Following the withdrawal and denial of the last outstanding claims, the MOBE Receiver is working towards
concluding the receivership estate so that he can move to be discharged.
Part of that process will see $15.2 million transferred to the FTC for eventual victim distribution.
The last remaining Receivership issue is “open issues with the Internal Revenue Service” (headache warning ahead).
When the Receiver filed his 2019 federal tax returns he also filed an IRS Form 4810, requesting prompt assessment of his returns by the IRS.
On March 25, 2021, the IRS responded with a form letter advising that it was rejecting the Receiver’s request for a prompt assessment because, it claimed, the Receiver did not include proof that he was authorized to act on behalf of the QSF.
This is an error on the part of the IRS because the Receiver included a copy of the Court’s order appointing him as receiver herein, which should be sufficient.
Never the less, the Receiver is in the process of attempting to satisfy the IRS that he is authorized to act as receiver for MOBE, so that he can obtain a prompt assessment concerning the tax returns filed.
The Receiver states he is “uncertain” how long those issues will take to resolve.
In light of that uncertainty, on May 21st the Receiver requested permission to
make an interim distribution so that the Plaintiff may begin consumer redress as soon as possible.
If granted, the Receiver’s request will leave $500,000
in the receivership bank accounts, which should be more than sufficient to cover the remaining anticipated expenses.
With respect to when MOBE victims will be able to file claims, the Receiver writes;
consumer claims will be addressed by the Federal Trade Commission at a later date.
There is currently no timeline for this process.
As of June 14th, a decision on the MOBE Receiver’s filed May 21st motion remains pending.