And how many more will there be?
Who is Robert Wiltgen? From InvestorsHub.com:
According to Wiltgen, Taylor, Russell and John met on several occasions to discuss how the investment was going including John being a guest of the Armstrongs in their suite at the Grammy Awards. Wiltgen said that he was told all was going very well.
Wiltgen was asked to provide his professional services as the Armstrongs wished to renovate “their” Beverly Hills mansion on Sunset Blvd. It eventually came to light to Wiltgen that the Armstrongs actually did not own the house that was the topic of renovation discussion. Apropos, we spoke with Philip Elghanian, a real estate entrepreneur in L.A. and (at that time) owner of the property referenced in the lawsuit. Mr. Elghanian informed us that Russell Armstrong had approached him about investing in MyMedicalRecords.com and – with the first $50,000 he gave Russell – he believes he was one of the first investors in the upstart company. In total, Elghanian supplied roughly $240,000 to Armstrong as investment in MyMedicalRecords.com. After the original settlement agreement between MyMedicalRecords.com and the Armstrongs in 2007, Elghanian holds about 800,000 shares of MMRF.
According to Elghanian, Taylor and Russell Armstrong wanted to purchase a Beverly Hills property that he had listed and were in a rush to get going on renovation. Elghanian gave them the keys and a contract to sign with terms involving cash and shares of MyMedicalRecords.com. Elghanian stated that a signed contract was never returned to him, but the Armstrongs began renovations which included the destruction of five marble mantels that were removed in what Elghanian described as part of “gutting the interior of the house.” When Philip asked the Armstrongs to leave, he says that he was served by a sheriff with claims from the Armstrongs that he wouldn’t let them in the house (for which they still had the keys according to Elghanian). Elghanian said that the Armstrongs demanded $75,000 to cover their expenses, which included $50,000 that they had already paid to their interior designer (John Wiltgen). Money that Wiltgen confirmed he never received. Looking to simply exit the situation after speaking with his counsel regarding fees to fight the case, Elghanian said he paid the Armstrongs the $75,000 “just to get them out.” Although it certainly cannot be proven, Elghanian stated that he believes that the Armstrong’s actions with the house were premeditated. Elghanian, who had the house listed at $7.5 million, eventually sold the house for $5 million to a different buyer more than two years later.
Back to Wiltgen. The terms for his interior designing services included John receiving 10,000 shares of MyMedicalRecords.com. The shares were to basically act as a retainer for $20,000 worth of professional services. Cash was supposed to be paid to Wiltgen once the $20,000 worth of share value was exhausted, which it eventually was. Cash the Armstrongs never gave him. Moreover, Wiltgen never received the original 10,000 shares of MyMedicalRecords.com from Russell. These are the shares that served as a portion of the catalyst for the recent lawsuit for the liquidated damages that were agreed upon in the original settlement agreement.
To date, Elghanian and Wiltgen each said that they are still holding their shares of MMRF. Neither of them has much nice to say about Taylor or Russell Armstrong. Safe to say that they both feel similar to Wiltgen’s mild summary of, “In my opinion, the Armstrongs did not represent themselves accurately. They’re very convincing.”
Something tells me there are many stories that mirror John Wiltgens’ tale. Stay tuned
Taylor Armstrong’s jury trial is set for July 11, 2012.