The Success by Well being Receiver’s Tenth report reveals the Receivership is bancrupt
As of July thirty first, 2022, the SBH Receivership has $1.85 million in liabilities.
The issue is there’s solely $15,548 left within the financial institution.
As famous within the Receiver’s Ninth Report, the Receivership Property stays bancrupt.
As famous beforehand, the Receivership Entities owe extra in skilled charges than there’s money within the checking account.
It was established in 2020 that, except it continued to function as a pyramid scheme, Success by Well being as a enterprise wasn’t worthwhile.
At time of appointment, the SBH Receiver recovered lower than half one million. Two years later, that cash has been exhausted, totally on charges.
Of curiosity are two 2022 loss occasions, particulars within the Receiver’s report.
The primary loss occasion for the SBH Receivership pertains to the corporate’s product stock.
Final October Success by Well being’s Kentucky facility “skilled a catastrophic flooding occasion”.
First port of name was SBH’s insurance coverage, who promptly denied the Receiver’s declare (no cause is offered within the Receiver’s report).
Subsequent up was Jay Noland and the gang, who “on a number of events expressed curiosity within the stock all through the Receivership.”
Defendant Scott Harris toured the Kentucky facility on February 14, 2022, nevertheless regardless of a number of requests to Defendants on the stock query nothing was offered.
The Kentucky facility was scheduled to be demolished on April 2022. Unable to eliminate SBH’s stock, the product was finally demolished together with the constructing.
The second main loss occasion was $57,000 in retail valued SBH workplace gear and provides. This gear was from SBH’s Nevada facility.
Following court docket approval, a purchaser providing $15,000 was present in April.
The Receiver notified the customer of the court docket approval, who responded {that a} verify was within the mail.
Regardless of repeated assurances that cost was on the way in which, none materialized. The client subsequently discontinued communications with the
Receiver.
The gear was finally offered to the owner for $2500.
Presently the Receivership has come to a standstill. Leases for each the Kentucky and Nevada premises have been terminated, what SBH property have been capable of be liquidated have been, together with some other disposable bills.
The Receivership has been working at 60% of the already lowered charge, with the intention of “minimizing additional work”.
Not likely certain if the court docket will step in sooner or later however I’d assume so. The FTC and SBH Defendants are in any other case scheduled to face off at trial in January 2023.