Legisi scammer indicted... at Nobullshit Network Forum

okosh · 05-08-2008, 09:52 AM

Greg McKnight has been indicted...

Quote:

Securities and Exchange Commission v McKnight

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Plaintiff: Securities and Exchange Commission
Defendant: Gregory N McKnight, Legisi Holdings, LLC, Legisi Marketing, Incorporated, LIDO Consulting, LLC, Healthy Body Nutraceuticals, Lindenwood Enterprises, LLC, Danielle Burton, Theresa Burton and Jennifer McKnight
Receiver: Robert D Gordon

Case Number: 4:2008cv11887
Filed: May 5, 2008

Court: Michigan Eastern District Court
Office: Flint Office [ Court Info ]
County: Wayne
Presiding Judge: elseCMECFutilEventaddListenerwindow "load" CMECF.MainMenu.createMenu);}

Securities and Exchange Commission v McKnight - 4:2008cv11887 - Justia Federal District Court Filings and Dockets

okosh · 05-12-2008, 05:43 AM

Quote:

SEC Action Halts $72 Million International Internet Fraud Scheme
FOR IMMEDIATE RELEASE
2008-83

Washington, D.C., May 8, 2008 — The Securities and Exchange Commission has obtained an emergency court order freezing the assets of the alleged perpetrator of an Internet fraud scheme that reaped approximately $72 million from more than 3,000 investors in all 50 states and at least 30 foreign countries.
Additional Materials

* Litigation Release No. 20563

The SEC alleges that from December 2005 until at least November 2007, Gregory N. McKnight of Swartz Creek, Mich., and his company, Legisi Holdings LLC, sold unregistered securities through a Web site by representing that he would invest the offering proceeds in foreign currencies, commodity futures, stocks, and real estate. He promised to pay interest as high as 15 percent per month out of the profits from his investments. Throughout the offering period, McKnight represented to investors that his investments were profitable and were generating the promised returns. But McKnight invested approximately $33 million, less than half the money he raised, on behalf of investors. Those investments suffered substantial losses. Furthermore, nearly $30 million of the investors' funds were allegedly dissipated through an unlawful Ponzi scheme and unauthorized personal expenditures by McKnight. The SEC froze millions of dollars of remaining assets controlled by McKnight and Legisi Holdings on behalf of the injured investors.

"This emergency action demonstrates that the Commission can and will move quickly to secure and preserve assets for the benefit of all investors, both in the United States and internationally," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement.

"As alleged in our complaint, McKnight lured investors from around the globe into investing by claiming on his Web site that the Legisi program was legitimate and unlike other 'scams' and 'high yield investment programs' that you see on the Internet. In fact, McKnight's Legisi program was just that, a scam from beginning to end," said Merri Jo Gillette, Regional Director of the SEC's Chicago Regional Office.

On May 5, 2008, the Honorable Judge Paul V. Gadola of the U.S. District Court for the Eastern District of Michigan issued an Asset Freeze Order against all assets of McKnight and Legisi Holdings, LLC, as primary defendants, and against all assets of McKnight's affiliates, Legisi Marketing, Inc., Lido Consulting, LLC, Healthy Body Nutraceuticals, and Lindenwood Enterprises, LLC, which were named as relief defendants based on their alleged receipt of investor funds. In addition, Judge Gadola issued an order appointing a receiver over all assets of McKnight, Legisi Holdings, and the affiliates.

The court issued the freeze and receivership orders under seal while the assets were being secured, and the seal has now been lifted.

The SEC alleges that the defendants used approximately $27.5 million of the offering proceeds to make payments of purported profits to prior investors in a Ponzi scheme, and McKnight used $2.2 million of investor funds to pay for his personal expenses and to make payments to his relatives.

The SEC action also seeks recovery of the assets McKnight allegedly transferred to his relatives, including his daughter Jennifer McKnight, his niece Danielle Burton, and Danielle Burton's mother Theresa Burton, all of whom were named as relief defendants based on their receipt of investor funds.

The SEC's complaint charges the defendants with an unregistered securities offering and securities fraud in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to the emergency relief already obtained, the SEC's complaint seeks preliminary and permanent injunctions, disgorgement of ill-gotten gains and civil penalties against McKnight and Legisi Holdings, as well as disgorgement of ill-gotten gains from the relief defendants. A hearing on the SEC's request for a preliminary injunction is scheduled for May 19, 2008 at 2 p.m.

The SEC acknowledges the assistance of Michigan's Office of Financial and Insurance Regulation, the U.S. Secret Service, and the Commodity Futures Trading Commission in this investigation.

# # #

For more information, contact:

Tim Warren
Associate Regional Director, SEC's Chicago Regional Office
(312) 353-7394

Kathryn Pyszka
Assistant Regional Director, SEC's Chicago Regional Office
(312) 353-7416
]

Press Release: SEC Action Halts $72 Million International Internet Fraud Scheme; 2008-83; May 8, 2008

okosh · 05-12-2008, 05:48 AM

Quote:

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20563 / May 8, 2008
SEC v. Gregory N. McKnight, et al, Case No. 08-11887 (E.D. Michigan, filed May 5, 2008)

The Securities and Exchange Commission announced that on May 5, 2008, the Honorable Judge Paul V. Gadola of the United Stated District Court for the Eastern District of Michigan issued an Asset Freeze Order against Gregory N. McKnight (McKnight) and Legisi Holdings, LLC (Legisi Holdings) as defendants, and against Legisi Marketing, Inc. (Legisi Marketing), Lido Consulting, LLC (Lido Consulting), Healthy Body Nutraceuticals (HBN), and Lindenwood Enterprises, LLC (Lindenwood) as relief defendants. The Asset Freeze Order froze all assets of McKnight, Legisi Holdings, Legisi Marketing, Lido Consulting, HBN, and Lindenwood. In addition, Judge Gadola issued an Order Appointing a Receiver over all assets of McKnight, Legisi Holdings, Legisi Marketing, Lido Consulting, HBN, and Lindenwood.

The SEC's complaint, filed May 5, 2008, alleged that McKnight and Legisi Holdings conducted a fraudulent, unregistered offering of securities in which, between December 2005 and at least November 2007, they raised approximately $72 million from more than 3,000 investors in all 50 states and several foreign countries through the Legisi website at www.legisi.com. According to the SEC's complaint, McKnight represented that he would invest the offering proceeds in foreign currencies, commodity futures, stocks and real estate and promised to pay interest of as much as 15 percent per month from the profits from his investments. The SEC's complaint further alleges that throughout the period of the offering, McKnight represented to investors that his investments were profitable and were generating the promised returns. The complaint charges that, contrary to these representations, McKnight invested only approximately $33 million of the offering proceeds and that, rather than earning profits, these investments resulted in millions of dollars in losses. The SEC's complaint further charges that Defendants used approximately $27.5 million of the offering proceeds to make payments of purported profits to prior investors and were, thus, operating a Ponzi scheme, and that McKnight used $2.2 million of investor funds to pay for his personal expenses and to make payments to his relatives, Jennifer McKnight, Danielle Burton, and Theresa Burton. The SEC's complaint charges that Defendants violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.

In addition to the emergency relief already obtained, the Complaint seeks preliminary and permanent injunctions against McKnight and Legisi Holdings. The Complaint also seeks disgorgement of ill-gotten gains from the defendants and relief defendants and the imposition of civil penalties against McKnight and Legisi Holdings. A Hearing on whether a preliminary injunction should be issued against the Defendants is scheduled for May 19, 2008 at 2:00 p.m.

Gregory N. McKnight, et al: Lit. Rel. No. 20563 / May 8, 2008

okosh · 05-13-2008, 10:08 AM

Contact info for legisi Receiver....(Thanks to morpheus824 at TG)...

No website as yet for receiver...Should happen soon

Quote:

Robert Gordon:

People - Clark Hill PLC
Phone: (313) 965-8572
Fax: (313) 965-8252
rgordon@clarkhill.com

okosh · 05-21-2008, 09:37 AM

Receivers site is up..

XRoads Case Management Services

okosh · 05-26-2008, 07:58 AM

Quote:

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20588 / May 20, 2008
SEC v. Gregory N. McKnight, et al., Case No. 08-11887 (E.D. Michigan, filed May 5, 2008)

On May 16, 2008, the Commission obtained Orders of Preliminary Injunction and Other Relief (Orders) from the United States District Court for the Eastern District of Michigan against Gregory N. McKnight (McKnight) and Legisi Holdings, LLC (Legisi), pursuant to their consent. The Orders preliminarily enjoin the Defendants from violating the anti-fraud and registration provisions of the federal securities laws in connection with a $72 million Ponzi scheme. The Orders also continue the asset freezes and certain other ancillary relief previously ordered by the Court on May 5, 2008.

The Commission's complaint, filed May 5, 2008, alleged that McKnight and Legisi Holdings conducted a fraudulent, unregistered offering of securities in which, between December 2005 and at least November 2007, they raised approximately $72 million from more than 3,000 investors in all 50 states and several foreign countries through the Legisi website at www.legisi.com. According to the Commission's complaint, McKnight represented that he would invest the offering proceeds in foreign currencies, commodity futures, stocks and real estate and promised to pay interest of as much as 15 percent per month from the profits from his investments. The Commission's complaint further alleged that throughout the period of the offering, McKnight represented to investors that his investments were profitable and were generating the promised returns. The complaint charges that, contrary to these representations, McKnight invested only approximately $33 million of the offering proceeds and that, rather than earning profits, these investments resulted in millions of dollars in losses. The Commission's complaint further charges that Defendants used approximately $27.5 million of the offering proceeds to make payments of purported profits to prior investors and were, thus, operating a Ponzi scheme, and that McKnight used $2.2 million of investor funds to pay for his personal expenses and to make payments to his relatives, Jennifer McKnight, Danielle Burton, and Theresa Burton.

The Orders preliminarily restrain and enjoin McKnight and Legisi from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Orders also, among other things, continue the freeze of McKnight's and Legisi's assets and the freeze of Legisi investor funds wherever located.

Gregory N. McKnight, et al.: Lit. Rel. No. 20588 / May 20, 2008

**allinvain** · 05-27-2008, 01:29 PM

lool..horaaay..put that ahole behind bars! bastard used "investors" money to buy himself luxury cars and other trinkets...

okosh · 06-01-2009, 09:57 AM

From the receivers site...

Quote:

On April 13, 2009, the United States Department of Justice granted the Receiver’s petition for remittance of $1,769,264.19 in forfeited funds seized from three E-Gold accounts which belonged to the Receivership Entities.

As a result of the Receiver’s actions, $1,769,264.19 will be turned over to the Receiver Estates in a matter of weeks. Once the process of establishing a definitive roster of creditor and investor claims (as described in paragraph I of the Third Interim Report filed with the Court on May 1, 2009) has been substantially completed, it is anticipated that the Receiver will seek Court approval of a Plan of Distribution, permitting and directing the distribution of funds to creditors. investors, lenders, and other parties in interest.

okosh · 10-01-2009, 06:22 AM

Quote:

5999442.1 30711/122570
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
Case No. 08-011887

SECURITIES AND EXCHANGE COMMISSION, Plaintiff
v.
GREGORY N. MCKNIGHT and LEGISI HOLDINGS, LLC, Defendants
and
LEGISI MARKETING, INC, LIDO CONSULTING, LLC, HEALTHY BODY NUTRACEUTICALS, LINDENWOOD ENTERPRISES, LLC, DANIELLE
BURTON, THERESA BURTON AND JENNIFER MCKNIGHT, Relief Defendants.

NOTICE OF BAR DATE FOR FILING CLAIMS

PLEASE TAKE NOTICE that the United States District Court for the Eastern District of Michigan, (“District Court”) has entered an order
establishing a deadline of December 15, 2009 at 5:00 p.m. Pacific Standard Time, by which Claims Forms must be received by the Receiver from
all persons or entities that hold, or assert that they hold a claim against or interest in Gregory N. McKnight, Legisi Holdings, LLC, Legisi Marketing,
Inc, Lido Consulting, LLC, Healthy Body Nutraceuticals, and/or Lindendwood Enterprise, LLC, (collectively, the “Receivership Estates”).

All persons and entities who assert that they hold a claim against or interest in the Receivership Estates based upon, among other
things, an investment with or in any of the Receivership Estates, must do so by filing a Claim Form distributed by the Receiver. All Claim Forms
must be received on or before December 15, 2009 at 5:00 p.m. Pacific Standard Time.

TO FILE A CLAIM FORM, PLEASE REVIEW THE ENCLOSED INSTRUCTIONS AND COMPLETE THE ENCLOSED
CLAIM FORM ACCORDINGLY. CLAIM FORMS MUST BE SUBMITTED TO THE RECEIVER IN ACCORDANCE WITH THE
ENCLOSED INSTRUCTIONS. FAILURE TO PROPERLY SUBMIT YOUR CLAIM MAY RESULT IN YOUR CLAIM BEING
DISALLOWED.

IF YOUR CLAIM FORM IS NOT RECEIVED ON OR BEFORE:
DECEMBER 15, 2009 at 5:00 PM PACIFIC STANDARD TIME,
YOU WILL BE FOREVER BARRED FROM SEEKING OR PURSUING RECOVERY ON ANY CLAIM OR INTEREST YOU
MAY HOLD AGAINST OR IN THE RECEIVERSHIP ESTATES. YOU MAY WISH TO CONSULT YOUR OWN ATTORNEY TO
ASSIST IN PREPARING AND FILING YOUR CLAIM FORM. YOU HAVE THE SOLE RESPONSIBILITY TO CORRECTLY AND
TIMELY FILE THE CLAIM FORM.

To file your claim, you must file the original Claim Form by sending it to: Robert D. Gordon, Receiver c/o XRoads Case Management
Services, 1821 East Dyer Road, Suite 225, Santa Ana, CA 92705 along with copies of your supporting documentation. To receive a confirmed
(date-stamped) copy of your filed Claim Form, enclose an extra copy of the Claim Form, along with a stamped, self- addressed envelope.
Respectfully Submitted,
CLARK HILL PLC
By: /s/
Date: September 8, 2009 Jami A. Statham (P69747)
151 S. Old Woodward, Suite 200
Birmingham, Michigan 48009
(313) 965-8580
jstatham@clarkhill.com
Attorneys for Robert D. Gordon, Receiver of the
Estates of Gregory N. McKnight, et al.

http://www.xroadscms.net/documents/0...0000000001.pdf