Prenda Law 2012 Financial Statements

From PrendaWiki
Jump to: navigation, search

On October 17, 2013, Brett Gibbs filed a motion for a hearing to reconsider sanctions against him in the Ingenuity13 LLC v. John Doe case. He filed multiple exhibits with the motion, including Prenda Laws' 2012 Financial Statements.

The following is a breakdown of noticable issues:

EXHIBIT E - Profit and Loss - (RECAP backup)

  • Kerry Steele was paid $2,500.00 on June 8, 2012 - $551.57 was in re-imbursable expenses in regards to "Sunlust Pictures", and the rest was classed as "Staff expenses"
  • Breakdown of account: Payments to Old Owners:
Lawyer Amount
Paul A. Duffy 27,069.56
Duffy Law Group 10,000.00
John Steele 200,415.94
Paul Hansmeier 185,321.28
Under the Bridge Consulting 921,000.00
Total paid 1,343,806.78
  • According to Gibbs' affidavit, "Under the Bridge Consulting" is owned 50%/50% by John Steele and Paul Hansmeier.
    • "Under the Bridge Consulting" was registered in Delware on February 10, 2012, and began receiving payments from Prenda Law March 2nd 2012. As of the date of filing of the pdf files by Gibbs on October 17, 2013, Under the Bridge Consulting was previously dissolved.
    • "Under the Bridge Consulting" is a clever poke at how the owners have been called Copyright Trolls.
  • Prenda paid Brett Gibbs' PACER fees on July 8th 2012
  • Prenda was paying a PACER account denoted "SH6174", which could be the Steele Hansmeier PACER account
  • Despite Mark Lutz being the 'owner' of AF Holdings, he was an employee of Prenda Law in 2012 and on Payroll
  • Packing Tape was paid for in Nevada by Prenda, which is odd as Prenda didn't have offices there
  • Prenda was paying Utilities bills to the City of Miami Beach, FPL Utilities (Florida), ConService & NVEnergy (Nevada)
    • Prenda was paying for 2 separate Cox Communications accounts, as well as paying for Atlantic Broadband Cable
    • Prenda was paying the Utilities & internet bills for LiveWire in November & December
      • Including 2 ConServe Accounts - could possibly have been paying Jayme Steele's utilities
  • Commissions for settlements:
Lawyer Settlement Amount Percentage Commission
Tim Anderson 4,695.00
Jonathan Wells Tappan 7,500.00 15% 1,125.00
Steven Goodhue 3,000.00
Sam Trenchi 630.00
Daniel Ruggiero 14,900 15% 2,235.00
Jacques Nazaire 11,500.00 15% 1,725.00
Curtis Hussey 500.00
Brett Gibbs 83,600.00 4% 3,344.00
  • Brett Gibbs most likely received a lesser Commission % due to being on payroll - $7,000.00/month, plus $4,000.00/month for his assistant Karl in December 2012
  • Prenda paid $15,000.00 in attorney fees to Kynes, Markman & Felman, for the Sunlust Pictures vs Nguygen case
  • Process Server fees for Paul Hansmeier's Alpha Law Firm case Mooney vs Priceline were charged to Prenda

EXHIBIT F - Total Assets - (RECAP backup)

  • Only the operating cash accounts were pdf'd - any Trust accounts (if there are any as it seems there may be)
  • Income for Prenda Law was roughly $1.9 million
  • There were at least 5 related bank accounts:
    • CHASE Operating xx6927 (included)
    • Operating xx7365 (included)
    • xx7293 (NOT included)
    • xx6943 (NOT included - *IS* trust account)
    • xx6240 - No clue on this account, $37,640.00 transferred to account, and treated as expense
  • Mark Lutz was employed by Prenda until at least February 2012
  • From January to December 2012, Paul Duffy was paid a total of $47,661.56, which included reimbursed expenses of $6,192.00
  • A Rent payment shows that they were paying Rent to Intercen Partners LLC, for a suite in the Oracle Centre in Minneapolis
  • Credit card fees totaled $133,306 on Exhibit F. Assuming a 2.5% average fee, that means that Prenda received, in the listed accounts, $5,332,248 from credit card payments, presumably all of which was from Trolling victims. If the average fee were lower, then the figure would be even greater.