On December 13, 2016, United States District Judge Gregory A.Presnell in the Middle District of Florida appointed me, Brian McDowell, as Receiver over the following entities:
The Federal Trade Commission alleges that these entities (“Receivership Defendants”) along with their principals, through a common enterprise, engaged in a plan, program, or campaign to deceptively advertise, market, promote, offer for sale, or sell timeshare resale or rental services. The FTC’s charges are summarized in a December 22, 2016 Litigation Release.
As Receiver, I am authorized and directed by the United States District Court, among other things, to i) assume custody and control of all of the Receivership Defendants' businesses, assets and properties, ii) determine, adjust and protect the interests of consumers and customers who have transacted business with the Receivership Defendants, iii) evaluate the activities of the Receivership Defendants and determine whether to conduct any further business or cease operation of the business, and iv) preserve the value of the Receivership Defendants' assets and properties in order to prevent any irreparable loss or injury to the consumers or creditors of the Receivership Defendants. In conjunction with my appointment as Receiver, the Court also imposed a freeze upon all of the assets and properties of the Receivership Defendants and a stay of any litigation against the Receivership Defendants.
The website upon which this letter appears has been set up to help provide you with information about the actions that led to my appointment, the status of the case, and the steps you can take to help process any claims that you may have against the Receivership Defendants. Please note that you can double click on any underlined blue entry to hyperlink to the referenced document. I will also endeavor to update this letter when developments warrant it.
If you wish to leave an e-mail message for me, please click on the following link, ProTimeshareResalesReceiver@hklaw.com. Due to the large number of inquiries, however, please allow me several days to respond.
On December 12, 2016, the Federal Trade Commission (“FTC”) filed its Complaint for Injunctive Relief and Other Equitable Relief (Doc. No. 2) in the United States District Court for the Middle District of Florida, Tampa Division, against defendants J. Williams Enterprises, LLC, d/b/a Pro Timeshares Resales (“JWE”), Pro Timeshare Resales of Flagler Beach, LLC (“Pro Timeshare Flagler”) (JWE and Flagler are collectively referred to as the “Receivership Defendants”), Jess Kinmont (“Kinmont”), and John P. Wenz, Jr. (“Wenz”) (Receivership Defendants, Kinmont, and Wenz are collectively referred to as “Defendants”). In its Complaint, the FTC alleges that the Defendants, through a common enterprise, engaged in a plan, program, or campaign to deceptively advertise, market, promote, offer for sale, or sell timeshare resale or rental services.
On December 13, 2016, the Court entered its Ex Parte Temporary Restraining Order (“TRO”)(Doc. No. 11) enjoining the Defendants from misrepresenting, or assisting others in misrepresenting, directly or indirectly, expressly or by implication, that Defendants have a buyer or renter for the consumer’s timeshare property, and appointing me as temporary receiver over the Receivership Defendants. On December 21, 2016, and continuing on December 22, 2016, the Court conducted a show cause hearing in connection with the FTC’s Motion for Preliminary Injunction (Doc. No. 3). At the hearing, the Receiver testified about his actions taken pursuant to the TRO, the business of the Receivership Defendants, and his conclusion that the business could not operate lawfully and profitably. During the course of that hearing, the FTC and Defendants announced they had reached an agreement that the Defendants would stipulate to the entry of a preliminary injunction. As a result, on December 27, 2016, the Court entered the Stipulated Preliminary Injunction Order with Asset Freeze, Appointment of a Permanent Receiver, and Other Equitable Relief (the “Stipulated Preliminary Injunction”) (Doc. No. 55) . Pursuant to the Stipulated Injunction, I became the Permanent Receiver over the Receivership Defendants.
As Receiver, I am an independent agent of the Court charged with, among other things, conserving and managing all assets of the Receivership Defendants and performing all acts necessary or advisable to preserve the value of those assets in order to prevent any irreparable loss or injury to consumers or creditors of the Receivership Defendants. Immediately upon my appointment, I took a number of steps to discharge this obligation:
I have ceased all telemarketing and advertising business activities of the receivership defendants. I have also instructed the company responsible for debiting consumer bank accounts for the so-called enrollment fees for the Receivership Defendants to stop making such debits. Lastly, I am examining all transactions between the Receivership Defendants and the Individual Defendants and certain third parties to determine whether any such transactions were fraudulent, unsupported by adequate consideration, or otherwise unjustly enriched the Individual Defendants or third parties to the detriment of the Receivership Defendants. In the event I determine that the Receivership Defendants have viable claims against the Individual Defendants or third parties for the return of any misappropriated funds, properties or other assets, I intend to prosecute these claims on behalf of the Receivership Defendants and seek the recoveries of these ill-gotten gains.
Pursuant to the Court’s Orders, I have filed monthly reports with the Court. The monthly reports detail the actions taken by my counsel and me to carry out my mandate. For your review, I have provided links to the reports below:
Ultimately, I anticipate that the Court will authorize me or FTC to develop and implement a process by which consumers, former employees, vendors, and any other persons who may have a claim for losses or damages against the Receivership Defendants may seek the distribution of funds from the Receivership Defendants in satisfaction of these claims. Please be aware that in any such claims process you will be required to document and otherwise support your claim for distribution.
Typically, I will review all claims and make a recommendation to the Court whether I believe the claim is valid and should be approved. I will also usually recommend the amount of the particular claim that should be approved. Creditors will be provided with adequate notice of my recommendation and an opportunity to file an objection to any adverse recommendation with the Court. The Court may, if it deems it appropriate, conduct a hearing on the various claims filed against the Receivership Defendants. At the end of the process, available funds of the Receivership Defendants will be distributed to those persons whose claims were approved by the Court.
Please continue to monitor this website for significant developments in this matter. As indicated at the outset, I will endeavor to update this site so that you might track and understand the action and proceedings that may affect your interests.Contact Information For Receiver: