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.

1 comment:

Anonymous said...

My company did the interior wood work on Riva... Kelly, and Carrie where spending money faster than we could blink an eye. Upgrade after upgrade.. Many times, I heard Mike Brown say, that's not in your budget you can't afford it... But Carrie would always get what she wanted. Mike, is an outstanding person, and builder. I feel His budget was well in reason, if he was dealing with reasonable people. Just my thoughts.