Friday, January 09, 2009

Defendant in SEC's alleged ponzi scheme case has taken asylum in Brazil

Concert/entertainment promoter John P. Utsick (Jack Utsick) is a Defendant in an alleged $300 million ponzi scheme fraud case filed by the Securities and Exchange Commission (SEC) in 2006. (SEC v. John P. Utsick, Worldwide Entertainment, et al).

The SEC wishes to seek a final judgement against Utsick but requires some discovery and his deposition. It appears that Utsick has fled the U.S. and is living in Brazil.

Utsick has confirmed that he had been based in Miami during the period of the alleged fraud. In recent months the SEC has sought to compel Utisck to appear for deposition. In his latest move, Utsick has submitted an affidavit in which he swears that since 11.29.07 he has made Brazil his primary home.

In email communications the SEC now reports Utsick is refusing to attend any court deposition in the U.S. including one set for 1.15.09; and Brazilian law prevents Utsick from being deposed by U.S. officials in that country.

Michael I. Goldberg is the court appointed receiver in the fraud case in which other defendants include Worldwide Entertainment, Inc. and Entertainment Group Fund, Inc. as well as American Enterprises, Inc. and Entertainment Funds, Inc. and their principals Robert Yeager and Donna Yeager.


In a related $2.1 million fraudulent transfer matter, Goldberg v. Malik, Judge Paul C. Huck has set the dates for trial to begin 4.20.09 in a Miami U.S. District Court.

In this case, the Receiver Goldberg alleges that Defendant, Michael J. Malik, Sr., invested in the business affairs of the Receivership Entities and ultimately received back more than he invested. The Receiver alleges that any "profits" that Malik earned are unlawful because, over time, the Receivership Entities became nothing more than a ponzi scheme.

According to the original complaint, Receiver indicates specifically that The Entertainment Group Fund Inc. (TEGFI) paid Malik $2,100,669.90 in excess of Malik's original investment.

Malik has yet to deny the charges filed by Goldberg; rather, he's sought to have the case tossed out or delayed based on procedural or administrative causes.

In a related matter, Receiver Goldberg has also filed charges against Paris Hilton.


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