Saturday, February 6, 2010

February 5, 2010 SEC Investigates Impact Networth LLC

The  Salt Lake City SEC is actively investigating James Catledge and Impact.

The Catledge and Impact litigation and unsupported defamatory email and media campaign has cost all of us greatly and was done in an effort to keep this investigation from them. The SEC has subpoenaed the documentation taken from the Dominican Republic for review. The remaining support of Impact's violations with their insurance, mortgage, annuity and other product violations will be found with review of Catledge's documentation that was in the control of Tom O'Hagan and Brent Goodrich as well as his Cook Islands and Nevada bank accounts.

Important Information below: Taken from recent court filings prove that the Elliott Companies were lied to by Catledge and Impact. Action was taken by the Elliott Companies, however Catledge's "cult like" ability to influence people's thinking led to a puppeted lawsuit and formation of the "ECC" by he and Richard Smith to destroy all assets and try to cover their malfeasance.

The Sun Village property was only one of Catledge and Impact's products. They were and may still be heavily involved in mortgages, annuities and insurance as well as their other real estate ventures including their projects with Catledge's partner Brent Borland and Canyon Acquisitions from Phoenix Arizona.
Almost 2 years out of Catledge's web, The Elliott Companies can clearly see that Catledge had these motives from day one.
Important Court Filings Proving Catledge's Malfeasance. Taken from Affirmative Defense and Counterclaim Filed Before The Southern District of Florida Court, February 1, 2010.

103. Importantly, as a requirement for Catledge and the Impact Entities and agents to sell such resort-related vacation ownership products, Catledge and the Impact Entities were required to hold valid state and federal regulatory licenses.

104. Catledge and the Impact agents made affirmative representations to the Elliott Companies and their attorneys that Catledge and the Impact agents did, in fact, have valid state and federal regulatory licenses.

105. However, in January 2006, the Elliott Companies discovered that Catledge and the Impact Entities and agents did not have valid state and federal securities licenses, nor did they have state time share licenses. The Elliott Companies further discovered that Catledge and the Impact Entities and agents had provided false documentation to the Elliott Companies (upon which the Elliott Companies reasonably relied) suggesting that Catledge and the Impact agents did have valid regulatory licenses.

106. Specifically, the Corporate Defendants discovered that (1) Catledge's registration with an NASD member brokerage firm was terminated as of July 13, 2005, (2) Impact was not an NASD member brokerage firm, (3) neither Catledge nor any other member of Impact held a current valid regulatory license.

107. Upon discovery of Catledge and the Impact agents' failure to hold proper regulatory licenses, the Corporate Defendants demanded that Catledge and the Impact agents immediately obtain proper valid regulatory licenses. However, after several promises made by Catledge, and hundreds of thousands of dollars spent by the Corporate Defendants to prepare compliant documentation (which Catledge and the Impact Entities failed to use) Catledge and the Impact agents were ultimately unable or unwilling to get proper licensing.

108. Accordingly, on October 17, 2008, the Elliott Companies (called the Elliott Group) issued a demand letter (the "Demand Letter") upon Catledge and the Impact Entities pursuant to which the malfeasance discovered by the Elliott Companies was detailed.

109. Specifically, the Elliott Companies advised Catledge as follows:

As you know, Impact/Net Worth have "sold" considerable amount of Elliott product over the last four or so years. In doing so, Impact/Net Worth and James Catledge personally have received payment of tens of millions of dollars in commissions.

It has become painfully obvious that these "sales" by Impact/Net Worth have been grossly deficient, for the following reasons (without limitation):

1. Impact/Net Worth have failed to utilize compliant documentation provided by Elliott Group and developed by Elliott Group at the cost of hundreds of thousands of dollars.

2. Despite signed agreements to do so, Impact/Net Worth have completely failed to obtain requisite broker and agent registrations required in connection with such sales.

3. Impact/Net Worth have grossly misrepresented Elliott products to purchasers.

4. Impact/Net Worth have engaged in reprehensible sales practices, designed to maximize sales and commissions payable to Impact/Net Worth, without regard to client needs. In this regard, a number of clients have been encouraged by Impact/Net Worth to apply or lever virtually their entire asset base for the purpose of purchasing such product.

5. Impact/Net Worth misrepresented and manipulated Elliott [Group] into promoting offerings with an almost exclusive goal of maximizing commissions to Impact/Net Worth.

6. Impact/Net Worth have libeled and slandered the Elliott Group throughout and have actively impeded Elliott Group's efforts to raise funds.

7. Impact/Net Worth have acted in bad faith disregard of their contractual and fiduciary obligations to the Elliott Group.

8. Impact/Net Worth's overall conduct in this regard has been fraudulent.

As a result of the aforementioned malfeasance by Impact/Net Worth, the Elliott Group faces massive costs in cleaning up the resulting mess. Examples of this include dealings with the State of Idaho Department of Finance, which have cost the Elliott Group $1.2 million to date, the Spalding Litigation in California, with exposure to the Elliott Group of $5-10 million, and threatened rescissions by scores of purchasers.

Elliott Group considers that James Catledge, as the directing mind of Impact/Net Worth and the principal beneficiary of the malfeasance and frauds of Impact/Net Worth, is personally liable for all liabilities and obligations of Impact/Net Worth.

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