Front Sight assets seized - Page 3

Front Sight assets seized

This is a discussion on Front Sight assets seized within the Defensive Carry & Tactical Training forums, part of the Defensive Carry Discussions category; Originally Posted by tns0038 I’m not an attorney but it sounds to me like he needs to file chapter 11. He's not bankrupt, his assets ...

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Thread: Front Sight assets seized

  1. #31
    Senior Member Array highvoltage's Avatar
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    Quote Originally Posted by tns0038 View Post
    I’m not an attorney but it sounds to me like he needs to file chapter 11.
    He's not bankrupt, his assets exceed his liabilities. The Institute is now in receivership with all assets seized.


  2. #32
    VIP Member Array Patti's Avatar
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    Has anyone tried to contact Front Sight and ask them about the asset seizure?

    Are they still conducting business as usual?

    Or is it closed down?
    Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy. — Winston Churchill

  3. #33
    Member Array desertccw's Avatar
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    I checked, it's operating as normal, training 428 students this week.
    The spirit of liberty is the spirit which is not too sure that it is right. - Learned Hand

  4. #34
    Member Array hengst's Avatar
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    Quote Originally Posted by highvoltage View Post
    Premier? How about illegal? Maybe their training was good, but what happened to upholding the law?

    In fact I thought that's what DC is all about, making sure everyone does everything by the book when it comes to firearms, and everything else in life for that matter.

    I cannot let myself feel sorry for someone who so flagrantly flouts his contempt for the legal system.
    Well put ! How did "Dr." Piazza Do a great credit to firearms owners with such shady business practices. It can be likened to a preacher that preaches one heck of a sermon and feeds the hungry but later makes of with the offering plate. He brings a discredit to the business period

  5. #35
    Member Array Bashful's Avatar
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    Posted on another site....

    That was quick!

    Dated: May 18, 2009
    FOR THE NORTHERN DISTRICT OF CALIFORNIA
    SAN JOSE DIVISION
    Stacy James, et al.,
    Plaintiffs,
    v.
    Ignatius A. Piazza, et al.,
    Defendants.
    /
    NO. C 05-04532 JW
    ORDER DISSOLVING RECEIVERSHIP
    AND DISCHARGING RECEIVER
    On May 11, 2009, the Court issued an order appointing George C. Fisher, as Interim-
    Receiver of Front Sight Management, Inc., also doing business as Front Sight Firearms Training
    Institute. Based upon the Receiver’s Report #1, submitted under seal pursuant to the Court’s
    approval, the evidence and statements made at the May 18, 2009 hearing, and for good cause shown,
    IT IS ORDERED AS FOLLOWS:
    (1) The Receiver shall be discharged by this Order and the Receiver shall be deemed
    relieved of all duties, liabilities and responsibilities pertaining to the Receivership
    previously established;
    (2) George C. Fisher is discharged as the Receiver and relieved of any duties, liabilities,
    and responsibilities;
    (3) The Receivership is hereby dissolved and all instructions previously given to third
    parties by the Receiver shall terminate and end and be of no further effect. All parties
    given notice of the Receivership may return to their prior business relationship Front Sight Management, Inc., also doing business as Front Sight Firearms Training
    Institute;
    (4) The Receiver’s bond herein shall be exonerated by this Order."
    M&P Shield 9mm,
    STI Escort,
    and others....

  6. #36
    Member Array desertccw's Avatar
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    The paper got it wrong, and this thread was for nothing. The Receiver was discharged last week, the opposite of what we've been talking about.
    The spirit of liberty is the spirit which is not too sure that it is right. - Learned Hand

  7. #37
    Senior Member Array highvoltage's Avatar
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    Quote Originally Posted by desertccw View Post
    The paper got it wrong, and this thread was for nothing. The Receiver was discharged last week, the opposite of what we've been talking about.
    Read the above post very closely, the paper did not get it wrong. The receiver was appointed on May 11 as reported and discharged only yesterday.

  8. #38
    Senior Member Array PaulG's Avatar
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    From what I heard, the plantiffs and Front Sight reached a new agreement and the court ok'ed it.

    That is why the receivership was terminated.

    As long as Piazza honors the new agreement, he has the opportunity to work out of these troubles.

    I know nothing first hand but have heard from several people who trained at FS. They all said the training was first rate.

    However, just reading the junk Piazza sent out, I wouldn't trust him any farther than I could throw him.

    My main hope is that the original investors don't get screwed over.

    As far as Front Sight itself, I could car less. If is falls, the instructors will find a new home and someone else will come in to fill the void.
    fortiter in re, suaviter in modo (resolutely in action, gently in manner).

  9. #39
    Member Array AceHi's Avatar
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    Here is the latest from the Pahrump newpaper. Not really a lot of info there other than things are back to normal (for the time being).

    Pahrump Valley Times - Nye County's Largest Newspaper Circulation
    NRA Life Member

  10. #40
    Ex Member Array SPACE COWBOY's Avatar
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    To hear the guy talk, he walked on water... Good school, good training I just never liked the guy. I don't think the government should step into private affairs for any reason though. Government is there to protect us from national threats and fix the roads. Outside of that there isn't much use for them.
    PS. The ATF should be a convenience store!

  11. #41
    New Member Array troi's Avatar
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    Quote Originally Posted by highvoltage View Post
    Maybe their training was good, but what happened to upholding the law...
    I cannot let myself feel sorry for someone who so flagrantly flouts his contempt for the legal system.
    What I haven't been able to find out is WHAT laws he has been accused of breaking in WHAT exact manner. All the press, what little there is, is pretty vague. Of course there is a bit of the rogue or rake about Piazza and his marketing may not please us all, but there is not really a big difference between how he markets and how many other people market.

    By all counts the training is excellent, the man creates supporters of the second amendment, safe shooters and patriots. He stands his ground, honors the certificates, donates to the people who need the training in one way or another--as someone else pointed out, in response to horrific events he offers training, something practical.

    What law did he break and what are the RICO charges?

    I for one am glad he sends out a lot of email--I get very good information from him. Plenty of people attend Front Site and do not give in to the sales tactics. The certificates you can buy online make some of the classes more affordable than local CCW or other classes. I have no problem with ol' Ignatias and believe strongly that if Front Site is allowed to go down, it will NOT be replaced and all gun owners have lost something important.

    troi
    Last edited by troi; May 23rd, 2009 at 02:32 AM. Reason: I can

  12. #42
    Member Array McDougal's Avatar
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    Quote Originally Posted by troi View Post
    What I haven't been able to find out is WHAT laws he has been accused of breaking in WHAT exact manner.
    As heresy, I heard that Front Sight sold home lots, with guarantees that electicity/plumbing/sewer/streets would be put in. The idea being a nice planned gun-friendly community near Vegas for people with lifetime Front Sight memberships. Allegedly, nothing was done, and the people waiting to build their homes got tired of waiting and went to court to get their money back. Allegedly, not following up on getting the construction done and the sales techniques are what triggered RICO.

  13. #43
    Senior Member Array highvoltage's Avatar
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    Allegations (long)

    Quote Originally Posted by troi View Post
    What I haven't been able to find out is WHAT laws he has been accused of breaking in WHAT exact manner........
    More at http://www.frontsightlitigation.com/.../Complaint.pdf

    SUBSTANTIVE ALLEGATIONS

    27. In or about 1997, defendants closed escrow on a 550-acre parcel of land north of Las Vegas, Nevada, and commenced a plan to develop a “resort style, first class training facility” for gun enthusiasts. The plan included nine training ranges, live-fire simulator ranges, a five-story SWAT tower, a 5,000 square foot indoor video training simulator building, a defensive driving track, a 7,200 square foot armory and gunsmithing facility, a pro shop, a 7,200 square foot classroom, an administrative building, a maintenance building, five on-site homes for staff, RV parking, a 1,000 yard rifle range, 4,500 square foot air stip, four private training ranges, a 7,200 square foot marshal art’s gymnasium, a 900 square yard celebrity training facility, and a complete residential community with a commercial/retail center, community center, a private kindergarten through 12th grade school, 350 condominiums and 177 one-acre luxury home sites.

    28. In order to accomplish this massive undertaking, defendants needed a lot of money. Although State and Federal securities laws require the disclosure of material information and risks when soliciting risk capital from investors, defendants attempted to avoid such disclosures, and thus violated these laws, by selling “memberships” in the resort, in varying amounts. Initially prices were set at $8,900 for a “Copper Membership;” $23,000 for a “Bronze Membership;” $90,000 for a “Silver Membership;” and $300,000 for a “Platinum Membership.” Each of these memberships gave purchasers access to certain courses free of charge, with the Silver and Platinum Memberships giving the purchasers access to virtually all offered courses in perpetuity. In addition, the 177 Platinum memberships also gave the purchaser a one-acre home site in the resort. In selling the one-acre home sites included in the Platinum memberships, defendants violated both Federal and State laws regarding the sale of real estate.

    29. After January 1997 and continuing through December 2002, Defendant Piazza or a Front Sight employee he trained, gave standardized sales presentations at the Front Sight facility in Nevada, wherein they identified the following benefits of being a First Family Member:

    a. Guaranteed next-day enrollment in any classes for all levels of First Family Members;

    b. Front Sight would supply the weapons and ammunition as part of the full automatic classes for no charge;

    c. Front Sight would supply protective gear, weapons and simunitions ammunition in the tactical scenario series of classes at no charge; and,

    d. First Family Memberships were good investments because prices were going to double, triple and quadruple and that now was the time to buy. Defendant Piazza affirmed that he knew this because he was the “one who sets the prices.” Defendant Piazza further stated that at some point in the future Front Sight would no longer be selling First Family memberships, and at that time members could sell their memberships. Thus members could take all the classes they wanted and later recoup more than their initial investment. Each of the named Plaintiffs attended at least one of the standardized sales presentations prior to purchasing their Front Sight Memberships and purchased their Front Sight Memberships in reliance upon the representations made at the standardized sales presentations.

    30. Continuing from the initial membership offering, through the filing of this action, defendants have issued glowing reports to the public and members of the class, touting Front Sight Firearms Training as growing, with increased profits each year, and at various times publishing reports that outside investors were interested in fully funding the resort so new members should purchase immediately so they can get their membership before prices go up.

    31. All of the presentations given to potential purchasers and members of the Class were standardized and both created and taught to Front Sight employees by Defendant Piazza. Everyone who took classes at the facility was encouraged to sit through a sales session, where Piazza or his employee advised potential purchasers and members of the Class that purchasing a membership at Front Sight was an “investment” that would increase in value over time as the resort was completed. The ability to later resale the memberships at a profit was presented as a key factor that made the purchase such a smart investment. So too was the ability to will the Platinum and Silver memberships to heirs.

    32. Based on defendants’ standardized misrepresentations, plaintiffs and members of the class purchased Front Sight memberships.

    33. What defendants failed to disclose was that memberships were not being sold at a rate, or dollar amount, sufficient to proceed with the plan as presented. In fact, at the same time Defendant Piazza was disseminating glowing reports across the country about Front Sight’s success, Front Sight was unable to timely pay its employees wages or the Company’s other financial obligations.

    34. Whenever Piazza needed money, a “new deal” would come out. The deal always claimed to be an “exchange in abundance,” wherein Piazza was being the nice guy and helping purchasers out. The new deals also always had some false reason for requiring a prompt response, such as imminent full funding from an outside source, or prices are set to go up in the near future. The truth, which was not disclosed to class members, was that there was no imminent full funding and prices would never go up.

    35. Rather, Piazza, in his scheme to extract as much money as possible out of Americans who believe strongly in their Constitutional Right to Bear Arms, and in their right and need to protect their families, systematically identified victims based on the amount of money they had to spend, and once he pillaged all he could from one tier, he dropped to the next tier and repeated the scheme. Thus in the beginning he was able to get $50,000 to $200,000 from each victim, and when he depleted that tier was able to get $5,000 to $20,000 from each victim, and in his final offensive is now taking $1,200 from each new “Life Member.”

    36. In order to keep the early class members from discovering the scheme, Piazza took a fraction of the monies raised from members and completed at least some project each year. This gave the appearance that at least some development was progressing. He also continued to publish false glowing statements about how well the Company was doing, and identified windfall events that were imminent and going to result in memberships increasing in value, as promised.

    37. In order to ensure that he profited from the fraudulent scheme, from at least 1999, Defendant Piazza and Front Sight maintained several bank accounts. Monies from the sale of memberships and classes came into one Company account at a bank which Defendant Piazza would go to frequently and make withdrawals. Then he would make a deposit at a different Company bank account. However, Defendant Piazza would shave money off the top of the withdrawal for himself, and make a smaller deposit at the second Company bank account. The diverted funds were then deposited in his personal accounts, which on information and belief are at least in part off-shore accounts.

    38. In or about mid-2002, a shareholder and director of Front Sight, Dean Gamburd, undertook efforts to expose the false statements and fraudulent business practices of the defendants. When Defendant Piazza became aware of this, he threatened Mr. Gamburd by advising him: “If you ever do anything to interfere with my mission, I could not guarantee your safety or that of your family.” Mr. Gamburd continued his efforts to expose defendant’s wrongdoing, and was thereafter both sued and attacked by a vicious public campaign by Defendant Piazza, who accused Mr. Gamburd in a publicly disseminated letter dated October 9, 2002, of being associated with “an anti-religious hate group” and “people of known criminal background and questionable ethics.” At this same time, Defendant Piazza called Mr. Gamburd and advised him that he knew where his wife was and what she was wearing [because she was under surveillance]. In light of Defendant Piazza’s prior threats of physical harm, Mr. Gamburd’s concern over his wife’s well being caused him to publically withdraw his negative statements about Defendant Piazza’s business practices and settle the law suit pending against him.

    39. As with any “Ponzi scheme,” eventually the pyramid got too big, and Piazza was unable to bring in enough new money from memberships to maintain the scheme without dropping membership prices precipitously. This exposed the problems being experienced by Front Sight, and the misrepresentations that had been made over the years.

    40. In addition, since defendants were unable to raise sufficient capital through even the reduced rate memberships, in February 2005 the Company for the first time procured a loan secured by the Front Sight property. The loan was for $6,000,000, with a term of one year (the “February 2005 Loan”). Rather than use the money to pay back investors he had defrauded who purchased the early memberships, or provide the promised infrastructure for the Platinum members’ home sites, or give the early membership purchasers back facility access rights he had unilaterally taken away, Piazza diverted the funds for his own personal use and benefit, including his Hollywood career.

    41. Unable to pay the February 2005 Loan when it came due in February of 2006, defendants caused Front Sight to undertake a second loan in the amount of $7,207.082.50 (the “February 2006 Loan”). Funds from this loan were used to pay off the February 2005 Loan, and provide additional proceeds to Defendant Piazza, who, in an effort to encumber his assets and pull income out of Front Sight in light of the impending litigation, caused his stock in Front Sight to be encumbered as security for the loan proceeds.

  14. #44
    VIP Member Array AZ Husker's Avatar
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    A ponzi scheme can only hold it's own weight for so long before it topples.
    Treat me good, I'll treat you better. Treat me bad, I'll treat you worse.

  15. #45
    VIP Member Array zacii's Avatar
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    I am worried what I should do. I signed up for their free gun deal almost 4 months ago and haven't received the gun, yet. They keep telling me; "a couple of weeks", "two more weeks", etc... I wonder if I got taken
    Trust in God and keep your powder dry

    "A heavily armed citizenry is not about overthrowing the government; it is about preventing the government from overthrowing liberty. A people stripped of their right of self defense is defenseless against their own government." -source

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