James Anthony Wimmer represented to a number of people, including me, that he had access to steeply discounted airline tickets from American Airlines and all carriers that they partnered with to provide both domestic and international flights. Wimmer had supplied small numbers of domestic airline tickets to my family since 1994. Wimmer approached me in December 2002 with a proposal to sell tickets in larger numbers. Several people, including me, tested Wimmer by purchasing small blocks of tickets and securing flights for people in January and February 2003. After two months of Wimmer successfully fulfilling flights, Flydlux.com, Inc. was established in March 2003 to broker the purchase and sale of airline tickets.

Wimmer was paid for more than 3,000 undelivered domestic roundtrip “Y” class coach tickets that were receipted by him to Flydlux.com, Inc. He was also paid for more than 500 undelivered international roundtrip “Y” class coach and smaller number of first class tickets that were receipted by him to Flydlux.com, Inc.

Before launching Flydlux.com, Inc., Wimmer provided Finkelstein with sworn statements claiming assets in excess of $10 million. Wimmer engaged in numerous phone conversations with Lawrence E. Finkelstein and others between June and October 2004, all of them legally recorded, in which he repeatedly affirmed that he would deliver the tickets or reimburse all persons who paid Flydlux.com, Inc. or Wimmer or Wimmer’s agent, Lida Travel, Inc. for undelivered tickets. Wimmer estimated that he may owe us all as much as $1.2 million in restitution.

Wimmer never provided the tickets or the reimbursements. Finkelstein engaged the services of attorney George M. Conner III to obtain one or the other. Conner engaged in negotiations by phone with Wimmer from October 2003 until late January 2004. Wimmer and attorney Richard H. Rosenblum assured Conner that a written settlement agreement secured by verifiable assets would be concluded in early January. It never happened.

On January 22, 2004, Conner filed a Petition for Involuntary Bankruptcy against Wimmer in the United States Bankruptcy Court, Northern District of Texas, in Ft. Worth, Texas. That venue was chosen because Wimmer made his home in Arlington, Texas for over a decade. Also, that was where he did business with American Airlines. Case No. 04-40762-7 was assigned to Judge D. Michael Lynn.

Wimmer negotiated a Settlement Agreement that he executed and submitted to Conner on March 21, 2004 that included the following provisions:

3. WIMMER shall make restitution to all persons who invested in or made payment for the purchase of undelivered airline tickets from Flydlux.com, Inc., hereinafter referred to as Flydlux, Champion Recruiters, Inc. and/or LEF.

A. Flydlux, LEF and WIMMER will cooperate with one another and make diligent efforts to identify and contact all qualified claimants due restitution pursuant to the terms of this Paragraph.

B. Each such claimant shall present reasonable proof of such claim for restitution based upon payment for such undelivered airline tickets unless otherwise provided for herein.

C. Upon the establishment of such proven or admitted claims, WIMMER accepts full and sole responsibility for such claims and shall make restitution to each such claimant as soon thereafter as is practicable.

4. WIMMER shall make restitution to all persons connected with or referred to him who invested in or purchased undelivered airline tickets from either WIMMER, or, Lida Travel, Inc., acting in her capacity as agent for WIMMER from December, 2002 until October 31, 2003.

B. Each such claimant must present reasonable proof of such claim for restitution based upon payment for such undelivered airline tickets unless otherwise provided for herein.

C. Upon the establishment of such proven or admitted claims, WIMMER accepts full and sole responsibility for such claims and shall make restitution to each such claimant as soon thereafter as is practicable.

When Wimmer learned that the Settlement Agreement could not be adopted by the Bankruptcy Court unless it was submitted to all of his creditors for approval, he elected to return to court and contest the involuntary bankruptcy petition. When it finally came to trial, after two days of testimony, Judge Lynn entered the following order in the Wimmer bankruptcy on May 25, 2004: “the court having considered the testimony and other evidence presented by the petitioning creditors and the arguments of counsel, it is ordered, adjudged and decreed that relief should be, and hereby is, granted as to the named debtor, and this case shall proceed under chapter 7 of title 11 of the United States Code.”

Wimmer was ordered to file a comprehensive schedule of all assets, debts and creditors by or before June 9, 2004 and attend a first meeting of creditors on July 7, 2004. He did neither. Shawn K. Brown, the bankruptcy trustee, filed a Motion to Compel Debtor to Comply With Debtor’s Duties to File Schedules Pursuant to Section 541of the Bankruptcy Code, and for Sanctions. That motion reads, in part, as follows:

2. The Debtor has not filed a list of creditors, a schedule of assets and liabilities, a schedule of current income and current expenditures, and a statement of the debtor’s financial affairs as required by Section 521(1) of the bankruptcy code. Further, the Debtor has failed to file the statement of intention required by Section 521(2).

3. The first meeting of creditors was originally set for July 7, 2004 at 2:00 p.m. The meeting was rescheduled to August 31, 2004 at 4:00 p.m. due to the Debtor’s failure to file the documents required by Section 521. The Trustee discussed the requirements with the Debtor on July 6, 2004, and advised the Debtor that failure to file the documents would result in a motion to compel the filings. During that conversation, the Debtor assured the Trustee that he would seek counsel and would comply with his duty to file the required documents. To date, the required filings have not been made. The Trustee has not received any further contact from the Debtor or any counsel for the Debtor. No counsel has appeared in the case on behalf of Debtor since the order for relief was entered.

4. The failure of the Debtor to file the required documents has caused the Trustee to file this Motion, to postpone the meeting of creditors, and will require the Trustee to seek additional time within which to file any objections to the discharge or dischargeability of debts. As such, the Debtor has failed to cooperate with the Trustee as necessary to allow the Trustee to perform his duties pursuant to Section 521(3) of the Bankruptcy Code.

5. Due to the Debtor’s knowing and flagrant disregard of this Court and the duties imposed by the Bankruptcy Code, the Trustee requests that the Court impose appropriate sanctions on the Debtor…”

The Trustee’s motion is set for hearing before Judge Lynn on September 2, 2004. It seems likely that Judge Lynn will act forcefully to require Wimmer to provide the Trustee with the cooperation required by law.

Soon, Wimmer will be required to attend the first meeting of creditors. When he does, he will be placed under oath and required to answer questions from the creditors in attendance. All of us will be able to purchase the official tape recording of that proceeding.

Flydlux.com, Inc. has no assets other than the undelivered tickets for which Wimmer has repeatedly taken full responsibility. The involuntary bankruptcy action seeks to hold Wimmer to that responsibility. This site will continue keeping you posted.

Please remember that all of the employees of Flydlux, including me, were wiped out financially and emotionally by Wimmer’s actions. We will not desist until he has been brought to justice. While we ask your forgiveness, we require your patience and cooperation.

Sincerely yours,
Lawrenc

e E. Finkelstein

All documents filed by the debtor are available online at www.txnb.uscourts.gov.