Please note that on March 10, 2016, the Eleventh Interim Report of the Receiver was filed with the Court for the period ending February 1, 2016 and may be viewed at the link below or under the link above titled Reports/Updates/Correspondence.
• Second Interim Distribution: On March 10, 2016, the Receiver filed with the Court a motion seeking authority to make a second interim distribution in the aggregate amount of $4.0 million to creditors, and for related relief. The deadline for responses to the motion is April 4, 2016. The motion may be viewed at the link below or under the links above titled Docket or Key Documents.
• Gregory N. McKnight Sentenced to More Than Fifteen Years in Prison: On August 6, 2013, Gregory McKnight was sentenced to 188 months in federal prison by United States District Judge Mark Goldsmith. This was the maximum sentence under the guideline range in Mr. McKnight’s plea agreement to the offense of wire fraud. Mr. McKnight was taken into custody immediately. After serving his term in federal prison, he will be under supervised release for three years and required to make monthly installment payments for restitution. Judge Goldsmith ordered Mr. McKnight to make restitution in the amount of $48,969,560.00 less any amounts recovered by the Receiver. Judge Goldsmith stated that he gave Mr. McKnight the maximum sentence due to the magnitude of the total loss and the numerous victims.
• Matthew Gagnon Sentenced to Five Years in Prison: On July 9, 2013, the Honorable Mark A. Goldsmith of the United States District Court for the Eastern District of Michigan sentenced Matthew J. Gagnon, founder of Mazu, to five years of incarceration followed by three years of supervised release for his role in promoting the Legisi Ponzi scheme. For more information, follow the link below.
• Notice to Investors Who Have Not Received a First Interim Distribution. On December 17, 2012, the Court entered an order requiring investors who have not received a first interim distribution check because they have failed to submit updated contact information to the Receiver to do so within 90 days of entry of the order or waive their participation in the first interim distribution. If you have not received a first interim distribution check and believe this may be due to the fact that your contact information has changed since the commencement of this case, please contact the Receiver through the contact email firstname.lastname@example.org and provide your current contact information. You may also update your address by faxing it to Jason Canvasser at 313-309-6857. You may contact Jason with questions at 313 965 8257. The Order may be viewed by clicking the link below.
Click here to view order
• Interim Distribution Approved: On May 17, 2012, the Receiver filed with the Court a motion seeking authority to make an interim distribution in the aggregate amount of $1.5 million to creditors, and for related relief. On June 7, 2012, the Court entered an order granting the distribution motion. Copies of the distribution motion and order may be found at this website's link entitled Civil Court Documents. On June 26, 2012, XRoads Case Management Services, as disbursing agent, effectuated the interim distribution.
• Notice Regarding Claim Forms and Claim Bar Date: The Court-approved Claim Bar Date was December 15, 2009. A Claim Form and instructions are available below.
• Notice to All Investors: On May 5, 2008, the Securities and Exchange Commission (the “SEC”) filed a Complaint in the U.S. District Court for the Eastern District of Michigan against Gregory N. McKnight and Legisi Holdings, LLC, alleging violations of various federal securities laws. This case is pending before the Hon. George C. Steeh, civil case no. 08-11887. Concurrently, the SEC also filed a Motion for Preliminary Injunction and an Ex Parte Motion for the Appointment of a Receiver. The Court appointed Robert D. Gordon of Clark Hill PLC as Receiver for the estate of Gregory McKnight and the estates of every corporation, partnership, trust and/or other entity which is directly or indirectly owned by or under the direct or indirect control of McKnight (the “Receivership Estates”).
Robert D. Gordon, Receiver
Clark Hill PLC
151 South Old Woodard Avenue Suite 200
Birmingham, Michigan 48009
This site is intended to provide information to individuals who invested with or in the named defendants regarding the administration of the Receivership Estates.
Submit your address, telephone and email address change and other enquiries by emailing email@example.com.
Please provide your current contact information when emailing the Estate.
Litigation Release No. 20563 / May 8, 2008
SEC v. Gregory N. McKnight, et al, Case No. 08-11887 (E.D. Michigan, filed May 5, 2008)
The Securities and Exchange Commission announced that on May 5, 2008, the Honorable Judge Paul V. Gadola of the United Stated District Court for the Eastern District of Michigan issued an Asset Freeze Order against Gregory N. McKnight (McKnight) and Legisi Holdings, LLC (Legisi Holdings) as defendants, and against Legisi Marketing, Inc. (Legisi Marketing), Lido Consulting, LLC (Lido Consulting), Healthy Body Nutraceuticals (HBN), and Lindenwood Enterprises, LLC (Lindenwood) as relief defendants. The Asset Freeze Order froze all assets of McKnight, Legisi Holdings, Legisi Marketing, Lido Consulting, HBN, and Lindenwood. In addition, Judge Gadola issued an Order Appointing a Receiver over all assets of McKnight, Legisi Holdings, Legisi Marketing, Lido Consulting, HBN, and Lindenwood.
The SEC's complaint, filed May 5, 2008, alleged that McKnight and Legisi Holdings conducted a fraudulent, unregistered offering of securities in which, between December 2005 and at least November 2007, they raised approximately $72 million from more than 3,000 investors in all 50 states and several foreign countries through the Legisi website at www.legisi.com. According to the SEC's complaint, McKnight represented that he would invest the offering proceeds in foreign currencies, commodity futures, stocks and real estate and promised to pay interest of as much as 15 percent per month from the profits from his investments. The SEC's complaint further alleges that throughout the period of the offering, McKnight represented to investors that his investments were profitable and were generating the promised returns. The complaint charges that, contrary to these representations, McKnight invested only approximately $33 million of the offering proceeds and that, rather than earning profits, these investments resulted in millions of dollars in losses. The SEC's complaint further charges that Defendants used approximately $27.5 million of the offering proceeds to make payments of purported profits to prior investors and were, thus, operating a Ponzi scheme, and that McKnight used $2.2 million of investor funds to pay for his personal expenses and to make payments to his relatives, Jennifer McKnight, Danielle Burton, and Theresa Burton. The SEC's complaint charges that Defendants violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b- 5 thereunder.
In addition to the emergency relief already obtained, the Complaint seeks preliminary and permanent injunctions against McKnight and Legisi Holdings. The Complaint also seeks disgorgement of ill-gotten gains from the defendants and relief defendants and the imposition of civil penalties against McKnight and Legisi Holdings. A Hearing on whether a preliminary injunction should be issued against the Defendants is scheduled for May 19, 2008 at 2:00 p.m.
SEC Complaint in this matter