Free Response to Motion - District Court of Colorado - Colorado

Case 1:01-cv-00645-JLK

Document 172

Filed 07/26/2007

Page 1 of 4

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. 01-cv-645-JLK SECURITIES AND EXCHANGE COMMISSION Plaintiff, v. KENNETH ROY WEARE a/k/a ROY WEAVER, J&K GLOBAL MARKETING CORPORATION, and AAA-AUCTION.COM, INC., Defendants.

RESPONSE TO MOTION FOR REVIEW BY COURT FILED BY CLAIMANT JAMES RAISSIS

Patten, MacPhee & Associates, Inc., the Court-appointed Receiver, by and through its attorney, responds to the Motion For Review By Court filed by Claimant James Raissis ("Claimant") as follows: 1. On or about February 24, 2007, Claimant submitted to the Receiver Claim Number Although the Claim listed a total of

c5d91193-08d4-4287-a5f5-b9b865ec5d1e ("Claim").

$200,000.00 in alleged investments, it is the Receiver's understanding that Claimant intended to claim only $100,000.00. 2. The Claim states that Claimant invested $50,000.00 on April 19, 1999; $25,000.00

on September 7, 1999; and, another $25,000.00 on September 7, 1999. 3. Although the transaction database obtained by the SEC during the course of its

investigation indicated that Claimant may have been an investor in Defendant J&K Global

Case 1:01-cv-00645-JLK

Document 172

Filed 07/26/2007

Page 2 of 4

Marketing Corporation ("J&K Global"), neither the transaction database nor bank records provided by the SEC indicated the amount of any such investment. 4. Consequently, on or about March 16, 2007, the Receiver's staff sent an e-mail to

Claimant, requesting additional documentation or other information evidencing his investment in J&K Global. In response, Claimant e-mailed to the Receiver copies of overseas transfers by St. George Bank in the amounts set forth above. Because the copies sent to the Receiver were difficult to read and did not appear to make any mention of J&K Global, the Receiver's staff sent a follow-up e-mail to Claimant on March 23, 2007. 5. On or about April 14, 2007, Claimant sent an e-mail to the Receiver stating, for the

first time, that his invested funds had been sent to an intermediary in Canada named James Vint. Because the Receiver did not have any information indicating a connection between Mr. Vint and J&K Global, the Receiver gave no evidentiary weight to the documents and other information sent by Claimant and allowed his Claim for only $375.00. 6. On May 11, 2007, the Receiver sent a Determination Notice to Claimant, allowing

his claim in the amount of $375.00, in accordance with the claims process established by the Court's order dated December 6, 2006. 7. On or about May 25, 2007, Claimant mailed a request for reconsideration to the

Receiver. At that time, the Claimant also sent additional documents purportedly in support of his Claim. 8. The additional documents sent by Claimant made reference to Mr. Vint, a company

named J. Ventures, Ltd. and a specific bank account at The Hong Kong Shanghai Banking Corp.,
-2-

Case 1:01-cv-00645-JLK

Document 172

Filed 07/26/2007

Page 3 of 4

Ltd. in Hong Kong. Again, the Receiver could find no connection between the alleged transactions represented by the documents sent by Claimant and J&K Global. 9. Consequently, on June 29, 2007, the Receiver sent a Final Determination Notice to

Claimant, denying his request for reconsideration and continuing to allow his Claim in the amount of $375.00. 10. 11. On or about July 16, 2007, Claimant filed his Motion For Review By Court. Claimant's letter to the Court dated July 6, 2007, which accompanied his Motion For

Review By Court, states that $100,000.00 "was paid at the direction of James Vint into the account J. Ventures as Agent whether expressed or implied for the Defendants." (Emphasis in original). The Receiver, however, has not been provided any information by the SEC, the Claimant or any other source that even suggests that James Vint was an agent of the Defendants. 12. In his July 6, 2007 cover letter to the Court, Claimant also notes that he will not be

able to appear before the Court. WHEREFORE, the Receiver respectfully requests that the Court dismiss Claimant's Motion For Review By Court and allow his claim in the amount of $375.00. DATED this 26th day of July, 2007.

s/ Michael D. Burns Michael D. Burns, #11631 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 FAX: (303) 296-4475 E-mail: [email protected] Attorney for Receiver
-3-

Case 1:01-cv-00645-JLK

Document 172

Filed 07/26/2007

Page 4 of 4

CERTIFICATE OF SERVICE I hereby certify that on July 26, 2007, I electronically filed the foregoing RESPONSE TO MOTION FOR REVIEW BY COURT FILED BY CLAIMANT JAMES RAISSIS with the Clerk of the Court using the CM/ECF system, which will send notification of such filing to the following e-mail addresses: Leslie J. Hughes [email protected] Christine J. Jobin [email protected] Thomas J. Krysa [email protected],[email protected] and I certify that I have caused to be mailed a copy of the foregoing to the following non-CM/ECF participant via U.S. mail, postage prepaid: James Raissis Raissis Solicitors Suite 502, 3 Waverly Street Bondi Junction, NSW 2022 AUSTRALIA

s/ Michael D. Burns Michael D. Burns, #11631 Attorney for Receiver 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 FAX: (303) 296-4475 E-mail: [email protected]