Homelandcomm

Homeland Communications Corporation

Update as of July 25, 2011

Pursuant to Judge Marra’s Orders, the Receiver for Homeland Communications has issued checks to court-approved claimants. A total of approximately $648,000 was available for distribution. The total amount of approved claims was approximately $3,403,533.00, yielding a distribution of approximately 19% to each approved Homeland investor.

Temporary Restraining Order / Order Appointing Receiver / Investors / Recent Filings

Notice by David S. Mandel, Esq. Receiver, to All Debtors and Creditors of Homeland and to anyone attempting to communicate with Homeland:

On August 3, 2010, Judge Marra issued a Final Judgment Imposing Civil Penalties against Defendants Joseph Yurkin and Frances LaBarre. The Court ordered Joseph Yurkin to pay a $130,000 civil penalty and $785,704 in disgorgement and prejudgment interest. The Court also ordered Frances LaBarre to pay a $130,000 civil penalty and $384,324 in disgorgement and prejudgment interest. (SEC v. Homeland Communications, et al. DE 182).

The Receiver is presently marshalling assets for the Receivership Estate and completing his collection efforts in order to maximize recovery of victim-investor losses. In the upcoming months, the Receiver will be filing motions with the court to approve monetary distributions to victim-investors.

We appreciate the investors’ patience and cooperation during this complex process. Please continue to check this website for updates on the status of the case and the Receiver’s efforts.

On May 24, 2010, Federal District Judge Kenneth Marra issued an “Omnibus Order and Opinion” addressing the Receiver’s Omnibus Report on Challenged Claims (order, EXHIBIT-1, EXHIBIT-2,EXHIBIT-3,EXHIBIT-4,EXHIBIT-5,EXHIBIT-6), as well as objections raised by various claimants. In the Order, the Court ruled as follows:

1)   each Homeland investor’s claim limited to the actual dollar amount invested;
2) consequential damages are excluded;
3)  claims of non-Homeland investors and trade creditors, including those who invested in Kansas City Wireless Partners, Shop T.V., and various other non-Homeland entities, are denied and they not entitled to a share in the receivership estate;
4)   pursuant to Florida law, however, the landlord of the Luna Pazza restaurant is entitled to the proceeds from the auction of the restaurant’s “furniture, fixtures, goods and chattels,” to be reduced by the litigation expenses the receivership incurred in fighting the landlord’s frivolous legal actions.

In addition to the above ruling, the Receiver continues his ongoing efforts to recover lost investor money in order to maximize potential returns to investors. To this end, on February 23, 2010, the Court held Steven Tow in contempt of Court for failing to obey court orders and cooperate in the Receiver’s efforts to recover investor losses (order). On May 20, 2010, the Court held another hearing on Steven Tow’s continuing noncompliance and ordered him to produce additional documents and information to the Receiver. The Court made clear to Tow that potential sanctions for any further non-compliance or failure to provide truthful information to the Receiver could include incarceration.

Based on the Court’s rulings and pending the outcome of the Receiver’s efforts to recover investor losses, the Receiver will file a distribution plan for court approval.

We appreciate the investors’ patience and cooperation during this complex process. Please continue to check this website for updates on the status of the case and the Receiver’s efforts.

On May 24, 2010, Federal District Judge Kenneth Marra issued an “Omnibus Order and Opinion” addressing the Receiver’s Motion for Determination of Allowed Claims, as well as objections raised by various claimants. In its Order, the Court adopted the Receiver’s recommendation that each Homeland investor’s claim be limited to the actual dollar amount invested, and that consequential damages be excluded. The Court found that non-Homeland investors, including those who invested in Kansas City Wireless Partners, Shop T.V., and various other non-Homeland entities, were not entitled to a share in the receivership estate. The Court determined that under Florida law, the landlord of the Luna Pazza restaurant was entitled to the proceeds from the auction of the restaurant’s “furniture, fixtures, goods and chattels,” to be reduced by the litigation expenses the receivership incurred in fighting the landlord’s frivolous legal actions.

In addition to the above ruling, the Receiver continues his ongoing efforts to recover lost investor money in order to maximize potential returns to investors. To this end, on February 23, 2010, the Court held Steven Tow in contempt of Court for failing to obey court orders and cooperate in the Receiver’s efforts to recover investor losses; see order here. On May 20, 2010, the Court held another hearing on Steven Tow’s continuing noncompliance and ordered him to produce additional documents and information to the Receiver. The Court made clear to Tow that potential sanctions for any further non-compliance or failure to provide truthful information to the Receiver could include incarceration.

Based on the Court’s rulings and pending the outcome of the Receiver’s efforts to recover investor losses, the Receiver will file a distribution plan for court approval.

We appreciate the investors’ patience and cooperation during this complex process. Please continue to check this website for updates on the status of the case and the Receiver’s efforts.

On October 23, 2009, Federal District Judge Kenneth Marra conducted a hearing for any claimant to raise objections to the Receiver's recommendation of denial of claim. The judge ordered additional briefing from the claimants and from the Receiver. The judge did not issue a final order as to any claim.

Also on October 23, Judge Marra held a hearing in the related matter of David S. Mandel, Receiver v. Donald LaBarre, et al., 08-80079-Civ-Marra. The hearing was on the Receiver's motion to hold Mr. LaBarre in contempt for his continuing failure to provide information to the Receiver. At the conclusion of the hearing, Judge Marra held Donald LaBarre in civil contempt and ordered him remanded to the custody of the U.S. Marshal's until Mr. LaBarre complies with the Receiver's discovery requests. The judge also issued an order freezing the accounts of Donald LaBarre, Michelle LaBarre, and Livestock Unlimited. These orders (Order Freezing... and Order Adjudicating...) can be viewed in .pdf format.

If you have any questions, you may contact the Receiver's office at 305-374-7771.

General Information

The offices of Homeland are presently closed. Information is available via this website, which will be expanded and updated as additional information becomes available.

On September 5, 2007, the Securities and Exchange Commission (SEC) filed a Complaint for injunctive and other relief against HOMELAND COMMUNICATIONS CORPORATION, FRANCES M. LABARRE, and JOSEPH YURKIN, Defendants, and OAK TREE ESCROW CORPORATION, LUNA PAZZA INC., SMR ACQUISITIONS, INC, SMRDEVELOPMENT.COM, INC., and GLOBAL SURVEY CORPORATION, Relief-Defendants.

The Complaint alleged that the Defendants violated the federal securities laws in connection with their ongoing, fraudulent, unregistered offer and sale of securities in the form of units consisting of at least one share of Homeland's common stock and one warrant. Unless immediately restrained and enjoined, Defendants will continue to defraud the investing public and place investor funds at serious risk.

The next day the Honorable Kenneth A. Marra, United States District Judge for the Southern District of Florida, entered a Temporary Restraining Order and Other Emergency Relief freezing all assets of the Defendants and Relief-Defendants, ordering the Defendants to refrain from violations of the federal securities laws and ordering other relief. The text of the Temporary Restraining Order and Other Emergency Relief and be viewed by clicking "Temporary Restraining Order" at the top of this page.

On September 6, 2007, Judge Marra also entered an Order Appointing Receiver, which may be read by clicking "Order Appointing Receiver." That Order appointing David S. Mandel, Esq. Receiver for the Defendants with full and exclusive power, duty and authority to administer and manage the business affairs, funds, assets, and any other property of Homeland and the Relief Defendants; [and] marshal and safeguard all of the assets of Homeland and the Relief Defendants.

On September 17, 2007, the Court entered a preliminary injunction against the defendants, which may be viewed by clicking "Preliminary Injunction Order." The Court also granted the Receiver's motion to extend the receivership to include a company called Titan One, LLC. That company, owned and controlled by defendant Joseph Yurkin, received approximately $365,000 in investor funds. Those funds have been frozen.

Judge Marra granted the Receiver's request to conduct an auction of the relief defendants' property, particularly the equipment and furniture in the Luna Pazza restaurant, and other office equipment. Order re: auction The auction yielded approximately $56,000, which was deposited into the receivership estate's account.

The defendants Frances LaBarre and Joseph Yurkin have signed consents to the permanent injunction brought by the SEC. These consents mean that the defendants are not going to fight the charges brought by the SEC, and that they give up their right to a trial on those charges. The issues of disgorgement of profits and civil penalties have not yet been decided. The Court entered judgments of permanent injunction as to Homeland and the individual defendants.

The Receiver continues to review financial records to search for any assets of the defendants that may be included in the receivership estate.

LITIGATION

The Receiver and his advisors are continuing their efforts to recover investor and creditor funds. To that end, the Receiver filed two lawsuits to recover funds for the receivership estate. The case of David S. Mandel, Receiver, v. Scott MacIntyre and Highland Communications LLC, case no. 07-80925-Civ-Marra, has been amicably resolved. The Court approved the Settlement Agreement. The terms of the agreement include that on December 24, 2008, the defendants will pay to the Receiver the sum of $214,600.00 without any determination having been made that Scott MacIntyre and Highland Communications LLC did anything unlawful or without any determination having been made that the receipt of these funds was a fraudulent transfer. Both Mr. MacIntyre and Highland Communications LLC have denied any wrongdoing and the parties' settlement expressly provides that it shall not act as or constitute an admission by any Party that any Party, or any of their respective past or present officers, directors, shareholders, agents, employees, independent contractors, agents, accountants or attorneys, committed any wrongful act, or violated or breached the terms of any agreement or duty owed, whether statutory or otherwise. The agreement can be viewed here.

In the second case, David S. Mandel, Receiver v. Donald LaBarre, LaBarre Marketing, Inc., Michelle LaBarre, Steven Tow, and Venture Capital Funding, case no. 08-80079-Civ-Marra, the complaint alleges that each of the defendants received fraudulent transfers of funds and seeks the return of those funds. Final default judgments have been entered against defendants Donald LaBarre, LaBarre Marketing, and Michelle LaBarre. The Receiver has moved for default against Steven Tow and Venture Capital Funding; the motion is pending.

The Receiver also settled potential claims with American Express relating to allegations of fraudulent transfers of investor funds. That agreement was approved by the Court. Among the terms of the agreement, American Express agreed to pay $150,000 to the receivership estate, and those funds have been received.

If you are an investor inquiring about your investment in Homeland Communications, please click on "Investors" for further information. You can find the Receiver's status reports by clicking on "Receiver's First Interim Status Report"; "Receiver's Second Interim Status Report"; "Receiver's Third Interim Status Report" and "Receiver's Omnibus Report."

Attention Investors: Please e-mail your contact information to Homeland.Receiver@mandel-law.com