First, many thanks to AzCC Securities lawyer Paul Kitchen for spending a couple of hours with those who attended the Commission Open Hearing this morning. He fielded questions from investors regarding what happens now that the Consent Order was adopted by a vote of 4-0, with the Commissioner Bob Burns abstaining as he recused himself from the action. There was no public comment opportunity on the adoption of the Order. Many of the questions were about any repayment to investors.
He stated that investors need to "be pessimitic" about getting restitution.
In about a week, the Order will be signed by the Commissioners and entered on the Docket. At that time, finding and collecting any money for fulfillment of the restitution will be the responsibility of a state collection agency. That collection agency is a division of the AG's office. Money and assets of IPX, SBED, and Butterfield (personal assets as allowed by law) will be subject to collection. IF there is any there "there", it goes into a fund to be distributed pro rata to investors.
The question of what happens to Butterfield if he can't make the restitution in full was answered as basically "nothing." He can only be held in contempt of court for failure to pay ONLY if he has the ability to make the restitution and doesn't. In other words, and especially now that SBED is no longer a member of the Mexican corporation that owns all the Mexico investments, there will be extremely little money and virtually no assets they can collect.
The question was asked about all of Daniel's 20 sole member LLCs, and whether money or assets in them could be collected, including the assets of Equity Financial Planning. Kitchen said probably not. "Even if they are just shell corps where he could stash money?" His answer to that seemed to indicate this would require some further legal action, as none of those LLCs are attached to this consent order.