Success by Health Receivership insolvent, funds running out
The Success by Health Receiver’s Tenth report reveals the Receivership is insolvent
As of July 31st, 2022, the SBH Receivership has $1.85 million in liabilities.
The problem is there’s only $15,548 left in the bank.
As noted in the Receiver’s Ninth Report, the Receivership Estate remains insolvent.
As noted previously, the Receivership Entities owe more in professional fees than there is cash in the bank account.
It was established in 2020 that, unless it continued to operate as a pyramid scheme, Success by Health as a business wasn’t profitable.
At time of appointment, the SBH Receiver recovered less than half a million. Two years later, that money has been exhausted, mostly on fees.
Of interest are two 2022 loss events, details in the Receiver’s report.
The first loss event for the SBH Receivership pertains to the company’s product inventory.
Last October Success by Health’s Kentucky facility “experienced a catastrophic flooding event”.
First port of call was SBH’s insurance, who promptly denied the Receiver’s claim (no reason is provided in the Receiver’s report).
Next up was Jay Noland and the gang, who “on multiple occasions expressed interest in the inventory throughout the Receivership.”
Defendant Scott Harris toured the Kentucky facility on February 14, 2022, however despite multiple requests to Defendants on the inventory question nothing was provided.
The Kentucky facility was scheduled to be demolished on April 2022. Unable to get rid of SBH’s inventory, the product was ultimately demolished along with the building.
The second major loss event was $57,000 in retail valued SBH office equipment and supplies. This equipment was from SBH’s Nevada facility.
Following court approval, a buyer offering $15,000 was found in April.
The Receiver notified the buyer of the court approval, who responded that a check was in the mail.
Despite repeated assurances that payment was on the way, none materialized. The buyer subsequently discontinued communications with the
The equipment was ultimately sold to the landlord for $2500.
Presently the Receivership has come to a standstill. Leases for both the Kentucky and Nevada premises have been terminated, what SBH assets were able to be liquidated have been, along with any other disposable expenses.
The Receivership has been working at 60% of the already reduced rate, with the aim of “minimizing further work”.
Not really sure if the court will step in at some point but I’d assume so. The FTC and SBH Defendants are otherwise scheduled to face off at trial in January 2023.