Series.

(Last, Kelly G Rogers makes a bunch of assertions about the Level Par Ponzi Scheme, claiming he was not at fault. However) ...the SEC filed a complaint against him, which he had to settle in order to avoid additional attorneys fees of over $250,000. He had already incurred over $60,000 of attorneys fees, of which he could only pay approximately $35,000. (Kelly G Rogers signed a final judgment with the SEC that states in Case No: 4:07cv246; number 12 on page 5 and 6; Defendant agrees; (i) not to take any action or to make or permit to be made any public statement denying, directly or indirectly, any allegation in the coplaint or creating the impression that the complaint is without factual basis. The statement on page 6 and 7 of this disclosure seem to directly violate the "Agreed Final Judgment" signed by Kelly Rogers).

Post-Petition Operations

Kelly Rogers originally filed this proceeding pro se. After attempting to navigate through the bankruptcy process, the Kelly G Rogers sought and obtained court approval to hire counsel. (Mr. Rogers asked for and received $15,000 to retain a Lawyer. After racking up over $120,000 in law fees and not paying them, I'm sure the only way this current lawyer would take the case is with a retainer paid "Up Front". Also, Kelly Rogers claims on multiple websites to be a lawyer specializing in Bankruptcy. He also has a company called "Takedown Debt Settlement"). Kelly Rogers has received three lawsuits objecting to his obtaining a discharge. Kelly Rogers has also had a motion to dismiss or convert the case to a Chapter 7 proceeding. The Debtor and his counsel have worked rapidly to evaluate Kelly Rogers ability to restructure his indebtedness and repay his creditors.

Lawsuit Creditors

Since the filing of the Kelly Rogers bankruptcy, Kelly G Rogers has had three adversary proceedings commenced against him. Kelly Rogers has agreed to extend the time for another creditor to determine if they wish to proceed.

The Bill Thompson, CR 591, LLC, Darryl J. Tyson, Wayne Johnson, Nick Digiuseppe, Tom Matter, William Noble, Lang Reid, Larry Boerder, Dr. Matt Brown, Glenn Walser, Jarry Kaul, Milly MacDonald, Stuart Reynolds, Jr., James E. Evans, Jr., Harris Block, Territories Unlimited, LLc, Fred Brodsky, Roy S. Washburn, Bill Grant and Michael A. Boch Creditors (“Thomson Lawsuit Creditors”) have filed a lawsuit in the Bankruptcy Court asserting that claims that they are entitled to a constructive trust on the Debtor’s homestead in the amount of $180,000 as well as claims under 11 U.S.C. § 523(a)(2) and (4). The Debtor has denied the allegations.

The Rio Grande Coal Mine LLC dba Mexicaol, LLC, Tom Haas, Christian Litscher, Eric Wade, Kent Loehrke, Raul Sanchez and Peggy Wade (“Rio Grande Lawsuit Creditors”) have asserted claims against the Debtor under 11 U.S.C. § 523(a)(2)and (4) for an undetermined amount arising from a Ponzi run by TNT Office Supply and Travis Correll. The Debtor has denied the allegations.

The DK Joint Venture 1, Dk Joint Venture 2, Vandali LLP, Parlai LLLP and RTB Holdings, Ltd., (“DK Lawsuit Creditors”) assert claims under 11 U.S.C. § 523(a)(2) and (4) arising from an arbitration award. Debtor denies the allegations.

The Steven & Robin Perry Trust, the Hackett Family Trust, the Tendler Family Trust and the J&T Bonutto Revocable Trust (“Trust Lawsuit Creditors”) have not filed a lawsuit in the Bankruptcy against the debtor however, they have requested additional time to do so. The Debtor does not know the specific allegation to be asserted by the Trust Lawsuit Creditors however the Motion on file with the Court asserts that claims under 11 U.S.C. § 523 (a) (2) (4) and (6) might be forthcoming.

Each of these entities will be referenced to as the “Lawsuit Creditors”. The Lawsuit Creditors shall have the option of continuing their litigation against the Debtor, or sharing in the Unsecured Creditors Pool. The Thompson Lawsuit Creditors shall have the option of participating as a class 3 or class 6 creditor, or continuing its lawsuit. In the event the lawsuit creditors desire to continue their litigation, the Debtor shall vigorously defend the lawsuits. Any successful lawsuit creditor shall not be effected by the Plan, and shall be allowed to collect any non-discharged debt from any non estate property. Any lawsuit creditor who elects to participate in the Plan shall agree to dismissal of the pending adversary proceeding or agree not to file suit.

We encourage the creditors to demand Chapter 7 liquidation and force the Riva Ridge home out of homestead and liquidated. This home is the “Crown Jewel” for Kelly Rogers and Carrie Sewell Rogers and would be appropriate payback to all who participation in Kelly G Rogers investment Schemes and were wiped out.

Thursday, December 3, 2009

Kelly G Rogers Indictment Update I


To review; Kelly G Rogers of Frisco Texas was indicted by a Collin County Texas Grand jury on July 30th 2009, case number 380-81600-09.. According to the County Clerks site, the offense took place on March 1st, 2005 and is a FELONY 1 charge. The charges include 26990034 Misapp Fiduc/Finan Prop >=$200,000. An arrest warrant was issued, and then executed on August 14th, 2009. Rogers was booked, his mug shot taken and he was incarcerated until a $50,000 bond was posted and he was released.

According to the Clerk’s site, an announcement was scheduled for today, December 3, 2009. However, we learned today that the DA’s office will let that deadline pass, a “131 Passed” and will reschedule the announcement to January 15th, 2009. More time was needed for Kelly Gordon Rogers to get his ducks in a row. Rogers has requested a “Jury Trial” and a trial date should be announced at that time.

Occurring simultaneously to the Indictment, Kelly G Rogers has filed Chapter 11 bankruptcy. A hearing was held on Friday where creditors, who participated in a variety of Kelly G Rogers’s investment schemes, were present. The U.S Trustee is considering a Motion to Dismiss or Convert, or for Alternative Relief. Kelly G Rogers has recently obtained counsel and has filed certain documents in the Case. Counsel for Kelly Rogers represents that a Plan and Disclosure Statement will be filed shortly.

The United States Trustee accordingly requests that the Motion to Dismiss be continued until January 11, 2010 at 2 p.m. Stand by for some additional fireworks as the Trustee considers the plan and “Alternate Relief”. From U.S. Courts.Gov; "Delays in formulating, filing, and obtaining confirmation of a plan often prompt creditors to file motions for relief from stay, to convert the case to chapter 7, or to dismiss the case altogether". Imagine if the U.S. Trustee orders a Chapter 7 liquidation of Kelly G Rogers possessions?

And if a liquidation was so ordered, what would be the actual "Net Worth" of Kelly G Rogers to liquidate? So far; we've seen his July 17th, 2006 balance sheet submitted to banks to "secure lines of credit" for $29,200,400. However, only three years later on July 13th, 2009, Rogers submits his "Summary of Schedules" showing a Negative networth of ($3,184,819). The challenge will be to sort through and seperate facts from fiction to discover the actual number.

The fun is just beginning.

Wednesday, December 2, 2009

Kelly G Rogers Bankruptcy Update III


A hearing took place on November 20th, 2009 in the bankruptcy proceedings of Kelly Gordon Rogers, Case No. 09-42154. The process involves over 70 creditors who are owed over $4.6 million by Kelly G Rogers. The hearing took place at the United States Department of Justice, Office of the United States Trustee, 300 Plaza Tower, 110 N. College Tyler, Texas 75702 (903) 590-1450.

While Kelly G Rogers has proclaimed himself to be a bankruptcy Lawyer and debt specialist (see Takedown Debt Settlement), he in fact requested, and was granted, the allocation of $15,000 from the Trustee to hire a bankruptcy lawyer to represent him. Having previously stiffed the law firm of Scheef & Stone LLP for $77,934 and Fish & Richardson PC out of $28,264 (see list of unsecured creditors), I’m sure it was cash up front on this deal.

This bankruptcy proceeding basically boils down to this; Kelly and Carrie Sewell Rogers trying to have their debt dismissed while the creditors attempt to hold the Rogers accountable to pay back the debts they incurred. Many of these debts were incurred either by the Rogers obsession to build a 10,000 square foot addition on their Frisco home or costs incurred via the lawsuits and judgments against Rogers as a result of his financial schemes.

A motion was presented to have the hearing continued to January 11, 2010 at 2:00 PM. However, new documents were submitted by Kelly G Rogers outlining his financial situation (see schedule B, Schedule C, Schedule I and Schedule J). We’ve done a quick summary for your review. A few key observations;

1. Stated monthly income dropped from $55,509 to $26,000 or $29,509 drop.

2. Stated monthly expensed dropped from $31,438 to $23,576 or $7,862 drop.

3. Net Income dropped from $24,071 to $2,424 or a drop of $21,647.

4. Total assets dropped from $423,175 to $202,700 or $220,475 less in assets.

5. New asset disclosure of $202,700 falls short compared to the 2007 balance sheet of $693,500. A drop of $507,800!

6. Furs & Jewelry of $6,000 is laughable considering all the reports of the Rogers in St. Thomas purchasing Jewelry.

7. Car disclosures jumped from $8,600 to $51,000. Missed by a little.

So the battle is on and the creditors are formidable and have significant money at steak. Keep an eye on Falcon-Buck Hamilton Series group who invested $1,400,000 in this project. This group seems to be leading the way to not allow these debts to be released but rather, forcing Rogers into a possible liquidation or the judge allowing other actions. . Let’s see what happens on January 11th of 2010.

Don’t forget to tune in on December 3rd for the announcement by the Collin County DA’s office concerning a Jury trial requested by Kelly G Rogers. This is a result of the indictment handed down against Lawyer Kelly Gordon Rogers in July of 2009.