.
Thank you in advance for your cooperation. If you have any questions, please
contact Alan C. Walker, Special Investigator or myself. Mr. Walker may be
reached at 602/542-0539. I may be reached at 602/542-0633.
Sincerely,
Wendy Coy
Assistant Director of Enforcement
Message from Dennis Little 09/20
*************
All,
Per the order from the ACC, I have been working to see that an independent
audit of the club accounting is completed. The latest on that project is
that the CPA has all information through July and August numbers are
incomplete because there is a small discrepancy in the final number. The
numbers for August are based on a printed history of the Datek account and
not the official statement. That statement has been unavailable to me and I
am attempting to obtain it for the purposes of reconciling the discrepancy
and completing the accounting. I expect to have the statement as early as
tomorrow.
To my knowledge, the ACC is conducting a separate accounting audit. For
this audit, they have apparently requested that all members submit
verification for their contributions/distributions to the club. I am aware
that an email request as well as a written letter was sent to some members.
I am also aware that many people have not been notified of this request.
Until today, my attorney and I were under the impression that this request
was strictly voluntary and that it might not have any impact on the release
of the funds provided that the independent audit indicated no other problems
(other than incorrect return rates). However, I have learned today that the
funds may be held until all members have submitted their information. For
the purposes of a second, separate audit, this is a reasonable request. I do
believe however, that the fact that this matter may impede the investigation
has not been properly communicated to all members as there are many who have
not received this request and, according to many members I have spoken to,
no attempt to ensure all are notified. I am aware that some members, acting
on their own accord (encouraged by Mr Walker of the ACC)have been trying to
get members to cooperate and send their information. In the course of this
action, there have been many misstated facts and promises. In fact, there is
no legitimate timeframe for releasing the funds after your information is
gathered, nor is there any danger to "not getting your money" if you do not
cooperate.
After discussing this issue, at length, with my attorney, both he and I
agree that the best course of action is to cooperate with the ACC request
for information.
Unfortunately, these projects are proceeding through separate fronts and
are therefore, not well coordinated, and information sharing is slow to
pass. I am not aware of who the ACC has notified and/or received information
from. I am unaware of who other members have notified/received information
from. Therefore, I am starting from scratch.
In light of the fact that many have not received any of the information
regarding this, I am asking you all to contact anyone you know in or
referred to the club to ensure this action is completed as quickly as
possible. Also, since I am not privy to whom the ACC has received
information from, I am starting from scratch on determining anyone that is
missing.
Therefore, I am requesting a reply to this email from each member,
simply stating yes or no in the text. This will indicate whether you have
sent your information or not, and I can start working to notify anyone
missing.
Further, I am not in contact with the ACC, all information gleaned from
them is passed through my attorney from their attorney (Wendy Coy), and vice
versa. Therefore, I do not know any of the contact information for the ACC,
nor do i know the specific information they requested in their email/letter.
Please share this information with those you speak with so they may expedite
their responses. If anyone has further questions regarding the exact
information requested, please contact the ACC. Please be aware they are very
busy due to the large number of people involved, so be to the point and
patient with your questions.
Additionally, there have been many rumors and misinformation being spread
around on all sides of this matter. I want to state that I feel this is
disruptive and not in the best interest of all parties involved. I do not
know when this matter will be resolved, any information I have received and
passed on may have been sourced from unreliable means and therefore in
error. In any instance where I have done so, I apologize for misstating any
information. Along those lines, there is no clear indication as to when the
funds will be released, other than after all accounting has been completed
(including input received from all members) and the ACC is satisfied that it
is appropriate to do so. I, along with all of you, wish it to be resolved as
quickly as possible.
Dennis
Remember - reply to this email to let me know whether you have/have not sent
your information.
**********
The Division requests that the investors provide proof of their investments such as cancelled checks or receipts that reflect the amount of cash invested. In addition, please provide documentation as to any cash withdrawals you may have made from your account. Send your documentation to
Alan Walker, Investigator, Securities Division,
1300 W. Washington, 3rd Floor,
Phoenix, Arizona 85007.
As part of the Order, the Securities Division is seeking payment back to investors and penalties for the alleged violations of law. Any money recovered would go first to investors and last to payment of penalties.
