Las Vegas Mob Experience Developer Vindicated By Court Report

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Allegations have been flying at the Las Vegas Mob Experience, and there are finally some answers.

We are glad to have even this preliminary report that sets the record straight. We have maintained that there are no funds missing or that have 'simply disappeared', as claimed by the plaintiffs, and now this is confirmed by the Special Masters Report.

Case Number: A-11-646131-C
Clark County District Court
Las Vegas, NV

Allegations have been flying at the Las Vegas Mob Experience, and there are finally some answers.

According to Court documents owner and developer Jay Bloom – and a number of other parties – have claimed that Louis Ventre, currently holding himself out as disputed owner and manager of the attraction, schemed to defraud Bloom of his ownership interest as well as scores of creditors of their positions in the Las Vegas based attraction.

In addition, according to court documents, Bloom asserted in his claims that during the period of Ventre's management over the last several months, hundreds of thousands of dollars have gone unaccounted for through Ventre's decision to bypass the box office and move to "cash only" sales for a period of time.

Court documents further allege that Ventre also is accused of falsifying an email submitted as evidence to the District Court, selling Mafia Collection (a Bloom company) property on eBay, distributing property that doesn't belong to him in satisfaction of Murder, Inc obligations, removing artifacts from the premises to his personal residence in violation of the District Court's order, and other examples cited in the filings of his mismanagement of Bloom's company.

In his complaint, Bloom and various other plaintiffs further asserted months ago in Court documents that Ventre was going to attempt to bankrupt the Las Vegas Mob Experience, and convert the assets to his own benefit at the expense of all other parties.

Several months after Bloom's prediction, Ventre did just that, a few weeks ago entering the company into a questionable bankruptcy together with a prepackaged plan that provides creditors in a best case scenario a mere two cents on the dollar on their commercial loans, according to documents filed the with US Federal Bankruptcy Court.

In the meantime, Court documents indicate that Ventre convinced Vion and Strategic, two factoring companies (who together purchased approximately four-million dollars in future sales for a three-million dollar payment to Murder, Inc., LLC last February), that as much as five-million dollars were alleged to be missing and "simply unaccounted for" under Bloom's management.

In response to Ventre's representations, the factoring companies filed suit against Bloom and the entities.

At Bloom's request of the Court for a financial accounting of the three-month period of Ventre's management, District Court Judge Gloria Sturman appointed the well-respected Larry L. Bertsch, CPA and Associates, LLP as Special Master to investigate each of the parties’ claims against the others.

Today, in his preliminary report for the Court, Bertsch represented in his findings that he has accounted for all monies, and while the parties may argue over business decisions on how the money was spent, there is definitively no money missing.

Bertsch wrote: "The {Ventre} Murder bankruptcy case effectively need not have but appear to have destroyed Murder revenue as a source of collateral and repayment for Vion, Strategic, and GC Capital. A recent ruling by the Bankruptcy Court (case 11-26317-bam in the US Bankruptcy Court) suggests that the reorganization will take the form of a liquidation of Murder with a new entity taking control of the Mob Experience Project, while paying Murder creditors’ claims at pennies on the dollar."

In his findings, Bertsch said that for the 30-month period – from the March 2009 inception through September 2011 – Bloom and Ventre each took distributions and made contributions to Murder, Inc. and its parent, Eagle Group Holdings.

Bertsch's report states Bloom realized a total net income of $154,627.83 from Murder, Inc., and $109,432.76 from Eagle Group Holdings, for the two-and-a-half-year period, for a total of $263,536.75. This amount represents about a quarter of Bloom's entitled draws under the company's Operating Agreement, and that Bloom further continued to put significant sums back into the company.

Bertsch further states that Ventre realized a net income of $357,417.56 from Murder, Inc., and $119,417.62 from Eagle Group Holdings, for a total of $470,835.18 for this same period.

Says Bloom in Court documents filed in the Clark County District Court case, "Since Ventre and I drew at the same rate during the period I was writing checks through June of 2011, it appears as though Ventre's extra $200,000 realized from Murder, Inc., LLC could only have come during the last several months of operations after he took operational control of Murder, inc., LLC before entering the bankruptcy." Bloom continues, "Because Ventre's extra $200,000 could only have come over the last several months after his taking control of the checkbook, Mr. Bertsch's report appears to bear out the allegations against Ventre."

Ventre's bankruptcy plan hearing is scheduled for Monday, November 7, 2011, at which his reorganization plan is scheduled to be reviewed by U.S. Bankruptcy Court Judge Bruce Markell.

In addition to his $470,835.18 that Bertsch accounted for Ventre having taken, Bloom alleges in Court documents that Ventre has positioned himself as recipient of an estimated six-figure "finder's fee" windfall from the bankruptcy he arranged and approved, in addition to hoping to stay on at a six-figure annual salary as manager.

Eyes are now shifting critically in review of Ventre's actions, both prior to and after his assumption of management of the attraction.

Michael Regan – a note holder in Murder, Inc. LLC – said, "I have spoken with a number of other note holders and it has become apparent which side Lou is on and which side Jay is on."

Another note holder, Sandro Carnivale, said "I have seen Jay working tirelessly in support of the creditors’ position, and he has shown me there is no reason creditors need to be discharged as is Ventre's plan. I, and the majority of the other note holders, will give Jay whatever support we can in his continued efforts to protect our interests."

Joseph Gutierrez, attorney for Bloom and the entities says, "We are glad to have even this preliminary report that sets the record straight. We have maintained that there are no funds missing or that have 'simply disappeared', as claimed by the plaintiffs, and now this is confirmed by the Special Masters Report."

Gutierrez continued: "Bloom is working hard to make sure the Creditors, virtually wiped out in Ventre's bankruptcy plan, are protected and able to recover their investments in their entirety."
Whatever happens, according to the Court ordered Special Master preliminary report, it is now clear that Ventre's allegations of millions of dollars "missing" turned out to be much ado about nothing.

About Murder, Inc., dba The Las Vegas Mob Experience | http://www.LVME.com
Owned and operated by Murder, Inc., LLC., The Las Vegas Mob Experience is a highly interactive, immersive experience anchored by a collection of over 1,000 authentic artifacts once belonging to the famous organized crime figures who helped create the Las Vegas we know today. Leveraging the latest in Theme Park technologies in enhancing the artifact collection, the Las Vegas Mob Experience immerses its guests in a presentation of the rise and fall of organized crime. Through first person accountings, offered by apparitions of famed gangsters themselves, visitors will be able to experience the world of organized crime and learn about the role its major players had on the building of Las Vegas, and their eventual eradication from the casinos. The Las Vegas Mob Experience captures a lost era, chronicles Las Vegas’ early years, and tells the stories of the real men behind the myths. The Las Vegas Mob Exhibition neither glorifies nor vilifies the Mob, it simply presents a historically accurate view of what guests will decide are either a group of ruthless gangsters or ordinary individuals who lived extraordinary lives.

About Eagle Group Holdings, LLC | http://www.eaglegroupholdings.com
Eagle Group Holdings, a Nevada LLC is a holding company concern formed for holding ownership of its various entertainment based operating entities. Eagle Group provides each of its subsidiaries financing, marketing, management, financial and back office support.

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Jay Bloom
jbloom@eaglegroupholdings.com
702-423-0500
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