PALM BEACH, Fla., Aug. 4, 2017 /PRNewswire/ -- On July 22nd, 2017, the United States District Court Southern District of Florida issued a dismissal of a series of allegations against SARC, USREDA, Walsh, Walsh Jr., and JJW, Ltd. levied in a suit submitted by Gunster Law Firm.
(CASE NO. 16-81871-CIV-MARRA)
In its ruling the Court found that the allegations pertaining to Dissolution of Palm House LLLP, Conversion, Fraudulent Conveyance Claims, Piercing the Corporate Veil, and RICO Claims were not properly argued or lacked any supporting evidence of wrong doing against Walsh and his firms.
As for the remaining allegations, the Court will require the Plaintiffs amend and restate or offer support for each allegation. In general the allegations levied by the case seem to employ a shotgun approach with little regard for determining who in fact are the true "Bad Actors" in exchange for simply naming all parties regardless of legitimacy.
It is important to note that the countersuit filed was not dismissed and, in fact, was not even challenged by the plaintiffs.
On April 14th, 2017, a significant countersuit was filed on behalf of South Atlantic Regional Center ("SARC"), associated persons and companies against the 58 plaintiffs in the Palm House Hotel EB5 Project in Palm Beach, Florida. This countersuit comes after analyzing thousands of documents, which clearly outline a plan by the plaintiffs to defraud and defame both the companies and individual persons named in the suit.
The acts of the plaintiffs and their legal counsel, both in the USA and China are unconscionable. The countersuit shows how they sought to withhold information and created side-deals, which were hidden from SARC, Mr. Walsh and his companies. Once found out, they proceeded to sue Mr. Walsh, defame his companies in China and the USA, create untold costs to defend the case already in progress and interfere with the legal proceedings in an effort to hide their "bad acts" and deception.
Actions were pursued to deceive the court system. Through discovery it was found that the plaintiffs and their assigned representatives themselves, were colluding with the fraudulent parties in an effort to secure the property and profit by the same.
The fact that the Federal Court dismissed the allegations against Mr. Walsh continue to demonstrate the sustained and significant effort that Mr. Walsh and his companies have expended on behalf of the investors and the Hotel's completion.
Recently, on July 5th, 2017, Mr. Matthews attempted to file a Chapter 7 Bankruptcy in the United States Bankruptcy Court Southern District of Florida, West Palm Division. On July 17, 2017 The Interim Trustee, Robert C. Furr's dismissed the case requiring of Mr. Matthews his Bankruptcy schedules, statement of financial affairs and other documents. (Case no. 17-18453-PGH) This is another attempt, by Matthews to abuse the legal system and courts. The Trustee went on to say in his filings that, "The Trustee further respectfully requests this Court enter an Order to Show Cause as to why Cherish Thompson should not be sanctioned for abusing the bankruptcy system by filing this bankruptcy case without paying the filing fee in an apparent attempt to obtain the benefit of the automatic stay thereby delaying the foreclosure sale with no intention of complying with the requirements of a chapter 7 bankruptcy."
Mr. Matthews and his attorneys have consistently used and abused the legal system in an effort to stall any of the civil proceedings. Concurrently, the plaintiffs in the Gunster case have sought to do much the same with false and misleading statements aimed at confusing the courts and creating fraudulent claims.
Clearly, the Federal Courts have seen these allegations and have dismissed them. Any remaining amended complaints, if presented, will be vigorously fought in an effort to dismiss them as well.
Beyond this, Mr. Walsh said, "I believe that the Gunster Law Firm should show cause as to why it should not be sanctioned for abusing the legal system by alleging false and misleading statements meant at harming and destroying our businesses." Mr. Walsh went on to say, "We desire a positive outcome for our Limited Partners and welcome the court's decision to dismiss the allegations in the suit. It is my sincere belief that we have stayed the course to protect the innocent investors. Recent civil proceedings have confirmed our efforts to maintain and protect the property. Palm Beach City presently will forestall any fines. The potential to finally resolve the matters at hand will provide the forward momentum to finish the property and make it into an enjoyable boutique hotel in one of the most prestigious and beautiful locations in the US."
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