Current Cases
Pinnacle Development Partners
Case Name:
Securities and Exchange Commission v. Pinnacle Development Partners LLC and Gene A. O'Neal
Case Number:
Civil Action No. 06 CV 2431
Court:
United States Bankruptcy Court for Northern District of Georgia
Hays Role:
Receiver and Financial Consultants to the Receiver
The Securities & Exchange Commission filed a complaint against this real estate investment partnership that raised over $60 million. Mr. Hays serves as the Receiver and Hays firm serves as the Financial Consultants to the Receiver.
INVESTOR UPDATE ON SEPTEMBER 8, 2011
This case is now closed. All activities of the Receiver have been completed per the Order closing the Receivership. Please refer to the following documents posted under Case and Claims Documents for further detail: Order Reopening Case for Final Administration, Authorizing the Procedures set forth in the Receiver’s Final Report, and Closing the Receivership and Notice of Conclusion of Receivership.
Court Docket Activity
October 11, 2006 – Complaint
October 11, 2006 – Order Granting Preliminary Injunction, Freezing Assets, Appointing a Receiver and Ordering Other Ancillary Relief
October 24, 2006 – Certificate of No Insurance or Inadequate Insurance Coverage
October 30, 2006 – Receiver’s First Interim Report
January 22, 2007 – Order Establishing March 1, 2007 as Final Bar Date for All Claims
January 26, 2007 – Receiver’s Second Interim Report
January 26, 2007 – Appendix to Receiver’s Second Interim Report
February 28, 2007 – Receiver’s Plan for Claims Administration and Distribution of Proceeds
March 12, 2007 – Receiver’s Unopposed Motion to Approve Real Property Disposition Procedures
July 27, 2007 – Receiver’s Motion for Approval of Interim Distributions Pending Final Resolution of all Disputed Claims
Exhibit A – Receiver’s Plan for Claims Administration and Distribution of Proceeds
Exhibit B – Schedule of Investor Approved Claims
Exhibit C – Schedule of Creditor Approved Claims
August 24, 2007 – Order Approving Interim Distribution
January 30, 2008 – Receiver’s Motion for Approval of Revised Claims Schedule
January 30, 2008 – Revised Claims Schedule
February 14, 2008 – Kunkel Motion Kunkel Exhibit A – Settlement Agreement
Kunkel Exhibit B – Notice of Motion
Kunkel Exhibit C – Proposed Order
Kunkel Exhibit D – Brief in Support
February 20, 2008 – Third Interim Report
Third Interim Report Exhibit A
Third Interim Report Exhibit B
May 9, 2008 – Receiver’s Status Report
October 10, 2008 – Motion for Status Conference
June 19, 2009 – Order of Permanent Injunction
June 19, 2009 – Final Judgment as to Defendant Gene A. O’Neal
Contract, Advertisement, and Bid Procedures to sell 2139 Poplar Falls, Lithonia, Georgia
September 29, 2010 – Order Authorizing and Directing Payment of Professional Fees and Expenses
September 29, 2010 – Consent Order Administratively Closing the Case
July 26, 2011 – Order Reopening Case for Final Administration and Closing Receivership
July 26, 2011 – Order Amending Restitution Judgment for Gene O’ Neal
September 7, 2011 – Notice of Conclusion of Receivership
Investor Information
October 13, 2006 – Investor Letter and Claim Form
Exhibit A to Claim Form
October 18, 2006 – Frequent Asked Questions by Investors
November 16, 2006 – Tax Memorandum for Investors
January 19, 2007 – Tax Letter to Investors
January 21, 2008 – Pinnacle Investor Letter
January 23, 2008 – Receiver’s Important Tax Notice to Investors
February 29, 2008 – Receiver’s Important Tax Notice to Investors
April 7, 2008 – Pinnacle Investor Letter
April 29, 2008 – Disputed Claims Motion
July 7, 2008 – Pinnacle Investor Letter
October 20, 2008 – Pinnacle Investor Letter
January 7, 2009 – Pinnacle Investor Letter
April 9, 2009 – Pinnacle Investor Letter
July 9, 2009 – Pinnacle Investor Letter
October 20, 2009 – Pinnacle Investor Letter
January 25, 2010 – Pinnacle Investor Letter
April 14, 2010 – Pinnacle Investor Letter
Non-Investor Claims
Non-Investor Proof of Claim Form
Informaci en Espanol
El 30 de Octubre 2006 – Primer Informe Provisional del Receptor
El 13 de Octubre 2006 – Carta a Inversionistas
El 21 de Enero 2008 – Carta a Inversionistas
NOTE: If you are unable to view the documents, right click on the link and select the "Save Link As" menu item. You will then be able to download the document to your computer for viewing.
News Articles and Press Releases
Atlanta Company Faces Investigation Over Its Ads Promising Hefty Returns
The Wall Street Journal
September 21, 2006
Real Estate Investing Firm Sued by SEC
The Atlanta Journal-Constitution
October 12, 2006
Pinnacle Books Show Evidence That It Raised Over $60 Million
The Wall Street Journal
October 13, 2006
Pinnacle Ads Escaped Vetting by Publications
The Wall Street Journal
October 18, 2006
Should Publications Be Liable for Running Fraudulent Ads
The Wall Street Journal
October 18, 2006
Pinnacle Development Partners Founder Indicted
Atlanta Business Chronicle
March 8, 2007
Head of Purported Real Estate Investment Fund Indicted in $69 Million Ponzi Scheme: Makes First Appearance in Court
Department of Justice
March 8, 2007
Real Estate Ponzi Scheme
WSBRadio.com
March 8, 2007
Man Appears in Court, Charged in Relation to $69 Million Real Estate Investment Scam
MortgageFraud.org
March 8, 2007
Real Estate Promoter Charged in Multimillion Dollar Investment Scheme
Daily Report Online
March 9, 2007
Many Flip for Get-Rich Ad; Now Principal in Trouble
Daily Report Online
March 16, 2007
Guilty Plea Made in Pinnacle Case
The Atlanta-Journal Constitution
July 4, 2007
Pinnacle Development Partners Founder Heading to Jail
Atlanta Business Chronicle
September 18, 2007
Assets Pending Sale
Notice Resale of Rockbridge Property
Rockbridge Road Contract
Rockbridge Road Counter Offer
Sale of 2637 Ben Hill Avenue, East Point and Bid Procedures
Sale of 8-16 Clifton Street, Atlanta and Bid Procedures
January 16, 2008 – Proposed Order to Sell Real Properties
Contract Rider for Purchase Agreement on Ben Hill Properties
SALE OF 1484 & 1500 COLUMBIA DRIVE, DECATUR AND BID PROCEDURES
SALE OF 5.01 ACRES AT 5556 DAVIS DRIVE, AUSTELL, GA
Purchase and Sale Agreement
SALE OF 1051 REGIS ROAD, ATLANTA AND BID PROCEDURES
Pursuant to Federal Court Order in Civil Action No. 06CV2431, S. Gregory Hays has contracted (the Contract) to sell real property owned by an affiliate of Pinnacle Development Partners. Buyers may submit competing written offers as set forth below. CONTRACT TERMS: Price: $15,000; Deposit $1,000; AS-IS. See for details. BID PROCEDURES: Offers must meet all of the following criteria: (i) the price must be at least $16,500; (ii) the deposit must be at least $1,500 and must be submitted with the offer; and (iii) the offer must be on similar terms as those in the Contract. Send offers to: Hays Financial Consulting, 3343 Peachtree Road, Suite 200, Atlanta, GA 30326. Offers and deposits must be received by 5:00 p.m. 5/18/09.
SALE OF 2139 POPLAR FALLS, LITHONIA AND BID PROCEDURES
Pursuant to Federal Court Order in Civil Action No 06CV2431, S. Gregory Hays has contracted (the Contract) to sell real property owned by an affiliate of Pinnacle Development Partners. Buyers may submit competing written offers as set forth below. CONTRACT TERMS: Price: $230,000; Deposit $1,000; AS-IS. See for details. BID PROCEDURES: Offers must meet all of the following criteria: (i) the price must be at least $253,000; (ii) the deposit must be at least $2,300 and must be submitted with the offer; and (iii) the offer must be on similar terms as those in the Contract. Send offers to: Hays Financial Consulting, 3343 Peachtree Road, Suite 200, Atlanta, GA 30326. Offers and deposits must be received by 5:00 p.m. 6/22/09.
SALE OF 5927 ROCKBRIDGE ROAD, STONE MOUNTAIN AND BID PROCEDURES
Pursuant to Federal Court Order in Civil Action No 06CV2431, S. Gregory Hays has contracted (the Contract) to sell real property owned by an affiliate of Pinnacle Development Partners. Buyers may submit competing written offers as set forth below. CONTRACT TERMS: Price: $35,000; Deposit $3,500; AS-IS. See for details. BID PROCEDURES: Offers must meet all of the following criteria: (i) the price must be at least $38,500; (ii) the deposit must be at least $3,850 and must be submitted with the offer; and (iii) the offer must be on similar terms as those in the Contract. Send offers to: Hays Financial Consulting, 3343 Peachtree Road, Suite 200, Atlanta, GA 30326. Offers and deposits must be received by 5:00 p.m. 6/15/09.
SALE OF 1484 & 1500 COLUMBIA DRIVE, DECATUR AND BID PROCEDURES
Pursuant to Federal Court Order in Civil Action No 06CV2431, S. Gregory Hays has contracted (the Contract) to sell real property owned by an affiliate of Pinnacle Development Partners. Buyers may submit competing written offers as set forth below. CONTRACT TERMS: Price: $105,000; Deposit $5,000; AS-IS. See for details. BID PROCEDURES: Offers must meet all of the following criteria: (i) the price must be at least $115,500; (ii) the deposit must be at least $5,500 and must be submitted with the offer; and (iii) the offer must be on similar terms as those in the Contract. Send offers to: Hays Financial Consulting, 3343 Peachtree Road, Suite 200, Atlanta, GA 30326. Offers and deposits must be received by 5:00 p.m. 6/15/09.
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NOTE: If you are unable to view the documents, right click on the link and select the "Save Link As" menu item. You will then be able to download the document to your computer for viewing.