April 30, 2014

The Honorable Christine M. Arguello

United States District Judge
United States District Court for the District of Colorado
Alfred A. Arraj U.S. Courthouse
901 19
th
Street
Denver, Colorado 80294
Re: SEC v. Mantria Corporation, Troy B. Wragg, Amanda E. Knorr, Speed of Wealth,
LLC, Wayde M. McKelvy, and Donna M. McKelvy, United States District Court
for the District of Colorado, Case No. 09-cv-02676 CMA-MJW
1. Pursuant to my appointment as Receiver and paragraph 54 of this Courts April
30, 2010 Order Appointing Receiver (Order), the following report (Sixteenth
Quarterly Report) sets forth a summary of the tasks that I have undertaken since
the filing of my Fifteenth Quarterly Report dated December 31, 2013, regarding
the Receivers efforts to identify, secure, and maximize the recovery of various
receivership assets, complete the forensic accounting of the various receivership
entities, and manage the estate.
2. This Sixteenth Quarterly Report discusses: (1) activities related to the disposition
of personal property held by the Receivership Estate; (2) the status of tax filings
and liens; (3) other issues that the Receiver wishes to bring to the Courts
attention; and (4) the litigation claims of the Receivership Estate.
I. CONCLUSION
3. Since early November 2010, the Receiver has limited the scope of his work at the
direction of the Court and the SEC to focus on the following tasks: (1) pursuing
litigation against the Gatekeepers; (2) clearing title to the Receivership Estates
real estate holdings; (3) negotiating and facilitating the sale of property; (4)
addressing any pertinent tax and regulatory inquiries and notices; and (5)
Case 1:09-cv-02676-CMA-MJW Document 388-1 Filed 04/30/14 USDC Colorado Page 1 of 4
2
conducting data analysis, reconciliations, and summarizing the results of the
Receivers forensic accounting investigation.
II. COMPENSATION AND QUALIFICATIONS
4. The Receiver is being compensated for this engagement at his standard hourly
rate of $320, plus normal reimbursable expenses. The payment of his
professional fees and expenses, while not contingent up his findings, opinions, or
the outcome of this matter, is subject to the approval of the United States District
Court for the District of Colorado in Case No. 09-cv-02676 CMA-MJW.
5. The Receivers First Quarterly Report presented his curriculum vitae at Appendix
A, and the Receivers prior testimony at Appendix B. There have been no
substantial changes to these documents since the filing of the Receivers First
Quarterly Report.
III. DATA AND OTHER INFORMATION RECEIVED.
6. Please see Appendix C to the Receivers First Quarterly Report which contained
a non-exhaustive list of the documents the Receiver reviewed and/or relied upon
in conducting his analysis.
IV. STATUS OF REAL ESTATE PROPERTIES HELD BY RECEIVERSHIP
ENTITIES OR MORTGAGED BY MANTRIA FINANCIAL, LLC.
7. Receiver noted that are numerous other properties (unrelated to the properties
under the Receivers direct control) that were sold in Van Buren County,
Tennessee. Some of these lots did not sell and are currently being held by the
county. Current economic conditions have severely depressed the prices in this
area and will continue to hold prices down in the foreseeable future. This fact,
coupled with the taxes due on the property, has created difficulties in selling the
property.
8. It is likely that many of these properties will be sold in a county sale to collect
taxes. In limited circumstances the Receiver may pay taxes on certain of these
properties. However, it is not in the economic interest of the Receivership Estate
to pay taxes on most of these properties, as they exceed their fair market value.
V. THE RECEIVERS PLAN FOR SALE OF THE PERSONAL PROPERTY
HELD IN THE RECEIVERSHIP ESTATE
9. The Receiver has accepted an offer for the plant real estate and the equipment.
The buyer is still conducting his due diligence. Once that is complete, the
Receiver will be petitioning this Court for approval of such a sale.
Case 1:09-cv-02676-CMA-MJW Document 388-1 Filed 04/30/14 USDC Colorado Page 2 of 4
3
VI. TAX ISSUES INVOLVING THE RECEIVERSHIP ESTATE
10. The Receiver and his tax counsel are negotiating with the IRS and other taxing
entities to resolve outstanding tax issues related to the Receivership estate.
VII. THE LITIGATION CLAIMS OF THE RECEIVERSHIP ESTATE
11. As of the date of this Sixteenth Quarterly Report, a settlement has been reached
by the parties in the Receivers litigation against Astor, Weiss, Kaplan & Mandel,
LLP, Christopher Flannery, Krassenstein & Unger, LLC, Steven Granoff, Rink
and Tatum Consulting.
12. This settlement also includes the Class Action Plaintiffs who brought claims
against Christopher Flannery, Astor, Weiss, Kaplan & Mandel, LLP, Estill &
Long, LLC, Steven Granoff, Krassenstein, Granoff & Unger, LLC, Carbon
Diversion, Inc., Tracs Growth Investment, SFN Group, Inc. Rink and Tatum
Consulting.
13. The parties completed the Global Settlement Terms and filed them with this Court
on or about February 10, 2014. On March 18, 2014 a hearing regarding the final
issues regarding the Class-action Settlement and the disposition of the
Receivership Estate was held in front of this Court.
VIII. THE CURRENT ECONOMIC STATUS OF THE RECEIVERSHIP
ESTATE
14. As of March 31, 2014, the Receivership Estate had approximately $496,000 in
cash on hand. This is down from the $513,000 that the Receiver had on hand at
December 31, 2013.
15. The Receiver has made every effort to minimize his fees and expenses while
fulfilling his duties under the Receivership Order and will continue to do so.
16. Given (1) uncertainty that continues to surround the historical operations of these
companies; (2) the substantial amounts that were invested that currently remained
unaccounted for; (3) the large amount of claims against the estate; and (4) the
estates the real estate holdings, the Receiver believes that the receivership should
continue.
17. The Receiver believes that actions he has undertaken to date have been reasonable
and necessary for the administration and benefit of the Receivership Estate and
are consistent with the guidance received from both the Court and the Securities
and Exchange Commission. The information provided herein is based on the
Receivers review of the documents and may change should additional
information become available.
Case 1:09-cv-02676-CMA-MJW Document 388-1 Filed 04/30/14 USDC Colorado Page 3 of 4
4
Sincerely yours,
John Paul Anderson, CPA, CFA
Senior Director, Alvarez & Marsal Dispute Analysis & Forensic Services, LLC
Case 1:09-cv-02676-CMA-MJW Document 388-1 Filed 04/30/14 USDC Colorado Page 4 of 4