Why That Would Be Foolish Dept.: “Buying” The Wu-Tang Recording From A Felon, On eBay…?

Our long term cogent, erstwhile and value-adding commenter (and “head’s up ” provider!) called FTD for short, or “Follow The Dough“… has asked that I weigh in on the Felon X3’s purported offer/auction on eBay — and the related Facebook postings about it.

FTD writes: “…Bidder Q: Hey Martin…what’s going on? I was shocked to find this item on ebay this morning. Incredible. I had wrongly believe this was a vinyl album.. Is it possible that you might clarify what sort of medical research you’ll be donating to? As (I’m QUITE sure) you know, a lot of research is not worth the cash thrown at it. Will you be bound by agreement to donate? Just to be sure, this auction is ONLY for the physical CD and it’s packaging, right? What rights would be conferred to the buyer? WTC still owns the content, correct? So, the buyer wouldn’t really be able to even share this with others, except in a private setting, no? What assurance would a buyer have that WTC doesn’t one day release this material? Don’t destroy the CD set. Of course, you could do so, but it would serve no good end. It’s very cool that you have been a patron of the arts. The WTC album was framed as a sort of publicity stunt, never revealed as part of a pattern of donating to artists. Be well, Donn Sep-06-17
Felon’s A: My plan is to donate half of the sale proceeds to OHSU for rare disease drug research. I know a great researcher there very well who will make terrific use of the funds. The only format available is the CDs–the makers wanted to ensure the format matched the era of the artist. The copyright owner is governed by a complex agreement which will be provided to the bidders who are ‘in the hunt’ at the end of the process. The only copy is owned by me. The artist represented and warrantied this in the purchase agreement….”

FTD: Is there a way to confirm if Martin does donate the proceeds, Condor? 🙂

Thanks, FTD. Let’s start with your last question, first: unless you are personally, and tangibly damaged by his failure to complete the gift, and reasonably relied on his promise to make it to your detriment (in this case, if the OSHU researcher went out and bought new capital equipment in reasonable reliance on Marty’s promised gift)… then one could generally (under US law) enforce the gift, to the extent needed to avoid an injustice.

In sum, though, to be clear — it would be unreasonable to rely on this 3X Felon’s word — as to just about anything. So the suit would fail. And thus there will be no way to confirm that he gives anything to charity — other than taking his word for it. His tax returns (like our clown of a president’s) are… private.

Next, it is highly unlikely that any ebay “purchaser” will actually close on this auction (as FTD noted, earlier in comments), once he/she/it sees the Wu- agreement (mentioned by the Felon, above). It has widely been reported that the Felon only owns the right to play it, and only in private settings, not the underlying content. He owns the hard copy CDs, notes, fancy box and the accompanying tangible property — not the embedded IP, as I understand it.

Even if that were not the case, there are at least four (and perhaps as many as ten) separate entities with either a stake in Marty’s assets, or a judgment against them, and/or him — such that they will have a say in whether it may be sold, and for how much. They also have a say in whether any proceeds should be donated — and if so, to whom.

Chief among these four are the IRS and the NY State taxing authorities, They possess a “super lien” against all of Marty’s assets. They must be paid first, unless they consent to the sale in writing. Moreover, his attorneys have liens against his assets, for their fees — of which perhaps up to $7 million remains unpaid. With a stroke of a pen, they can block — or delay — the sale.

Specifically, Judge Matsumoto (if any of the above deems this to be a serious offer, and likely to close) will likely be asked to impound the proceeds. And we haven’t even begun to talk about the right of Dr. Koestler to seize his assets, yet — under a judgment in Manhattan — enforcing an arbitration award against him, personally.

Finally — and not entirely fancifully — any of his putative creditors (whether they hold judgments or are just regular folks stiffed by Marty) could force him into an involuntary proceeding in a federal bankruptcy court, simply by citing Mr. Brafman’s in-court admissions — that his client has essentially become… insolvent. Any of them might do so, so that the Felon could not give away any part of the proceeds, proceeds to which his judgment and general creditors are otherwise entitled, in any such bankruptcy reorganization proceeding.

So… unless all these parties agree in writing to allow the sale to proceed — whoever pays anything to the Felon (X3!)… deserves to be fleeced.

This is a stupid troll’s stunt, only. Strictly for the suckers, in my opinion. As has been most of Marty’s life, to date.

Namaste — and onward. Now you know.