Compass Academy believes it should no longer be part of the case against Jonathan “Jay” and Tracy Brooks, so is asking the court to be dismissed from the proceedings.
Compass Academy of Aiken, the correct name of the private school project according to the document, believes it had nothing to do with the alleged illegal sale of unregistered securities and so should not continue to be part of the case.
“Compass Academy of Aiken is not the issuer of alleged securities involved in this case,” the motion to dismiss states. “All assets of Compass Academy of Aiken that are a result of the alleged offering of unregistered securities are being placed with a receiver, with the consent of (Compass), so there is no further legal or equitable relief that can be obtained by keeping or making (Compass) a part in this action.”
Filed Tuesday and available to the public Wednesday, the motion claims, also, that as a nonprofit, Compass Academy is under the rule of the Secretary of State and not the Attorney General.
“We are not pressing for a hearing on the motion, but we are meeting with the receiver,” said Stan Jackson, attorney for Compass Academy. “I am informed (court-appointed receiver Sherri Lydon) was at the school again yesterday and that Compass Academy is cooperating in every way and trying to bring a swift resolution to the situation. And, still hopeful that Compass Academy, with the receiver's blessing, can move forward.”
Earlier this year, Jay and Tracy Brooks began to be implicated in a criminal scheme, according to court documents.
They are both named in a complaint that alleges the selling of illegal securities to fund the private school project, fraudulently moving money from other investors' accounts to the Compass account, and also using those funds for personal purchases – including a $20,000 diamond ring from Tiffany and Co.
To secure the assets that remained, the court appointed a receiver to marshal assets and documentation. Prominent attorney Sherri Lydon of Columbia, who has great experience in securities and corporate law, was appointed.
The motion is a departure for Compass, which up until this point has publicly backed Brooks' claims that the Securities Division had no case against him and that the charges came as part of a conspiracy against him by unnamed individuals.
The school, outside of the case, has received rave reviews for its preparation work. The South Carolina Independent School Association described the work of Tracy Brooks and others as exemplary.
Now in a receiver's hands, all assets associated are being reviewed to give an honest accounting with the possibility of the school still opening for the 2013-14 school year a top priority.
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