Exhibit “1”

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 1 of

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VIA EMAIL (rstumphauzer@sknlaw.com) 

October 31, 2022 

Mr. Ryan Stumphauzer 

Receiver 

c/o Stumphauzer Kolaya Nadler & Sloman, PLLC 

2 South Biscayne Boulevard 

Suite 1600 

Miami, Florida 33131 

Dear Ryan: 

In accordance with the Amended Order Appointing Receiver (D.E. #141) (“Amended 

Order”), following is our quarterly report relating to the operations and analyses undertaken by 

Development Specialists Inc. (“DSI”) for the period of July 1, 2022 through September 30, 2022 

(“Reporting Period”). Except as may be noted, all activity and financial data is for the Reporting 

Period. 

A. A summary of operations of the Receiver 

Currently, the Receivership is comprised of 55 legal entities as well as numerous assets 

owned by these legal entities or purchased by the defendants in their own name for personal 

use. During the Reporting Period, no new assets or entities were added to the Receivership. 

However, certain real estate assets were sold during the Reporting Period and detailed later in 

this report. 

In addition to working with you and your counsel, during the Reporting Period, my staff 

and I continued to work with the corporate staff with various operations matters as they 

arose. 

General Operations 

 Staffing 

We continue to discuss general operations matters with both the accounting and 

collections staffs as needed. 

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Mr. Ryan K. Stumphauzer 

October 31, 2022 

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 Tax Matters 

During the Reporting Period, we worked on tax matters with you and the tax 

preparers. This includes working on the determination of amending prior years’ tax 

returns and preparing schedules relating to the amended returns. In addition, we provided 

the tax preparer with information to complete the 2021 tax return for the qualified 

settlement fund. These taxes are under extension until February 15, 2023 pursuant to 

Treas. Reg §301.7508A-1(d)(1) and IRS notice FL-2022-19 dated September 29, 2022. 

Portfolio Collections 

Analysis of merchant cash advance (“MCA”) accounts 

As previously reported, at the outset of the Receivership, we were provided a listing 

of the MCA accounts for CBSG (“CBSG Portfolio”). This listing included thousands of 

accounts with a gross balance of over $400MM, without reduction for collectability or 

bad debt. These accounts were marked as performing, non-performing, under-performing 

or default. The following table reflects the portfolio status at July 28, 2020, included in 

our prior reports, and September 30, 2022 based on these categorization of the balances 

from reports prepared by operations staff. 

$MM’s CBSG Portfolio as of: 

7/28/2020 09/30/2022 

Active1 $117.7 $16.0 

Exception Portfolio 203.9 174.9 

Litigation2 4.6 48.0 

Non-Performing3 34.7 20.5 

Bankruptcy4 54.7 50.1 

Total Portfolio $415.6 $309.6 

1

 Active portfolio includes all merchants having made a payment from August 1, 2022 through September 30, 2022 

and those paying pursuant to a settlement agreement. Merchants have entered into short-term settlement agreements 

thereby reducing the balance owed. As of the end of the Reporting Period, there are 291 settlement agreements for 

all MCA companies with 233 merchants completely paid and the remainder with outstanding payments according to 

the agreement. 

2

 As of 9/30/2022, there were numerous accounts on hold due to various legal reasons, including collateral issues, 

pending litigation, legal demands and pending and filed confessions of judgement. In certain of these cases, the 

Receiver has filed a motion to lift the litigation hold in order to proceed with formal litigation. The balance also 

includes accounts sent to Altus Receivable Management. 3

 Non-performing merchants include merchants which have not made a payment in the 60 days prior to the end of 

the Reporting Period. This includes accounts which management defaulted prior to the Receivership. 4

 Includes Exception Portfolio merchants that filed bankruptcy. These merchants are excluded from the Exception 

Portfolio balance. Furthermore, the balance takes into account only if the merchant filed for bankruptcy. In certain 

cases, the guarantor filed bankruptcy but not the merchant. In these cases, for the table, the amount owed by the 

merchants has not been reclassified to bankruptcy. The balance also includes amounts not yet written off although 

the merchant may have been discharged. 

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Mr. Ryan K. Stumphauzer 

October 31, 2022 

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The reduction in the CBSG Portfolio balance of approximately $106MM represents 

merchants that have completely paid their advance through full payment of the remaining 

balance, settlement at a reduced amount or write-off of the remaining balance if the 

balance was determined to be unrecoverable. Balances determined to be unrecoverable 

include bankruptcy of the merchant and guarantor, verifiable closure of the merchant’s 

business or for other business reasons. 

For all MCA Receivership Entities, the accounts receivable balance at September 30, 

2022 was approximately $321.6MM. We have continued to analyze the collectability of 

the MCA advances for additional write-offs and reserves for uncollectible accounts 

balances. While certain balances have already been written off, we have determined that 

additional reserves were needed for the accounts with open bankruptcies and for other 

matters where full payment is doubtful. This on-going process has resulted in a reserve 

balance of approximately $132.3MM, thus far. The net result of these adjustments 

reduced the accounts receivable balances of the MCA companies from approximately 

$321.6MM to approximately $189.3MM. Further reductions may be needed as more 

information is gathered. This analysis excludes accounts receivables held by Eagle Six 

Consultants and Heritage Business Consulting. 

Sale of Assets

Pursuant to the settlement with Mr. Abbonizio, two single-family residents were 

transferred to the Receivership During the Reporting period, the properties were sold 

netting over $4.0MM in cash to the Receivership. More specifically, 

• Stone Harbor, NJ – On August 31, 2022, the Receivership closed on the sale of

the property at $4,150,000. After payment of the two outstanding mortgages,

closing costs and real estate prorations, the net cash to the Receivership was

approximately $1,666,000.

• Avalon, NJ – On September 28, 2022, the Receivership closed on the sale of the

property at $4,025,000. After payment of the outstanding mortgage, closing costs

and real estate prorations, the net cash to the Receivership was approximately

$2,275,000.

• Rental Income – The settlement with Mr. Abbonizio allowed the Receivership to

retain certain income from the rental of these properties. During the reporting

period, the net rental income for both of these properties, which is included in

Business Receipts in Exhibit A, was approximately $193,000. 

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Mr. Ryan K. Stumphauzer 

October 31, 2022 

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Net Tangible Assets by Defendant Group

 We prepared a schedule detailing the assets currently on-hand (see Exhibit E). 

Currently, the Receivership has approximately $172.8MM5

 of tangible assets by 

defendant group, which includes cash, investments, real estate and personal assets. These 

assets were transferred to the Receivership from pre-Receivership banks, gained through 

collections and litigation efforts and obtained through various settlements with the 

defendants. More specifically, as of the end of the Reporting Period, 

 The Receivership holds approximately $159.8MM in tangible assets from 

CBSG and other entities owned by Defendant McElhone including real estate 

holdings of approximately $55.1MM and other non-cash, tangible assets of 

approximately $3.5MM. This does not include the value of the accounts 

receivable. 

 The Receivership holds approximately $11.5MM in assets from the ABFP 

entities and settlements related to Mr. Vagnozzi, which includes cash and 

approximately $1.1MM of marketable securities. 

 The Receivership holds approximately $1.3MM in assets, all cash, from the 

Retirement Evolution entities and settlement with Mr. Gissas. 

 The Receivership holds approximately $200,000 in assets, all cash, from the 

Fidelis entities which was transferred at the outset of the Receivership. 

 Forensic Accounting and Litigation Support

During the Reporting Period, DSI continued to assist you and your counsel in 

preparing analyses and reports relative to the defendants’ settlements and negotiations 

with the SEC relating to disgorgement. 

In addition, during the Reporting Period, DSI responded to questions from counsel as 

to the MCA and loan portfolio, participated in numerous calls with counsel and 

borrowers and provided analyses to assist in filing litigation against or enter into 

settlement agreements with the borrowers.

B. The amount of cash on hand, the amount and nature of accrued administrative 

expenses, and the amount of unencumbered funds in the estate.

Exhibit A shows the activity of the Receivership through for the Reporting Period and the 

cumulative period. Total cash and cash equivalents as of September 30, 2022 is 

$116,513,918. All of the cash is unencumbered. 

5 We have excluded approximately $2.3MM of cash relating to Capital Source 2000.

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Mr. Ryan K. Stumphauzer 

October 31, 2022 

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The accrued administrative fees for the quarter ended September 30, 2022 are: 

 Receiver/co-counsel – Stumphauzer Kolaya Nadler & Sloman, PLLC6

 $256,567.06 

 Co-counsel – Pietragallo Gordon Alfano Bosick & Raspanti, LLP $627,297.54 

 Financial Advisor/Operations Consultant – Development Specialists, Inc. $214,437.82 

 Digital Evidence/Computer Forensics Prof. – Lawgical Insights, LLC $13,984.37 

 Investigation Firm – HD Investigative Group, LLC $6,300.00 

All other administrative expenses, such as payroll and office expenses, are paid in the 

ordinary course of business. Certain employee wages, specifically paid time off, for 

employees who have returned to work may be owed to employees but have not been 

quantified. 

C. A schedule of all the Receiver’s receipts and disbursements. 

Exhibit A details the receipts and disbursements for the Reporting Period. 

D. A description of known Receivership Property, including approximate or actual 

valuations, anticipated or proposed dispositions, and reasons for retaining assets where 

no disposition is intended. 

Receivership Property includes: 

Asset: Estimated value 

9/30/2022 

Cash in bank $116,513,918 

Cash held by ACH processors $200,000 

Portfolio balance7 $189,400,000 

Other accounts receivable8 $35,800,000 

6 Formerly Stumphauzer, Foslid, Sloman, Ross & Kolaya PLLC 7

 Includes all MCA Receivership Entities – Complete Business Solution Group, Inc.; Fast Advance Funding, LLC; 

Contract Financing Solutions, Inc; and, Capital Source 2000, Inc. The balance shown is after taking into account 

adjustments as discussed herein. 

8

 This balance of “other accounts receivable” includes, among other things, amounts owed by third parties to ESC 

and HBC, without regard to collectability. The records of ESC and HBC also reflect that these entities are owed 

additional amounts that are recorded as loans they made to other Receivership Entities, including the entities that 

own the “real estate” referenced below. This is also true with respect to the entities that own the properties located 

in Haverford, Pennsylvania and Paupack, Pennsylvania, which are included within the Receivership Estate. For 

purposes of consistency and to avoid double counting those amounts within these balances, the additional loan 

balances owed from the other Receivership Entities and in connection with the Haverford and Paupack properties 

are neither included in these accounts receivable balance, nor are they factored into the value of the real estate listed 

below. The change from prior quarter is due to adjustments for intercompany receivables for the entities added to the 

Receivership. 

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Mr. Ryan K. Stumphauzer 

October 31, 2022 

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Asset: Estimated value 

Investment in third parties9 $3,341,000 

Life settlement policies (gross 

death benefits)10

$22,800,000 

Real estate (see Exhibit C) $55,129,000 

Other Assets (see Exhibit D) $3,496,100 

Furniture and fixtures $100,000 

E. A description of liquidated and unliquidated claims held by the Receivership Estate, 

including the need for forensic and/or investigatory resources; approximate valuations 

of claims; and anticipated or proposed methods of enforcing such claims. 

Working with counsel, this process is ongoing and we have yet to determine the claims and 

the estimated value of the claims. As noted above, we continue to work on the forensic 

review of the books and records and will provide more information. 

F. A list of all known creditors with their addresses and the amounts of their claims. 

We provided a list of the known creditors of CBSG in our report to you dated August 31, 

2020 and filed as Exhibit 1 to D.E. #214, Receiver Ryan K. Stumphauzer’s Notice Of Filing 

Sworn Statement Pursuant To Paragraph 9 Of The Amended Receivership Order. At this 

time, we have no additional information to report. However, we continue to review records 

and are developing a list of creditors related to the non-CBSG entities including investors, 

trade and vendor payables. 

 

9

 We identified certain balances that are not accounts receivable but rather investments in other, third-party, nonpublic entities recorded by ESC and HBC. The balance is the gross balance without adjustment for changes in value 

of the underlying investment assets. 

10 Approximate death benefit of life settlement insurance policies owned by Receivership Entities under the A Better 

Financial Plan after adjustment for death benefits received and included in the cash balance. The value of the life 

insurance policies necessarily depends on the availability of critical documentation including but not limited to the 

insurance policy, actuarial detail and the purchase and sale agreement for the policy. Based on the incomplete 

documentation that has been made available to us to date and, in turn, provided to Maple Life Analytics, LLC 

(“Maple”), Maple concluded the market value of the policies in the portfolio (as of the February 2021 valuation) is 

less than $10.0MM. Since February 2021, policies have matured with death benefits received totaling approximately 

$8.5MM. Removing these policies from the prior valuation, the market valuation of the remaining policies is 

estimated at $6.5MM as of the end of the Reporting Period. In the event the Receivership receives additional 

documentation, we will provide such documentation to Maple and will provide additional updates in future reports if 

any such additional information affects the Maple valuation of these policies. 

. 

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 7 of

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Mr. Ryan K. Stumphauzer 

October 31, 2022 

Page 7 

G. The status of Creditor Claims Proceedings, after such proceedings have commenced.

The Creditor Claims Proceedings have not yet commenced.

H. The Receiver’s recommendations for a continuation or discontinuation of the

receivership and the reasons for the recommendations.

It is my recommendation that the Receivership continues. The Receivership is benefitted by

continuing to collect outstanding merchant and loan balances. The professional staffing

changes that occurred will reduce fees going forward. Current professionals are

knowledgeable of the Receivership Entities’ books and records all of which is vital to

working with you and counsel on various causes of actions and to maximize and monetize

the assets of the receivership.

Sincerely, 

Bradley D. Sharp 

President & CEO 

Copy to: Mr. Gaetan J. Alfano (GJA@Pietragallo.com) 

 Mr. Tom J. Frey (e-mail TFrey@DSIConsulting.com) 

 Mr. Timothy A. Kolaya (e-mail TKolaya@sknlaw.com) 

 Mr. George E. Shoup, III (e-mail GShoup@DSIConsulting.com) 

 Mr. Yale S. Bogen (e-mail YBogen@DSIConsulting.com) 

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 8 of

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EXHIBIT A 

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 9 of

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Ryan K Stumphauzer, Receiver

Report prepared by:

Financial Advisor and Operational Consultant to the Receiver

Development Specialists, Inc.

INTERIM REPORT IN PREPARATION OF STATUS CONFERENCE

STANDARDIZED FUND

ACCOUNTING REPORT

CIVIL - RECEIVERSHIP FUND

Consolidated Par Funding Receivership Entities 1

Civil Court Docket No. 20-cv-81205-RAR

Reporting Period 7/1/2022 to 9/30/2022

[1] The “Receivership Entities” are Complete Business Solutions Group, Inc. d/b/a Par Funding (“Par Funding”); Full 

Spectrum Processing, Inc. (“Full Spectrum”); ABetterFinancialPlan.com LLC d/b/a A Better Financial Plan; ABFP 

Management Company, LLC f/k/a Pillar Life Settlement Management Company, LLC; ABFP Income Fund, LLC; 

ABFP Income Fund 2, L.P.; United Fidelis Group Corp.; Fidelis Financial Planning LLC; Retirement Evolution Group, 

LLC; RE Income Fund LLC; RE Income Fund 2 LLC; ABFP Income Fund 3, LLC; ABFP Income Fund 4, LLC; ABFP 

Income Fund 6, LLC; ABFP Income Fund Parallel LLC; ABFP Income Fund 2 Parallel; ABFP Income Fund 3 Parallel; 

ABFP Income Fund 4 Parallel; ABFP Income Fund 6 Parallel; ABFP Multi-Strategy Investment Fund LP; ABFP MultiStrategy Investment Fund 2 LP; MK Corporate Debt Investment Company LLC; Capital Source 2000, Inc.; Fast 

Advance Funding LLC; Beta Abigail, LLC; New Field Ventures, LLC; Heritage Business Consulting, Inc.; Eagle Six 

Consultants, Inc.; 20 N. 3rd St. Ltd.; 118 Olive PA LLC; 135-137 N. 3rd St. LLC; 205 B Arch St Management LLC; 

242 S. 21st St. LLC; 300 Market St. LLC; 627-629 E. Girard LLC; 715 Sansom St. LLC; 803 S. 4th St. LLC; 861 N. 

3rd St. LLC; 915-917 S. 11th LLC; 1250 N. 25th St. LLC; 1427 Melon St. LLC; 1530 Christian St. LLC; 1635 East 

Passyunk LLC; 1932 Spruce St. LLC; 4633 Walnut St. LLC; 1223 N. 25th St. LLC; Liberty Eighth Avenue LLC; The 

LME 2017 Family Trust; Blue Valley Holdings, LLC; LWP North LLC; 500 Fairmount Avenue, LLC; Recruiting and 

Marketing Resources, Inc.; Contract Financing Solutions, Inc.; Stone Harbor Processing LLC; LM Property 

Management LLC; and ALB Management, LLC; and the Receivership also includes the properties located at 568 

Ferndale Lane, Haverford PA 19041; 105 Rebecca Court, Paupack, PA 18451; 107 Quayside Dr., Jupiter FL 33477; 

2413 Roma Drive, Philadelphia, PA 19145.

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 10 of

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Fund Accounting: Current Period Prior Period(s) Case-to-date

7/1/22 - 9/30/22 7/28/20 - 6/30/22 Total

Line 1 Beginning Balance: $107,557,093 $28,779,570 $28,779,570

Increases in Fund Balance:

Line 2 Business Receipts 6,884,201 81,427,052 88,311,253

Business Receipts - Overpayments (370) (98,236) (98,606)

Line 3 Cash and Securities

Pre-Receivership Cash Transfer 0 14,756,649 14,756,649

Change in Value of Securities (102,530) 457,663 355,133

Line 4 184,572 167,511 352,083

Line 5 0 00

Line 6 3,940,937 0 3,940,937

Line 7 100,296 3,611,349 3,711,644

Line 8 0 1,107,199 1,107,199

11,007,105 101,429,185 112,436,290

$118,564,198 $130,208,755 $141,215,860

Line 9 0 00

Line 10

Line 10a 1,232,486 15,060,638 16,293,124

Line 10b

Interest/Dividend Income

Business Asset Liquidation

Personal Asset Liquidation*

Third-Party Litigation Income

Miscellaneous1

Total Receipts2

Total Funds Available (Lines 1 - 8):

Decreases in Fund Balance:

Disbursements to Investors

Disbursements for Receivership Operations:

Disbursements to Receiver or Other Professionals 3

Business Asset Expenses

Payroll & Benefits 305,491 2,276,724 2,582,215

IT Expense 32,358 771,809 804,167

Utilities 6,110 49,167 55,278

Insurance 2,203 87,335 89,538

Other Operating Expense 53,958 453,887 507,844

Other 17,885 109,554 127,439

Total Business Asset Expenses2 418,005 3,748,476 4,166,481

Line 10c Personal Asset Expenses 0 1,370 1,370

Line 10d Investment Expenses

Premiums Due on Life Settlement Policies 305,154 3,002,306 3,307,459

Property Expenses 94,636 794,147 888,783

Line 10e Third-Party Litigation Expenses

1. Attorney Fees 0 44,726 44,726

2. Litigation Expenses 0 0 0

3. Forensic Accounting 0 0 0

Total Third-Party Litigation Expenses 0 44,726 44,726

Line 10f Tax Administrator Fees and Bonds 0 00

Line 10g Federal and State Tax Payments 0 00

Total Disbursements for Receivership Operations $2,050,280 $22,651,662 $24,701,942

Line 11 Disbursements for Distribution Expenses Paid by the Fund: 0 00

Line 12 Disbursements to Court/Other: 0 00

Total Funds Disbursed (Line 9 - 12) $2,050,280 $22,651,662 $24,701,942

Line 13 Ending Balance:4 $116,513,918 $107,557,093 $116,513,918

STANDARDIZED FUND ACCOUNTING REPORT for PAR FUNDING - Cash Basis

Receivership; Civil Court Docket No. 20-cv-81205-RAR

Reporting Period 7/1/2022 to 9/30/2022

* Relates to sale of real properties pursuant to the settlement with Mr. Abbonizio.

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STANDARDIZED FUND ACCOUNTING REPORT for PAR FUNDING - Cash Basis

Receivership; Civil Court Docket No. 20-cv-81205-RAR

Reporting Period 7/1/2022 to 9/30/2022

Current Period Prior Period(s) Case-to-date

Line 14 Ending Balance of Fund - Net Assets:

Line 14a $116,513,918 $107,557,093 $116,513,918

Line 14b Investments Unknown

Line 14c Other Assets or Uncleared Funds

Total Ending Balance of Fund - Net Assets $116,513,918 $107,557,093 $116,513,918

OTHER SUPPLEMENTAL INFORMATION:

Current Period Prior Period(s) Case-to-date

Report of Items NOT To Be Paid by the Fund:

Line 15 Disbursements for Plan Administration Expenses Not Paid by the Fund:

Line 16 Disbursements to Court/Other Not Paid by the Fund:

Line 17 DC & State Tax Payments

Line 18 No. of Claims:

Line 18a # of Claims Received This. Reporting Period ....................................

Line 18b # of Claims Received Since Inception of Fund ..................................

Line 19

Line 19a # of Claimants/Investors Paid This Reporting Period ......................

Line 19b # of Claimants/Investors Paid Since Inception of Fund ........... .......

Note 1: Includes $16,574.82 of expense reimbursements from Vision Solar and Solar Exchange for shared IT expenses.

Note 2: Excludes inter-receivership receipts/disbursements.

Note 3: Disbursements to Receiver or Other Professionals includes payments for certain IT related expenses and tax preparation.

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 12 of

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Entity Bank Name

Account 

Number

Ending Cash 

Balance as of 

9/30/2022

Pre-receiver Accounts

SEP Account Axos Bank x3264 $194,638

A ABFP Income Fund 2 TD Ameritrade x1080 $1,392,926

Receiver Accounts

CoComplete Business Solutions Group, Inc. City National Bank x1839 $11,684,731

CoComplete Business Solutions Group, Inc. City National Bank x5736 $6,012,855

Complete Business Solutions Group, Inc. City National Bank x2430 $52,842,010

Complete Business Solutions Group, Inc. City National Bank x5554 $896

CoComplete Business Solutions Group, Inc. City National Bank x3071 $10,649

Complete Business Solutions Group, Inc. Actum N/A $12,000

Complete Business Solutions Group, Inc. FedChex N/A $0

Complete Business Solutions Group, Inc. Kotapay N/A $20,000

Complete Business Solutions Group, Inc. Priority Payment Systems N/A $50,000

CBSG dba Par Funding Receivership (QSF) City National Bank x2399 $11,771,771

FuFull Spectrum Processing Inc. City National Bank x5700 $14,749

A ABFP Multi-Strategy Investment Fund LP. City National Bank x3575 $3,213,386

A ABFP Multi-Strategy Investment Fund 2 LP. City National Bank x3872 $3,613,711

FidFidelis Financial Planning LLC. City National Bank x5835 $12,940

FidThe United Fidelis Group Corp. City National Bank x5682 $170,939

Fast Advance Funding LLC City National Bank x2069 $1,489,851

Fast Advance Funding LLC Actum N/A $43,613

118 Olive PA LLC City National Bank x1195 $52,870

205 B Arch St Management LLC City National Bank x1420 $1,285

242 S 21st St LLC City National Bank x9339 $56,845

300 Market St LLC City National Bank x1186 $289,493

627-629 E Girard LLC City National Bank x9872 $368,314

803 S 4th St LLC City National Bank x9816 $24,735

1427 Melon St LLC City National Bank x3410 $724,949

1530 Christian St. LLC City National Bank x3401 $87,130

1635 East Passyunk LLC City National Bank x3293 $86,700

1932 Spruce St LLC City National Bank x2834 $72,413

4633 Walnut St. LLC City National Bank x2843 $60,226

1223 N 25th St. LLC City National Bank x9861 $70,912

1250 N 25th St LLC City National Bank x4130 $54,489

135-137 N. 3rd St. LLC City National Bank x9753 $626,661

715 Sansom St. LLC City National Bank x9863 $151,262

861 N 3rd St. LLC City National Bank x9845 $212,166

915-917 S. 11th LLC City National Bank x9818 $162,049

20 N. 3rd St. Ltd City National Bank x1447 $881

Schedule 1.1

STANDARDIZED FUND ACCOUNTING REPORT for PAR FUNDING - Cash Basis

Receivership; Civil Court Docket No. 20-cv-81205-RAR

Reporting Period 7/1/2022 to 9/30/2022

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 13 of

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Entity Bank Name

Account 

Number

Ending Cash 

Balance as of 

9/30/2022

Schedule 1.1

STANDARDIZED FUND ACCOUNTING REPORT for PAR FUNDING - Cash Basis

Receivership; Civil Court Docket No. 20-cv-81205-RAR

Reporting Period 7/1/2022 to 9/30/2022

Capital Source 2000, Inc City National Bank x2528 $2,222,166

Capital Source 2000, Inc5 Actum N/A $99,925

Capital Source 2000, Inc5 Priority Payment Systems N/A $0

Heritage Business Consulting, Inc. City National Bank x1745 $918,869

Eagle Six Consulting, Inc. City National Bank x2519 $13,865,081

LME 2017 Family Trust City National Bank x8827 $116,176

LWP North LLC City National Bank x8115 $219

Blue Valley Holdings, LLC City National Bank x5460 $83,427

500 Fairmount Avenue, LLC City National Bank x8169 $127,002

Contract Financing Solutions City National Bank x4540 $3,430,101

Recruiting and Marketing Resources City National Bank x4279 $2,128

$116,520,137

Note 4: Difference between bank balance and book balance due to $6,219 of O/S checks as of 9/30/22.

Note 5: The cash amounts reported in Actum and Priority Payment Systems accounts for Capital Source 2000 are estimates.

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EXHIBIT B 

Profit and Loss Statement – Real Estate Holdings 

Consolidated 

 Jan – Sep 2022 

Ordinary Income/Expense 

Rental Income $2,085,889 

Rent Reimbursement 62.173 

Total Income $2,148,062 

 

Expenses 

Bank Fees $359 

Insurance 150,202 

Repairs and Maintenance 337,228 

Rent – Association Fees 43,421 

Licenses, Property and Other Taxes 221,944 

Utilities 76,772 

Management and Professional Fees 195,050 

Interest Expense 1,817 

Non Receiver / Defendant 0 

Total Expense $1,026,793 

Net Income $1,121,269 

 

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EXHIBIT C 

Real Estate Owned

Location City. State Property Type 

Prior Approx. 

Value11

Current 

Value12

118 Olive Street Philadelphia, PA Multi-unit residential $740,000 $719,000 

205 Arch Street Philadelphia, PA Commercial $260,000 $600,000 

142 N. 2nd Street Philadelphia, PA Commercial $170,000 $230,000 

242 S. 21st Street Philadelphia, PA Multi-unit residential $1,025,000 $1,110,000 

300 Market Street Philadelphia, PA Mixed-use $4,400,000 $4,057,000 

627-629 E. Girard Ave. Philadelphia, PA Multi-unit residential $2,950,000 $3,767,000 

803 S. 4th Street Philadelphia, PA Mixed-use $349,000 $400,000 

1427 Melon Street Philadelphia, PA Multi-unit residential $7,600,000 $7,460,000 

1530 Christian Street Philadelphia, PA Multi-unit residential $870,000 $975,000 

1635 E. Passyunk 

Street 

Philadelphia, PA Mixed-use $825,000 $897,000 

1932 Spruce Street Philadelphia, PA Multi-unit residential $2,125,000 $1,857,000 

4633 Walnut Street Philadelphia, PA Multi-unit residential $650,000 $700,000 

1223 N. 25th Street Philadelphia, PA Multi-unit residential $1,100,000 $974,000 

1248 N. 25th Street Philadelphia, PA Single-unit 

residential 

$190,000 $325,000 

1250 N. 25th Street Philadelphia, PA Multi-unit residential $600,000 $974,000 

135-137 N. 3rd Street Philadelphia, PA Mixed-use $6,575,000 $7,043,000 

715 Sansom Street Philadelphia, PA Mixed-use $2,885,000 $2,465,000 

861 N. 3rd Street Philadelphia, PA Multi-unit residential $1,800,000 $1,976,000 

915-917 S. 11th Street Philadelphia, PA Multi-unit residential $1,860,000 $2,100,000 

20 & 22 N. 3rd Street Philadelphia, PA Commercial $2,965,000 $3,150,000 

500 Fairmount Ave. Philadelphia, PA Mixed-use $1,640,000 $1,806,000 

107 Quayside Dr.13 Jupiter, FL Single-family house $5,800,000 $5,800,000 

2413 Roma Drive Philadelphia, PA Single-family house $407,900 $699,000 

568 Ferndale Lane14 Haverford, PA Single family house $2,445,000 $2,445,000 

105 Rebecca Court15 Paupack, PA Single family house $2,600,000 $2,600,000 

164 84th Street Stone Harbor, NJ Single family home Sold N/A 

159 26th Street Avalon, NJ Single family home Sold N.A 

 Total $52,831,900 $55,129,000 

11 Amount represents the approximate purchase price. 12 The Receiver requested, and received from the property manager, an estimate of sales values for each of the 

properties under their management. The current value reflects this information. Furthermore, the Receiver has not 

had an appraisal prepared for the Jupiter, FL, Haverford, PA and Paupack, PA properties. As such, the current value 

has not been updated from the prior approximate value.

13 Property owned by Lisa McElhone and for personal use by Lisa McElhone 

14 Property owned by Receivership Entity LWP North, LLC, a single-member LLC owned by Lisa McElhone. 

Property for personal use by Lisa McElhone. 

15 Property owned by Receivership Entity Blue Valley Holdings, LLC, a single-member LLC owned by Lisa 

McElhone. Property for personal use by Lisa McElhone 

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 16 of

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EXHIBIT D 

Other Assets

Asset Approximate 

Value16

Yacht $333,000 

Manitou XT Pontoon boat $188,000 

Yamaha Waverunner jet skis (2) $18,000 

Artwork $2,160,000 

Watches 

 Patek Phillipe (2) $154,500 

Various Automobiles 

 2020 Mercedes G-class $135,000 

 2016 Bentley $135,000 

 2016 Chevrolet Tahoe $40,000 

 2020 Range Rover $100,000 

 2019 Porsche 911 Turbo S 

Cabriolet17

$232,600 

Total $3,496,100 

16 Except for the automobiles, amount represents approximate purchase price. An appraisal of each asset has not 

been done. 

17 Value is the purchase price pursuant to build order (D.E. #634). An appraisal of the asset has not been done. 

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 17 of

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Complete Business Solutions et al Receivership 

Net Assets ScheduleReporting Period 7/1/2022 to 9/30/2022

2022 2022 2022

Q3 Q2 Q1 Q4 Q3 Q2 Q1 

RECEIPTS AND ASSETS:

Net MCA collections $3,169,061 $5,864,888 $4,796,064 $5,326,537 $6,474,926 $8,178,840 $7,722,809 Other accounts receivables 48,491 138,297 265,300 1,242,828 3,828,799 2,512,869 68,879 

Rental income 633,800 493,000 500,000 505,000 422,000 485,000 400,000 

Insurance proceeds 3,032,479 0 0 4,432,143 0 450,000 250,000 

Litigation proceeds 100,296 394,686 2,486,098 0 0 0 238,843 

Other cash receipts1 38,825 4,125,509 2,579,985 1,290,325 20,138 34,508 2,124,994 

Other Assets:

Beginning cash $106,067,856 $101,850,882 $94,219,460 $84,687,504 $77,433,972 $69,395,800 $63,997,180 

Marketable securities 1,392,926 1,461,227 1,682,483 1,523,709 1,552,283 1,480,515 1,335,714 

Net real estate 55,129,000 56,408,685 56,008,685 52,831,900 52,831,900 52,831,900 52,831,900 

Vehicles and watercraft 1,181,600 1,181,600 1,181,600 1,181,600 1,181,600 949,000 949,000 

Other personal assets 2,314,500 2,314,500 2,314,500 2,314,500 2,314,500 2,160,000 2,160,000 

TOTAL RECEIPTS AND ASSETS: $177,195,517 $170,146,591 $166,034,175 $155,336,046 $146,060,118 $138,478,432 $132,079,318 EXPENSES AND DISBURSEMENTS:

Operating expenses $418,005 $486,364 $568,350 $444,717 $590,477 $513,489 $534,649 

Personal asset expenses 0 0 0 0 1,370 0 0 

Premium due on life settlement policies 305,154 583,232 324,481 354,434 514,854 384,480 363,938 

Real estate property expenses 94,636 138,833 287,765 18,993 37,827 263,946 46,784 

Third party attorney fees and expenses 0 0 (100) 100 0 0 44,726 

Professional fees 1,232,486 1,470,064 1,821,366 2,441,777 2,486,118 2,380,767 4,460,546 

TOTAL EXPENSES AND DISBURSEMENTS $2,050,280 $2,678,493 $3,001,862 $3,260,022 $3,630,647 $3,542,681 $5,450,643 

NET ASSET VALUE (NAV) $175,145,237 $167,468,097 $163,032,313 $152,076,025 $142,429,471 $134,935,751 $126,628,675 NAV change from prior quarter $7,677,139 $4,435,784 $10,956,288 $9,646,553 $7,493,721 $8,307,076 $61,441,296 

Note 1: Balance includes receipts of legacy accounts from the expansions of the Receivership.

2022 2021 

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Pag

19
Tangible Assets Schedule by Defendant Group

Reporting Period as of 9/30/2022

CBSG

(McElhone 

entities)

ABFP and 

Vagnozzi

Retirement 

Evolution and 

Gissas

Fidelis and 

Furman

Total (as of 

9/30/22)

Cash and Investment Accounts:

$101,028,402 $10,141,660 $1,256,542 $183,878 $112,610,482

 194,638 - - - 194,638

Cash

SEP Account (Retirement Funds)

ABFP Income Fund 2 (Stock and cash) - 1,392,926 - - 1,392,926

Other Assets:

Rental Real Estate 44,284,000 - - - 44,284,000 

Personal Real Estate 10,845,000 - - - 10,845,000 

Automobiles 642,600 - - - 642,600

Watercraft 539,000 - - - 539,000

Other Personal Assets 2,314,500 - - - 2,314,500 

Total Tangible Assets $159,848,140 $11,534,586 $1,256,542 $183,878 $172,823,146

Note 1: Cash excludes $2.3MM for Capital Source 2000

Note 2: The above schedule does not include ABFP life insurance policies with total face value of death benefits of approximately

 $22.8MM, although the Receiver believes that the present value of these policies, if sold in an arms-length transaction, 

 would be substantially less.

Note 3: The above schedule does not include approximately $7.4MM in installment payments due under settlement agreements with

 various merchants and counterparties.

Note 4: The above schedule does not include approximately $1.8MM due under settlements with Messrs. Paucioulo, Gissas, and 

 Abbonizio.

Note 5: The above schedule does not include restricted stock in Sustainable Resources Group, LLC and Telemachus India, 

 LLC transferred to the Receiver pursuant to the settlement with Mr. Vagnozzi. Both investments were highly speculative 

 and there is no readily available market for either stock.

- 

Complete Business Solutions et al Receivership

EXHIBIT E

Case 9:20-cv-81205-RAR Document 1437-1 Entered on FLSD Docket 10/31/2022 Page 19 of

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