Mr. Yuri Downing made news recently when the U.S. Bankruptcy Court issued an opinion on April 6, 2015, in a case called “In re Medpoint Management, LLC.” The case involved creditors of Medpoint Management, LLC, who filed an involuntary bankruptcy petition in which they asked the bankruptcy court to liquidate Medpoint Management, LLC, under Chapter 7 of the bankruptcy law. The court dismissed the petition because the creditors had “unclean hands” because they entered into contracts that involved marijuana.
Medpoint Management, LLC, is owned by two members, Ask Nice Twice, LLC (“ANT”), and Here Is Now, LLC (“HIN”). ANT is the manager of Medpoint. Yuri Downing (“Downing”) is the 100% owner of both ANT and HIN, and is Medpoint’s statutory agent.
Medpoint become involved in the management of Arizona Nature’s Wellness, an Arizona nonprofit corporation (“ANW”), that owned and operated an Arizona medical marijuana dispensary. Medpoint formerly managed ANW’s marijuana business, business relationships and cultivation operations. Medpoint purchased all of the membership interests in Tier Management, LLC, an Arizona LLC (“Tier”). On January 2, 2013, Tier entered into a Cultivation and Dispensary Services Agreement with ANW. Infinite Bloom, LLC, owned by Medpoint Management, LLC, had 70 employees and provided services on behalf of ANW.
At some point in time ANW ceased to be managed by Medpoint and entered into contracts for dispensary and cultivation management services with Bloom Master Fund I, LLC, which is managed by L. Edward Judice and Eagle Valley Holdings, LLC (no LLC formed or registered to do business in Arizona under this name). The statutory agent for Bloom Master Fund I, LLC, is Q Business Consulting, LLC, owned by L. Edward Judice.
The bankruptcy court said “Medpoint owns the “Bloom” name and trademark (“IP”) under which ANW sells its marijuana products.” There is a federal trademark for “Bloom Dispensary,” but the U.S. Patent Trademark Office says the mark is owned by Bloom IP Industries LLC, an Arizona LLC located at 14 S. 41st Place Phoenix AZ 85034. However, there is no Arizona LLC called Bloom IP Industries LLC, nor has there ever been an Arizona LLC with that name. Bloom IP Industries, LLC, a Delaware LLC, owns a federal trademark for “Bloom.” The address for the Delaware Bloom IP Industries, LLC, is 4400 N. Scottsdale Road, Suite 288, Scottsdale AZ 85251. The tradename “Bloom Dispensary” is registered with the Arizona Secretary of State and owned by Medpoint Management, LLC, whose address is 4400 N. Scottsdale Road, Suite 288, Scottsdale AZ 85251.
The creditors in the In re Medpoint Management, LLC case are:
- Michael Danzer who sold Tier to Medpoint for $100,000 down and two payments of $150,000. Medpoint did not pay any of the $300,000.
- Michael Danzer who entered into a consulting agreement with Medpoint under which Medpoint was to pay Michael $5,000/month. Medpoint did not make a single payment.
- Jason Jensen entered into a consulting agreement with Medpoint. Medpoint did not make a single payment.
- Robert Brown loaned Medpoint $100,000, but Medpoint defaulted on repaying the loan.
- 7511 IRA Investments, LLC, loaned Medpoint $400,000, but Medpoint defaulted on repaying the loan.
Yuri Downing, the man who controls Medpoint Management, LLC, made headlines in the early 2000s in Arizona. Here are some interesting statements found in an article about Yuri Downing in the East Valley Tribune called “A man’s bizarre odyssey to infamy.”
“Yuri Downing was looking for some fast money on a cool March evening this year as he drove the dark, narrow road through Indian farmlands just east of Scottsdale. . . . Then Downing saw patrol lights flashing in the rearview mirror of his white Mercedes. He knew he was in trouble.
A loaded pistol was wrapped in a towel on the passenger-side floorboard. In the trunk, mixed in with piles of clothes, were hundreds of contraband documents, including stolen utility bills and fake Mexican identification cards. The IDs featured Downing’s photo and a variety of different names. . . .
By July 2004, he had been indicted on six felony counts and ordered to repay his share of the money. Six months later, Downing pleaded guilty to one of the charges against him.”