Luke Cusack Con Man, Liar, scammer, bankrupt, disreputable, dishonest. Tucson, Arizona

Here is a little light reading about the grifter Luke Cusack who goes by Patrick Cusack in San Carlos, Sonora, Mexico. This man will rip you off!! Don't be a victim of this dynamic dou "Patrick and Dianne (Bushenlonga-York) She is from Canada. As big of a con artist as Luke Cusack formally of Tucson, Arizona.

If you are a victim of this couple please contact me at victimsofpatricklukecusack@gmail.com Visit this other ripoff report: Report #1510184 This poor couple are victims of this grifter who is trying to take over San Carlos, Son. Mexico. Buyers Beware!! Please take the time to read through all of this information!! Don't skip!! Eye opening!!! INTRODUCTION This is the story of a Conman. This document takes you inside 30 years of his fraud, deception, lies, and lifestyle to understand how he operates.

Many people have been lured in by his charm and cunning demeanor, but the hope is that sharing this story will keep you from being fooled and becoming a victim. First, he befriends you and lures you into his social circle with his up-scale, party-filled, connections-based lifestyle. You become part of his "friends list” with "special exclusive invitations” to join him personally at his club, an effective marketing technique to influence you to spend your money at his establishments.

He relishes the game of "one-upmanship”. Sometimes it is just a little victory saving a few hundred dollars over a little "misunderstanding” of what was owed and in what currency. At other times, it is hard-core cutthroat antics threatening, extorting, blackmailing "friends” out of tens of thousands of dollars with no remorse. "How sad for the need to confront a friend over such a problem, but it’s just a business dealing.” He pays just enough of his bill so that you risk losing more filing the legal suit than just walking away with your dignity bruised. He under-quotes the duration and cost on projects to secure the job. Of course, the cost overruns are unavoidable because "obviously you only want the best quality for your renovation”.

He fabricates "add ons” to reduce his liability and assumes you won’t catch or question him on why those "change orders” were actually listed as part of the original quote. He submits invoices to his Partners for work, material, and maintenance costs at double the cost he negotiates, even offering to split the difference in reverence to your "partnership”, and still pockets a handsome profit on the uplifts. He requests you pay in cash or by depositing checks into his US account, notating on the check that the payment is toward a loan or purchase of a consumer good.

His accountant has assured him this is all legal and just easier to administer. It also a clever way to evade paying both Mexican and U.S. taxes. This Conman fled the U.S. eight years ago under the weight of two Bankruptcies within 15 months – one personal, the second for his business. He owed over $8M dollars to creditors for bank loans, personal loans, credit card debt, tax liens, and products & services acquired from other small business owners struggling themselves to make ends meet. While his financial portfolio reflected over $8M dollars in liabilities, he had nearly ZERO equity in any of his luxury assets. In 2012, the banks foreclosed on two of his properties -- one a 7,239 sq ft home, the other his 5,350 sq ft 'dream home’ which sat on a majestic Tucson ridge line, "allegedly” off-limits to development.

After years of construction, the house still lacked a "Certificate of Occupancy” as it was missing a septic system. He was trying to seek out investors to raise $160K of additional capital to finish the project right up until the point the bank foreclosed. The banks also foreclosed on a $750M sport yacht and Honda Ridgeline truck. These Creditors were the "lucky ones” to at least savage some recovery off a Repo sale of the asset. He also left over $4.5M in unsecured claims in his wake when he "disappeared” in early 2013. Those Creditors did not recover one silver dime. Although Bankruptcy petitions claimed his only income was $5,800/mo.

from the sale of a business, his new alias South of the Border was that of a highly successful businessman with money to reflect it. He opened several businesses, bought a beach view home, drove expensive cars, and used his vacation time to enjoy Cruises and European travel. This document is a compilation of over a 1000 pages of newspaper articles, interviews, and filed Court documents. It walks you through three decades of this Conman building his little nightclub empire, only to watch it unravel under an incredible weight of debt and deceit.

Does the Conman use this as a learning experience? Mostly he learns simply how hone his art. It is a natural instinct to really truly want to trust people. But if something in your gut just doesn’t feel right, maybe there is a reason. By exposing his techniques, perhaps it will at least alert you to the warning signs. The final story "How to Screw Your Business Partner” tells the agonizing story of a Partner in several of the Conman’s businesses. This gentleman went out of his way to help a "friend” and seemingly took every precaution to protect himself via signed contracts, documented conversations, collateral arrangements, legal actions -- and he still got burnt by the Conman. Know the signs. Don’t let it happen to you.

CONTENTS PAGE NO. TIMELINE 1930’s – 1980’s The Beginning 4 1990’s Crafting an Image 5 Businesses Court / Legal / Police Properties 2000’s Establishing an Empire 6-7 Businesses Court / Legal / Police Properties 2010’s Bust and Rebuild with new prey 8-10 Businesses Court / Legal / Police Properties APPENDIX CHART: Businesses, Partnerships & Incorporations 12-14 CHART: Mortgage Loans, Defaults, Foreclosures 15 CHART: Tax Liens 15 CHART: Court Cases / Legal Challenges 16 BANKRUPTCY #1 – Luke Cusack Personal Bankruptcy Chapter 11 Voluntary Petition: income, assets, liabilities 17 Bankruptcy Court Summary: case data, participants, milestone dates 18 Cusack Declaration: events necessitating the personal bankruptcy filing 19 List of Creditors: list Attached to Court Confirmed Reorganization Plan 20 Properties: status from Court docs 21-23 BANKRUPTCY #2 – Keys Limited LLC (dba REDLINE) Bankruptcy Chapter 11 Voluntary Petition: income, assets, liabilities 24 Bankruptcy Court Summary: case data, participants, milestone dates 25 Cusack Declaration: events necessitating the business bankruptcy filing 26 List of Creditors: list attached to Cusack’s Proposed Reorganization Plan 27 List of Assets: all assets claimed by the Debtor 28 "How to Screw Your Business Partner”: The Agonizing Case of Jason Turetzky 29-32 LUKE CUSACK TIMELINE (2000’s continued…) (2010’s continued…) (2010’s continued…) APPENDIX I. CHART : BUSINESSES, PARTNERSHIPS, INCORPORATIONS COMPANY Incorporated Opened / Purchased Closed / Sold Partners Added Removed Entertainment Services & Products 4/23/1991 1982 inactive Registered Agent: Luke Cusack 2549 N. Oracle Road 8/1995 Possibly Brian Stubstad (???) The Outback ------ 11/1993 1997 Luke Cusack 296 N. Stone Avenue Claire Thomas – owner of (19) Jack-in-the-Box franchises in southern AZ Monte Carlo Companies ------ ------ ------ • No record found of this company ever incorporated/operating, but often referenced by Cusack in articles as base of his restaurant/ bar design firm. Could refer to his "branding” of businesses under the "Monte Carlo” name. Monte Carlo Investments, LLC 1/27/99 ------ Principal: Luke Cusack 5021 W. Crestview Drive The Keys Limited Company 2/27/97 1997 2002 Member/Mgr: Luke Cusack 5900 Oracle Road Investor: Patrick A. Cusack (father) Richard W. Neter Statutory Agent: Monroe & McDonough 3/10/04 1/11/13 Statutory Agent: MMGM Services LLC 1/11/13 Keys II LLC 1/27/99 2002 2006 LIC/Manager/Member: Luke Cusack 445 W. Wetmore Road Co-Owner: Richard Neter Registered Agent: Thomas Aguilera Member: Patrick A. Cusack The Solarium ------ ------ ------ Owner: Luke Cusack 6622 Tanque Verde Road 3/7/99 APR 2013 Beaches Mesquite Broiler ------ ------ Fall 2000 2323 N. Pantano Road 2/13/00 11/10/04 Western Opryhouse, LLC 7/14/03 ------ ------ Stat Agent/Mem/Mgr: Luke Cusack 1102 W. Grant Road Member: Neter Enterprises LLC Monte Carlo Yachts, LLC 4/25/05 ------ active Statutory Agent: Luke Cusack 4/21/05 2919 E. Broadway Blvd, Ste 200 Member: Jay Zucker 4/21/05 8/11/09 Member: Norman Amy 4/21/05 Member: Richard Hickey Member: Donald Martin Member: Richard Neter Member: John Cole 4/21/05 The Maverick King of Clubs ------ 9/8/05 active Co-Owner: Karen Markovich 6622 Tanque Verde Road JUL 2019 Co-Owner: Jay Zucker – Tucson Sidewinders Triple A Baseball owner (team sold in 2009) Partner: Richard Neter Consultant: Luke Cusack My Brother’s Bar Congress, LLC 11/13/06 ------ ------ Statutory Agent: Amram Dahukey (Podiatrist – AZ Barrest Mgmt, LLC) 11/13/06 2/18/09 (resigns) 135 E. Congress Street Member: Ernie Krull Member (sole): Luke Cusack 2/18/09 Pearl Nightclub 2/27/97 5/25/07 1/8/11 The Keys dba Pearl 445 W. Wetmore Road Co-Owner: Richard Neter Monte Carlo Aviation, LLC 10/25/07 ------ 12/12/13 Member: Luke Cusack 10/25/07 12/9/09 2919 E. Broadway Blvd, Ste 200 (dissolved) Statutory Agent: Jay Zucker 10/25/07 12/12/13 Member: Broadcast Intelligence Inc. 10/25/07 12/12/13 Member: Arada Investments LLC 12/9/09 12/12/13 Congress Street Clubs, LLC 12/17/08 ------ active G. Antonio (Tony) Kenan & Magdalena (Sasha) Kenon 12/17/08 4/13/12 125 E. Congress Street Stat. Agent: Luke Cusack (removed by other Partners in 11/2011) 12/17/08 9/27/11 Stat. Agent: Michael Johnson – Venetian Investment Services 9/20/11 Jason Turetzky -– VP of Investments at AG Edwards & Sons 9/29/14 Turetsky Revocable Living Trust 9/12/12 9/28/16 Coleman Manchester 9/19/11 9/26/14 Ranch Investment Services 9/28/16 Todd Johnson - Reliable Staffing Solutions 4/13/2012 John Jacobs - Cofferdam Capital 4/13/2012 9/26/14 Ernesto Sanzez 9/29/14 12/29/14 • 11/17/12: Cusack sells his shares To Kenan & Johnson Zen Rock Nightclub 7/2009 active CSC, LLC dba "Zen Rock” (above) 121 E. Congress Street General Manager: Andrew Sommers A Steak in the Neighborhood 12/2009 9/4/11 CSC, LLC dba "A Steak in the Neighborhood” (above) 135 E. Congress Street Sapphire Lounge 12/31/09 Fall 2013 CSC, LLC dba "Sapphire Lounge” (above) 61 E. Congress Street General Manager: Andrew Sommers Developer: Robert Casillas (???) Skybox Restaurant & Sports Bar 1/29/09 3/27/09 4/2015 Statutory Agent: Richard J. Fortuno 5605 E. River Road Member: Robin D. O’Neal Not sure of Cusack’s interest, but mentioned in CSC, LLC July Settlement Agreement non-compete clause that Cusack may continue his involvement with Skybox. Lindy’s at Redline Sports Grill 2/27/97 3/3/11 renamed The Keys dba Redline & RPM 445 W. Wetmore Road Partner/ Manager: Lindon Reilly - chef EQUITY HOLDERS: Redline Sports Grill 2/27/97 4/18/2012 1/9/13 Luke Cusack - Managing Partner (60%) 445 W. Wetmore Road (reopens) Jason Turetzky (15%) - AND - 1/9/13 Robin D. O’Neal (15%) RPM Nightclub 2/27/97 3/25/11 1/9/13 Jay Clifford (5%) 445 W. Wetmore Road Greg Schuette (5%) Daniel Peterson – invested $30K [EWH-Turetzky Proof of Claim DOC 1-1 filed 2/20/13] Stop Internet Crime, LLC. 9/19/12 active Domains Registered at GoDaddy.com P.O. Box 69220 (Oro Valley, AZ) www.stopinternetcrime.info www.stopinternetcrime.net PJC Investments 1/27/99 active 4108 E. Fanfol Drive (PHX, AZ) Principal: Cusack Revocable Living Trust Principal: Cusack Revocable Living Trust formerly Monte Carlo Investments Renamed 6/24/13 Registered Agent: Milligan Lawless PC 5050 N. 40th St, Ste200, PHX 85018 6/24/13 Resigned 7/14/20 * Possible link to Patrick F Cusack Trust – Mineral Rights Fredericksburg, TX ??? LNLT, LLC. (??) 3/7/06 Member/Manager: Luke Cusack 7/21/16 4406 E. Mesa Street (Mesa, AZ) Registered Agent: Milligan Lawless PC 7/21/16 NOTE: Cusack added after 7/21/16? (Not convinced this is legitimate line item ???) MEXICO Delfines Bar & Grill 2/17/14 active Owner: Patrick L. Cusack & Delfines Consignment Shop ~ same GM / Accountant: Aida Magana & The Sub Shack 9/2020 Sub Shop Investor: Dianne Bushenlonga 158 Villa Hermosa (San Carlos, MX) T&M (Contractor/ Consulting) active Contractor/ Consultant: Patrick L. Cusack Mantarraya SA de CV (Construction) Alberto Garcia Tajeda * Mantarraya (?) • Tajeda’s Mexican national status used as cover for Cusack’s MX holdings, facturas, etc. to avoid legal/tax issues. • Cusack also uses cover of Aida Magana (current manager, accountant) as a front for his businesses in Mexico. II. CHART: MORTGAGE LOANS, DEFAULTS, FORECLOSURES Original Loan Date Property Originating Lender Original Loan Amt Lien Lender at Chapter 11 Outstanding Loan Amt (*) 1st Notice of Default / Foreclose Date REPO Sale Date & Sale Price 8/20/2008 6991 W. Sky Canyon Drive State Bank/Bartley $1,000,000 1st Lien Stockmen’s Bank $984,580 3/3/10 4/29/14 * construction loan 2/22/13 $383,000 12/24/2003 Bank of Tucson $2,195,000 2nd Lien Sunrise Bank $2,606,796 -------------- $2,195,000 1/4/12 - The Sky Canyon property is still deemed "UNINHABITABLE” by Pima Co. inspectors as no Plumbing / Septic system installed. Cusack estimates addl cost = $156K to complete work required to obtain Certificate of Occupancy [see DOC #42 page 2-3 appended to this report]. Debtor is delinquent on property taxes, his homeowner’s insurance policy expired 12/7/11, & he has NO EQUITY in the real property. 11/10/2006 5021 W. Crestview Drive Bank of America $1,260,000 1st Lien B of A -> Select Processing Services $1,446,279 9/2/10 10/9/13 8/12/2008 State Bank/Bartley ? 2nd Lien Flagstar Bank $333,381 9/13/12 $900,000 -------------- $2,260,000 2/2/12 – Court appraisal of Crestview property. Appraiser indicates floor plan suffers from "functional obsolescence and would appeal to a narrow group of buyers”. Indoor pool is the center of the house from which all other rooms are accessed. A large portion of the HW flooring in the family room has substantial termite damage and ceiling has water damage. [see DOC #69 page 14-15 appended to this report.) Cusack claims to be RENTING the Crestview home for income in order to avoid Foreclosure on the property. On his initial Reorg Plan - "Income-Expense Projections” Cusack claims his rental income = $2,100/mo. and his monthly expense for rent in order to live somewhere other than the Crestview house = $2,000/mo. Budget planning? [DOC #100-4, EXH C] Bank Debt Recovery TOTAL MORTGAGES $4,455,000 $1,283,000 * Inclusive of accumulated interest, late fees, penalties, etc. III. CHART: TAX LIENS (active liens) LIEN ISSUER Kind of Tax Date Lien Recorded Date Lien Extended Lien Amt #1 IRS - Federal Tax Lien Small Business 3/11/2014 12/22/2020 $4,780 #2 IRS - Federal Tax Lien Small Business 3/11/2014 12/22/2020 $149,674 #3 IRS - Federal Tax Lien Small Business 7/12/2012 3/22/2022 $492 #4 IRS - Federal Tax Lien Small Business 5/3/2011 9/8/2020 $2,992 #5 IRS - Federal Tax Lien Small Business 3/24/2011 3/23/2021 $57,412 #6 IRS - Federal Tax Lien Small Business 11/29/2010 12/16/2019 $53,909 #7 IRS - State Tax Lien Individual 6/26/2020 $29,587 #8 IRS - State Tax Lien Individual 6/26/2020 $29,587 ---------------- TOTAL LIENS OWED $328,433 IV. CHART: COURT CASES / LEGAL CHALLENGES Date of Offense / Filing Court Case No. Charge Outcome (where known) 11/17/1995 Criminal 11285666 Local Charge (not specified) Dismissed 2/2/1996 Criminal 11544427 (3) Counts Liquor to a minor (4) Counts Liquor to an intoxicated person Fines paid & dismissed 4/9/1996 Criminal 10768121 Disorderly Conduct / Disturbance Dismissed 7/5/1999 Criminal CR99-912048A Unlawful Acts re: Alcohol (except 9 & 14) Dismissed 4/6/2000 Federal CV-00251-WDB Controversy Music vs The Keys LLC for Copyright Infringement Settled Out of Court Summer 2000 Cusack pays $9000 fine for mishandling of charred asbestos from Solarium fire. 8/10/2000 Superior CV-00479-FRZ Cusack & Karen Markovich sue Pima Co. Sheriff’s office demanding $300K for Civil Rights violations. No settlement agreement reached between parties. Dismissed 9/19/2003 Criminal The Keys cited for (6) liquor violations JAN 2004 Criminal The Keys cited on counts of serving liquor to an intoxicated person 5/2004 Criminal 4:02-cr-00774-FRZ Damian Radmanovich testifies he set 1999 Solarium fire in exchange for "someone” agreeing to pay his phone bill. Sentenced to 3.5 yrs on lower explosives charge vs ARSON. Est. Loss = $1.4M. JUN 2004 Justice Cusack & partner, Richard Neter, file lawsuit against City of Tucson & TPD on (5) counts of police abuse & civil rights violations. After adverse ruling, Cusack & Neter appeal. Dismissed Defendants Appeal 9/24/2006 AZ Court of Appeals Court upholds Trial Court’s grant of summary judgement on 4 of 5 complaints. Lower court upheld Dismissed 7/5/2009 Criminal 24801033 Misconduct involving weapons Dismissed 11/23/2011 Federal Bankruptcy 4:11-bk-32452-BMW Personal Bankruptcy - Initially filed as Chapter 11 but converted to Chapter 7 Dismissed / Terminated 5/18/2012 Superior HR- 12071409 Cusack files "Injunction Against Workplace Harassment” on his Partner, Jason Turetzky, claiming he is sexually abusing several female employees. The restraining Order prohibits Turetzky from entering the W. Wetmore property or having any employee contact (11 individuals named on petition). Judge approves Turetzky’s Motion to Seal Case 9/25/2012 Municipal Hearing lifts the Injunction on all employees except for Cusack & his girlfriend, Brooke Rosander. Judge seals original complaint against Turetzky filed by Cusack. 2012 Justice CV12023960 Remington Restaurant Equipment Repair LLC vs The Keys Limited 2012 Superior C20123189 (Lindy) Reilly LLC vs The Keys 2/15/2013 Federal Bankruptcy 4:13-bk-02111-EWH Business Bankruptcy - The Keys (dba Redline) - Initially filed as Chapter 11 but converted to Chapter 7 Dismissed / Terminated 6/3/2015 Justice HR-15514283 Issuing a bad check 8/6/2015 Criminal CR-15514283 Criminal failure to appear. 8/27/2015: Warrant ordered for arrest. 4/16/2020 Justice 467328 Criminal Failure to appear satisfied. Fines paid & case dismissed. MEXICO 6/2021 Criminal _________ Extortion & Blackmail vs Danny & Sharie Bohlmann (Guaymas, MX) 6/2021 Municipal _________ Breach of Contract for failure to comply with payment terms on a puppy – Kay Matthys (Guaymas, MX) Pending Additional vendors coming forward who have not been paid, and homeowners with breach of contract issues. V. BANKRUPTCY #1 – PERSONAL CHAPTER 11 converted to CHAPTER 7 CASE #1: CHAPTER 11 PETITION: income, assets, liabilities Cusack’s CHAPTER 11 voluntary petition questions (Filing Date 11/23/2011, DOC #1) Petition Question Debtor Response Court Case DOC # Filing Date 11/23/2011 1 Filing Location: Tucson, AZ - Pima County " Name of Debtor: LUKE CUSACK " Street Address of Debtor: 5021 W. Crestview Drive Tucson, AZ 85745 " Type of Bankruptcy Filing: CHAPTER 11 " Estimated Number of Creditors: 1 – 49 " Estimated Liabilities: $1M to $10 M " Estimated Assets: $0 - $50,000 " Are Debts Primarily Consumer or business: Consumer " Current Monthly Income: $5,800 / mo. 22 Income Source: Sale of Business " Annual Income History (gross over past 36 mos): 34 2009 $ 596,987 " 2010 $ 264,449 " 2011 (YTD thru Nov 2011): $ 63,800 " Name of Business (within last 6 yrs) The Keys Limited Co (1996 - present) " Monte Carlo Yachts LLC (4/2005 - present) " Prior addresses (if moved w/in last 3 yrs) None " Former Spouses (within last 8 yrs) None ” Closed Financial Accounts (within 1 yr) None " Pension Fund Contribution (last 6 yrs) None " Bookkeeper / Accountant: Flowers Reiger & Assoc. " All loses from fire, theft, casualty, or gambling (within 1 yr) None " CASE #1: BANKRUPTCY COURT SUMMARY: case data points, participants, milestone dates CASE NUMBER: 4:11-bk-32452-BMW Court Case DOC # Presiding Court: U.S. Bankruptcy Court - District of Arizona Debtor Filing: LUKE CUSACK Type of Chapter Filing: CHAPTER 11 Presiding Judge: 11/23/11 --> 1/31/13 Honorable James M. Marlar 2/1/13 --> 8/14/14 Honorable Brenda Moody Whinery U.S. Trustee Assigned: 8/9/12 --> 1/31/14 Elizabeth Armorosi 1/31/14 --> 2/27/14 Stanley Kartchner 2/27/14 --> 1/30/14 Gayle Eskay Mills Debtor’s Attorney: Eric Slocum Sparks MILESTONE COURT DATES: 11/30/2011 Cusack files voluntary petition for Chapter 11 1 3/29/2012 Debtor’s First Plan of Reorganization Submitted to Court 100 4/19/2012 Cusack agrees to FORECLOSURE on Yacht (Key Bank loan) 115 3/12/2012 Court grants motion & removes stay on Sky Canyon property allowing immediate FORECLOSURE rights (Stockmen’s Bank) 78 3/19/2012 Court removes stay on Cusack’s Honda Ridgeline vehicle for failure to provide proof of insurance by deadline. (Hughes Fed CU Loan) 90 8/9/2012 Debtor’s Final Reorganization Plan Approved Cusack acknowledges and accept terms of Reorganization 160 161 9/19/2012 Cusack agrees to FORECLOSURE on Crestview property (B of A loan) 167 12/10/2013 Trustee Motion for Hearing to compel Debtor to adhere to Reorg Plan for submitting Quarterly report & pay fees committed ($250 applied to unsecure claims obligations + $100 Trustee fees) 191 o 4Q2012 REPORT NOT FILED; FEES NOT PAID ($325) " o 1Q2013 REPORT NOT FILED; FEES NOT PAID ($325) " o 4Q2013 REPORT NOT FILED; FEES NOT PAID ($325) " o 3Q2013 REPORT NOT FILED; FEES NOT PAID ($325) " o 4Q2013 REPORT NOT FILED; FEES NOT PAID ($325) " Trustee Motion: Request for Hearing to compel Debtor to adhere to Reorganization Plan reporting & payment requirements 191 1/23/2014 Debtor’s counsel indicates Cusack has no objection to convert case from Chapter 11 to Chapter 7 198 1/30/2014 Chapter 11 converted to Chapter 7 case 4/16/2014 Trustee Motion: Request to dismiss case "Debtor failed to appear at either the Initial or the continued meetings of Creditors as required by 11 U.S.C. 343, and his counsel has not been able to determine his whereabouts.” 210 4/29/2014 Court order dismissing Chapter 11 case 212 5/12/2014 Chapter 11 case terminated; U.S. Trustee services dismissed. No disbursements made on any outstanding claims except for properties foreclosed. Claims discharged – no funds. 214 8/14/2014 Bankruptcy case CLOSED. 216 CASE #1 - CUSACK DECLARATION: events necessitating the PERSONAL bankruptcy filing Cusack’s account of events leading up to and necessitating the PERSONAL bankruptcy filing. (Filed : 3/29/12, Case Doc 101) CASE #1: LIST of CREDITORS – Approved Claims: Court Reorganization Plan Creditor claims registered and attached to Cusack’s Court confirmed Chapter 11 Reorganization Plan . (Filed : 8/10/12, Case DOC #162 + Amended 8/29/12, Case DOC #166 + CLAIMS REGISTER) CREDITOR Nature of Debt Debt Owed Secured Priority Unsecured BANK LOANS / MORTGAGES 1 Stockman’s Bank AZ Secured – 6961 W. Sky Canyon $984,580 $984,580 *FORECLOSED* -------- -------- 2 Sunrise Bank of AZ 2nd Lien – Sky Canyon $2,606,796 -------- -------- $2,606,796 3 Sunrise Bank of AZ Loan – Sky Canyon $207,548 -------- -------- $207,547 4 Select Portfolio Servicing (for Bank of America) Secured – 5021 W. Crestview $1,446,279 $1,446,279 *FORECLOSED* -------- -------- 19 Flagstar Bank 2nd Lien - Crestview $333,381 -------- -------- $333,381 20 Sunrise Bank of AZ 3rd Lien - Cre $103,324 -------- -------- $103,324 21 Sunrise Bank of AZ Loan $3,139 -------- -------- $3,139 TAXES 5 Pima Co. Attorney 0ffice Taxes 2005-10 (Sky Canyon) $14,433 $14,433 -------- -------- 22 Pima Co. Attorney Office Taxes 2011 (Sky Canyon) $11,817 $11,817 -------- -------- 23 AZ Dept of Revenue Taxes on The Keys LLC $44,801 -------- $42,725 $2,076 6 IRS Income Taxes $146,337 -------- $146,337 -------- PERSONAL LOANS 7 Patrick A. Cusack Loan $700,000 -------- -------- $700,000 8 Amram Dahukey Promissory Note $9,600 -------- -------- 9,600 24 Jason Turetzky (added 10/12) Promissory Note $16,000 -------- -------- $16,000 VEHICLE LOANS 9 KeyBank N.A. 2000 - Cruisers 5000 Sedan Sport Yacht $966,371 $714,000 *FORECLOSED* -------- $77,507 (balance due) 10 Hughes Federal Credit Union 2007 - Honda Ridgeline $14,248 $14,248 *FORECLOSED* -------- -------- 25 Cash Time Title Loans 2008 - GMC Yukon $7,296 $7,296 (paid) -------- -------- CREDIT CARDS 11 American Express Credit Card Debt $27,471 -------- -------- $27,471 26 American Express Credit Card Debt $12,113 -------- -------- $12,113 12 Citibank Credit Card Debt $21,504 -------- -------- $21,504 13 Chase Bank Credit Card Debt $8,266 -------- -------- $8,266 14 Chase Bank Credit Card Debt $21,741 -------- -------- $21,741 15 Discover Bank Credit Card Debt $2,785 -------- -------- $2,785 16 Lowes/ MBGA / GEMB Charge Account $9,209 -------- -------- $9,209 27 Compass Bank Credit Card Debt $20,035 -------- -------- $20,035 OTHER EXPENSES 17 Eos Cca Collections - Centurylink $195 $195 18 Verizon Mobile Phone $1,148 $1,148 28 135 Congress LLC Rent $14,646 -------- -------- $14,646 -------------- ------------ ------------ ----------- TOTAL DEBT $7,755,063 Total Debt Remaining after bank repossessions $4,421,092 $26,250 $189,062 $4,198,484 4/29/2014: Bankruptcy judge agrees to convert case from Chapter 11 to Chapter 7 after Cusack "disappears”. Luke Cusack Declaration in his Chapter 11 Bankruptcy Reorganization Plan (Filed : 8/9/12, Case Doc 161) "My Plan requires me to make payments to creditors of all or a portion of my earnings from future income after payment of secured creditors & other expenses, for five years at $225.00 per quarter, which represents my projected disposable income during a five-year period.” NOTE: $225/quarter x 5 years = $5000 allocated to pay off outstanding debt amount of $4.4 M in priority & unsecured loans. CASE #1: PROPERTIES - Status per Court Documents VI. BANKRUPTCY #2 – BUSINESS CHAPTER 11 converted to CHAPTER 7 CASE #2: CHAPTER 11 PETITION: income, assets, liabilities for 2nd bankruptcy Cusack’s CHAPTER 11 voluntary petition questions (Filing Date 2/15/2031, DOC # 1) Petition Question Debtor Response Court Case DOC # Filing Date 2/15/2013 1 Filing Location: Tucson, AZ - Pima County " Name of Debtor: THE KEYS LIMITED COMPANY LLC – LUKE CUSACK – Managing Partner " Street Address of Debtor: PO Box 69220 Oro Valley, AZ 85737 " Type of Bankruptcy Filing: CHAPTER 11 " Estimated Number of Creditors: 1 – 49 " Estimated Liabilities: $100 K to $500 K " Estimated Assets: $0 - $50,000 " Are Debts Primarily Consumer or business: Business " All Prior Bankruptcy Cases Filed (within last 8 yrs) NONE " TOTAL ASSETS: $118,420 12 TOTAL LIABILITIES: $360,781 " Co-Debtors: NONE " Income from Business Operations (gross over past 36 mos) " 2011 $ 1,315,964 " 2012 $ 1,180,410 " 2013 (YTD thru Jan 2013): $ -0- " Legal Suits was party to (within 1 yr) None Civil Case #CV12023960 Status/Disposition: PENDING Remington Restaurant Equipment Repair, LLC - vs - The Keys Limited Company " Civil Case #C20123189) Status/Disposition: PENDING Reilly LLC - vs - The Keys Limited Company " Property Transfers (within 1 yr) JAN 2013 SOLD for $3,600 Freezer, 2 Ice Bins, Refrigerator, 3 Fryers, 48” Griddle, Shelving " JAN 2013 SOLD for $5,000 (2) 60” TVs, (11) 42” TVs " Equity Security Holders in LLC Luke Cusack - Managing Partner (60%) " Greg Turetzky (15%) " Robin D. O’Neal (15%) " Jay Clifford (5%) " Greg Schuette (5%) " Prior addresses (if moved w/in last 3 yrs) None Former Spouses (within last 8 yrs) None ” Closed Financial Accounts (within 1 yr) One – Compass Bank (Oct 2012) " Pension Fund Contribution (last 6 yrs) None " Date of the last two inventories taken None " Bookkeeper / Accountant: The Ruboyianes Tax Company, PLC. " All loses from fire, theft, casualty, or gambling (within 1 yr) None " CASE #2: BANKRUPTCY COURT SUMMARY: case data points, participants, milestone dates CASE FILED: 4:13-bk-02111-EWH Presiding Court: U.S. Bankruptcy Court - District of Arizona Case #: 4:13-bk-02111-EWH Debtor Filing: THE KEYS LIMITED COMPANY LLC - LUKE CUSACK Type of Chapter Filing: CHAPTER 11 Presiding Judge: 2/15/13 --> 5/5/14 Honorable Eileen Hollowell U.S. Trustee Assigned: 4/1/13 --> 11/19/13 Christopher Pattock 11/19/13 --> 5/5/14 Stanley Kartchner Debtor’s Attorney: Eric Slocum Sparks MILESTONE COURT DATES: 1/19/2013 Cusack closes Redline Sports Grill & RPM Nightclub 2/15/2013 Cusack files voluntary petition for Chapter 11 1 8/15/2013 Debtor’s First Plan of Reorganization Submitted to Court 29 10/1/2013 Judge rules that Debtor’s Disclosure statement & proposed reorg plan are insufficient. Orders the Debtor to deliver a red-lined copy indicating changes within 15 days (t10/15/13). 38 10/16/2013 Amended disclosure statement due. Judge grants a 14-day extension for Debtor to file amended disclosure statement. 40 10/30/2013 FAILURE to comply with Court ordered deadline. 11/19/2013 Hearing on Debtor’s Failure to File Amended Disclosure Form "[Cusack’s attorney] Mr. Sparks has not heard from the debtor. There are allegedly assets in a storage unit, and he suggests that conversion would be a better option rather than dismissal.” 44 / 45 11/19/2013 Chapter 11 converted to Chapter 7 case 46 12/9/2013 U.S. Trustee’s notice of intent to liquidate Abandon Property listed on Debtor had listed on original petition: bank acct balances, a class 6 liquor license, liquor inventory, furniture, equipment & supplies. Est. Value = $118,420. 50 12 3/5/2014 Court order dismissing Chapter 11 case "Debtor failed to appear at the meetings of Creditors as required by 11 U.S.C. 341.” 55 5/5/2014 Chapter 7 case terminated. U.S. Trustee services dismissed. Claims discharged. Bankruptcy case CLOSED. 56 CASE #2: CUSACK DECLARATION: events necessitating the BUSINESS bankruptcy filing Cusack’s account of events leading up to and necessitating the BUSINESS bankruptcy filing. (Filed : 8/15/13, Case Doc 29) CASE #2: LIST of CREDITORS – Preliminary Claims: Court Reorganization Plan Creditor claims registered and attached to Cusack’s Court proposed Chapter 11 Reorganization Plan. Since Cusack failed to respond to the Judge’s Order to improve upon his Disclosure statement, his Chapter 11 Reorg Plan was never Confirmed by the Court and case converted to Chapter 7 (liquidation). (Filed : 8/15/13, Case DOC #29 + CLAIMS REGISTER) CREDITOR Nature of Debt Debt Owed Secured Priority Unsecured BANK LOANS 1 Compass Bank Equipment Financing $20,033 -------- -------- $2,033 TAXES 2 AZ Dept of Revenue Property Taxes $97,355 $83,837 $13,517 -------- 3 City of Tucson Personal Taxes $35,874 $23,168 $10,871 -------- 4 Pima County Personal Property Taxes $26,803 $26,803 -------- -------- 5 Pima County Personal Property Taxes –Est $4,816 $4,816 -------- -------- 6 IRS Income Taxes $185,692 $122,068 $59,190 -------- PERSONAL LOANS 7 Jason Turetzky Loans to the company $37,125 -------- -------- $37,125 8 Trustees of the Donald W. Callendar Family UNCLEAR (W. Wetmore was a Marie Callendar’s before Cusack took over. Lease???) $46,125 -------- -------- $46,125 UCC FILINGS TRADE DEBT 9 Al Coronado Plumbing Services $2,500 -------- -------- $2,500 10 Alliance Beverage Product $5,502 -------- -------- $5,502 11 Centurylink Internet / Phone $1,814 -------- -------- $1,814 12 Flowers, Reiger & Assoc Tax Preparation $27,395 -------- -------- $27,395 13 Gust Rosenfield PLC Legal Fees $8,537 -------- -------- $8,537 14 Innovative Construction & Technology Materials, Design, Labor Supplied $23,062 -------- -------- $23,062 15 JanPro Cleaning Service Janitorial Services $3,500 -------- -------- $3,500 16 Office Depot Office Supplies $800 -------- -------- $800 17 Remington Restaurant Equipment Repair H-VAC Services (Corp. Collection Intl) $7,474 -------- -------- $7,474 18 Saguaro Environmental Trash Svcs, Industrial Cleaning $941 -------- -------- $941 19 Shamrock Foods Product $2,867 -------- -------- $2,867 20 Southwest Gas Utilities – Natural Gas $1,230 -------- -------- $1,230 21 United Beverage Gas Product $941 -------- -------- $941 22 Yellowbook Advertising (Hibu Collection Svcs) $1,385 -------- -------- $1,385 OTHER EXPENSES 23 U.S. Trustee Bankruptcy Administration $975 --------- $975 -------------- ------------- ----------- ------------- TOTAL DEBT $ 542,746 $ 255,876 $ 95,749 $ 191,231 CASE #2: LIST of ASSETS All Assets claimed by the Debtor. (Filed : 3/1/13, Case DOC #12) ASSETS ASSETS Debt Owed PERSONAL PROPERTY Description Estimated Value Licenses No. 6 Liquor License $40,000 Office Equipment, Furnishings, Supplies 2 Printers, Computer Bill Counter, 2 File Cabinets, 1D Scanner, Safe, 12 Communications Radios $1,070 Machinery, Fixtures, Equipment, Supplies Used in the Business POS System $15,000 Restaurant & Bar Furniture $12,600 Back Bar Equipment $1,530 Video Electronics $21,785 Audio Electronics $8,595 Lighting Electronics $6,270 Kitchen Equipment $9,070 Liquor Inventory $2,500 -------------- TOTAL ASSETS $118,420 HOW TO SCREW A BUSINESS PARTNER – The Agonizing Case of Jason Turetzky JUL 2009: Zen Rock Nightclub OPENS. DEC 2009: A Steak in the Neighborhood OPENS. 12/31/2009: Sapphire Lounge OPENS. 9/15/2010: Jason Turetzky. a Partner in both Congress Street Club LLC (CSC) & The Keys LLC agrees to a personal loan to Cusack of $25K @12% interest. The "NOTE” is secured by a 3% interest in Cusack’s equity in The Keys. The contract specifies the following repayment schedule: [DOC #179-1, EXH C] 10/15/2010 $6,312.50 11/15/2010 $6,375.00 12/15/2010 $6,437.50 1/15/2011 $6,500.00 3/1/2011: No portion of the $25K loan has been paid. Cusack requests an extension until RPM Nightclub is open, operational, and has cashflow. [DOC #182 – Main] 3/3/2011: Turetsky sends an email to Cusack confirming details of their phone conversation: "In the interest of getting the doors open at Redline, I am willing to forgo collecting the collateral providing that you abide by the terms we discussed on the phone. 1) 30 calendar days after the public opening of RPM you will proceed to pay me $5000/mo. until the $25K + interest is paid in full. 2) In the event that I do not receive payment, I will immediately exercise my right to the additional 3% of The Keys LLC shares as per our agreement. Turetzky requests response confirming receipt and acceptance. [DOC #179-2 – EXH D] 3/9/2011: Cusack responds: "Allow this email to confirm receipt, confirmation and agreement with our email regarding the $25K loaner. Your assistance at a time of need was and continues to be appreciated.” [DOC #179-2 – D] 3/3/2011: Lindy’s @ Redline Sports Grill OPENS. 3/25/2011: RPM Nightclub OPENS. 8/18/2011: Turetsky letter to Cusack summarizing their phone conversation. Cusack agrees the $25K loan is STILL delinquent and Turetzky is within his right to collect the 3% collateral. Cusack also acknowledges he owes Turetzky $7,924 from a CSC audit. Turetzky agrees to YET ANOTHER temporary loan of $8,000 to help Cusack until his shares of CSC are sold. Cusack signs this modified agreement. [DOC #179-2, EXH F] "By depositing the $8,000 check and signing below, you agree to pay $42K total, the day you close your sale of CSC LLC to Michael Johnson and Tony Kenon. This will settle all (3) debts, and I will not ask for interest for the original $25K loan. …. As you know, I have been very flexible with the original loan and monies owed, I have done my best to make a difficult situation easier.” [DOC #179-1, EXH C] 9/25/2010 $ 25,000 CSC Audit $ 7,924 (reimbursement monies owed Turetzky) 8/18/2011 $ 8,000 + $1,000 ($1K in lieu of JT not exercising 3% equity clause) TOTAL DUE $ 41,924 (12% interest on initial $25K loan WAIVED) 9/1/2011: Cusack pays back Turetzky $18K toward the Note, leaving a balance of $24K [DOC #179-1, EXH B] 9/4/2011: A Steak in the Neighborhood CLOSES. 9/27/2011: Cusack removed as Statutory Agent & membership in Congress Street Clubs, LLC (CSC, LLC). 11/17/2011: Cusack completes the sale of his interest in CSC and MY Brother’s Bar to Partners Tony Kenan & Michael Johnson for $770,000. Cusack receives $490K in cash & $55K is paid directly to a Creditor Cusack owed, with the $235K balance in promissory notes. Johnson replaces Cusack as Statutory Agent. [DOC #176 - Main] O Cusack fails to honor the 8/18/2011 signed contract and pay Turetzky back the $24K balance that was due upon the CSC sale date. FALL 2011: Cusack places his 28 yr old, live-in girlfriend, Brooke Rosander, in charge of the books for Redline/RPM. Brooke begins routinely taking the company computer home each night. Disclosure of financial information to the other Partners nearly ceases. [DOC #182 - Main] 11/23/2011: Cusack files CHAPTER 11 personal bankruptcy. O On his voluntary petition, Cusack makes NO mention of the rather large sum of cash he had just received from sale of his stake in CSC, LLC. O Cusack "inadvertently” neglects to list Turetzky on his "Schedule F” of known Creditors, even though many Creditors Cusack does list are owed far less than Turetzky. This list is registered with the Bankruptcy Noticing Center (BNC) and assures all interested parties are aware of the bankruptcy proceedings & notified of any Court hearings impacting the case. [DOC #179 - Main] 3/29/2012: Cusack files his first disclosure statement & Reorg Plan. Turetzky still NOT identified on the list of Creditors. 4/1/12 – 7/31/12: Creditors are notified by the BNC to submit their ballots voting for acceptance or rejection of Cusack’s Reorg Plan, asked to bring forth any objections, and are given notice of a hearing of Creditors set for 7/12/12. Since Cusack has left him off this list, Turetzky is not receiving any of these communications from the Court. 4/18/2012: Lindy Reilly walks out of Lindy’s @ Redline claiming irreconcilable differences. APR 2012: Turetzky makes several attempts to inspects Redline/RPM books & obtain an accurate financial picture. All attempts are met with delays, partial disclosures, & refusals to provide reports. When the Partners accused him of pocketing profits, Cusack justified his actions as reimbursement for the "100’s of 1000’s of dollars in loans he has made to the company”. When asked to provide proof of the loans, Cusack refuses to comply. [DOC #176- Main] MAY 2012: Cusack protests that Turetzky has begun overly involving himself in Redline operations which is creating problems with employees. Cusack claims other Keys LLC members ask for his help to remedy the problem via Court action. [DOC #179 - Main] 5/18/2012: Whether out of necessity or convenience, Cusack files an "Injunction Against Workplace Harassment” with the Pima Co Superior Court. Filed without Turetzky’s knowledge, the Court is presented with only one side of the case and the restraining order is granted. Turetzky is prohibited from entering the W. Wetmore properties or having any contact with Redline/RPM employees (11 named on filing) except thru lawyers, legal process, or court hearings. [DOC #179-1, EXH A & DOC #182 - Main] O Cusack’s incredulous account of this case accuses Turetzky of physically & sexually abusing several female employees. "Patrick & several women were trying to bring charges against a wealthy businessman. In order to scare the women into not testifying, [the man] hired someone to create Fake articles. It worked and the women were scared that if he could do that to Patrick & have lies splashed all over the Internet what would he be able to do to them. These woman were single young mothers. Patrick was trying to do the honorable thing for these women.” [Dianne Bushenlonga Facebook Post] 7/3/2012: A dispute arises over obligations within the 11/17/2011 CSC Sales agreement of Cusack’s shares. The parties sign a separate "Settlement Agreement & Mutual Release” to resolve claims. An additional transfer of $48K is distributed to Cusack to remove all remaining liabilities. This new "Settlement Agreement” is contingent upon the Court approving Cusack’s final Reorg Plan. [DOC #162 – EXH C] 8/9/2012: Chapter 11 Bankruptcy plan is CONFIRMED by the Court. Distributions to commence. [DOC #162] 8/29/2012: Cusack amends his "Schedule F” petition to include Jason Turetzky as an unsecure Creditor. [DOC #166] 8/28/12 & 9/9/12 & 9/24/12: Turetzky’s attorney (Ms. Bushell) sends several letters to Cusack’s counsel (Mr. Sparks) indicating intent to file a claim for repayment of the loan -or- the 3% assignment of Key’s, LLC equity Cusack committed in the original & amended "Notes”. [DOC #179, EXH B, C& F] 9/10/2012: Ms. Bushell files a petition to secure the outstanding collateralized loan with the UCC in an attempt to secure the claim. [DOC #179, EXH E] O Mr. Sparks, responds that there is NO EVIDENCE of any security instrument (ie: UCC filing) recording of the debt before 8/9/12, therefore it is "unsecure” and not subject to repayment. [DOC #179-Main] 9/25/2012: It seems the "Workplace Injunction” case was originally filed with Pima Co. Superior Court but transferred to Tucson Municipal Court. A hearing is finally scheduled to give Turetzky opportunity to protest the Order. Although the Order is left in place, the Judge modifies it to limit the "protected persons” to solely Cusack & Rosander and agrees to seal the original complaint filed by Cusack. The Court also expressly rules that the Injunction does not preclude Turetzky from an accurate accounting of financials for the business in which he has equity ownership. [DOC #179, EXH A & DOC #182–Main, DOC #182-5, EXH E] [ QUESTIONS: - By moving the case from Superior Court (Criminal) to Tucson Municipal Court (Civil) has the Court already determined there is no criminal basis for the claim? - By limiting scope of the Injunction to only include Luke and Brooke, does the Judge believe the abused women in Cusack’s story are no longer at risk and in need of protection from Turetzky? - Does the Judge view the original complaint filed by Cusack as suspicious & inflammatory and capable of inflicting harm upon Turetzky so if left open to public record and thus declared the filed sealed? ] 10/9/2012: Ms. Bushell files a breach of contract with the Court over terms of loan. [DOC #179-2, EXH F] 10/23/2012: Ms. Bushell files for a "Rule 2004” examination asking the Court to review materials to determine if Cusack’s original petition was submitted fraudulently. Request to subpoena Bank records to determine actual assets and any financial transfers Cusack’s made prior to the CHAPTER 11 filing. [DOC #170] 10/25/2012: Court grants the motion for examination and orders Debtor to appear with the records requested by Turetsky no later than 11/30/2012. [DOC #172/ #173/ #174] 11/8/2012: Mr. Sparks files Motion to QUASH the examination Order. [DOC #175] 11/13/2012: Ms. Bushell requests subpoenas for the financial records of Luke Cusack, Monte Carlo Investments, The Keys Limited, The Keys Limited dba Redline/RPM, Redline RPM, & Brooke Rosander for the time period: 1/1/2011 thru 11/1/2012. [DOC #181 - Main] 11/15/2012: Ms. Bushell requests the Court deny Cusack’s motion to Quash arguing that hidden cash & assets could significantly impact whether Creditors might have a chance at some recovery. Turetsky requests info pertinent to: any hidden payments made by Cusack (to whom), location of cash received by the Debtor from the sale of his stake in CSC, source & amount of money the Debtor claims he loaned to Redline/RPM, and the existence & extent of any other non-disclosed assets. [DOC #176 - Main] 11/20/2012: Mr. Sparks demands a protective order to immediately prevent release of the Debtor’s personal and/or business information from any party. [DOC #181] 11/24/2012: Cusack files counterattacks against Turetzky for Contempt of Court, Sanctions & attorney’s fees: Mr. Sparks argues Turetzky is violating the Court Order confirming Cusack’s Reorg Plan: - Chapter 11 entitles the Debtor protection from a Creditor’s challenge once a Plan is confirmed, - Chapter 11 prevents submission of new UCC filings to "secure” an unsecured claim in the Plan, - these actions are further harassment and protected by the current Injunction in place against Turetzky, - Turetzky was aware of the Bankruptcy via the "Settlement”, did not file a Proof of Claim prior to the Finalized Reorg Plan, and therefore, his clock has simply run out to preserve his claim. [DOC #179 - Main] 12/6/2012: Ms. Bushell responds to Cusack’s counter-attacks citing the relevance of additional discovery. "The Plan provides that unsecured creditors would receive a whopping $225 paid quarterly, pro rata, beginning 9/30/12 thru 6/30/17, for a GRAND TOTAL of $4,500 paid pro rata to an estimated $1.75M in unsecured creditors over five years. Given that Cusack received $48,000 under the [July] Agreement alone, this treatment appears to violate the best interests test of 1129(a)(7) as well as the Debtor’s disclosure obligations.” [DOC #182 - Main] 12/14/2012: Judge Marlar declares the case "a tangled web of accusations & counter-attacks”. The Judge basically rules on a Technicality. He admits the Court was in error for approving the 2004 examination after the Reorg plan was finalized on 8/9/12. The Court lost jurisdiction over challenges once the Plan was Confirmed & should not have approved exam without hearings. Court grants Debtor’s motion to Quash and Orders that the subpoenaed bank records be returned to sender unread & unopened. [DOC #184] O If it is any consolation, the Judge also denies Cusack’s motion against Turetsky for Contempt of Court, Sanctions, and attorney’s fees. 1/7/2013: Redline Sports Grill and RPM Nightclub CLOSE. 2/15/2013: In less than 15 months, Cusack files a 2nd CHAPTER 11 for The Keys Limited Co. (dba Redline). Turetzky has a 15% equity stake in this business as well. For a second time, Cusack "INADVERTENTLY” leaves Turetzky off the list of known Creditors; however, as an equity holder, Turetzky is well aware of the filing and sends a creditors claim. [EWH DOC #1 - Petition] APR 2013: PJC Investments sells the property at 6444 E. Tanque Verde Road (formerly The Solarium) to Tanque Verde Square, LLC. For $1.155M. - Had Turetzky not lost on his motion for the financial examination, Monte Carlo Investments was named on the 11/13/12 subpoena list, and this transaction quite likely would have raised flags by Turetzky’s counsel. However, it did not. 8/15/2013: CASE #2 - Chapter 11 Reorg Plan submitted to the Court. Judge rules that the disclosure statement & Reorg plan are insufficient. Cusack fails to meet deadline to resubmit. Mr. Sparks indicates he is unfamiliar with his client’s whereabouts. He suggests liquidating any assets left in a storage unit. 11/19/13: CASE #2 - the business bankruptcy is converted to Chapter 7. No distributions are made. Approx. 17 creditors lose over $500K in owed invoices for labor, loans, products & services. 4Q12 – 4Q13: Cusack files NONE of the required quarterly reports, nor pays the "whopping” $325/ quarter required by the Reorg Plan to go toward Creditors. 1/17/2014: CASE #1 – the personal bankruptcy is converted to Chapter 7 after Cusack fails to make any distributions & "disappears”. Approximately two dozen creditors are left holding the bag on $4.4M of Cusack’s debt which will never be repaid…. Not a single dime. 2/17/2014: Cusack has fled to Mexico and taken on an alter identity of Patrick L. Cusack. Despite having no money to his name (per Bankruptcy records), he renovates and opens a new restaurant & bar, buys a beach view home, drives a new SUV, showers his stream of new girlfriends with Cruises & trips to Europe. His "cash” businesses funnel money into hidden accounts through his revokable trust. Despite all this, Cusack somehow seems to freely moves between the US & Mexico. 5/5/2014: Bankruptcy CASE #2 - Terminated. 5/12/2014: Bankruptcy CASE #1 - Terminated. While seemingly taking every precaution to protect his interests -- signing contracts, documenting conversations, collateralizing loans -- Jason Turetsky was still conned. He loses $24K he had loaned in good faith to Cusack to help him through hard times, he is out legal fees to fight the Workplace Injunction and Chapter 11 motions, and his 15% equity in The Keys has collapsed under yet another Cusack business failure. In the meantime, "Patrick” has started over in new pastures with new prey in the quiet little beach-side community of San Carlos, MX.