The CON Accounting : A Research Thread

[Steel Magnolia]

Dearest Exhale,

I'd like to dedicate this thread to our favorite super sleuth @RebellionSparkles who has some very important questions regarding the CON accounting.

On 5/25/2022 at 5:31 PM, RebellionSparkles said:

And…just because I’m not sure where to post this…all the new nasty tabloids coming out about B, do you think this means new accounting docs are out that the CONs now have access to? Like the 13th account current? (Accounting for 2020)? Do you know when that is supposed to be due?

this pic is what made me think this could be true…that $80,000 isn’t from any of the old accounting docs.

The next accounting hearing is July it makes sense that new docs are becoming available to the teams, but maybe not the public yet.

 

On 5/26/2022 at 1:43 AM, RebellionSparkles said:

Can anyone else not sleep because the new court docs reminded them that Britney’s accountings report “net cash”—a fake accounting term, and that term is never defined by the court??

anyone? Anyone? No..just me??

NET CASH?! NET OF WHAT??? NET OF STUFF THEY DIDNT WANT TO REPORT TO THE COURT? NET OF CHEEZITS?

NET CASH IS NOT NET INCOME

Can anyone help answer these burning questions? Jump in!

With Love, 

Steel M.
xoxo

[Steel Magnolia]

I wonder if the answer to the meaning of "net cash" might become more obvious when reading Andrew Wallet's 2013 description of how he interfaced with the various CON players? Those players include Lou M. Taylor.

His description was attached as an exhibit to his June 10, 2018 request for a raise.

Key Dates:

Nov. 20, 2013 - A “Declaration of Andrew M. Wallet In Support of Fee Modification” is submitted to the probate court. Within the document, Wallet claims that, "Throughout the conservatorship, Declarant has been intimately involved in every facet of the Conservatee's financial life and has been continuously involved in matters pertaining to her person." He says that he "continues to actively manage the various business interests, the professionals such as the manager, business manager, entertainment lawyers, litigation counsel, investment advisors, family law counsel, assets, finances, and the many business interests of the Conservatee. Over the course of more than five (5) years, Declarant has instituted multiple protocols by which the conservatorship estate operates and which have proven to be beneficial to the Conservatee. By way of example, and not by way of limitation, at the planning stages of the Circus Tour, the Declarant instructed entertainment counsel to spread the risk of the Conservatee failing to fulfill her duties on tour because of some third party providing illegal substances. The financial stakes were high and failure was not an option. Declarant insisted that all contracting parties with the conservatorship estate, (there were hundreds of contracts), would sign consents [redacted] long as they were involved with the tour, [redacted] agree to liquidated damages and confidentiality [redacted] acknowledgments of their responsibilities to have [redacted] was greatly concerned at the planning stages for the Circus Tour, that the many hundreds of vendors, drivers, dancers, hair stylists, performers, etc. could bring financial disaster to the tour by providing illegal substances to the Conservatee. That protective environment involving literally hundreds of people, who also assumed the risk if they acted improperly. That protocol greatly reduced the risk of financial failure and personal harm to the Conservatee. The same protocols were employed for the second tour and now for the Las Vegas residency." Wallet claims that "The conservatorship estate [redacted] plus the non-liquid assets, as previously stated. The "bad'' and incompetent people previously involved in the Conservatee's personal and business life, have been swept out as a result of Declarant's utilizing and urging the use of various legal actions, his terminating people's employment, resolving disputes, resulting in eliminating liabilities, debts and various threats to the conservatorship estate and the person. It has been a full time job for months at a time in order to get things under control and productive." Further, Wallet says that "Throughout the conservatorship, Declarant has been continuously engaged in the business affairs of the conservatorship estate, including interfacing with entertainment counsel, reviewing all contracts (hundreds), negotiating terms, resolving legal and business issues, interfacing with the manager, interfacing with the business managers, interfacing with Mr. Spears, interfacing with Ms. Wyle and Ms. Cohen and interfacing with Mr. Ingham among many others. Business matters include three tours, recording contracts, producer contracts, merchandise deals, branding deals, royalties, real estate, world wide trademarks, etc. Declarant has had extensive involvement with managing and directing multiple disputes and complex litigation. The conservatorship estate business affairs are quite extensive and complex, requiring a high level of expertise and prudent decision making."

June 10, 2018 - Co-Conservator Andrew Wallet asks the probate court for a substantial raise. He is approved, and begins receiving $426,000 per year for his work.

[Applejack]

just saying this, but ever since the first account, all the documents have all the signs of money laudering. They make up terms that don't exist, don't clarify stuff, assets disappear from one accounting to reappear two years later and then disappear forever without explanation, lots of vague terms, lots of "this is not part of the conservatorship" or excuses such as "it's too complex to calculate her music royalties...despite this being made by a supposedly big accounting firm that should be able to at least hire someone to do that", whatever shenanigans were happening to her trust that "wasn't part of the conservatorship" but jamie and wallet were definitely in control of the trust assets (britney companies).

[RebellionSparkles]

 

[RebellionSparkles]

41 minutes ago, Applejack said:

They make up terms that don't exist

The made up accounting term enters the third/fourth account current. IMO it was DIShon Goetz’s idea because the CONs could not get their accountings passed the court’s extremely lenient accounting review—they had to restate the second account current 4 times. Goetz is the only accounting expert in the CON—she changed the rule by allowing a fake accounting term to make it impossible to prove the court (she) was involved in their wrongdoing.

41 minutes ago, Applejack said:

assets disappear

Yup. $7-$8mm disappear after the sale of one of B’s house—this has to do with the Love Shack Trust. The BJS SWAT Team did a good job finding this one.

 

41 minutes ago, Applejack said:

lots of "this is not part of the conservatorship

Yup “this is not part of the conservatorship” is their way of laundering money out of AB’s estate but they clearly have no problem spending money outside of the estate. They had full access to all of B’s money through asset backed debt…im surprised their is anything left in The SJB Trust.

 

41 minutes ago, Applejack said:

it's too complex to calculate her music royalties

This is beyonddd a lie, especially with the earned royalty income…they have to report normal net income (a real acct term) to the IRS for taxes every year; they actually had to do MORE work to report this nonsense “net cash” accounting.

”The undue burden” of reporting real accounting numbers was the reason Goetz introduced the fake accounting term “net cash”—a deceision Goetz made after close door meetings because the CONs could not get their accountings approved by the probate court clerk accounting review.

^^keep in mind the probate court acct review is EXTREMELY lenient (and they STILL couldn’t get it approved without making up fake accounting rules).

48 minutes ago, Applejack said:

but jamie and wallet were definitely in control of the trust assets (britney companies)

Yup. Bridgemore Timber looks like the entity through which the money was laundered. Also the $50mm loans in Tangipahoa Parish adds another suspected accomplice, Mr. Jamie Lynn Watson.

[Steel Magnolia]

3 minutes ago, RebellionSparkles said:

Yup. Bridgemore Timber looks like the entity through which the money was laundered. Also the $50mm loans in Tangipahoa Parish adds another suspected accomplice, Mr. Jamie Lynn Watson.

Mr. Jamie Lynn Watson.

This is a good reminder that I need to add those $50-million loans to the Chronological Timeline.

Does anyone recall which research thread they're all posted in?

[Steel Magnolia]

20 minutes ago, RebellionSparkles said:

The made up accounting term enters the third/fourth account current. IMO it was DIShon Goetz’s idea because the CONs could not get their accountings passed the court’s extremely lenient accounting review—they had to restate the second account current 4 times. Goetz is the only accounting expert in the CON—she changed the rule by allowing a fake accounting term to make it impossible to prove the court (she) was involved in their wrongdoing.

Do we have access to all of the accounting in a single folder? Or is it spread out throughout the Law Library?

I'm assuming the third account current starts around October 10, 2012?

This is the era of the Brand Sense lawsuit. Interesting.

Key Dates:

Mar. 20, 2011 - Brand Sense Partner, LLC sues Britney for $10-million. “Britney secretly made a separate deal with Elizabeth Arden in a sneaky underhanded effort to circumvent and evade its obligations to Brand Sense,” the suit states. “Brand Sense had a contractual right to a 35% commission on any Britney Spears-branded fragrance sold by Elizabeth Arden,” the suit claims. “But Mr. Spears complained that the commission was too high and said that Britney did not want to pay it.” A compromise deal was orchestrated, which would have delivered royalties directly to Britney.

Feb. 17, 2012 - Britney settles her lawsuit with Brand Sense Partners LLC, paying the company commissions for a period of years, in addition to a lump sum.

[RebellionSparkles]

1 hour ago, Steel Magnolia said:

Can anyone help answer these burning questions? Jump in!

 

1 hour ago, Steel Magnolia said:

the meaning of "net cash"

At this point, I think the fake accounting term "net cash" is purposely not defined.  the reason I bought so many dam documents was going on a wild goose chase trying to find their definition...NET of what??

"What is Gross vs Net? Gross means the total or whole amount of something, whereas net means what remains from the whole after certain deductions are made." https://corporatefinanceinstitute.com/resources/knowledge/accounting/gross-vs-net/

If you don't define the deductions, the term in meaningless. All we know for sure is that the CONs reported only some of B's cash inflow.

In contracts, even when using standard accounting terms (which the CONs are not), you go through great care to clearly define the term. The WEG contract is a perfect example...here they are using "Gross receipts," an industry standard accounting term that everyoneee knows what it means...yet still the term is explicitly defined in the contract. <--This is always how its done. 

[Steel Magnolia]

3 minutes ago, RebellionSparkles said:

If you don't define the deductions, the term in meaningless. All we know for sure is that the CONs reported only some of B's cash inflow.

Ah. This is where Ingham first started to give hints that he was thinking of "going rogue" near the end of 2019.

Ingham sent an email to James' lawyers asking for the percentage that each group involved with the CON was making. He claimed it was so that he could figure out how much cash that B had on hand so that he could help her plan her holiday. 

I suspect what he was really doing was trying to gather ammunition...Because by the end he was able to dig up this:

========================

Nov. 12, 2019 - Lou M. Taylor emails James Spears to address the 5% commission that Tri Star Sports & Entertainment Group receives for their business management services. Since Britney is no longer working, Taylor requests, "...a floor of $500k a year." 

July 21, 2020 - Jeryll S. Cohen e-mails court-appointed attorney Samuel Ingham to state that the initial contract with Tri Star is not available because documents dating back to the early years of the conservatorship have not been digitised.

 

[RebellionSparkles]

35 minutes ago, Steel Magnolia said:

Mr. Jamie Lynn Watson.

This is a good reminder that I need to add those $50-million loans to the Chronological Timeline.

Does anyone recall which research thread they're all posted in?

in this thread...and this one has a summary and link to the discussions

https://exhale.breatheheavy.com/forums/topic/804460-following-the-money-pre-conservatorship-a-research-thread/?do=findComment&comment=17409017

[RebellionSparkles]

5 minutes ago, Steel Magnolia said:

Ingham sent an email to James' lawyers asking for the percentage that each group involved with the CON was making. He claimed it was so that he could figure out how much cash that B had on hand so that he could help her plan her holiday

which filing is this?

[Steel Magnolia]

58 minutes ago, RebellionSparkles said:

which filing is this?

I'll post it in this thread when I can find it...I came across it near the end of the Ingham research thread.

It made me realize that Ingham wasn't after the Tri Star contract in particular.

Ingham was after the percentage that all of the players were making...It just so happened to be the Tri Star contract that became the bone of contention, and which gave him the ammunition to make a power move.

[Applejack]

3 hours ago, RebellionSparkles said:

This is beyonddd a lie, especially with the earned royalty income…they have to report normal net income (a real acct term) to the IRS for taxes every year; they actually had to do MORE work to report this nonsense “net cash” accounting.

But were they even reporting it correctly? I kinda doubt. Wasn't there gonna be a Sony royalty audit in 2008 per requested by Britney in 2007 that we never heard the results of? 

Wallet was even deposed by the MJ Estate (Hello Jerylls!) for IRS stuff too.

I wouldn't doubt that there was something shifty going on.

[JayTawndre]

@Steel MagnoliaDarn! Calm down with these hit threads 😂!!!

You always have the receipts you, @Ghouliaand @RebellionSparkles

Y'all are close to Brit I know this! These receipts would be WAY too hard to find. I ain't mad at y'all. I Stan 

[Steel Magnolia]

4 minutes ago, JayTawndre said:

@Steel MagnoliaDarn! Calm down with these hit threads 😂!!!

You always have the receipts you, @Ghouliaand @RebellionSparkles

Y'all are close to Brit I know this! These receipts would be WAY too hard to find. I ain't mad at y'all. I Stan 

 

You're too kind...I have no idea about the background of my colleagues, but I'm just a regular stan who is a legal researcher for a living, so I'm used to working for lawyers and having to dig up documents from various archives. 

However...

I have thought about what would happen if I ever actually got to meet Britney...I think I'd probably have a meltdown, make her super uncomfortable, and get ejected from the room by security like Marta.

 

[RebellionSparkles]

18 minutes ago, Applejack said:

But were they even reporting it correctly? I kinda doubt

100% agree - There a clear inconsistencies on how they report year to year. I swear, Rosengart just needs to ask Hon. Penny to clearly define this fake accounting term "net cash," make the information public, and then release the stans on the accountings. 

[RebellionSparkles]

23 minutes ago, Steel Magnolia said:

.I have no idea about the background of my colleagues, but I'm just a regular stan who is a legal researcher for a living

I'm a financial researcher!

I got deep into the CON bc i was shocked at how bad the financial records were (AKA the CON accounting). If the business of Britney were a public company, that you could buy/sell in the stock market, the CONs would have been outed in 2011.

I worked 10 feet away from one of the top financial analysts covering the Caesar's bankruptcy and Planet Hollywood deal--Britney's Vegas residency was a focal point. I hope there is another timeline in the universe where I didnt stop stanning Britney cirque FF and the information of the CON became public knowledge much earlier.

[RebellionSparkles]

28 minutes ago, Steel Magnolia said:

I have thought about what would happen if I ever actually got to meet Britney...I think I'd probably have a meltdown, make her super uncomfortable, and get ejected from the room by security like Marta

I've thought about this too, but my reaction would be opposite...Britney and me prob would never be friends because she's not going to want to talk about Britney as much as I want to. 

But IF she's ever on stage again 

[Applejack]

2 hours ago, Steel Magnolia said:

I'll post it in this thread when I can find it...I came across it near the end of the Ingham research thread.

It made me realize that Ingham wasn't after the Tri Star contract in particular.

Ingham was after the percentage that all of the players were making...It just so happened to be the Tri Star contract that became the bone of contention, and which gave him the ammunition to make a power move.

it's the opposition to the tweltfth accounting

 

https://drive.google.com/file/d/1ae0XGtcKi4VOSHQR6RWNnrZhTxR_6qVc/view?usp=sharing

[Steel Magnolia]

7 minutes ago, Applejack said:

it's the opposition to the tweltfth accounting

 

https://drive.google.com/file/d/1ae0XGtcKi4VOSHQR6RWNnrZhTxR_6qVc/view?usp=sharing

Thank you!

You're right...It's Exhibit B.

========================

From: Samuel Ingham
Sent: Monday, December 23, 2019 12:59 PM
To: 'Geraldine A. Wyle'; Jeryll S. Cohen
Subject:

Good morning, Geri & Jeryll -

Hope you are both enjoying the holiday season.

I'm writing to follow up on our previous discussions of the 2020 budget.
My client wants to start planning her travel for early next year and we
need to know what funds will be available.

It would also be very helpful if you could provide a list of all
individuals and firms currently being paid by the conservatorship and its
entities as percentages. Ideally this would include the name, percentage,
fee basis and contract expiration date.

Finally, I'm wondering if you have been able to check into alternatives
for the production team on the next record album.

Thanks and best regards,

Sam