Default judgment against EmpiresX scammers in civil case
Default judgment has been granted against EmpiresX founders Emerson Pires and Flavio Goncalves.
Respective orders against the two scammers, both of whom have fled to Brazil, were filed on December 7th.
It is presently unclear on what default judgment against Pires and Goncalves means in the EmpiresX civil class-action.
BehindMLM learned of the class-action back in August. Unique to the case is the appointment of a Receiver, who has been put in charge of the EmpiresX assets Pires and Goncalves left behind.
In October both cases were stayed pending the outcome of service via the Hague Convention. The process is expected to take around six months.
As per a November 30th Fifth Status Report from the class-action Receiver, both the SEC and CFTC are still
consider(ing) how (they) will proceed against Empires Consulting given the appointment of the Receiver.
And all of this is on top of criminal charges brought by the DOJ.
In related news, Excell Auto Finance was denied a Motion to Intervene on December 7th.
Excell Auto Finance’s motion stems from a dispute over a seized Ferrari.
This is from the Receiver’s Fifth Status Report;
On or October 17, 2022, the Receiver identified a Ferrari … that is titled in the name of 2U Business Consulting & Technology Corp. (“2U Business”).
2U Business is an entity owned by Defendant Flavio Mendes Goncalves.
As an entity owned by the Defendant, 2U Business’s assets are the subject of the asset freeze imposed by the Receivership Order.
Since the identification of the Ferrari, the Receiver has seized the vehicle (which required incurring a service cost to get the vehicle in working condition), and has placed the vehicle in storage.
The vehicle is believed to be valued in excess of $215,000. The Receiver is soliciting bids for the sale of vehicle for its liquidation.
On October 25, 2022, the Receiver learned that Columbus Day Finance contends that it has a lien on the aforementioned Ferrari in the approximate amount of $127,000.
Excell Auto Finance and Columbus Day Finance are the same entity.
Excell Auto Finance, LLC n/k/a as Columbus Day Finance has filed a Motion for Leave to Intervene seeking to asset a claim to the Ferrari.
That motion is the one that was denied on December 7th.
Pending updates from the EmpiresX Receiver, SEC and/or CFTC, we’ll keep you posted.
Update 20th December 2022 – As per a December 8th order, a trial in the EmpiresX Florida case has been scheduled for October 18th, 2023.
I’m noting it here instead of a new article as, given parallel criminal and civil regulatory EmpiresX proceedings, I don’t think this one is going to reach trial.
Update 26th March 2023 – In a February 27th Status Report, the SEC provided an update on their involvement in the Florida non-regulatory civil case;
Regarding Defendant Empires Consulting Corp., the SEC continues to assist its state court Receiver in locating assets obtained with the defrauded investors’ investment proceeds.
Still expecting them to intervene in the case at some point.