Quoted from investingdad:
Can somebody confirm my basic understanding of what's happening?
Kevin took money to build pinballs.
Kevin tried to use IP for the pinball for which he had no license and knew he had no license.
Everyone found this out after Kevin spent some of the money developing pinballs that he was going to sell.
Kevin could not deliver due to the IP fiasco.
The rest of the money was allegedly used for personal items unrelated to pinball.
Kevin cannot refund the money because it's gone...including on non pinball producing stuff.
Kevin attempted to file for bankruptcy to escape the people that wanted their money back.
Bankruptcy was denied because he couldn't produce records that showed he was a legit failed business.
He's now suspected, in Court, of fraud...because he filed for bankruptcy and was denied.
And finally, things are going blow up in his face as the legal path to his undoing is being carefully set out.
Yes and no..
The TL: DR - Kevin thought bankruptcy would save him. Kevin thought he could just do the minimum and things would just go away.. even ignoring court orders. Kevin's request to have his liability wiped out was denied. Kevin is still in chapter7 bankruptcy. KeithMI continues to dig to push to find all the details of the money and where it went.. and is working to claw it back.. so the bankruptcy can actually proceed. Kevin's missteps can still come back to haunt him as the details of the case can expose things to be forwarded for potential prosecution. He could still face charges regarding his bankruptcy filings/activities.
A greater summary...
Kevin starts the project to build predators, but has no license to do so.
Kevin says he has a license to build the games and use the IP - but in fact has no licensing arrangements. He lies about this repeatedly. He possibly thinks he has found some loophole about building a small batch of games and not needing specific licensing arrangements. But he tells everyone he does.
Kevin takes lots of deposits on games based on his prototypes and traveling to shows talking about the project
Time goes by and Kevin struggles to get the prototypes functioning to the sold spec
People continue to question Kevin's model and legitimacy, fueled in part by their lack of progress and plan. Some defend him to no end
Kevin keeps spending and trying to line up partners to source parts needed.. including Cabinets, Ramps, and toys. At least small batches of parts are made.
People start investigating Kevin's claims by going around him to people like FOX and find out he's full of shit wrt to licensing. The general public still lives in denial.
FOX sends Kevin C&D letters.. Kevin wipes the website and net of all his previous stuff mentioning predator. Hysteria starts, Kevin denies problems, tries to keep on without disclosing the problems. Kevin makes up even more stories about paypal, his setup with them, etc.
Finally the 'anonymous' group outs Kevin and backs up their claims. There is a 'run on the bank' and of course no one can get any money back anymore.
When the lies can not hide him anymore, Kevin effectively goes dark and is unresponsive.
Blended in there, there are dubious transactions by Kevin regarding vendors, the parts/games he had, spending, and activity from his close associates/family.
Several owners file civil suits against Kevin. One files a small claims court case and wins. Lawsuit progresses...
Kevin files voluntary chapter 7 bankruptcy... presumably thinking this will make the lawsuits and debts go away. Kevin is conveniently now virtually worthless.. no job, little possessions, etc.
KeithMI works to be appointed to work with the bankruptcy trustee on Kevin's case... and digs to expose the pathetic story of Kevin's claims of no assets, less debts, and more
Kevin is uncooporative in the case, even tho its HIS bankruptcy case.. ultimately leading to a bench warrant being issues for Kevin because he wasn't showing up to court ordered appearances. Finally the US Marshals bring him before the judge. Judge threatens to throw him in jail for his continued lack of cooperation and ignoring the court's orders.
KeithMI exposes enough for the trustee to call into question Kevin's filings and under threat of further action against Kevin due to his dubious filings in his bankruptcy case, Kevin settles in a way that his request to discharge his debts is denied.
While his discharge is denied, he's still in chapter 7 and still has debts. So the trustee+KeithMI are still working to identify all his assets and liabilities.. so the bankruptcy can continue.
Several orders have been signed with regards to clawing back assets Kevin spread around.
So Kevin's assets and what happened to SkitB's monies are still being challenged and forced to disclose by KeithMI on behalf of the trustee. Kevin is still in bankruptcy. The trustee can still forward information it uncovers to the respective authorities for further criminal prosecution. They are still working on finding all the details of Kevin's and SkitB's finances.
The lawsuit against Kevin is on pause while his bankruptcy is under way.