Over a seven year period, PCF distributed over $63 million to investors more than the NFL blind pool ever earned. Where did the money come from?
In early 2007, Point Center froze NFL redemptions. Yet it continued to make semi regular distributions.
Point Center disputed the numbers at trial. Their CFO Gwen Melanson offered testimony and corresponding exhibits designed to downplay the information they themselves provided the IRS under penalty of perjury.
The exhibits attempted to obfuscate the data by introducing "accrued income" into the math to give the 'appearance' of reducing the shortfalls on paper. The flaw is that the accruals did not represent actual cash earned or received by NFL. Melanson's 'sleight of hand' math failed because she cannot distribute cash she hadn't earned or received. But that did not stop Point Center from attempting to distract and confuse the jury with the irrelevant data.
In contrast, the IRS Schedules 1065 are all about cash. Even bookkeeping neophytes know that you cannot mix cash and accrual based accounting. It's one or the other. In presenting hybrid exhibits, Ms. Melanson not only misrepresented the evidence, but demonstrated the lengths that she, Harkey, and Point Center will go to create fallacious illusions for whomever they intend to manipulate.