ENGAGEMENT: GJB Receivership Estate
ENGAGEMENT: GJB Receivership Estate Case Summary
The following is a brief summary of the case. This page is not regularly updated. For current updates, please click here.
ENGAGEMENT: GJB Receivership Estate
On February 25, 2009, LBS FUND LP, A California Limited Partnership filed a lawsuit in Los Angeles Superior Court against GJB Enterprises, Inc. and Gerald Berke. GJB has solicited funds from investors in connection with its business, which purports to include the purchase and finance of commercial paper, otherwise known as factoring of accounts receivables. Investments were evidenced by a document known as a “Security Agreement” and a per annum rate of interest required monthly interest payments to investors. Most, if not all such interest payments ceased in January 2009.
On March 23, 2009, Stephen J. Donell was appointed as Receiver for GJB Enterprises, Inc. GJB Enterprises and Gerald Berke stipulated (agreed) to the appointment of Receiver. The Receiver has taken possession of the offices of GJB Enterprises, Inc. and as of March 28, 2009, relatively few documents and records have been located. No comprehensive accounting and/or investor records have been located, although Paul Beck, Esq. the attorney for GJB has told the Receiver that he would assist in obtaining such records.
As of March 28, 2009, there is no evidence of any on-going lending and/or factoring business, nor is there any evidence that any investments made by investors via the “Security Agreement” are insured. As of March 28, 2009, the Receiver does not know how much cash remains, but he is informed that the amount is less than one million dollars.
Next steps include obtaining investor, financial, creditor, banking and tax records and to initiate a forensic analysis of GJB Enterprises, Inc. It is not known how long this process will take nor whether additional funds will be recovered. General updates to this case will appear in the Recent Updates and FAQ section of this website.
Please be aware that this page is not updated regularly. Please visit the Recent Updates page for more information regarding the status of this case.
The Superior Court Judge hearing this case has asked that any letters from investors be sent to the Receiver, rather than to the Court. The Receiver can then circulate any such letters to counsel of record, and inform the Judge in his reports to the Court. But letters to the Judge from an interested party such as investors are viewed as “ex parte” communications, so that Judge asked that investors be informed that such letters should be sent to the Receiver instead.