The truth can be found in the accounting records. The accounting records can't be read without the accounting software. When Obsidian Finance took Summit 1031's server, they did not give them back a copy. They gave them the data.
How many of you can read your accounting data without the software? No biggy, right...Just buy the software. That would be easy if the software they used was QuickBooks, something affordable. That is not the case with the accounting software that was used by Summit 1031. They used Mas 90. To purchase this software is approximately $25K. Summit Principals certainly have no means to purchase this software, which make it extremely difficult to prove loan payoffs, loans made to outside parties, how much is owed and by whom. Notice - I said extremely difficult, but not impossible.
So that you don't end up in this same situation, when your company is going through bankruptcy, be sure to make a mirror copy of your server. You give up your rights the day you sign the petition for a Chapter 11 Bankruptcy!!! Don't be fooled by the attorneys when they say, "After you file for Chapter 11 Bankruptcy all will be Transparent." This is a line they use to get themselves a rather high priced, low value job in this economy.
Susan Ford of Sussman Shank writes 12/19/08 Press Release that says, "SAI deeply regrets the distress and detriment that Summit Customers are currently experiencing. The foregoing actions have been voluntarily taken by the existing management to assure Summit Customers that SAI is committed to complete transparency regarding these issues, to ensure that all of its actions will be exclusively for the benefit of Summit Customers and creditors, and to eliminate any uncertainty that SAI’s assets will be preserved."
LINK: 12/19/08 PRESS RELEASE - Author: Susan Ford, Sussman Shank, (SAI's Bankruptcy Attorney).
If anyone is responsible for any sort of transparency in this Summit Bankruptcy case, that person is me - Stephanie DeYoung, Investigative Blogger & Industry Whistleblower
