FORT LAUDERDALE (CelebrityAccess MediaWire) — The outlook for investors left holding the bag when Jack Utsick's Worldwide Entertainment came apart has become slightly less bleak, or so says the court-appointed receiver, Michael Goldberg.
In an August 24th letter sent to investors, Goldberg has stated that after an examination of remaining assets, said investors would be likely to recover no more than 30% of their allowed claims.
It has been a busy Summer for Goldberg. His firm filed suit against Utsick's former assistant Lynn Chong and her husband for actions in connection with the allegedly unlawful transfer of $5 million dollars worth of receivership funds to her own accounts for personal use. A settlement in which Chong and her husband handed over "substantially all of their assets, including $1.4 million held in various bank accounts, a waterfront house purchased for 1.4 million a BMW automobile, and 24,000 in cash and artwork.
Goldberg also pursued the case with Australian promoter Michael Chugg. Goldberg states that discovery of a forensic accountant's analysis of Worldwide's books indicated that Chugg appeared to have wrongfully kept millions of dollars in venue rebates that properly belonged to the partnership, thereby defrauding Worldwide investors. Goldberg claims that after repeated efforts to meet with Chugg to negotiate a settlement failed, that he lodged suit against Chugg's company seeking the allegedly missing funds.
Goldberg asserts that Chugg utilized Worldwide money to invest in three different festivals, two that failed and one successful. Goldberg is intending to file suit seeking ownership interest in the successful festival. Goldberg also states, perhaps ominously for Mr. Chugg, that he intends to notify U.S. and Australian authorities of the apparent financial misdeeds. – CelebrityAccess Staff Writers