Court appoints Northwest Territorial Mint trustee, creditors to meet May 11

Published 9:03 am Tuesday, May 3, 2016

Following Northwest Territorial Mint’s recent bankruptcy filing, the U.S. Bankruptcy Court appointed Mark Calvert of Cascade Capital Group as the business’s trustee.

Owner Ross Hansen and Northwest Territorial Mint filed Chapter 11 bankruptcy on April 1 after their assets were frozen March 1 following a $38.3 million judgment in a defamation lawsuit, $12.5 million of which Hansen owes.

News of the Federal Way business’s bankruptcy resulted in hundreds of customers looking for bullion they bought or the thousands of dollars they had already spent.

According to the bankruptcy court, Chapter 11 bankruptcies don’t require a trustee unless the judge decides that one is necessary. If a trustee is appointed, the trustee takes control of the business and/or property.

Calvert has 25 years of experience in accounting, financing, operations and consulting, and he’s worked some high-profile cases. One, in particular, stands out: A bankruptcy lawsuit that named Moss Adams, LLP, and Frederick Darren Berg as defendants in “what is believed to be the Northwest’s largest Ponzi scheme in history,” according to a 2011 news release.

In that case, Calvert, who was appointed as the trustee in the bankruptcy of Meridian Mortgage, filed suit to “recover in excess of $150 million for investors.”

While it’s yet to be determined if Northwest Territorial Mint has red flags in their finances or fraudulent business practices, several customers have alleged the business was also operating a Ponzi scheme.

On a website to provide updates on the bankruptcy, existingbuillionorders.com, Calvert announced his intent is to have an initial creditors meeting on May 11 to provide his “initial findings, anticipated time lines and estimated recovery for the customers.”

“I would appreciate your patience until May 11 so I can focus on completing my initial assessment and distribute information to all creditors,” he wrote, adding that the report would be available for download later.

People who ordered bullion online prior to April 1 and had their checks cashed are considered creditors of the Northwest Territorial Mint bankruptcy case. If their checks weren’t cashed, the website states their money will be returned to them in the “near future.”

Creditors should file a Proof of Claim with the U.S. Bankruptcy Court in the Western District of Washington. The existingbuillionorders.com website provides instructions on how to do so.

“If your order was placed on or after April 1, your order will be filled in the regular course of business or we will return your check to you if the specific items are not currently available,” the website says. “Thank you for your understanding and your business.”

While the May 11 meeting will act as an initial meeting, eventually Calvert will ask Hansen a series of question.

“This is the time that a debtor is required to appear before a trustee, the U.S. Trustee,” said Gina Zadra Walton, the Chief Deputy Clerk for the U.S. Bankruptcy Court in the Western District of Washington. “And they ask the debtors questions under oath about the documents they filed at the beginning of the case.”

While Walton said she couldn’t speak to a particular case, she did confirm that any creditors who want to or are able to attend the meeting can do so and may also be able to ask questions about the schedule of events.

She also confirmed the mint has 3,500 creditors.

John Williamson of California is one of them. He’s lost $133,000.

“My God, this is my life savings,” he said in a phone interview.

Williamson invested his inheritance into 10,000 silver rounds for $148,000 back in November. But because the estimated delivery kept getting pushed back “four to six weeks” multiple times, Williamson started to worry.

He continued to call the mint once a week throughout February to ask for a status update, but February turned into March.

“I said, ‘If you could do a partial or something, I have some money and I’m in the middle of building a big barn on a property and it’s sitting there halfway built,'” he said.

The mint sent 1,000 rounds, but Williamson is still waiting on the rest.

“What does John end up with?” he said. “Is there any liability for what they’ve done to me, my wife and family? I have contracts that I can’t pay.”

Walton said it’s possible for a Chapter 11 bankruptcy plan to pay everyone back, as Chapter 11 calls for a reorganization of the business, but each case is determined on a case-by-case basis.

To submit a Proof of Claim, visit www.wawb.uscourts.gov/eclaims.htm.