Digital Altitude Receivership over, PMV recovery dropped

The Digital Altitude Receiver has opted not to pursue recovery efforts against Paradise Media Ventures and owner John Souza.

In light of that being the last outstanding action for the Receivership, the Receiver has filed for discharge.

As a merchant provider to Digital Altitude, Paradise Media Ventures (PMV) was paid $600,000 in early 2018.

The company soon realized it had overpaid PMV $300,000, and requested a reversal of the $600,000 transfer.

PMV’s bank refused the reversal, and Souza (right) ghosted attempts by Digital Altitude to get him to send the overpayment back.

In the meantime Digital Altitude was shut down by the FTC, and a Receivership appointed.

Upon learning of the dispute, the Receiver filed a
$515,000 clawback lawsuit
against PMV and Souza.

Souza defended the clawback motion, essentially arguing he was entitled to keep the stolen consumer funds.

The court denied the Receiver’s motion, recognizing there was a legitimate dispute that would need to be resolved via additional litigation.

To that end the Receiver explored the possibility of pursuing a civil case against PMV and Souza in Georgia.

Ultimately however, cost-benefit analysis saw the Receivership abandon the idea.

As stated in the Receiver’s March 11th Motion to Discharge;

PMV was apparently to have been paid $600,000 in settlement, but according to the Receiver’s calculations received $1,105,000 in settlement payments plus $10,000 in settlement-related overpayments.

The Receiver demanded return of the funds, but Mr. Souza, PMV’s principal (through his counsel) disputed the Receiver’s demand and the Receiver filed a motion to compel turnover which this Court denied (determining that the matter was subject to legitimate dispute).

The Receiver also sought, and was granted, authority to be reappointed to allow the Receiver to give notice of his appointment in Georgia for purposes of pursuing litigation there against PMV.

The Receiver made repeated attempts to settle the matter both before and after the turnover motion was brought and denied, but to no avail.

In the course of those efforts, Receiver prepared a Complaint for filing in the State court in Georgia, and presented it to counsel for PMV.

However, after conducting an extensive cost-benefit analysis with respect to bringing the litigation, without any engagement at all from PMV concerning its willingness to discuss potential settlement, and without waiver of any rights or interests any of the Receivership Entities may have with respect to the matter, the Receiver has determined that it is not in the best interests of the receivership estate to move forward with litigation in Georgia against PMV.

In an email received by BehindMLM yesterday, Souza incorrectly asserted the case was dropped

as they had no case and understood that if they attempted to pursue it they would most probably end up losing my countersuit.

You really believe that they did a cost benefit analysis and decided against it?

Come on

🤖 Quick Answer

What happened with the Digital Altitude Receiver's legal action against Paradise Media Ventures?

Why did the Receiver initially pursue legal action against PMV?
Digital Altitude overpaid Paradise Media Ventures $600,000 in early 2018, discovering an excess of $300,000. After the reversal request was denied by PMV's bank and Souza failed to respond, the appointed Receiver filed a $515,000 clawback lawsuit against both parties.

What was Paradise Media Ventures' role in the Digital Altitude case?
Paradise Media Ventures operated as a merchant service provider to Digital Altitude, receiving a $600,000 payment in early 2018. The company later

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