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Rewind Con Declares Bankruptcy – Are We Shocked?

If you’ve been playing along with us, then you have been watching the saga of Rewind Con unravel.
Rewind LLC, has supposedly declared bankruptcy.
filing-declaration

“We sold nearly 1,500 tickets. We had almost 2,000 tickets that we’d given for free to area businesses, radio, etc for advertising. Knowing what we had out there- we expected at least 3k attendees over the course of the weekend. It didn’t happen. “- Jaymie Lashaway

With expectations like that, it is no wonder this convention failed. They gave away more than they sold and they actually expected more than half of the free ticket holders to show up to a convention that most people knew nothing about.

In my last article, I stated that “it appears that Rewind has made good on many of the checks and is still in negotiations with a few of the celebrities.” Unfortunately, since then, funds have completely dried up and many don’t have their money. On top of that, fans are demanding money back because they didn’t get what they paid for.

rewind

This comes as no surprise to anyone, but I say “supposedly” because no one that I know of (and I have spent hours talking to a lot of fans, agents and volunteers) has received an official notice from any government agency or attorney and no one has been provided a case number. Simply stating, “From this point on, contacting me in any form regarding this debt is a violation of federal laws” does not mean a thing until she has provided people with official information and proof of the filing. It is a scare tactic. Until people receive official notification from the courts, or at the very least a traceable case number, she is responsible for the debt.

Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it must immediately stop all collection efforts. After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks. Creditors will also stop calling if you inform them that you filed the bankruptcy petition, and supply them with your case number. In some cases, you or your attorney should contact the creditor immediately upon filing the bankruptcy petition, especially if a lawsuit is pending. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.

– source: http://www.illinoisbankruptcy.com/faq.html

She has also stated that she has filed a “Chapter 7 Bankruptcy” which is fine and dandy, but it still doesn’t offer much protection to her. Even after the bankruptcy is over, the business owner can still be held responsible for LLC debts if:

1. They personally guaranteed the debts

2. They pledged personal assets (Property) on a loan

3. A creditor eliminates the protection of an LLC by ‘piercing the corporate veil.’ This means that if it can be proved that the LLC was created to provide liability protection for the owner and that the owner and company are essentially one and the same;

Courts will be more likely to pierce the corporate veil, if:

  • Corporate formalities, such as holding annual meetings and keeping minutes, were not followed.

  • Certain owners exerted too much control over the corporation or LLC.

  • Owners commingled personal funds with company funds or used personal funds to satisfy company obligations.

  • The company was not sufficiently capitalized when it was formed.

    -source: http://www.nolo.com/legal-encyclopedia/personally-liable-llc-corporate-debt-bankruptcy.html

Personally, I think the last one might be the undoing for Jaymie Lashaway.

She did however, cover herself from some harassment by referring people to her attorney. At this point, if you are one of the privileged few she sent the letter to, don’t contact her about any moneys owed contact her lawyer.

Women and Children First

Jaymie Lashaway
Jaymie Lashaway

I also love how she continually throws people under the bus, the latest has proven in the above email. Olaf Barbosa, aka Doug Jacques, did not come into this convention until about mid-September. As far as I can tell, he was just there to provide financial backing  [edited per request  12/2/16 at 16:00] as an investor. It didn’t take hims long to realize what he had just stepped into and it seems that is when he stepped forward and took a more active role.

He probably would have been smarter at that point to just back out. Instead of backing out, he got in deeper, so deep in fact that he foolishly made many promises on the last day of the convention that he probably can’t keep and, as a result, he will be saddled with a LOT of Rewind’s debt.

And while she is throwing people under the bus, she has also been playing the “poor me” card on other emails:

As most of you know, I’m a single mom. I’m not a criminal or a fraud as a few of you like to call me. I had a vision for this company, so closing it is not what I want to see happen. I trusted in a team that has fallen short & left me to face this on my own. I will not run-

I want to do what is right, and I will fight every day to do that if you will work with me to get a plan in place. Any advice or help is invited. – Jaymie Lashaway

We have heard that some of you are looking into legal action. To that, all I can do is plead with you- please don’t. I am a single mother. LaKeisha supports her sister, and two nieces. Olaf has a family- we started this to support our families. Being an LLC, if this folds, everyone loses. We don’t want that to happen. We have lots of support, and many want to see this move forward. – Jaymie Lashaway

What Can You Do?

If you feel Rewind owes you any money for the Chicago event that occurred or if you are one that had purchased tickets for the Friends reunion, the Texas event, or anything else they might have been selling, then I suggest you start with your credit card company or Paypal to see if you can get a refund through them. Then you need to sit down and figure out how much you think Rewind owes you and weigh it against the cost of a lawyer and the hassle of getting your money back. If you still want to fight for your money then make sure you are listed on the bankruptcy filing as a debtor or maybe file a separate suit for false advertising (re: the concert).

I strongly suggest you talk to some sort of legal entity so you can determine if it is even worth your time. I know that several of the celebrities are looking at legal action.

Beating a Dead Horse

I’ve been told by some that I am just beating a dead horse, but I’ve had a LOT of people asking me questions about Rewind Con. A lot of people are stressed about getting their money back or just being paid for the work that was promised to them. There are people out there that bought tickets to events that will never happen and they don’t know anything.

 

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