Elio Motors Appealing $500k Fine

[3wheelin]

They are working every day on finding funding, that is the first priority.
I talk to them on a fairly constant schedule, and ever time I call, Paul is out there "pounding on backers"
So it's not dead by any means, they are trying as hard as they can.
I've tried to get them to say something public, and it all comes back to SEC rules.
So I keep trying, one day the sun will shine (on Elio)

We thank you Coss for doing what you're doing!

 

[TexasTesla]

Given Elio’s current debt load of approximately $100 million, fighting a $76,000 judgment would seem to be a waste of resources. In the scheme of things, it’s an insignificant amount of money.

Elio should just pay the fine, apply for the proper Louisiana state licenses, and focus on what’s important!

The clock is ticking, everyday Elio Motors goes deeper in debt.

 

[raptor213]

Elio Motors lost their appeal against the Louisiana Motor Vehicle Commission, with a ruling handed down on 3/27/2019 reinstating the original fines levied by the Commission.

The only silver lining is that the clock for the 60-day grace period before the company is charged daily fines for not possessing manufacturer/dealer licenses has been recycled to start ticking on 3/27/2019.

Source: http://law.justia.com/cases/louisiana/fifth-circuit-court-of-appeal/2019/18-ca-545.html

CONCLUSION

"Based on our independent review of the record, we conclude that Elio Motors violated the laws in question, its due process rights were not violated, and the Commission had a rational basis for the penalties it imposed.

"Accordingly, we affirm the findings of violations, reverse the district court’s assessment of penalties and reinstate the penalties imposed by the Commission:

$272,500 for the manufacturer violations,
$272,500 for the dealer violation,
and
$5,000 per day if the conditions relating to the refundable reservation payments, as set forth in the district court’s judgment, are not met.

"The 60-day period for Elio to provide the required proof, and the $5,000 per day fine in the event of its failure to do so, shall run from the date of finality of this court’s judgment. Costs of the appeal, including the Commission’s attorney fees, are assessed to Elio."

 

[raptor213]

May 2019 should bring with it a number of public milestones for Elio Motors:

-- 60-day grace period lapses, after which point the Company faces a daily fine of $5,000 for each day that the Company fails to possess recreational vehicle manufacturer and dealer licenses;
-- the release of their SEC-mandated Annual Report for the fiscal period ending December 31, 2018;
-- hosting of an annual shareholders meeting, also an SEC requirement;
-- what's new with the ElioCoin STO launch on Patrick Byrne's tZero trading platform?

Only another 4-8 weekly Friday blog post regurgitations from the archives to tolerate before receiving real, substantive news of Elio Motors current financial and product development situations.

 

[Elio Amazed]

Elio Motors lost their appeal against the Louisiana Motor Vehicle Commission, with a ruling handed down on 3/27/2019 reinstating the original fines levied by the Commission.

The only silver lining is that the clock for the 60-day grace period before the company is charged daily fines for not possessing manufacturer/dealer licenses has been recycled to start ticking on 3/27/2019.

Source: http://law.justia.com/cases/louisiana/fifth-circuit-court-of-appeal/2019/18-ca-545.html

CONCLUSION

"Based on our independent review of the record, we conclude that Elio Motors violated the laws in question, its due process rights were not violated, and the Commission had a rational basis for the penalties it imposed.

"Accordingly, we affirm the findings of violations, reverse the district court’s assessment of penalties and reinstate the penalties imposed by the Commission:

$272,500 for the manufacturer violations, $272,500 for the dealer violation,
and $5,000 per day if the conditions relating to the refundable reservation payments, as set forth in the district court’s judgment, are not met.

"The 60-day period for Elio to provide the required proof, and the $5,000 per day fine in the event of its failure to do so, shall run from the date of finality of this court’s judgment. Costs of the appeal, including the Commission’s attorney fees, are assessed to Elio."

Oh man. Did you hear that? I think that was the sound of that horse being put down for good.

 

[Johnny Acree]

Freudian slip? 60-day grave period.

 

[Maurtis]

Thanks for finding that, Raptor. Might not be good news, but at least it is news. Funny how the two blogs since then did not make a peep about it...

 

[RUCRAYZE]

Thanks for finding that, Raptor. Might not be good news, but at least it is news. Funny how the two blogs since then did not make a peep about it...

As always from EM, no news is no news!!

 

[Made in USA]

I wonder why they haven't gotten the license yet. My guess is that after getting the license they would then be required to do something else that would be even more costly. Having the license may infer production and trigger other contract requirements. Insurance? BWC?
Anybody know? (I would ask Elio Motors, but they would just say "read the blog").

 

[Made in USA]

Just read most of the 44 page court document. I tend to agree with their decision, that Elio is acting as a manufacturer, even though they are not yet producing. The thing that puzzles me is that the court feels that by getting a manufacturing license, that that somehow protects the citizens of Louisiana. I wonder how? I think Elio Motors should refund any reservation money from anybody currently living in Louisiana and refuse to let future reservations be made from that state. That would avoid future issues with selling in the state.