DFRF & Filho deny Ponzi allegations, criminal case delayed

Following an SEC filing in July alleging DFRF Enterprises to be a $20+ million dollar Ponzi scheme, the company has filed a response.

Founder and CEO Daniel Filho, who is also named in the SEC complaint, has asked for an extension to file his own reply.

DFRF Enterprises’ response to the SEC complaint is brief, with the company formally denying all ninety-four paragraphs in the complaint.

Signed off on by Filho (right), DFRF Enterprises’ response was filed on the 29th of October.

Citing problems obtaining legal representation due to his incarceration, Filho himself has asked for a 60 day time extension to file his own reply.

If the request for an extension is denied, DFRF Enterprises’ reply is offered as an alternative.

With Filho in jail and not going anywhere anytime soon, I don’t see why the request wouldn’t be granted.

I have to wonder why he’s asking for the extension though. If DFRF Enterprises’ response is anything to go by, it looks like a settlement is off the table for now.

Surely Filho’s response is going to read much the same as DFRF Enterprises, in that every paragraph is denied?

Filho himself signed DFRF Enterprises’ response, why would his own be any different?

In related news, the criminal proceedings against Filho look set to be delayed until late January 2015.

As per a Joint Initial Status Report filed on the 3rd of November;

Given the posture of discovery, the parties jointly propose a continuance of the November 10, 2015, status conference, until a date in January 2016 that the Court selects.

As with Filho’s request for an extension, I’m expecting the above request will also be granted.

Footnote: Our thanks to Don@ASDUpdates for providing a copy of DFRF Enterprises and Daniel Filho’s October 29th response and 3rd of November Joint Initial Status Report.

Update 11th November 2015 – A hearing on November 10th appears to have taken place, despite the request for a continuance.

As per the clerk’s notes for the hearing:

The Court reviewed the status of the case with the parties.

The parties reported that they are proceeding with discovery and requested one further date. The parties will file an assented to motion to exclude the time.

Parties will file a Status Report due by 12/31/2015. The Interim Status Conference is set for 1/7/2016.

We’ll have a clearer picture of where things stand following the 7th of January hearing.