Marshals execute against Righthaven bank account

[Newsjock]

Source: Vegas Inc (Las Vegas Sun)

The U.S. Marshals Service has made some progress in seizing the assets of copyright company Righthaven LLC, disclosing Thursday it has served a writ of execution on a Las Vegas bank branch.

A court filing said a writ of execution of a judgment against Righthaven was served Tuesday at a Bank of Nevada branch and that the writ says "seize all assets in the Righthaven LLC operating account and any other bank accounts belonging to Righthaven LLC." The bank branch's operations manager was served with the writ.

Shawn Mangano, an outside attorney for Righthaven, said the account contained less than $1,000 and that, despite the seizure order, Righthaven was continuing to operate Thursday.

The Marshals Service was told Nov. 1 to seize Righthaven assets to cover $63,720 in legal fees for Wayne Hoehn, a Kentucky man who defeated Righthaven in court when a judge dismissed a Righthaven copyright infringement lawsuit against Hoehn.

Read more: http://www.vegasinc.com/news/2011/nov/10/marshals-execute-against-righthaven-bank-account/

[ProgressiveProfessor]

1. Requiring judgment debtor’s examination for the CEO and CAO (his wife) is unusual

and it infers they are personally responsible for the corporation's debts.

[quakerboy]

3. Thats what I thought

That seems appropriate, give how many questionable tactics were involved in their whole operating principle and execution. Extort cash, lie in court, profit seems to be the basic principle.

[ProgressiveProfessor]

6. That does not make them personally responsible for corporate debts

Going to be very interesting to see how this plays out.

[aquart]

8. An attack on corporate personhood?

[ProgressiveProfessor]

10. Not really

[quakerboy]

18. If the company was set up

to purposefully commit fraud or illegal activities, does that leave the judges any legal space to pierce through the protections of incorporation, to the parent companies?

[TroglodyteScholar]

9. It implies they are personally responsible.

You infer that they are personally responsible.

;)

[No Elephants]

13. Not unusual when assets have been transferred to defraud one or more creditors.

"Since Righthaven was ordered to pay Hoehn’s legal fees, it has said it is unable to allocate funds for the Hoehn judgment — leading to charges by Hoehn’s attorneys that Righthaven has been fraudulently transferring assets in hopes of avoiding paying Hoehn."

[ProgressiveProfessor]

16. Indeed, but at this point they are just words from an opposing civil attorney

Somehow I doubt there is much to find. Its very easy to shield things up front.

[cosmicone]

17. Corporate veil can be pierced if the corporation was not run

at arms length with a proper board of directors and regular meetings.

[krispos42]

2. Yessssss!

[freshwest]

4. I knew they'd move the money before seizure. Nothing to see here. They got away with it.

[ProgressiveProfessor]

5. There wasn't much there previously...

The records will show where it went. My guess would be salaries,rent, and current legal bills.

[freshwest]

7. Yet they are still operating... Wonder how that works... Chapter 13 bankruptcy? Making payments?

Still, they have been smacked down and won't do the same fraud again. At least not under their current name. Corporations often move or change their name and continue to steal and defraud.

[ladywnch]

11. if they are still operating wouldn't any future revenues be subject to seizure

until the judgment is satisfied?

Also, with an outfit this small, wouldn't be pretty easy to 'pierce the corporate veil' and go after their personal assets?

[ProgressiveProfessor]

15. That is clearly being tried by trying to get the court to order judgment debtor’s examinations

[No Elephants]

14. Not yet. Not according to this story.

[No Elephants]

12. Sahhhhhh

weeeeeet!