[26-Mar-2020] Philip's 341 Creditor Meeting - When what should be 5 minutes becomes an eternity.

[actually]

And even if they do check into him and skim some of his streams because he's so shady looking (and he is), they're not going to go watch decades of footage for specific breakdowns of how long he played each game and what in-game purchases he made while doing so. The time and motivation just aren't going to be there for what amounts to chump change in the big picture. Phil explained to the court that he's a video game streamer by trade and told them that those game microtransactions, every single one, are business expenses, and that's probably going to be accepted without a fight. I'd love to be proven wrong on that one because it'd be absolutely hilarious if he gets raked over the coals for being hopelessly addicted to Bejeweled: Scantily Clad Men edition, but I just don't see that actually happening.

Similarly, no one's going to say that he's got too many games or consoles, or the wrong ones, or that he's not being efficient enough in parting out his less-used gaming inventory once he might be done with it. Yeah, sure, some streamers only ever play Minecraft and spend very little as a result, but that's not what Phil does and no one's going to shout angrily at him in a courtroom that he needs to be more like some other streamer. He has a stockpile of underused gaming equipment he could realistically liquidate, but his entire schtick is regularily playing new games while being a clown and begging for pennies, so he's not going to catch any heat for games that he's bought and not yet sold off. And arguably he shouldn't. There's laws against outright fraud, but there's absolutely nothing illegal about being bad at your job and making poor financial decisions. It's not a crime to be an abject failure.

I think you'd be right, except that he claimed $9000 in business expenses in July 2019. He bought no equipment that month. He bought 4 games, costing a total of $170. His "business internet" line is $200. He needs to come up with $8630 more in direct business expenses. At the very least, the trustee ought to be asking what the nature of the microtransactions was to determine their validity. If he says he dropped $5000 on WWE Champions microtransactions, he sure as shit better be able to show that he was "creating content" related to it. Naturally, he can't.

The main reason I think she might look more into them than she normally would is 1) she clearly has been fed information from somewhere, based on her listing off specific consoles and 2) his claimed expenses are how he's meeting the Chapter 7 income requirement. Showing that his business expenses are vastly inflated will allow either outright dismissal or conversion to Chapter 13.

 

[Coldbeyond]

Also, Phil never said that he stopped using credit since October, he only said he was aware he was insolvent since he started talking to Rochelle. It was only implied by the imposter Mr. Ellis.

https://youtu.be/mlLD1psuycM?t=2028
33:50 "yeah no I did not make any purchases on credit after my initial conversation with my bankruptcy attorney"

31:20 "we met in October and upon the initial discussion with my bankruptcy attorney I was told at that point completely discontinue use of all you know lines of credit and I did"

 

[Schrödinger's Kat]

And arguably he shouldn't. There's laws against outright fraud, but there's absolutely nothing illegal about being bad at your job and making poor financial decisions. It's not a crime to be an abject failure.

Yes, Phil is entitled, as a business owner, to blow as much of his revenue as he chooses on his business even if it drives him into a loss. There is technically nothing wrong with that.

But as far as bankruptcy goes, you can't do that. You can't just buy whatever you want for months or years, especially on intangible products, and then file for bankruptcy and tell the court you expect to continue this frivolous behavior afterwards. He has to prove that those expenses are "ordinary and necessary", and microtransactions that drive you into a loss, whether or not you even stream them, are most certainly not ordinary and necessary.

As I've argued in previous posts, its more than likely that Nancy and the bankruptcy court will consider his game purchases as capital expenses, as they are technically reinvestments in the business and are increasing his inventory of games. These game purchases do not reduce his income because they increase the value of his company by an equivalent amount (which is why Nancy asked about "ownership" of games). What does reduce his income are things like Business Internet service, running his shitty "kingofhate" website, PayPal transactions fees, and if had one, a second, business-only cell phone plan. That's about all he can "write off" for the O&N expenses.

 

[architect]

I think you'd be right, except that he claimed $9000 in business expenses in July 2019. He bought no equipment that month. He bought 4 games, costing a total of $170. His "business internet" line is $200. He needs to come up with $8630 more in direct business expenses. At the very least, the trustee ought to be asking what the nature of the microtransactions was to determine their validity. If he says he dropped $5000 on WWE Champions microtransactions, he sure as shit better be able to show that he was "creating content" related to it. Naturally, he can't.

The main reason I think she might look more into them than she normally would is 1) she clearly has been fed information from somewhere, based on her listing off specific consoles and 2) his claimed expenses are how he's meeting the Chapter 7 income requirement. Showing that his business expenses are vastly inflated will allow either outright dismissal or conversion to Chapter 13.

Dave buys/redeems all his games digitally now so what the trustee needs to do is to request the payment history of his PSN, Xbox, Steam and Switch Online accounts and compare them to his Paypal account charges. It's the only way she can effectively filter out business-related game purchases with the mobile game charges he most likely will try to disguise as "microtransactions", especially if he's doing funny stuff with debit cards / gift cards / vouchers.

 

[actually]

Dave buys/redeems all his games digitally now so what the trustee needs to do is to request the payment history of his PSN, Xbox, Steam and Switch Online accounts and compare them to his Paypal account charges. It's the only way she can effectively filter out business-related game purchases with the mobile game charges he most likely will try to disguise as "microtransactions", especially if he's doing funny stuff with debit cards / gift cards / vouchers.

Those would also have any deposits of those giftcards he's gotten from fans on occasion as well, right? Cause that would be useful for determining which game purchases he actually had to pay for.

 

[ReentryPhantom]

I hope that everyone eagerly anticipating DSP getting nailed to the wall for his mobile gaming addiction are prepared for a big letdown. As funny as it would be, it's probably not going to happen. Remember that no one involved in his bankruptcy is likely to ever watch any of his streams or read literally thousands of pages of autistic breakdowns in some openly oddball internet forum.
And even if they do check into him and skim some of his streams because he's so shady looking (and he is), they're not going to go watch decades of footage for specific breakdowns of how long he played each game and what in-game purchases he made while doing so. The time and motivation just aren't going to be there for what amounts to chump change in the big picture. Phil explained to the court that he's a video game streamer by trade and told them that those game microtransactions, every single one, are business expenses, and that's probably going to be accepted without a fight. I'd love to be proven wrong on that one because it'd be absolutely hilarious if he gets raked over the coals for being hopelessly addicted to Bejeweled: Scantily Clad Men edition, but I just don't see that actually happening.

Similarly, no one's going to say that he's got too many games or consoles, or the wrong ones, or that he's not being efficient enough in parting out his less-used gaming inventory once he might be done with it. Yeah, sure, some streamers only ever play Minecraft and spend very little as a result, but that's not what Phil does and no one's going to shout angrily at him in a courtroom that he needs to be more like some other streamer. He has a stockpile of underused gaming equipment he could realistically liquidate, but his entire schtick is regularily playing new games while being a clown and begging for pennies, so he's not going to catch any heat for games that he's bought and not yet sold off. And arguably he shouldn't. There's laws against outright fraud, but there's absolutely nothing illegal about being bad at your job and making poor financial decisions. It's not a crime to be an abject failure.

He is totally fucked though, just not for those reasons. What is going to fuck him is that even though he's making six figures but is so bad at running his business that he's still declaring bankruptcy, somehow every single one of his expenses and costs magically line up perfectly with the value of his overpriced condo in a way that will allow him to keep his home and change absolutely nothing about his life or his habits. That shit will come under scrutiny really fast, in a way that no one's going to be willing to drop until they're completely satisfied.

If he was telling the truth about the home's value, he'd probably still be okay, lies about his mobile gaming addiction and all. But he lied about the wrong thing, the thing everyone is looking for every time someone files their papers. And now he's about to find out that he turned what would have been him getting handwaved through the system into the system putting a rubber glove and reaching all the way up his ass.

I'm serious. If he comes out of this unscathed, I'm fucking done following him. There is nothing that will take him down.

 

[kiwirevolving]

delusionalsydephil

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Someone should link the retard (Phil) the court's transcripts once they get released

 

[DiabeticSP]

the dx triple h character is actually kinda unique, I don't know if this applies to all dx wrestlers, but I activated the dx free subscription and you get him for free, he's super strong, especially if you have just started

you get a lot of shit to upgrade him and you kinda get baited into upgrading him, "he's strong so why not", that's what you think

a few weeks or a month later, the dx subscription expires and you can no longer use him unless you pay to renew the sub

How many subs does the game have?

 

[Agent Proper]

Nancy has information. She was asking about his micro transactions and his subscription services, she asked about WWE Network and Phil panicked thinking she said Champions and we got his lawyer repeating the question and Phil let out a big "Oh, WWE Network... that is not business related". I wonder if his WWE Champions transactions are on one of those statements and Phil thinks he dodged a bullet when Nancy has him nailed because she just connected that WWE items aren't business related.

 

[QuadDamage]

The main reason I think she might look more into them than she normally would is 1) she clearly has been fed information from somewhere, based on her listing off specific consoles and 2) his claimed expenses are how he's meeting the Chapter 7 income requirement. Showing that his business expenses are vastly inflated will allow either outright dismissal or conversion to Chapter 13.

I sincerely hope you're right. I'm not kidding when I say I'd love to be proven wrong about this. If the mobile gaming addiction was not only verified, but became a matter of public record for legal reasons as the cornerstone of his entire empire crumbling out from under him? That's some funny stuff right there.

Yes, Phil is entitled, as a business owner, to blow as much of his revenue as he chooses on his business even if it drives him into a loss. There is technically nothing wrong with that.

But as far as bankruptcy goes, you can't do that.

Oh I agree, Phil has long since crossed the line from being bad at business into being a scamming shyster committing blatant fraud. I'm not arguing that he's legit. My sticking point is that I don't think the court will have the motivation to prove it in this case, because there's a flimsy but real-looking excuse hiding what's a really pathetic amount of fraud. If it was millions of dollars and Phil had a bunch of employees he was laying off because he spent all of their last paychecks on a yacht and a home in another country for himself, they'd for sure tear into him and not let go until there was nothing left.

But Phil's legacy is really really really small and sad all things considered. It's actually kinda pathetic how little Phil has to show for everything, and how much he's really gambling on what the courts consider chump change. The amount of money at stake might not be enough to bother exploring beyond the hollow shell he's put up.

He's risking destroying the last positive part of his sad little empire, and legally proving he's fleecing his idiot fanbase. And he's risking loing the only thing of value he really has to show for it all. And he's doing it for what amounts to peanuts because he can't stop chasing those oily sweaty bois.

I guess time will tell. It'll be interesting one way or another.

 

[I'mPushingButtons]

I'm just surprised the fake CitiBank guy was able to call in, stir the pot, and get away with everything since it was illegal.

They even called him out on it, but then immediately stop pressing.

Yeah, I thought it was really weird that the judge did not contact any of the creditors on the filing to give them a chance to vet themselves before they go on a public call, considering the circumstances. I will give Phil credit that if the Citi Bank guy was misrepresenting himself then that is pretty fucked up for a court to allow that.

Regardless, I think Phil's lawyer may have learned alot about Phil in the 341 meeting. Who knows what bullshit Phil was feeding her when they were doing their filing. She could have thought Burnell Productions was a real company and Phil really ran a business that cost that much in expenses. It is not much of a stretch if she has represented people in the gaming industry since it is Seattle. To her it was probably just quick paperwork and a meeting with CEO Phil Burnell. She may have assumed Phil was competent and did not ask him too many questions. Now she may have realized she has a guy who is half a million in debt, hiding income in paypal accounts, misunderstanding what a accountant and a tax attorney is, potentially attempting to defraud multiple banks by abusing their credit lines on gacha games, potentially going to be audited, and 100% on a payment plan with her.

She is probably going to be asking for that money up front now.

 

[Nurse Ratchet]

delusionalsydephil

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I'm staring at these caps & all I can think about is how this 300IQ valedickhead turbobrain streamer is too fucking stupid to not end a sentence in an adverb.

 

[BrunoMattei]

delusionalsydephil

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The hilarious part is when they deny his bankruptcy and he gets triple fucked by the taxman and his creditors.

 

[An Avenging Bird]

Let's say my prediction comes true that he's kicked to Chapter 13 and ordered into a repayment plan, during which after perhaps a year or so Phil decides he's had enough and tells the government in his patented charming way to go fuck themselves and that he has no more money to give them. And he actually stops paying.
Can the fuck be thrown into the slammer then?
Please.

 

[Salubrious]

https://youtu.be/mlLD1psuycM?t=2028
33:50 "yeah no I did not make any purchases on credit after my initial conversation with my bankruptcy attorney"

31:20 "we met in October and upon the initial discussion with my bankruptcy attorney I was told at that point completely discontinue use of all you know lines of credit and I did"

What about 32:09?

Am I misinterpreting his weasel words (would have made) or is DSP literally claiming that after October he was still buying his groceries on credit?

Or is DSP talking about the purchases between mid-April and October?

DSP's entire defense seems to be "I didn't buy anything big to hoard so it's okay."

 

[TankMelee]

Let's say my prediction comes true that he's kicked to Chapter 13 and ordered into a repayment plan, during which after perhaps a year or so Phil decides he's had enough and tells the government in his patented charming way to go fuck themselves and that he has no more money to give them. And he actually stops paying.
Can the fuck be thrown into the slammer then?
Please.

Before any jail time, the trustee can enforce payments by garnishing income, by co-opting his income from YouTube, Twitch, and possibly PayPal (and probably teespring too).
i.e. Nancy shouts into the courtroom, "Why aren't you paying?! You want me to manage your finances for you?!"

 

[Lover_of_Horses]

What about 32:09?

Am I misinterpreting his weasel words (would have made) or is DSP literally claiming that after October he was still buying his groceries on credit?

Or is DSP talking about the purchases between mid-April and October?

DSP's entire defense seems to be "I didn't buy anything big to hoard so it's okay."

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The person asking the questions specifically asks about the purchases made on credit AFTER the realization he was insolvent. Mr. Debt Purchaser inquires as to whether Phil still has the property acquired after utilizing credit after October. DSP's reply includes groceries, which while not property, are still not meant to be purchased using credit. With the given information from that clip, it is safe to say that Phil continued to use credit after October.

You're not misrepresenting what was admitted to the court. For what it's worth, liars have a difficult time remembering what story they've concocted to cover their trails. There's conflicting information with DSP's finances, and that should be all the trustee requires to take further action.

 

[BallBuster]

The person asking the questions specifically asks about the purchases made on credit AFTER the realization he was insolvent. Mr. Debt Purchaser inquires as to whether Phil still has the property acquired after utilizing credit after October. DSP's reply includes groceries, which while not property, are still not meant to be purchased using credit. With the given information from that clip, it is safe to say that Phil continued to use credit after October.

You're not misrepresenting what was admitted to the court. For what it's worth, liars have a difficult time remembering what story they've concocted to cover their trails. There's conflicting information with DSP's finances, and that should be all the trustee requires to take further action.

Interesting point. I’d love to see those grocery bills. What are the chances they are like $4-500 each because he has iTunes gift cards on them? The credit card bill won’t itemize what he bought, just show the final charge from Fred Meyer so he can just claim he bought food.

 

[But I Digress]

Before any jail time, the trustee can enforce payments by garnishing income, by co-opting his income from YouTube, Twitch, and possibly PayPal (and probably teespring too).
i.e. Nancy shouts into the courtroom, "Why aren't you paying?! You want me to manage your finances for you?!"

She can literally give him an allowance like a child. it'll be based on what's reasonable and not based on his lifestyle of choice.

 

[QwahlityKahntent]

delusionalsydephil

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fucking moron actually thinks the hearing went well for him