music firm\'s source of funds under scrutiny : lack of financial records hampers investigation of consolidated allied leases

by:Marslite     2019-10-04
Over the past two years, the Allied Cos has been consolidated. and its 30-year-
Kimball D boss and boss
Richards spent millions trying to build Santa Fe Springs
Music companies are key players in the record industry.
The company filled a warehouse with expensive concerts.
Stage equipment such as amplifiers, speakers, microphones and stage lights.
It opened a state. of-the-
The art studio features a $137,000 Jacuzzi and a shark aquarium.
It assembled a number of calls.
Equipped car-
Including a volume
Royce, a Mercedes-Benz limousine, a Porsche, a BMW and a $65,000 Ferrari, as a 21-year-old birthday gift to the drummer of the company\'s chief recording artist Louis La Rock band Renegade
Richards travels the world--
Stay at the best hotel, eat at the best restaurants and take a limousine with a driver.
Last month, United Airlines\'s biggest creditor, Los Angeles, stopped a series of legal activities, but the combined United Airlines spending spree --
The United Bank, headquartered in United Bank, sued the company for fraud, accusing the company of receiving more than $7 million in financing based on false financial statements.
With the efforts of other large creditors of the United Bank to join the United Bank, the lawsuit began a series of legal activities ---
Mainly recording equipment.
The high court judge Ricardo A responded to the creditor\'s request.
In January, Torres appointed a receiver in Los Angeles.
21 Control Coalition, who sent court officials to protect the company\'s offices, warehouses and recording studios.
Two weeks later, the United Nations filed a petition seeking protection from creditors under the federal bankruptcy law chapter, and on Friday, a bankruptcy judge in Los Angeles appointed a trustee to oversee
Creditors claim in court documents that they have paid millions of dollars in advance to fund
It is called \"leveraged lease\" on studio equipment \".
This lease is usually written by a commercial leasing agent, followed by so18501217, the so-called \"factoring \".
\"According to court documents, the coalition is alleged to be responsible for the reimbursement of all leases and currently pays a total of $700,000 per month.
David L, creditor receiver
Ray said court officials sent to three Allied facilities last month found recording equipment worth only $2 in retail.
8 million secured by a lease of approximately $28 million.
Ray claims that in some cases it appears that several lenders may have provided advanced financing for the same device.
\"Some equipment (
Guaranteed by lease)
\"Not yet,\" Ray said, adding that to date, creditors have not been able to find any current books and records of the combined Allied forces.
Richards has often said that the main source of funding for the coalition is millions of dollars,
His father, a former state senator, set up a dollar trust fund for him.
Richard Richards (D-Los Angeles)
Aged 69, he is now a senior partner at Richards, Watson, dreyforth and Gerston Los Angeles law firm.
However, survey firm launkimball Richard insisted in an interview that he had nothing to do with the company\'s finances, but focused on creative aspects such as creating records and managing the artist\'s career.
The information collected by Allied creditors and receivers has aroused interest in law enforcement agencies.
Last week, the main fraud arm of the Los Angeles County district attorney\'s office launched an investigation into coalition forces.
It can also see the capital Huntington Beach of Riviera
It is understood that the headquarters is located in the commercial finance company, responsible for writing and placing most of the equipment leases of the allied coalition.
Investigators say they are trying to figure out how coalition forces are getting millions of dollars spent, a task that has become difficult due to a lack of financial records.
Richards claims that all financing is the responsibility of President Robert Burnfield of Riviera.
\"I don\'t know at all how much money the company has,\" Richards said . \".
\"One thing I can tell you for sure is that I personally didn\'t get it.
In an interview on Friday, Burnfield and his lawyer said Richards\'s statement was clearly false.
Burnfield said his company\'s role was \"nothing more than financing equipment \".
Burnfield described his company as \"media.
Commercial leasing companies involving financing scale are specialized in broadcasting and film equipment.
He added: \"The way it works is that a customer comes to us and says they want to use some equipment in their business, so we paid (supplier)
The equipment is leased to the end user.
\"In the case of Allied forces, Riviera purchased recording equipment from many suppliers or manufacturers, leased it to Allied forces, and then sold the lease to other lenders at a discount, allied forces responsible for the payment.
Burnfield said the loan amount was about $20 million. (
The total $28 million due quoted by Ray includes fees and interest paid during the lease. )
Burnfield insists that most of the money received from the lender is handed over by Riviera to the supplier or manufacturer of the Equipment Co-ordered.
He added that prior to participation, major financial institutions had carefully checked Richards\'s company.
\"We got the support of other commercial lenders who did their own due diligence and went (
Santa Fe Springs)
Facilities and met with Richards and checked everything that needed to be checked, \"said Burnfield.
He added that the lender then decided to buy joint equipment leases, \"we will write about them.
\"According to court documents, in addition to the United Bank, Allied secured leasing creditors also include some of the largest commercial financial companies in the United States ---
Branches of John Hancock co-Life Insurance, big Western finance, GE, Interstate 1, Sumitomo Bank, ITT and Xerox.
Lenders claim they rely heavily on the bank\'s financial statements, which say the company has nearly $11 million in cash on hand.
The United Bank said in a civil lawsuit that the bank said the cash was stored in the \"International Credit Union for recording artists \".
Non-credit cooperatives
However, according to the lawsuit, after the purchase of a lease worth more than $5 million and the provision of a $2 unsecured loan to the United Company, it existed.
5 million. The United Bank found that the credit cooperatives did not exist, and the phone number of the company to check the credit cooperative account \"actually called the place where the Union owner maintained \".
Bank officials declined to comment on the lawsuit.
According to Richards, the company\'s financial statements were prepared by Burnfield, which he described as the \"vice president of business and finance\" of Allied forces \".
\"The first time I saw it (
Allied forces)
On January, the financial statements held a meeting with the United Bank. 5, (1987)\" he said.
Burnfield and his lawyers strongly denied that he had prepared the financial statements.
In legal proceedings against Allied forces, none of the creditors named Bain field or Riviera.
Riviera, who claims to be owed $2 million by Allied forces, has joined three other creditors in seeking to place Kimball Richards in an involuntary bankruptcy proceeding.
According to a financial statement provided to the lender obtained by The Times, Richards claimed that his personal net assets were $24 million.
According to Stephen Speckert, one of the Plainfield lawyers, Richards told the creditors\' assembly after the joint bank filed a lawsuit that $5 million worth of equipment was in Chihuahua, Mexico, another $2 million was stolen in last November, somewhere in Australia.
However, Richards said in an interview that everything leased by his company was still in the office and warehouse, except for the allegedly stolen equipment.
According to Ray, the court
Designated receiver for several tractors
Two weeks ago, Richards and Allied Employees removed the trailer-loaded equipment from Allied\'s Santa Fe Springs warehouse, following the company\'s application under Chapter 11 of the federal bankruptcy act to protect creditors.
According to Chapter 11, when management develops a plan to repay the debt, the company is protected by creditors from asset seizure.
In the case of bidlidated alliance, it actually lost control of the assets to the receiver of the creditor.
\"We can\'t stop them from taking the device,\" Ray said . \".
\"They just pushed the truck to the warehouse and started loading at night.
Richards claims that the equipment that was taken from the warehouse two weeks ago belongs to Luis Cardenas and his rock band.
At the same time, two patrol cars were removed from Santa Fe Springs, which were used by a private security company operated by Allied forces.
The security company is licensed by the state to be an official and recording artist of the company and 24-
Carry out hour security patrols in three locations.
Los Angeles police, the California Department of Motor Vehicles and consumer affairs have confirmed that they are investigating the operations of the Allied private security forces, especially why their patrol cars have states-
\"E\" license plates are usually issued for official state and local government vehicles.
According to Gary Mitchell, the DMV investigator, \"The documents submitted to obtain these plates are fake. (
Allied forces)
Claim they are one (municipal)
Police, they\'re not.
\"Too enthusiastic employees\" may have been given license plates, Richards said, adding that he did not oversee the safe operation of the company.
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