Attention Ephren Taylor/City Capital and Matthew Jennings (Westmoore) victims, Judge William Alsup has issued an order of Final Judgment in favor of the Entrust Defendants. Essentially Alsup has determined that Plaintiffs cannot plead facts sufficient to state a legal claim under California law. The named Plaintiffs in this matter will be appealing that ruling. The Order denying our Motion for Leave to Amend is attached. Unfortunately regulators, the judicial system, prosecutors and politicians have permitted, advanced and protected the agenda of the self-directed IRA custodian ("Custodian") industry which pretends to be a "passive" custodian while at the same time actively marketing with unlicensed and unregistered investment promoters selling illegal securities. Even if the Custodian knows the investment is illegal they will not tell their clients, the victims. Even if the Custodian knows the investment is worthless they will not tell their clients, the victims. It is only when there is no more money to be made (fees) because the investment sponsor has been indicted, is under investigation, the Custodian has received a subpoena for records, or the Ponzi scheme has crumbled that the Custodian will decide to stop taking new investments and get rid of the accounts they already have since they know they cannot collect any more fees because their "clients" have no more money. The fact that SDIRA have been used routinely for Ponzi schemes has been known by the Custodians for decades.
And to make matters worse, the Custodians fail and refuse to ascertain the fair market value of alternative assets which are under their control and fail to hold title to the assets of the SDIRAS they have under "management." So although Entrust and the other Custodians, judges and defense counsel blame all of you for your investment losses, the truth is that you would not be victims if the Custodians had done what they are supposed to do and if they were acting in good faith in the performance of their duties as your Custodian.
Do not be discouraged by this decision. We are trying to force a corrupt industry to change its practices, it will not happen overnight. There are thousands of victims of fraudulent investment schemes across the United States who were duped in hundreds of Ponzi schemes with the aid of Custodians. We have many, many cases to file still against many Custodians across the United States. This war is in its infancy. This is an industry issue- there are not just a few bad apples.
Perhaps at some point, former members of the SDIRA Custodian industry will come forward and assist us by exposing this industry and its major players for the unethical, unscrupulous, investment fraud promoters, facilitators and sponsors that they are. Until then, we keep fighting. It will be a few months before there is an update as the appellate process begins. I will let you know when we file our first brief.
Love to you all! Keep the faith! "Do not be overcome by evil, but overcome evil with good." Regards, Cathy
Here is Alsup's Order: