}

Sunday, October 29, 2017

FROM BIO-CHAR TO BAT GUANO: Part 1 Of An Exclusive Three-Part Exposé Series

“Cultiv 1260 Hyper Inoculate is the most powerful soil biology ever developed.”

WHO IS REALLY BEHIND SUPER BIO LLC? 

Robert Buckhannon plead guilty on August 1, 2017 in United States District Court in Las Vegas, Nevada, to one count conspiracy to commit wire fraud. 

Buckhannon’s sentencing, originally scheduled for Halloween (October 31), has been pushed back to November 13, 2017 to allow Buckhannon’s attorneys to “research, prepare and file the appropriate Objections to the Revised Presentence Investigation Report and Sentencing Memorandum” on his behalf. 

According to court documents filed in his case on October 24, 2017 in Buckhannon’s federal hedge fund fraud case, attorneys representing Michigan’s “crooked chiropractor” did not receive the Revised Presentence Investigation Report until late in the day on Monday, October 23, 2017. 

Buckhannon’s objections were due the next day (Tuesday, October 24, 2017), spurring the request for a delay in sentencing. 

However, a new business Buckhannon’s brother, Ronald Buckhannon, founded in South Carolina on May 18, 2017—SuperBio LLC—may keep Robert Buckhannon busy until he surrenders to Club Fed’s Grey Bar Hotel. 

SuperBio LLC, founded by Ronald Buckhannon and South Carolina resident, Sebastian Runza, launched an ecommerce site in July 2017 to sell a line of “organic fertilizers” under the name “Cultiv 1260”. 

Described on the site as an “international horticulture nutrient company with a large scale of crop production and remediation”—a jaw-dropping claim for a company less than six months old—Cultiv's products are pitched as “innovative fertilizer biocatalysts that enhance plant health and nutrition to help professionals in the agriculture, turf and ornamental industries get the most out of their plant nutrition programs.” 

And the roots of this product line? 

SuperBio LLC cites Peru as its unlikely inspiration:

We studied and lived in Peru and our products are inspired by iconic Machu Picchu, which encapsulates some of the sophisticated ingenuity behind the Incan civilizations’ agricultural practices and irrigation techniques. 

Cultiv is dedicated to producing the safest and most effective growing products that will keep your plants and grow operation producing fast results for many years with low maintenance, just like this fascinating wonder of the world in the Andes Mountains. 

On the the Cultiv site, SuperBio LLC continues its near-mythic origin story: 

Our story began 20 years ago working humanitarian development in Central and South America. The process of land reclamation with the United Nation’s Mine Action Program and Mine Victim Assistance paved the road to increased agricultural development and increased yield programs. Our programs opened the eyes of the world to the hardships faced by impoverished indigenous Andean culture. Sustainable agriculture above 10,000 feet seemed nearly impossible in the arid windscaped land high in the Andes. 

However 500 years earlier, Inca culture supported a thriving community in Cusco and Machu Picchu, what was their secret?
 

In the quest for the cup, a long-lost chalice from Inca kings, historians and researchers gathered evidence of agricultural techniques as well as residue from communal compost and Bio-Char where bacteria and fungi have grown and steeped for millennia. 

This residue, a Bio catalyst known as Cultiv is the building block and foundation of 500 years of agricultural development. Long before Fertilizers and pesticides existed, Inca culture was thriving in some of the most inhospitable areas growing abundant food.

What? 

“Long-lost chalice from Inca kings”, “humanitarian development in Central and South America” and Bio-Char? 

So how did Ronald Buckhannon and Sebastian Runza find the cash to fund this project when another deal the duo collaborated on—the August 2008 sale of a Costa Rican condo to a Wisconsin man—ended with a $323,668 judgment that remains unpaid? 

Or is there a different explanation, and another “money man” in the family? 
COSTA RICAN CONDO SWINDLE 

In an Affidavit In Support Of Entry Of Default filed on September 21, 2009 (shown above), Wisconsin resident Keith Schmidt detailed his experience with Grupo Real Siambon, S.A., the company SuperBio's Sebastian Runza formed in South Carolina as Grupo Real Siambon, Inc. on February 2, 2007, later registering it in Costa Rica. 

Schmidt’s case was filed on July 27, 2009 in United States District Court in Wisconsin’s Eastern District against Runza and William E. Marvin. While SuperBio partner Ronald Buckhannon was not named as a party in the Wisconsin civil action, he did sign (as a personal “guarantor”) a formal $260,000 repayment agreement executed on November 24, 2008 with Schmidt, Runza and Marvin. 

In a September 21, 2009 affidavit, Keith Schmidt described the six-figure swindle: 

1. I am the plaintiff in this action having entered into an agreement with Grupo Real Siambon, S.A. for the purchase of real estate in Costa Rica. 

2. On August 5, 2008 I entered into an agreement with Grupo Real Siambon, S.A. for the purchase of real estate in Costa Rica. I paid the sum of $260,000.00 for the purchase of real estate to Grupo Real Siambon, S.A. but was never granted title to the real estate. 

3. Between November 22, and November 26, 2008, I entered an agreement for repayment with Grupo Real Siambon, S.A. and its principals, Sebastian Runza, William Marvin and Ronald Buckhannon to obtain return of the $260,000.00 owed. The agreement provided for interest at the rate of 6% through February 9, 2008. 

4. On March 3, 2009 counsel acting at my direction and on my behalf demanded payment of the balance of $260,000.00 plus interest at 6% for a total of $267,234.55 payable by March 15, 2009. No payment was made. 

5. Pursuant to the agreement for repayment, I am entitled to enforcement costs including reasonable attorney fees pursuant to paragraph 2 of the agreement, together with default interest at the rate of 11% pursuant to paragraphs 1 and 4 of the agreement for repayment. 

6. No payment has been made on the outstanding balance although due demand has been made and numerous promises for payment have been made. There is now due the sum of $260,000 plus $19,857.13 interest for a total of $279,857.13. 

On September 25, 2009, in U. S. District Court for Wisconsin’s Eastern District, Keith Schmidt was awarded a $323,668.70 against Runza and Marvin.  (It is unclear why Ronald Buckhannon, although listed as a partner and a guarantor of the $260,000 debt, was not named as a party in the civil action.)

Later that year, on December 11, 2009, Schmidt filed a formal “Notice of Filing of Foreign Judgment” in the Court of Common Pleas for Charleston County, South Carolina. 

Although the Notice was personally served on Runza, he failed to respond within the time required. 

On February 5, 2010, Schmidt filed an entry of default against Runza, and the judgment became enforceable according to South Carolina law. 

In addition, the judgment became a lien on any real property titled in Runza’s name in in Charleston County that day. 

According to documents filed in the matter in Charleston County’s Court of Common Pleas on July 21, 2017, Fidelity National Title Insurance Company paid Schmidt $100,000 to resolve a claim that his judgment was a first lien on an Isle of Palms, South Carolina property owned by Runza. 

Runza sold the Dunescape Villa property on June 25, 2010 in a $555,000 short sale, and had claimed all liens against the property had been discharged, except for one that favored him. 

Prior to September 25, 2009, Runza was the owner of the Isle of Palms condo, and had three mortgages against the property: a first mortgage to Pinnacle Financial Corporation securing a $997,500 loan; a second mortgage to Regions Bank securing a line of credit up to $275,760.00 and a third mortgage to Joyce Eagle in the amount of $200,000.00. 

On July 21, 2017, Fidelity National Title Insurance Company filed a complaint against Sebastian Runza in Charleston County’s Court of Common Pleas on seeking recovery of the $100,000 it paid to Schmidt, plus pre-judgment interest. 

Mediation proceedings in the matter are set to begin in Charleston County on February 16, 2018. 
SAILING AWAY TO KEY LARGO 

In the meantime, Ronald Buckhannon apparently walked away from the Schmidt deal unscathed, although he did sign this repayment agreement:

RECITALS: 
A. Definitions. The following terms are defined and incorporated in the provisions which follow, together with the balance of these Recitals: 

1. “Agreement” will mean this Agreement for Repayment. 

2. “Schmidt” will mean Keith W. Schmidt. 3. “Guarantors” will collectively mean Sebastian Runza, William Marvin and Ronald Buckhannon, jointly and severally. 

4. “Subject Real Estate” will mean condominium unit #20, together with rights appurtenant thereto, in Jaco Beach, Puntarenas, Costa Rica, a/k/a Macaws Ocean Club. 

5. “Offer” will mean that accepted Offer to purchase the Subject Real Estate signed by Schmidt, as Buyer, and GRS, as Seller. 

6. “GRS” will mean Grupo Real Siambon. 

7. “Schmidt’s Payments” will mean the sum of Two Hundred Sixty Thousand Dollars ($260,000) which was paid to GRS by virture of deposits in the account of Guarantor, Sebastian Runza, on its behalf. These deposits are agreed to have been wire transferred to an account in South Carolina in his name in the amounts of One Hundred Fifty Thousand Dollars ($150,000), Fifty Thousand Dollars ($50,000) and Sixty Thousand Dollars ($60,000), with the last of these being made on or about October 9, 2008, or a total of Two Hundred Sixty Thousand Dollars ($260,000). 

B. The Offer provided that Schmidt’s Payments would be held in an escrow account until closing. 

C. Through discussions between the parties, it was agreed that Schmidt would make Schmidt’s Payments directly to the account of Guarantor, Sebastian Runza, to be exclusively used for closing on the Subject Real Estate. 

D. Such wire transfers were made and the funds were not used for, or did not accomplish, a release from Improsa Bank or any other lender having a mortgage interest in the Subject Real Estate for the Offer has not been concluded. 

FOR A VALUABLE CONSIDERATION, receipt of which is acknowledged, it is agreed as follows: 

1. Payment Guarantee 
GRS and Guarantors jointly and severally guarantee payment to Schmidt of Two Hundred Sixty Thousand Dollars ($260,000), plus six percent (6%) interest from and after October 9, 2008, in the even there is not a successful closing on the Subject Real Estate on or before the last day of February, 2009, or at such earlier date as GRS and/or the Guarantors have secured an additional financing facility which they have represented has been applied for and may be made available at an earlier date. 

2. Liability for Keith’s Payments 
In the event the funds are not paid or there is not a successful closing by the earliest of times specified above, or in the event of revocation as provided in Paragraph 3 below, then earch of the Guarantors and GRS shall be liable for payment to Schmidt of Schmidt’s Payments, plus interest, plus costs of enforcement, including a reasonable attorneys’ fee, regardless of whether or not Schmidt’s claim is pursued to judgment. 

3. Right of Revocation 
Notwithstanding the above provision, in the event that Schmidt, in his sole judgment, believes that GRS and/or the Guarantors are not proceeding in good faith to accomplish closing on the Subject Real Estate or refund of Schmidt’s Payments, then Schmidt may provide written notice to GRS and the Guarantors demanding the reund of all Schmidt’s Payments, plus interest, costs and attorneys’ fees, be paid on a date not earlier than five (5) days following such notice. 

The notice for demand of payment may be made by email or facsimile to Attorney Alvaro Masis, as agent for receipt of GRS and the Guarantors, in which case all amounts shall become immediately due and payable five (5) days from transmission. 

The rights provided to Schmidt under the terms of this Agreement shall not limit or abridge any other rights at law or equity which Schmidt may have, all of which shall survive the execution and delivery of this Agreement. 

4. Event of Default 
In the event of default by GRS and/or Guarantors under the terms of this Agreement, the interest will accrue at a rate equal to five percent (5%) above the rate otherwise specified above. 

5. Governing Law 
It is agreed that the terms of this Agreement shall be governed in accord with the internal laws of the State of Wisconsin and, at the option of Schmidt, the courts of the State of Wisconsin shall have subject matter jurisdiction over enforcement, and the circuit court of any county in Wisconsin is acknowledged to be a proper venue for any such action. 

6. Execution 
This Agreement shall be deemed binding if executed by all parties within four (4) business days of the first party to sign. The parties agree that facsimile signatures, or a signature attached to an electronic file, such as a “pdf” file, shall have the same binding impact and legal effort as though affixed to an original. 

On October 23, 2015, Ronald Buckhannon paid $265,000 for this mobile home in Key Largo, Florida.

You'd think he'd have better things to do with his money, like pay his debt to Keith Schmidt.

In Part 2 of the series, “FROM MACHU PICCHU TO MICHIGAN”, a look at Cultiv's product line and SuperBio LLC's previously secret Michigan connection.

Coming Monday, October 30.

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