FT. LAUDERDALE, FL (CelebrityAccess MediaWire) — Six months after being appointed receiver of Jack Utsick and his business entities and partnerships, Michael I. Goldberg released his second report on July 19th, in which he details a lavish pension-skimming scheme orchestrated by a now-deceased partner.
Goldberg’s report focused mainly on the business practices of Utsick, partners Robert and Donna Yeager, Worldwide Entertainment and Jack Utsick Presents, as well as his various television, movie and performance interests.
But one large section of the 66-page report, following details of the Yeager’s personal assets and business ventures, as well as a description of the couple by Goldberg as being “extremely cooperative in assisting the Receiver,” investigates the relationship of Utsick’s entities and a scandal involving a pension custodian, Sheri DiSalvo.
According to Goldberg, the Yeager’s advised him of business transactions with DiSalvo and her company, American National Pension Services, and the suspicion that she and ANPS had misappropriated IRA funds that were to be invested into Worldwide Entertainment’s entities through the pension company.
Yeager informed Goldberg that from approximately 1990 to 2004, DiSalvo operated a company called Group Benefit Specialists, Inc., where she served as pension administrator. Yeager and Utsick were put in touch with DiSalvo as they looked for ways to facilitate investments by a growing number of investors looking to invest IRA and 401K funds in their businesses.
Originally, DiSalvo would receive referrals from Utsick and Yeager, and arrange for those investors to forward their IRA accounts to her company’s account. She would then transfer the funds to one of their business accounts in order to make investments in the entities. DiSalvo continued to administer investor funds through GBS and ANPS until shortly before her death in August of 2005.
The Yeagers told Goldberg that they suspected DiSalvo of skimming money from ANPS, The Entertainment Group Fund, Inc. and Worldwide, because her wealth seemed to have grown dramatically in proportion to her commission on the transactions.
Goldberg details in the report a series of real estate purchases in her last few years, totaling more than $5 million in value, and said the Yeagers estimated her assets had grown from $20 million to $30 million in the time they knew her.
Sarah Simmons, a close friend of DiSalvo’s, had also informed the Yeager’s that she had additional knowledge of possible illegal activity, and might have documentation in the form of computer data.
Simmons began working at ANPS at DiSalvo’s request, and witnessed “several events which made her skeptical of DiSalvo’s wealth and was concerned that DiSalvo was embezzling funds from Worldwide and TEGFI and their investors,” the report states. Apparently, Simmons routinely handled wire transfers of large sums, and in one example, transferred $2 million less than DiSalvo reported to Utsick.
Additionally, Simmons told Goldberg that she had witnessed DiSalvo purchase millions of dollars in real estate, cars, and jewelry, but did know how she could afford these luxury purchases based on her reported income. According to Simmons, ANPS serviced IRA accounts for only 1,000 investors, and received an annual $250 fee for each account, resulting in a total of only $250,000 company profit per year.
Lastly, Simmons stated that she remained closed to DiSalvo until her death in 2005. On her deathbed, Simmons told Goldberg, DiSalvo had asked whether she would go to hell for what she had done.
Computer records from the company have been seized by a forensics team for examination.
While the reports of Utsick’s multiple homes and vehicles and luxury lifestyle may crowd the headlines, it may be his friends in low places that eventually lead to the entertainment mogul’s troubles. According to Goldberg’s conclusion, this report is far from the end of his investigation into the companies and all assets.
Full details of the receiver’s report and creditor information can be found at entertainmentgroupinfo.com. –by CelebrityAccess Staff Writers
