The tenth report of the Success by Health Receivership discloses that the Receivership is bankrupt.
The SBH Receivership has $1.85 million in liabilities as of July 31st, 2022.
The issue is that there is just $15,548 remaining in the bank.
The Receivership Estate remains insolvent, as stated in the Receiver’s Ninth Report.
As previously stated, the Receivership Entities owe more in professional costs than they have in cash.
Success by Health as a business was determined to be unprofitable in 2020 unless it continued to operate as a pyramid scheme.
The SBH Receiver retrieved less than half a million dollars at the time of appointment. Two years later, that money has been depleted, primarily via fees.
Two 2022 loss episodes are of particular relevance, as detailed in the Receiver’s report.
The company’s product inventory is the subject of the first loss event for the SBH Receivership.
Success by Health’s Kentucky facility “had a devastating flooding disaster” in October.
The Receiver’s first point of contact was SBH’s insurance, which swiftly refused the claim (no reason is given in the Receiver’s report).
Jay Noland and the gang were up next, who “on many occasions displayed interest in the inventory during the Receivership.”
On February 14, 2022, Defendant Scott Harris inspected the Kentucky plant, but despite several requests to Defendants, no inventory was produced.
The Kentucky plant was slated for demolition in April 2022. Unable to sell SBH’s inventory, the product was eventually dismantled alongside the building.
The second significant loss was $57,000 in retail SBH office equipment and supplies. SBH’s Nevada plant supplied this equipment.
In April, a buyer bidding $15,000 was identified after court clearance.
The Receiver informed the buyer of the court clearance, and the buyer answered that a check was on its way.
Despite repeated assurances that money would be forthcoming, none arrived. Following that, the buyer stopped communicating with the Receiver.
The landlord eventually paid $2500 for the equipment.
The Receivership is now at a halt. Leases for both the Kentucky and Nevada locations have been terminated, as have any SBH assets that could be liquidated, as well as any other disposable expenses.
The Receivership has been operating at 60% of the previously decreased pace in order to “minimize future effort.”
I’m not sure if the court will intervene at some point, but I’d guess so. Otherwise, the FTC and SBH Defendants are slated to go to trial in January 2023.