PonziScams.com Schemes & Due Diligence

Looks like Trevor Reed and Clayton Kimbrell decided to use their Fifth Amendment right not to incriminate theirselves while giving testimony to the receiver of CEP.

“I took the depositions of Clayton Kimbrell and Trevor Reed today in Atlanta, Georgia in the bankruptcy cases and adversary proceedings filed in the Bankruptcy Court thus far. A deposition is a sworn statement given in response to questions by opposing counsel and taken down by a court reporter for potential use as evidence in these cases. Mr. Kimbrell and Mr. Reed chose to exercise their Fifth Amendment rights against self-incrimination, answering no questions regarding the CEP programs or investments. They also asserted their Fifth Amendment rights against self-incrimination in response to my Requests for Production of Documents, Interrogatories and Requests for Admission.”
http://www.wfperkinsforcep.com/#oct24

CEP being placed in voluntary bankruptcy does 2 things.

First thing it allows the Creditors(Those that are not in profit but at a monetary Loss) to stake a claim against what is in the CEP coffers.

Second thing once the coffers are emptied the Receiver will then start calling upon The Debtors of CEP(Those that are in Profit).

Spell this out so I know what you are saying!!!
Simple If you are at a Loss you can file a claim with the Receiver to get some or all of your Funds back (Usually a percentage of what you put in is what you will get).
If you are in profit you can, and most likely, be sued as a Debtor to CEP (CEP gave you funds in excess of your investment. Thus you OWE the excess funds, therefore a debtor)

How Do I determine my Claim?

Your Losses are very simple to figure. Take the amount of Funds invested minus any funds returned to you. Let’s say you invested $1000 and got $500 back your Loss will be $500. You will not be paid any interest!

Now If you Paid in $1000 and you received back $2000, you owe the Trust $1000. You can and most likely will be called upon for that amount of excess of your investment.

Investor Lawsuits Filed, Discovery Hearing

I have filed 33 lawsuits in the Bankruptcy Court (two more to go) in this first round of recovery suits against investors. We are pursuing all distributions to these defendants. I am not attaching the complaints here due to volume, although I understand that some have probably been picked up off the docket and are being circulated about the forums. This group includes Caroline, Bart and Heidi Strittmatter, Israel Lagares, Daniel May, Gary Schrier, Marcus Petrelli, Regina & Gary Johnson, Dustin Fennell, Thomas Hall, Maurice Usenbor, Max Gonzalez, Troy Winters, Pamela Anderson, Curtis Greek, E-Business (Alwine), Hobson Black, Wilfried Owatoye, Patricia Bruno, William Nugent, Skye Karls, Shad Foss, Wilmer Michael Wrenn, Bill Holcombe, Andrew Hockenbrock, Jevard Hitch, Brenda Bumgardner, Jace Wingard, Greg Collier, Jim Pratt, Denise Higgins, Howard C. Phillips, and Gareth Lodge. This group received distributions in excess of $2.5 million with over $2.0 million of that amount appearing to be in excess of their investment.

There is a hearing scheduled for Tuesday morning, August 28, 2007 at 10:00 am to hear motions I’ve put forth to the Judge to expedite the discovery process related to these and other cases pending or to be filed. [See Documents CEP #0032 and #0020]. “Discovery” is essentially the process by which both sides of the litigation endeavor to find out the facts. This includes responses by both plaintiff and defendant to specific questions called interrogatories, the physical production of electronic and hardcopy documents or records, and questioning of parties under oath.