RESORT HOLDINGS - Vacation Properties - MICHAEL EUGENE KELLY - Resort Holding International RIPOFF OF A 99 YEAR OLD WOMAN FOR $25,000.00 BY an INSURANCE AGENT AND HIS REPRESENTIVE South Bend Indiana

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

Kelly's case has moved forward and the court has appointed a Receiver. The Fund filed a motion asking the court to allow the Leaseholders, as Resort Management Group (RMG), to serve as a Special Master to assist the court in the collection, administration and distribution of restitution to victims. Resort Management Group's board of Directors is made up of leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders and protecting the leaseholders' vested interests. The Leaseholders, as a Special Master, have an interest in holding down the costs, unlike a Special Master with no personal investment but who has a financial interest and would generate massive fees for attorneys and other professionals at the cost to Kelly's victims.

On December 19, 2008 the court granted the Fund's motion appointing RMG and then the Court, without explanation, amended its Order on December 22, 2008 and appointed Mr. Doetsch of Mayer & Brown as Special Master I believe that the Fund's Motion laid out to the court the Leaseholders' concerns of a Receiver victimizing them like other fraud victims in other cases. Judge Guzman pointed to another case before him, which is like Kelly's case, with assets all over the world and admits that it has been ongoing at a very high cost for eight years.

Judge Guzman stated: "The nightmare scenario in this type of case for those of us who are on the public servants' side of this case is for a million dollars in fees to expended from the assets of forfeitable property and no results be obtained for the allegedly defrauded investors. That's a nightmare scenario. That has happened in the past. It's also true in these cases, the dollars to investors is usually pennies. Usually pennies and nobody can predict or guarantee that such a thing won't happen in this case."

The record shows that, of all of the other candidates, the court believed Doetsch had the best combination of assets in terms of expertise, specialized expertise and real estate transactions in Mexico. The court stated that its concern was that even if the cost is higher the overall costs would be less because it would take less time to get things up and running. The cost of the attorneys and support staff will be at a blended cost of $465 an hour. This means that regardless of who does the work, one hour of work is at that rate. Everyone should be aware that if you call Mr. Doetsch's group to ask questions or complain the call will cost everyone money, a 15 minute call will cost $116.25! Furthermore, the cost of the Special Master's team is as follows: $400 and $300 an hour for the Mexican attorneys; Panamanian Counsel $250, $225, and $175 per hour; Financial Consulting FTI senior managing director $710; managing director $625; director $520; senior consultant $380 and other consultant $255; claims processing senior managing consultant $325; senior consultant $255 to $275; and team members consultant $165 to $245. Stenger & Stenger, the group the Judge mentioned who has been working on a case like Kelly's for eight years and was appointed as second claims processor, will paid up to $300 per hour.

The Court ordered Kelly to pay $1,000,000 to fund the initial phase of the restitution plan which includes the Receivership fees and to transfer $5.4 million from the sale of Hazama Corp Desarrollos, the owner of Pok ta Pok golf course, to the Receiver within one week of the Receiver's request. This money will not be used to pay the victims, it is to pay the Receivership costs first. For more information go to www.ipfund1.com

Kelly's case has moved forward and the court has appointed a Receiver. The Fund filed a motion asking the court to allow the Leaseholders, as Resort Management Group (RMG), to serve as a Special Master to assist the court in the collection, administration and distribution of restitution to victims. Resort Management Group's board of Directors is made up of leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders and protecting the leaseholders' vested interests. The Leaseholders, as a Special Master, have an interest in holding down the costs, unlike a Special Master with no personal investment but who has a financial interest and would generate massive fees for attorneys and other professionals at the cost to Kelly's victims.

On December 19, 2008 the court granted the Fund's motion appointing RMG and then the Court, without explanation, amended its Order on December 22, 2008 and appointed Mr. Doetsch of Mayer & Brown as Special Master I believe that the Fund's Motion laid out to the court the Leaseholders' concerns of a Receiver victimizing them like other fraud victims in other cases. Judge Guzman pointed to another case before him, which is like Kelly's case, with assets all over the world and admits that it has been ongoing at a very high cost for eight years.

Judge Guzman stated: "The nightmare scenario in this type of case for those of us who are on the public servants' side of this case is for a million dollars in fees to expended from the assets of forfeitable property and no results be obtained for the allegedly defrauded investors. That's a nightmare scenario. That has happened in the past. It's also true in these cases, the dollars to investors is usually pennies. Usually pennies and nobody can predict or guarantee that such a thing won't happen in this case."

The record shows that, of all of the other candidates, the court believed Doetsch had the best combination of assets in terms of expertise, specialized expertise and real estate transactions in Mexico. The court stated that its concern was that even if the cost is higher the overall costs would be less because it would take less time to get things up and running. The cost of the attorneys and support staff will be at a blended cost of $465 an hour. This means that regardless of who does the work, one hour of work is at that rate. Everyone should be aware that if you call Mr. Doetsch's group to ask questions or complain the call will cost everyone money, a 15 minute call will cost $116.25! Furthermore, the cost of the Special Master's team is as follows: $400 and $300 an hour for the Mexican attorneys; Panamanian Counsel $250, $225, and $175 per hour; Financial Consulting FTI senior managing director $710; managing director $625; director $520; senior consultant $380 and other consultant $255; claims processing senior managing consultant $325; senior consultant $255 to $275; and team members consultant $165 to $245. Stenger & Stenger, the group the Judge mentioned who has been working on a case like Kelly's for eight years and was appointed as second claims processor, will paid up to $300 per hour.

The Court ordered Kelly to pay $1,000,000 to fund the initial phase of the restitution plan which includes the Receivership fees and to transfer $5.4 million from the sale of Hazama Corp Desarrollos, the owner of Pok ta Pok golf course, to the Receiver within one week of the Receiver's request. This money will not be used to pay the victims, it is to pay the Receivership costs first. For more information go to www.ipfund1.com

Kelly's case has moved forward and the court has appointed a Receiver. The Fund filed a motion asking the court to allow the Leaseholders, as Resort Management Group (RMG), to serve as a Special Master to assist the court in the collection, administration and distribution of restitution to victims. Resort Management Group's board of Directors is made up of leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders and protecting the leaseholders' vested interests. The Leaseholders, as a Special Master, have an interest in holding down the costs, unlike a Special Master with no personal investment but who has a financial interest and would generate massive fees for attorneys and other professionals at the cost to Kelly's victims.

On December 19, 2008 the court granted the Fund's motion appointing RMG and then the Court, without explanation, amended its Order on December 22, 2008 and appointed Mr. Doetsch of Mayer & Brown as Special Master I believe that the Fund's Motion laid out to the court the Leaseholders' concerns of a Receiver victimizing them like other fraud victims in other cases. Judge Guzman pointed to another case before him, which is like Kelly's case, with assets all over the world and admits that it has been ongoing at a very high cost for eight years.

Judge Guzman stated: "The nightmare scenario in this type of case for those of us who are on the public servants' side of this case is for a million dollars in fees to expended from the assets of forfeitable property and no results be obtained for the allegedly defrauded investors. That's a nightmare scenario. That has happened in the past. It's also true in these cases, the dollars to investors is usually pennies. Usually pennies and nobody can predict or guarantee that such a thing won't happen in this case."

The record shows that, of all of the other candidates, the court believed Doetsch had the best combination of assets in terms of expertise, specialized expertise and real estate transactions in Mexico. The court stated that its concern was that even if the cost is higher the overall costs would be less because it would take less time to get things up and running. The cost of the attorneys and support staff will be at a blended cost of $465 an hour. This means that regardless of who does the work, one hour of work is at that rate. Everyone should be aware that if you call Mr. Doetsch's group to ask questions or complain the call will cost everyone money, a 15 minute call will cost $116.25! Furthermore, the cost of the Special Master's team is as follows: $400 and $300 an hour for the Mexican attorneys; Panamanian Counsel $250, $225, and $175 per hour; Financial Consulting FTI senior managing director $710; managing director $625; director $520; senior consultant $380 and other consultant $255; claims processing senior managing consultant $325; senior consultant $255 to $275; and team members consultant $165 to $245. Stenger & Stenger, the group the Judge mentioned who has been working on a case like Kelly's for eight years and was appointed as second claims processor, will paid up to $300 per hour.

The Court ordered Kelly to pay $1,000,000 to fund the initial phase of the restitution plan which includes the Receivership fees and to transfer $5.4 million from the sale of Hazama Corp Desarrollos, the owner of Pok ta Pok golf course, to the Receiver within one week of the Receiver's request. This money will not be used to pay the victims, it is to pay the Receivership costs first. For more information go to www.ipfund1.com

IP FUND 1 INC. (Fund) moves the court to allow the Leaseholders, as Resort Management Group LLC, (RMG) to serve as a special master pursuant to 18 U.S.C. 3664(d)(6) to assist the court in the collection, administration and distribution of restitution to victims.

The Fund asks the Court to allow RMG to serve as a Special Master to protect all the leaseholders' vested interests. RMG's Mangers are leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders.

RMG would institute a claims verification procedure to quantify the losses
suffered by each victim, identify all assets available for liquidation and/or repatriation for the benefit of the victims if needed, and select an appropriate method and timetable to liquidate.

RMG may not need to repatriate available assets because of the costs associated with repatriation; they would oversee and accomplish the liquidation for the benefit of the victims, and apportion any available funds among the victims pursuant to orders of this court.

RMG would accomplish the liquidation including, as may be appropriate, the posting of public notices and distribution of claims verification forms to give a more complete identification of the victims eligible for restitution in this case.

RMG would form a Mexican Corporation to force the Mexican government to cooperate directly with the leaseholders under Mexican law. In order to conserve assets for the payment of restitution to victims, RMG will use all of the information from the investigations in the best interests of justice and the victims.

A full copy of this motion is on www.ipfund1.com

IP FUND 1 filed a motion in the Northern District of Illinois Eastern Division.

IP FUND 1 INC. (Fund) moves the court to allow the Leaseholders, as Resort Management Group LLC, (RMG) to serve as a special master pursuant to 18 U.S.C. 3664(d)(6) to assist the court in the collection, administration and distribution of restitution to victims.

The Fund asks the Court to allow RMG to serve as a Special Master to protect all the leaseholders' vested interests. RMG's Mangers are leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders.

RMG would institute a claims verification procedure to quantify the losses
suffered by each victim, identify all assets available for liquidation and/or repatriation for the benefit of the victims if needed, and select an appropriate method and timetable to liquidate.

RMG may not need to repatriate available assets because of the costs associated with repatriation; they would oversee and accomplish the liquidation for the benefit of the victims, and apportion any available funds among the victims pursuant to orders of this court.

RMG would accomplish the liquidation including, as may be appropriate, the posting of public notices and distribution of claims verification forms to give a more complete identification of the victims eligible for restitution in this case.

RMG would form a Mexican Corporation to force the Mexican government to cooperate directly with the leaseholders under Mexican law. In order to conserve assets for the payment of restitution to victims, RMG will use all of the information from the investigations in the best interests of justice and the victims.

A full copy of this motion is on www.ipfund1.com

IP FUND 1 filed a motion in the Northern District of Illinois Eastern Division.

IP FUND 1 INC. (Fund) moves the court to allow the Leaseholders, as Resort Management Group LLC, (RMG) to serve as a special master pursuant to 18 U.S.C. 3664(d)(6) to assist the court in the collection, administration and distribution of restitution to victims.

The Fund asks the Court to allow RMG to serve as a Special Master to protect all the leaseholders' vested interests. RMG's Mangers are leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders.

RMG would institute a claims verification procedure to quantify the losses
suffered by each victim, identify all assets available for liquidation and/or repatriation for the benefit of the victims if needed, and select an appropriate method and timetable to liquidate.

RMG may not need to repatriate available assets because of the costs associated with repatriation; they would oversee and accomplish the liquidation for the benefit of the victims, and apportion any available funds among the victims pursuant to orders of this court.

RMG would accomplish the liquidation including, as may be appropriate, the posting of public notices and distribution of claims verification forms to give a more complete identification of the victims eligible for restitution in this case.

RMG would form a Mexican Corporation to force the Mexican government to cooperate directly with the leaseholders under Mexican law. In order to conserve assets for the payment of restitution to victims, RMG will use all of the information from the investigations in the best interests of justice and the victims.

A full copy of this motion is on www.ipfund1.com

Kelly entered a plea of NOT GUILTY to the Department Of Justice claims that he borrowed money from the leaseholders, Kelly will claim he sold Timeshares! This will be interesting considering that the DOJ has been stating for over a year that Kelly would plead guilty and make full restitution! This should make the IP Fund 1 complaint of RICO much stronger. For more information go to www.ipfund1.com

The IP Fund 1 complaint claims RICO, it takes a big bite out of the wrongdoers and the SEC only paints a picture of greed and fraud. SEC cmplaint makes our case that there were many involved and that they conspired to defraud. RICO! (read below)

I have seen this before and it is very important for everyone to come together under one voice! We expected this to happen and are ready to meet them head on. I believe we will be on the winning side of the argument.

Joel Held one of RHI attorneys wrote in a case filed in Texas claiming securities fraud and RICO: "It is as if the Fifth Circuit of Appeals was referring to the complaint in this action when it observed:" "A Complaint can be long-winded, even prolix, without pleading particularity. Indeed, Such a garrulous style is not an uncommon mask for an absence of detail" Southland Securities Corp. v. Inspire Insurance Solutions, Inc., F. 365 3rd 353,362 (5th Cir. 2004)

The SEC complaint is a classic example of an ill-conceived, shotgun pleading in search of defendants and cause of action to justify a SEC-Receivership. They already state the leaseholders have lost their money. "The fraudulent Universal Lease scheme eventually collapsed, leaving investors with losses that exceed $300 million."

What losses! RHI and other asstes are there and can be claimed to pay the leaseholders.

We all know at this point that Kelly and his family owned and controlled RHI and the other companies. It appears that the SEC is more concerned about the brokers than real justice!

In any case, we will challenge any SEC-Receiver appointment of their own receiver "the fox garding the chickens" and request that the court appointed receiver be the RMG group made of leaseholders. We are in for a fight and what we want has been done before by another group.


SEC Charges 26 Defendants in $428 Million Securities Fraud That Targeted Senior Citizens and Retirement Savings Commission's Crackdown on Financial Fraud Against Seniors Continues

FOR IMMEDIATE RELEASE
2007-172

Washington, D.C., Sept. 5, 2007 - The Securities and Exchange Commission today filed charges stemming from a $428 million securities fraud that victimized thousands of seniors and other investors throughout the United States. The SEC's action, filed in federal district court in Chicago, Ill., charges 26 defendants and alleges that they participated in a massive fraud that involved the sale of securities in the form of "Universal Leases." The investments were structured as timeshares in several hotels in Cancun, Mexico, coupled with a pre-arranged rental agreement that promised investors a high, fixed rate of return. The fraudulent Universal Lease scheme eventually collapsed, leaving investors with losses that exceed $300 million.

The case is part of the Commission's crackdown on financial fraud against senior citizens, which has already resulted in more than 40 enforcement actions over the past two years.

In the latest action, the SEC alleges that Michael E. Kelly and those working with him duped thousands of U.S. investors into using their retirement savings to buy Universal Leases on the false promise of safe and guaranteed returns. The SEC alleges that from 1999 until 2005, Kelly and others raised at least $428 million through the Universal Lease scheme from investors throughout the United States, with more than $136 million of the funds invested coming from IRA accounts. The SEC further alleges that a nationwide network of unregistered salespeople who sold the Universal Leases collected undisclosed commissions totaling more than $72 million. For most of the scheme, the complaint alleges, Kelly and his organization used new investor funds raised in the scheme to make illusory "rental income" payments to Universal Lease investors. The SEC also alleges that Kelly and others ran the scheme from Cancun through a number of foreign entities in Mexico and Panama.

"This case illustrates the Commission's continuing commitment to hold accountable those who prey upon the retirement funds of older Americans," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement. "Kelly and his cohorts told investors they were purchasing a safe, high-income investment suitable for a retirement account. In reality, investor funds were at grave risk as investor funds were used in a way that guaranteed the collapse of the scheme."

Merri Jo Gillette, Regional Director of the SEC's Chicago Regional Office, added, "Kelly and those involved in his operation may have hoped to evade U.S. law enforcement by operating the Universal Lease scheme from abroad. The action we filed today shows that the SEC will vigilantly pursue those who target older Americans, no matter what the obstacles. The SEC plans to aggressively seek recovery from the defendants to offset the huge losses they inflicted on investors."

According to the SEC's complaint, Kelly and others told investors that Universal Leases would generate guaranteed income through the leasing of investor timeshares by a large, independent leasing agent. In fact, the complaint alleges, the leasing agent was a small Panamanian travel agency controlled by Kelly, and for most of the scheme its payments to investors came from accounts funded by money raised from new investors. Further, the complaint alleges that Kelly and the other defendants failed to disclose several key facts about the Universal Lease investment, including the risks of the investment and that more than $72 million in investor funds were used to pay commissions as high as 27 percent to the selling brokers.

The SEC's complaint names the following individuals and entities as defendants: Kelly, Michael P. Kelly, Donald L. Kelly, John Corwin, Corporativo Nola, S.A. de C.V. Resort Holding International (RHI) S.A., Panorama Communities, S.A., World Phantasy Tours, Inc. (Viajest Fantasia Por El Mundo, S.A.), also doing business as Majesty Travel, Galaxy Properties Management, S.A., Yucatan Resorts, S.A. de C.V., Resort Holdings International, S.A. de C.V. The complaint also names as defendants a number of the unregistered brokers who sold the Universal Leases to the investing public. They are: Mark Ruttenberg, Ruttenberg and Associates Financial Marketing, Inc., Mark G. Meyer, Mark Meyer and Associates, Inc., Richard E. Riner, Southwest Income Marketing, Inc., George Phelps, also doing business as Safe Estate Plans, John E. Tencza, also doing business under the name of American Investment Management Group, Inc., American Elder Group, L.L.C., Carl Q. Lee, Carl Lee and Associates, Inc., Roy D. Higgs, Warren T. Chambers, William K. Boston, Jr. and Century Estate Planning, Inc. Finally, the complaint names Avanti Motor Corp. and DMK Properties, L.L.C., two entities affiliated with Kelly, as relief defendants, alleging that they received ill-gotten gains from the scheme.

The SEC's complaint charges the defendants with violating the antifraud and registration provisions of the federal securities laws, and seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties. The SEC acknowledges the assistance of the German government (Bundesanstalt fr Finanzdienstleistungsaufsicht), the Mexican government (Comisin Nacional Bancaria y de Valores) and a significant number of state securities agencies.

Combating financial fraud against older investors will be a focus of the Commission's second annual Seniors Summit in Washington, D.C., on Sept. 10. The Summit also will include the release of findings from regulatory examinations of 110 firms offering "free lunch" investment seminars aimed at seniors.

The SEC's Seniors Summit will begin at 10 a.m. ET on Sept. 10 and will be webcast live on the SEC Web site at www.sec.gov. The event will further examine how regulators, community organizations, and others can increasingly coordinate efforts to educate older Americans and protect them from abusive sales practices and investment fraud. Registration information and other materials about the Seniors Summit are available at: http://www.sec.gov/spotlight/seniors/seniors_summit.htm.

# # #

For more information, contact:

Merri Jo Gillette
Regional Director
312-353-9338

Timothy L. Warren
Associate Director
312-353-7394

John J. Sikora, Jr.
Assistant Director
312-353-7418

SEC's Chicago Regional Office

Additional materials: Complaint


http://www.sec.gov/news/press/2007/2007-172.htm

Well, Christmas came twice this year. Back in March of this year we sent an email to our members to inform them that a Grand Jury had been seated to investigate Kelly, however, there was no release of information.

We had meeting already set for today with the attorneys to go over the RICO complaint to be filed before the end of the year, however, this meeting took on a different meaning and the attorneys were very happy to see that Kelly was arrested on the 22nd of this month.

Our original attack plan was to file and then breing in the FBI to investgate the complaint now, we are now attempting to make contact with the FBI to offer our assistance and information to round up all the bad actors. With Kelly's arrest it will make it easier for our complaint be filed and accepted by the courts.

I believe he is a flight rusk and should be kept in jail. This is truly great news. Please read the press release.

Thank you for your support,
Ernest Bustos

http://www.chicagotribune.com/news/local/northwest/chi-0612280031dec28,1,636967.story
Mexico hotel owner charged in swindle of time-share leases
By Rudolph Bush
Tribune staff reporter

December 28, 2006

FBI agents have arrested an American hotel owner on charges he ran a $400 million pyramid scheme through the sale of time-share leases in Mexico.

Michael E. Kelly of Cancun was arrested Friday in Jacksonville, Fla., and charged with cheating hundreds of investors, including several from Illinois.

According to a criminal complaint released Wednesday, Kelly sold "universal leases" on Mexican time shares to investors who thought they would get return rates of up to 11 percent.

Kelly, 57, purportedly told the investors that an independent third-party company would rent their time shares. He promised that the investors would receive high returns even if their properties weren't rented, the complaint alleges.

In fact, Kelly owned the third-party companies and controlled the returns provided to investors, authorities allege.

An attorney for Kelly could not be located Wednesday. He is in custody in Florida and is expected to come to Chicago for an initial appearance at a future date.

According to authorities, Kelly's scheme netted some $400 million from investors from 1997 to March 2004.

During that time, he owned five hotels in Mexico and one in Panama. Time shares at the Mexican hotels were used to further the scheme, authorities allege.

Although many investors initially did receive returns on their leases, the scheme collapsed when several states cracked down on Kelly's operation and new investors from the U.S. dried up, authorities allege.

Meanwhile, Kelly used the proceeds of the scam to pay for a lavish lifestyle that included a private plane, a yacht and Cancun homes for himself and three children, authorities allege.

He also bought a luxury car dealership in Georgia that required regular infusions of cash to stay afloat, according to the criminal complaint.

Once the bottom dropped out, investors stopped receiving any returns and began asking for their money back.

One victim in Illinois took a reverse home mortgage to fund a $100,000 investment in the time-share scheme. Another put $500,000 of his own money and $305,000 of his mother's into Kelly's time-share business.

Someone working for one of the purported third-party companies told another investor that the chance of getting any money back was "slim," the complaint alleges.

----------

IP FUND 1 INC.

Dear Lease Holder,

As some of you already know, Mike Kelly of RHI stopped paying the Lease Holders their rental income over a year ago and is attempting to buy back the leaseholders' leases for less than the full price paid. I do not want to alarm the Lease Holders, however, the leaseholders must take steps to protect their rights so that your money and your rental income can be fully recovered. This is why I am proposing the Lease Holders join with other leaseholders to remove the current management.

Regulators in at least six other states have taken formal action against one or
more of the following: Michael E. Kelly of South Bend, Indiana, Yucatan Resorts, Inc., Cancun, Mexico and South Bend, Indiana; Resort Holdings International, Inc., Cancun, Mexico and South Bend, Indiana; World Phantasy Tours, Inc., Panama. Kelly, Yucatan, Resort Holdings and World Phantasy. These states forced Kelly and his companies to pay back 100% of the money collected by Kelly's Universal Lease Program. However, Regulators failed to collect the leaseholders' rental income.

Mr. Kelly made many misrepresentations: Kelly represented to leaseholders that if
they left the rental income to accumulate; RHI would pay as high as 11% interest. In reality, RHI, Kelley, and his co-conspirators have wasted, secreted, and otherwise dissipated the lease purchasers' funds, revenues, and other assets acquired and held in connection with the sale of RHI. Though RHI has collected the sums of rental income due and credited the accumulated interest to the accounts, RHI has not paid the leaseholders their monthly rental income.

RHI has also refused to release the accumulated rental accounts. Kelly and his co-conspirators are attempting to defraud the leaseholders by claiming that Galaxy and Majesty are separate from RHI, Kelly, and his co-conspirators. On that claim they escape liability by asking owners to seek the rental income from Galaxy/Majesty. However, Galaxy is not independent from RHI and is controlled by Kelly and Kelly also controls Majesty. As many as 80% of the leaseholders have not received a dime of their rental income, which could be as much as $200 million. RHI, Kelly, and his co-conspirators are running the classic shell game. When a leaseholder looks underneath the wrong shell the corporation's funds are gone and the leaseholders lose.

In the Arizona complaint on RHI and Kelly The National White Collar Crime
Center stated, "A detailed investigation revealed that investor funds were shuttled between numerous US-based financial institutions and later wired to undisclosed locales, including dozens of companies and individuals in Mexico." Classic Money Laundering!

What needs to be done and how should it be done? The IP Fund 1 intends to file a
complaint of fraud on behalf of its members, the Lease Holders, and to petition the court to allow the Lease Holders to remove Kelly along with RHI's current management and replace them with a committee of Lease Holders. They will oversee the operation and hire a new management team. They will determine what courses of action should be taken for the best interests of the Lease Holders. Even though there are no guarantees in any action, I believe this is the best way for leaseholders to pursue their recovery.