The tenth report from Success by Health Receiver discloses that the Receivership is bankrupt.
The SBH Receivership had liabilities of $1.85 million as of July 31st, 2022.
The issue is that there is just $15,548 still in the account.
The Receivership Estate continues to be bankrupt, as stated in the Receiver’s Ninth Report.
The Receivership Entities owe more in professional costs than there is money in the bank account, as was previously mentioned.
It was determined in 2020 that Success by Health as a business couldn’t be viable unless it continued to function as a pyramid scheme.
Less than $500k had been collected by the SBH Receiver at the time of appointment. After two years, all of that money has been spent, primarily on fees.
Two 2022 loss instances are noteworthy, according to the Receiver’s report.
The company’s product inventory is the subject of the first loss event for the SBH Receivership.
The Kentucky site of Success by Health “had a catastrophic flooding disaster” in October.
SBH’s insurance was the first port of call, and they swiftly rejected the Receiver’s claim (no justification is given in the Receiver’s report).
Then came Jay Noland and the gang, who “on several occasions throughout the Receivership exhibited an interest in the Inventory.”
On February 14, 2022, Defendant Scott Harris visited the Kentucky plant; nevertheless, despite many queries to Defendants on the inventory issue, nothing was supplied.
On April 20, 2022, the Kentucky building was supposed to be destroyed. SBH was unable to dispose of its stock, and both the goods and the structure were eventually destroyed.
The second significant loss occurrence involved $57,000 of SBH office supplies and equipment with a retail value. The SBH facility in Nevada supplied this machinery.
After the court granted permission, a buyer offering $15,000 was located in April.
The buyer answered that a check was on its way when the Receiver informed him of the court’s permission.
Despite several promises that money would soon arrive, none did. Later, the buyer stopped communicating with the receiver.
The landlord eventually purchased the equipment for $2500.
The Receivership is now at a halt. The leases for the properties in Kentucky and Nevada have been canceled, along with any additional reimbursable charges and the liquidation of any SBH assets.
With the intention of “minimizing future effort,” the Receivership has been operating at 60% of the previously decreased rate.
I presume that the court will eventually become involved, though I’m not sure. Otherwise, a trial with the FTC and SBH Defendants is set for January 2023.