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Front Sight assets seized

21K views 54 replies 37 participants last post by  rcprep 
#1 ·
From: Pahrump Valley Times - Nye County's Largest Newspaper Circulation


BUSINESS AS USUAL?
Front Sight assets seized

By GINA B. GOOD
PVT


GINA B. GOOD / PVT
A lengthy line of shooting ranges is featured at the Front Sight site off the Tecopa road.

Advertisement
eRJ House ads

At 11 a.m. Monday, Front Sight Firearms Training Institute and its president, Ignatius Piazza, went into receivership.

All financial transactions involving the firearms training facility -- from accepting payment for classes to paying staff and vendors -- must take place through a court-appointed administrator.

The facility and all assets have been seized by the court, down to the hundreds of firearms included as part of new members' benefits.

However, despite the ruling, this weekend at Front Sight everything was "business as usual," according to Operations Manager Rick Morello.

He said he knew nothing about the legal proceedings. "We have a big weekend coming up with a full schedule of classes," Morello said. "Business is booming."

The ruling, handed down by U.S. District Judge James Ware in San Jose, Calif., had its beginning in November 2005 when Stacy James, Bill Haag and Michael Schriber filed a class action suit against Piazza on behalf of themselves and other qualified Front Sight members.

The suit mentions "violations of RICO, unfair advertising and competition, Nevada Sale of Subdivided Land Act, fraudulent conveyances, Consumer Legal Remedies Act, Interstate Land Sales Full Disclosure Act, breach of contract and fraud," all based on Piazza's sale of lifetime memberships.

RICO is the acronym for the federal Racketeer Influenced and Corrupt Organizations Act, originally used to target the Mafia and similar organizations.

The three men allege the price of the memberships they and the members of the class purchased were artificially inflated as a result of misrepresentations and non-disclosures.

On October 15, 2007, a settlement was reached and Ware dismissed the suit with the stipulation Front Sight live up to the negotiated terms. A settlement fund of $8,050,000 secured by a lien on Front Sight's assets would let the class foreclose if the fund was not fully funded by October 15, 2008.

Piazza was ordered to put 10 percent of Front Sight's monthly gross revenues into the settlement fund and provide financial documentation showing he was meeting his obligation. He complied, although according to the plaintiff's court filings, the payments were not timely, which comes as no surprise to former employees and suppliers in Pahrump.

The settlement also said Piazza had to allow members who were part of the suit to use their Front Sight memberships until the settlement fund was fully paid. Further, he was ordered by the court not to retaliate or make derogatory remarks against James, Haag and Schriber.

According to C. Keith Greer, attorney for the class, Piazza violated all the agreed upon terms.

At the end of the prescribed year, the fund was short by more than $5.4 million.

The day after the fund came up short, Piazza send a letter to everyone involved in the suit, saying Front Sight was no longer obligated to make additional monthly payments because the class action had forced the first mortgage holder on the property to foreclose.

"This is a lie as no one foreclosed on the property on that day or any day since," said Greer.

Piazza's letter also said Front Sight offered to increase its monthly contribution to the settlement fund from 10 to 20 percent.

Greer said bluntly, "That was also a lie."

But Piazza didn't stop there. He told class members they were "forever banned from Front Sight," which was another violation of the terms.

The same day Piazza sent a letter to non-class members, declaring:

"After they attended over 200 Front Sight Courses and pocketed $830,000 out of the first million dollars I paid timely into the Class Action Settlement Fund, the three malcontents and their ambulance-chasing attorney tried to kill Front Sight and terminate your membership by forcing us into foreclosure. So I cut them (and their followers) off at the knees!

"In this letter I reveal all the gory details and show you how the new Front Sight turned the tables on these back-stabbing saboteurs."

According to Greer, "Defendant Piazza also boasts that, in violation of the court order against encumbering the property, he created Front Sight Management II and signed a 99-year lease with the old Front Sight entity, leasing the land, water rights, entitlements, equipment, weapons, licenses, trademarks, copyrights, intellectual property, Internet sites, accounts, etc. Every asset the old Front Sight had is now leased by the new Front Sight entity."

Greer said it is clear Front Sight "violated every aspect of the court order and settlement agreement."

He added that Piazza did so "notoriously" and "in a manner that flaunts disrespect for the law and the judicial system."

Piazza's gorilla marketing technique of sending frequent e-mails with special price offers to prospective members give Greer and his clients easy access to information. They used Piazza's own words as evidence to show the court Piazza and Front Sight have the money to satisfy the settlement obligation.

On December 30, 2008, Piazza e-mailed members saying Front Sight had doubled in students, members and net worth each year for 12 years. He said, "While others are laying off people, we are hiring." He also said Front Sight had been offered a $25 million letter of credit.

Taking Piazza at his printed word, in March, the class asked to have Piazza appear in court with financial documentation Piazza agreed to supply in the settlement agreement.

In fact, Greer asked Piazza to live up to all the stipulations in the settlement, including paying the claims administrator and stopping interference with the membership rights of class members.

Greer also asked the court to order Piazza to stop publishing disparaging remarks about class members.

Ware granted the request, setting the hearing date for date for March 23.

Piazza did not appear, nor did he send any representative to appear on Front Sight's behalf. He did, however, fire his attorney at the last minute, which the judge called an "eleventh-hour dismissal" when he issued an order for Piazza to show cause why he should not be held in contempt of court and subject to sanctions for failing to appear.

That hearing to show cause was held Monday, resulting in Ware's decision that Front Sight had defaulted on its agreement with the class. All assets belonging to Front Sight and Piazza were seized by the court.

An administrator was appointed to run the organization.
 
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#5 ·
:hand1:

Are you kidding me? Sweet? What's sweet about it? Front Sight has trained thousands of people in the proper use of firearms. While their business practices are questionable, their firearms training is top notch!

Love him or hate him, Ignatius Piazza (Front Sight founder) has done a great service to our cause. After 911 he advertised FREE defensive handgun courses for ANY airline pilots that wanted it. After some school shootings he offered FREE courses to any teachers that wanted it. After some church shootings he offered classes to pastors/priests that wanted to carry at a significant discount.

I attended the class earlier this year, and there were people in my class who had NEVER shot a gun before in their life and took the class to "experience something new" (a couple from Seattle, the wife was a better shot than her husband). By the end of the class they were ready to go out and buy their own handguns and were seriously considering getting their CCW's. Going into the class they said that they were in favor of stricter gun control laws, and they made a complete 180 on their gun views during that class. What a great transformation.

If this place shuts down, it will not be sweet. Just the opposite.

-Plop
 
#3 ·
whats so "sweet" about this? another premier firearms training facility is being shut down and being run out of business. The land and equipment will probably be sold off and developed into something else.....
 
#4 ·
According to Front Sight's manager...he knows nuting (use your own Sgt Klink voice), and everything is just great.:rolleyes:

...However, despite the ruling, this weekend at Front Sight everything was "business as usual," according to Operations Manager Rick Morello.

He said he knew nothing about the legal proceedings. "We have a big weekend coming up with a full schedule of classes," Morello said. "Business is booming."...


Sounds like this guy could get a job on the Speaker of the House's staff.:rofl:

I don't think I'd be getting involved with this organization in any way now. It was on my list of "to do's".

Stay armed...be wise...stay safe!
 
#17 ·
According to Front Sight's manager...he knows nuting (use your own Sgt Klink voice), and everything is just great.
You are thinking of Sgt Schultz. Klink was the monocled colonel.

The fact is that every fraudulent business should be exposed, prosecuted and the maximum sentences imposed on the guilty. Some have sympathy because they were in the firearm training business. That makes it even more compelling to administer justice. As gun owners we should respect and uphold the law not flout it for personal interest.

There are plenty of legitimate and excellent trainers that are running their businesses in accordance with the law.
 
#8 ·
I support Front Sight and wish Dr. Piazza well. The firearms training they provide is unbelievably good by any measure. The lawsuit was extremely complex and the situation can't be dismissed as simply some kind of character flaw. Frankly, blasting him and Front Sight in this forum is puzzling. Do folks like us see many defenders of 2A out there? Piazza has done a lot to overcome press bias--do your research; even the NRA says so.

Attending a class at FS is fun, exhausting, tough, but never demeaning, whether you're a beginner or a retired sheriff who is surprised to learn he has a thing or two to learn. Afterwards, you see the world with eyes a bit more open, and you're better prepared to deal with trouble.

This is a really sad situation, and I hope it resolves so that they keep operating. As to Mr. Morello's comment, he's an operations guy and an amazing teacher who flies around the world doing exactly that, often in high places. It's not his business to be a PR flack; he said what he should have.

If you don't like FS or its management, there are other places to take training. But tearing down any firearms training institutions these days, large or small, with or without flaws, seems like, well, shooting yourself in the foot. Which you won't do, by the way, if you take classes at Front Sight.

Rant ended.
 
#26 ·
Not for me!

Cops are trained to run towards bad guys.

I run away from them.

The defensive use of private arms is radically different from the offensive use of public arms / public safety missions.

I want to be trained by private professionals that understand the needs of the private citizens desire to protect him/herself and loved ones.
 
#19 ·
However good is their training, if it done by people with no morality, I am not going to cry over their demise.
I don't believe in people who think they are above the law; crooks !!!

Especially in that line of business, I would think we need people going "by the book" and following the law; otherwise what credibility have they to tell me how I can stay within the laws.
 
#20 ·
Frontsite is always in some shady situations, but i think they are one of the better schools as far as training and that they actually offer deals and discounted classes. Other schools just stick to their OUTRAGEOUS 1500-2000$ classes that the average person cannot afford. Thats a downpayment on a car!
 
#28 ·
Dang, man, where are you looking??? Gomez, Suarez, SNarc, Rogers, and Yeager all run in the +/-$500 range.

On a related note, Piazza was able to offer "discounted" classes because the facility was established with the funds from the original investors- those who sued. If your facility is paid for, and you're ducking creditors, you can run cheapy-cheap.:rolleyes:
 
#21 ·
I have been to Front Sight training a couple times and was extremely impressed with their training. Unfortunately, enough so that my wife and I became lifetime members just last month. Not sure what this news means for us going forward.

There is much more to the Front Sight organization than just the firearms training classes. That was set up to also sell property to establish a resort of sorts and I am hopeful that much of the shady dealings was in that area. I do agree that people responsible for illegal activity should be punished but I am hopeful that the training classes can continue so we can get our money's worth.
 
#24 ·
Oh not just the advertising. That annoyed me, but wasn't what turned me off to Front Sight. It was the virtual slander of basically anyone who disagreed with him. If you haven't had the chance to read what he said about a fellow in South Florida who recently defend himself in a Burger King, do. It's not the first such article he's written like that.


-B
 
#25 ·
My neighbor is a bone cracker too. He also offers discounts, it's called medical insurance. Unfortunately he doesn't hold firearms training classes because he's an anti but if he could make a buck on it.

Piazza must have a clouded financial record for this to happen. What's next ?

No Hijack Intended Here.:buttkick:
 
#32 ·
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?
 
#35 ·
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."
 
#38 ·
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.
 
#40 ·
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!
 
#45 ·
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 :frown:
 
#48 ·
I was there 3 weeks ago - all was normal

I was at Frontsight the week that the "seizure" supposedly happened (May 13 through 19). There were over 425 students there that weekend. All employees were paid on time (according to them) without any changes.

A receiver would be irresponsible if they shut things down, as FrontSight is certainly bringing in lots of cash. A receiver would also have to meet the obligations of the corporation if they could reasonably do so.

So I think that anyone who made a purchase will still be fine. It is taking a VERY long time to get ANYTHING from Springfield Armory these days. When I was there about 30-40 students picked up their XDs that weekend (well, they used them, and arranged to ship them to their local FFL).

This lawsuit is not about breaking laws, it is about breaking a contract. I agree that is not an honorable thing to do, but I also think that the few buyers involved in the lawsuit got "buyer's remorse" and got a (very lucky) attorney to help them out.

Until a week ago the attorney for the former Frontsight members maintained a website that talked about what was going on, and included all of the legal documents issued by the court. That site is gone, and they never showed any court order about the receivership.

The receiver, by the way, has to run things responsibly and reasonably or they too could be in trouble. Generally they would not want to rock the boat, they want to haul in all the cash they can.

As for concealed carry (the real topic of this forum) Frontsight helped me apply for my permits from Nevada, Utah and Florida. As this was just 2 weeks ago I have not received them yet.
 
#50 ·
I was at Front Sight at the time this all happened too (may 13-20). I signed up for the free gun deal and did the four day course plus 1 day ccw. I had a great time, learned much and I received my new gun via FFL in Albuquerque this week!
I have nothing but good things to say about Mr Piazza's operation based on my own personal actual experience. Unless you have been there, I think it unfair to judge!
 
#52 ·
I'm not certain the ariticle is 100% on the level. The Frontsightlitigation website has never reflected anything about Front Sight assets being siezed. I also think it may be unfair to label Piazza as a crook or as being shady, since it was a settlement that they arrived at to avoid further litigation. It was not an admission of guilt.
For the record I am a Front Sight member and when I saw this article I contacted Piazza directly and asked about this article. This is part of his reply.
"Don't be concerned.

You can’t believe everything you see on the Internet.

This is pure BS written by a reporter who was banned from Front Sight after she was convicted of illegally carry a gun into a courtroom."

Like I said I have tried to independently verify the claims in the article and have been unable to do so. If someone else has further evidence that this event actually happened I would be interested in seeing it.

On a side note, frontsightlitigation is now gone. Not sure what that means, if anything.
 
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