Receiver for Automators LLC, Empire Ecommerce LLC, Onyx Distribution LLC, Stryder Holdings LLC, Pelenea Ventures LLC and Peregrine Worldwide LLC Receivership Website

The Receiver has filed its Status Report relating to the administration of the receivership case. The final report deadline has been moved to January 31, 2025, and a continued Status Conference has been set for February 7, 2025. While the Receiver has concluded its administration of known assets, a further distribution is expected from the related Florida cases for Empire and Onyx, causing the Receiver to hold open the case awaiting receipt of those funds. The Receiver is exploring options to close the receivership case sooner. However, the FTC, and not the Receiver, will be handling the claims administration and distribution process, so the timing of the closing of the receivership is not tied to the timing of any distributions to be made to claimants. The FTC advises that the process of claim distribution will take some time, and possibly up to one year.

The Receiver has filed a Status Report with the court in the Automators/Empire/Onyx receivership. No action is required by you in response to the Status Report. If you received an email about the filing of the Report, we have your contact information so there is no need to inquire about the status of your claim at this time. The Receiver is concluding his administration of the assets, and we are just expecting one more settlement payment to be received by the receivership estate to finalize the administration. All net proceeds will be turned over to the FTC for distribution, and the FTC will contact you directly regarding distribution. The timing and amount of distribution are not yet known, but please note that the redress process could take up to a year following conclusion of the Receivership.

The sale of the Rancho Santa Fe property has closed and the Receiver is holding the net proceeds of sale. There are a few remaining assets to be administered in the case. Once concluded and after all administrative costs have been paid, the Receiver will turnover over the net proceeds to the FTC, which will handle the claims administration. The FTC intends to use the funds to redress consumers who purchased the Defendants’ services, but please be aware that this process can take time. When redress does occur, the FTC typically uses Defendants’ customer records and complaints filed to determine the pool of consumer victims. If you have not already filed a complaint with the FTC at https://reportfraud.ftc.gov/#/free, feel free to do so. If you have, you do not need to take any action at this time.

The Receiver filed a motion to approve an asset purchase agreement with the Assignee for Benefit of Creditors of Empire Ecommerce, LLC (“Empire”) and Onyx Distribution, LLC (“Onyx”). The hearing is set for May 24, 2024 at 1:30 p.m. The agreement will transfer virtually all of the assets, along with the claims, in the Empire and Onyx cases to the Receiver for administration by the Receiver and will allow the Assignee to administer certain litigation claims.

The Receiver filed a motion for authority to sell the property located at 4560 Via Gaviota, Rancho Santa Fe CA. The proposed purchase price is $6,900,000. The hearing is scheduled for May 17, 2024 at 1:30 p.m. The net proceeds of the sale will come into the receivership estate along with other funds collected by the Receiver. When the Receiver’s administration of the assets in the case is complete, the Receiver will turnover over the net proceeds to the FTC, which will handle the claims administration. The FTC intends to use the funds to redress consumers who purchased the Defendants’ services, but please be aware that this process can take time. When redress does occur, the FTC typically uses Defendants’ customer records and complaints filed to determine the pool of consumer victims. If you have not already filed a complaint with the FTC at https://reportfraud.ftc.gov/#/free, feel free to do so. If you have, you do not need to take any action at this time.

The Court entered an order approving the settlement agreement with DLA Piper, and $131,624.70 is to be paid by DLA Piper within the next ten days. The Court also entered the Stipulated Order for Permanent Injunction and Monetary Judgment, which resolves the CFTC’s claims against the defendants. The Receiver is continuing to administer the receivership estate in its efforts to maximize recovery for consumers in this case, including the administration of the real property located in Rancho Santa Fe and evaluation of potential litigation claims.

The Receiver filed a motion to approve a settlement with DLA Piper LLP. The Settlement Agreement provides that a total sum of $131,624.70 shall be paid by DLA Piper to the Receiver. Prior to the receivership, DLA Piper received two transfers by Peregrine Worldwide LLC (one of the Receivership Entities) for the benefit of Andrew Chapman, individually. The Receiver contends that these transfers were fraudulent. The hearing on this motion is scheduled for 03/01/2024.

The court entered an Order regarding the Receiver’s first status report and petition for instructions. It was ordered that: (1) the receivership shall remain in place; (2) the Receiver’s request to file status reports and fee motions on a quarterly basis was approved; and (3) the budget (Exhibit 1 to the Receiver’s first status report) was approved.

The Receiver filed a motion for an order to approve (1) the Listing Agreement with the broker, Douglas Elliman Real Estate; (2) to authorize the sale of the real property located at 4560 Via Gaviota, Rancho Santa Fe, California; and (3) to approve an auction for the sale of the personal property. The hearing on this motion is scheduled for 01/26/2024.

An Order was entered setting a hearing on 01/05/2024 to review the Receiver’s first status report and petition for instructions.

The Receiver filed its First Status Report and Petition for Instructions.

An Order was entered approving a Joint Motion to enter a Stipulated Preliminary Injunction and to appoint Stapleton Group, inc. as Equity Receivership of the Receivership Entities.