1 2 3 4 5 6 7 8 - Westmoore Management, RECEIVERSHIP

Case 8:10-cv-00849-AG -MLG Document 94 Filed 10/21/11 Page 10 of 51 Page ID
#:1059
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
19. I am continuing to review and investigate assets and potential assets of
the receivership estate, and my ability to monetize such assets. Therefore, this report
regarding assets is incomplete.
20. As reflected in my cash receipts and disbursements ledger attached as
Exhibit “1” hereto, I currently have only $233,004.22 in cash on hand. It is uncertain
whether I ultimately will recover sufficient funds to make a substantial distribution,
if any distribution, to creditors.
21. On August 12, 2011, the Court entered its Final Judgment as to
Defendant Matthew R. Jennings. Article X of the judgment provided, among other
things, that Mr. Jennings was required to pay $492,265.06 within sixty days of entry
of the judgment (i.e., October 11, 2011). On October 11, 2011, I received payment
from a third party for Mr. Jennings’ account in the amount of $200,000. 4 Having not
received any other payment, Mr. Jennings is in default under the terms of the
judgment and I have advised the SEC accordingly.
22. According to the Judgment and information provided by the Westmoore
Entities to the SEC prior to my appointment, certain of the Westmoore Entities have
or had accounts at Citizens Business Bank, Chase Bank, Union Bank, and Bank of
America. I served subpoenas on each of these banks and communicated with some
of the banks regarding the accounts. Based on my investigation thus far, it appears
that none of the Westmoore Entities’ accounts are currently open. For those
accounts for which documents were produced, the documents confirm that the bank
accounts were closed prior to my appointment and in many cases prior to the filing of
this case.
4 Mr. Jennings personally owned preferred shares in Rockwall Holdings, Inc.
(formerly known as Westmoore Holdings, Inc.). Mr. Jennings sold his personal
shares to a third party with the intent to pay the sale proceeds to me, and requested
that the buyer make the check payable to me and send it to me directly.
500747.2 25713A 10
FIRST REPORT OF DAVID A. GILL, RECEIVER