Los Angeles, CA (PRWEB) June 03, 2013
Seven Arts Pictures Plc – In Compulsory Liquidation (“SAP”)
According to the complaint document, SAP was wound up by the Court on 8 November 2011. Following the making of a Winding Up Order, the case is transferred to the office of the Official Receiver (“OR”). In this case the office dealing with the case was Official Receiver’s Office London B and the day to day affairs of the Liquidation were handled by Mr Brian Penn and Mr Michael Lazarus. On 15 February 2012 the OR circulated notice to all known creditors of SAP convening a meeting of creditors for 19 March 2012 to appoint an Insolvency Practitioner to act as Liquidator of SAP. At that meeting Nick Rimes was appointed as Liquidator.
In a Compulsory Liquidation there is a division of duties between the appointed Liquidator and the OR. The Liquidator is responsible for realizing a company’s assets for the benefit of creditors including whether there any action can be bought against any person for the recovery of funds for the benefit of the estate. The OR is responsible for considering all matters relating to the conduct of the officers of a company and as a result, in a Compulsory Liquidation the Liquidator is not required to submit a report on the conduct of the Directors.
According to the complaint document following the appointment of Nick Rimes as Liquidator, the OR completed a handover of documents in his possession, including a list of known creditors that had been compiled.
A considerable amount of time has been spent in looking at the circumstances surrounding an Asset Transfer Agreement between SAP and Seven Arts Entertainment Inc. Creditors have raised concerns about the purported transfer of assets to SAE and the value paid to SAP – the liquidators investigations are ongoing into what is an extremely complex and time consuming matter. The Liquidators are meeting with Counsel on 7 June 2013 to discuss the future strategy for the Liquidation. The details for the person handling the investigation at the office of the Official Receiver is Mr Brian Penn.
According to the complaint document, having set up a company of a similar name in the UK, Peter Hoffman and Kate Hoffman solicited investments in a company which was put later into liquidation.
The documents allege the US company Seven Arts Pictures reputation of a long standing film maker was duplicated in the UK with the same name. Investors then gave Peter Hoffmans monies they thought were being invested into movies. Emails being sent by Hoffman using the email address of his US company with the same name informing them on the progress of their investment whilst the company they actually invested in was already in liquidation in the UK.
Seven Arts SAPX has no contingency for these liabilities and the fact that it has not been shown in their financial statements as a contingent liability may constitute a further fraud against investors in the US.
According to the complaint documents on July 19, 2011 Officers of Her Majesty’s Revenue & Customs (“HMRC”) raided the offices of Seven Arts Pictures Plc. (the “Company”) in London already in liquidation. Documents were taken appertaining to arrangements involving the subscription for shares in a number of companies which had lost value, resulting in subscribers making claims to tax relief in a Fraud masterminded by Hoffmans daughter, Kate Hofffman. The company had been used to collect millions of dollars in tax relief for movies that Hoffman never made.
According to the complaint documents in one example uncovered Peter Hoffman solicited an investment of $400,000.00 on September 18th 2009. He warranted in a contract that the film would be delivered no later than December 31st 2010. No film was made and he never informed the investors of this liquidation and along with his co Directors, Kate Hoffman, Elaine New and Julia Verdin he continued to pretend the film was being made.
According to the complaint documents, this was not true as he had already sold the rights of the film to another company Medient just before the company was placed in Liquidation and the original company used to collect investors monies was already in Liquidation.
Adam Jordan MABRP MIPA - N G Rimes, Liquidator responded with the following comments.
To summarise the position regarding SAP since the Winding Up Order was made and since Nick Rimes was appointed as Liquidator;
- SAP has not continued to trade under control of either the Official Receiver or the Liquidator.
- The Liquidator has not given permission for any person to hold themselves out as being an officer of the company.
- The Liquidator has not given permission for any person to enter any agreement with any party to sell or acquire any film rights on behalf of the company.
- The Liquidator has had limited contact from the Directors other than the provision of certain information to assist in our investigations.
In a Press Release issued by Seven Arts on May 24 2013, Peter Hoffman makes statements to shareholders which are clearly contrary to the position of Brain Penn - The UK Official Receiver - Brian.Penn (at) insolvency (dot) gsi.gov.uk or Adam Jordan MABRP MIPA - N G Rimes, Liquidator - adam.jordan (at) rimesandco (dot) co.uk.
1. Peter Hoffman claims no investigation is being carried out despite a full investigation being carried out by The UK Official Receiver and the UK Liquidator who can be contacted below.
2. A Creditors committee has been formed to help recover funds to creditors.
Mr Alistair Giles representing Assagai Solutions Limited
Mr David Gibbs representing Palm Finance Corporation
Mr Michael Reid representing Armadillo Investments - In Liquidation
Ms Elena Jacobson representing Parallel Media LLC
3. Peter Hoffman claims no fraudulent activities have taken place and no suits filled. Yet SAE is subject to Chapter 15 Proceedings and litigation in the Superior Court of California, where the claimant is seeking to avoid certain transfers to SAE under California Fraudulent Transfer Act.
Both Peter Hoffman and his daughter Kate Hoffman declined to comment.
To report further offenses please contact:
Brain Penn - The UK Official Receiver - Brian.Penn (at) insolvency (dot) gsi.gov.uk
Intelligence and Enforcement Directorate
Investigations and Enforcement Services
3rd Floor Cannon House
18 Priory Queensway
Birmingham B4 6FD
Adam Jordan MABRP MIPA - N G Rimes, Liquidator - adam.jordan (at) rimesandco (dot) co.uk
Rimes & Co Limited,
Bewdley DY12 1AB