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Elio Motors Appealing $500k Fine
- Thread starter booboo
- Start date
Maurtis
Elio Addict
I think he meant page F-26 of the 11/13/2018 filing:
"
Litigation
On July 10, 2017, the Louisiana Motor Vehicle Commission (the “LMVC”) determined that the Company was in violation of certain state laws by operating as a manufacturer and dealer without a license. The LMVC entered a judgement against the Company for a total amount of $545,000; $272,500 for not having a manufacturer's license and $272,500 for not having an automobile dealer's license. The LMVC ordered the Company to obtain both licenses to manufacture and deal in Louisiana and to place all refundable reservations into a trust account within 60 days of the LMVC’s decision, or face a daily fine of $5,000. While the Company does not believe the judgement obtained by the LMVC was valid and has since filed a petition for judicial review, it has recorded the accrued liability of $545,000 as a general and administrative expense in the accompanying Statement of Operations for the year ended December 31, 2017.
A hearing was held May 15, 2018, and the court found the penalty imposed against the Company by the LMVC to be excessive and reduced the fine to a total amount of $76,500; $38,250 for not having a manufacturer’s license and $38,250 for not having an automobile dealer’s license. The Court ordered the Company provide proof of its establishment of a trust account into which all amounts collected for refundable reservation payments are deposited and proof of the deposits into such account within 60 days, or face an additional daily fine of $1,000. The Court further ordered that the Company is assessed the cost of the legal proceedings, including the LMVC’s Attorney Fees. The Company has appealed the ruling and has reduced the accrued liability from $545,000 to $76,500 during the 2nd quarter of 2018. On July 12, 2018, the Company purchased an appeal bond in the amount of $76,500 in order to satisfy the requirements of the appeal."
RSchneider
Elio Addict
Just click on the latest SEC filing
TexasTesla
Elio Addict
For obvious reasons, Elio Motors has worn out it’s welcome in Louisiana.
Paul Elio made numerous production timeline promises, and none of them turned out to be accurate.
His credibility in Louisiana is probably permanently tarnished.
Paul Elio made numerous production timeline promises, and none of them turned out to be accurate.
His credibility in Louisiana is probably permanently tarnished.
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Made in USA
Elio Addict
My question about the lawsuit really was a follow up to what ever happened to the appeal? Did they have it? Is it still being appealed?
The blog and SEC filings do not indicate that the matter has been resolved.
The blog and SEC filings do not indicate that the matter has been resolved.
RSchneider
Elio Addict
It's still under appeal. At least it's much less than the original judgement.
Did they already have the appeal hearing? Yes, and they are appealing it again.
When is it supposed to happen? Don't know, but they are trying to get it knocked down to $0
Will they win? No one knows, but they will keep appealing it till it goes away.
Well Coss, at least we can say they're not totally "idle" at the moment because EM's got their hands full fighting penalties, appealing judgments, etc. Hopefully they can still turn things around and get this ELIO to production....not to just keep the dream alive!
They are working every day on finding funding, that is the first priority.
I talk to them on a fairly constant schedule, and ever time I call, Paul is out there "pounding on backers"
So it's not dead by any means, they are trying as hard as they can.
I've tried to get them to say something public, and it all comes back to SEC rules.
So I keep trying, one day the sun will shine (on Elio)
RSchneider
Elio Addict
Elio has lawyers to take care of the $76,500 fine. Paul and the rest are not involved in that as they are not lawyers. Right now it's just funding and that will only happen when the funding floodgates open. When they open, Elio will make a press release before they tell anyone as per the SEC rules. All we can do is wait.