I’ve just found myself acquainted with FORMER CLOSE FRIENDS of Sammy Franco as well as former students. This winter I’ll reveal the secret location of Sammy’s school. Aside from an actual adress and photograph of the location of his top secret hide out, I’m planning a small photographic tour of the mean streets which this man frequents to put things in context. I’m from the same place and this is the epitome is white, upper middle class suburbia. On top of that, expect to hear about the relationship between Franco, Richard Dimitri and the various video publishing agencies that caused problems for the both of them.
I just sent out a check for sammy’s bankrupsy file, hopefully I’ll get it back in a month.
AWESOME.
I just received In re: Samuel Franco, a bankruptcy action filed in the United States Bankruptcy Court for the District of Maryland at Greenbelt. Case 98-1-1074-PM, Chapter 7.
The action began with a Voluntary Petition for Bankruptcy filed on 1-28-1998 lets review the information inside.
Samuel Franco, SSN# 213-94-2265, telephone (301) 279-9692, Street Address of debtor, 19 Redding Ridge Drive, Gaitherburg, Md 20878. Montgomery County, Maryland.
Mailing Address of debtor, 267 Kentlands Blvd. Gaithersburg, MD 20878.
No prior bankruptcies
STATEMENT OF FINANCIAL AFFAIRS
Income from employment and operation of business.
1997: Gross Amount $36,000.00
1996: Gross Amount $65,000.00
1995: Gross Amount $40,000.00
No loses from fire, theft, other casualty or gambling within the past year. Safe deposit box at the Chevy Case Bank that contains nothing. debtor had lived at his listed address for at least two years before the petition was filed.
Nature, location, and name of business.
Self Defense Systems, Inc
267 Kentlands Blvd.
Gaithersburg, MD 20878
301-279-2244
Nature: Martial Arts
Operation dates: 10 years, business is not a partnership and does not appear to be a corporation. (SB’s reading of the voluntary petition).
Real Property: None
Personal Property: $1,745.00
Creditors holding secured claims: $37,121.00
Creditors holding unsecured Non-priority claims: $37,159.97
Current Income of Individual Debtor: $2,220.00 a month.
Current Expenditures of Individual Debtor: $3,178.00 a month.
Property in Debtor’s possession;
Cash: $100.00
Checking Account with Chevy Chase Bank: $10.00
Savings Account with Chevy Chase Bank: $10.00
Household goods and furnishings:
bed, 3 lamps, dresser, 2 tables, couch, chair, tv, stereo, 3 pictures, 2 plants, dining room table and 4 chairs. Debtor interest $400.00
[Editor note: What? no bedroom ceiling mirror?]
Wearing apparel:
Men’s clothing: (1) suits, (10) shirts, (10) pants, (2) jackets, (1) coat, (5) shoes, etc. Debtor interest $140.00
Furs and Jewelery; Silver chain and watch, debtor interest $125:00
Handgun: Debtor interest $75:00
No interest in insurence policies, annuities, IRAs, stocks, bonds, accounts receivable, alimony or support, real property, patients, copyrights and other intellectual property, licenses, franchises and other general intangibles.
[SB note: Sammy did not list any income from his Palidan press books here. Interesting, though perhaps his lawyer found a loophole for this income stream.]
Automobiles: 1996 Corvette, debtor interest $29,500.00
this vet was a V8, 6 speed manual with 3,000 miles, and a whole list of features including a leather interior.
Secured creditor GMAC 37,121.00 [Sammy owed this much on his ride.] His monthly payment was $682.00 there is some indication in the record that $12,000 of this 37K was owed to GMAC for a 1994 chevy Blazer.
He also owed $507.00 to the Maryland Motor Vehicle Administration. Since they were mentioned as secure creditors it also looked like he owed the Maryland and Feds some taxes, though the amount was not provided. Perhaps it was to be determined in April.
no boats, aircraft, office furnishings or equipment, [huh? if he ran a school]
Creditors holding unsecured nonpriority claims.
American Express, $3,718.00
American Express, $8,442.46
Bell Atlantic Nynex, $1,043.05
Citibank $3,217.71
Discover $5,377.67
Household Retail $6,686.94
Service
National Credit Group $3,547.82
I did not mention any of his creditors to whom he owned below a thousand dollars. It is important to note that none of Sammy’s debts were healthcare related. They all appear to be related to credit cards.
Franco had a residential lease with John Garzia. He had no co-debtors.
Under the Schedule I section listing the individual income of current debtors. Franco claimed the following.
$3,000 a month gross income from his employer Self Defense Systems, Inc.
Occupation; Martial Arts
How long employed: 10 years.
Payroll taxes and social security payments: $780.00
no income from any other monthly income.
Total Monthly Income, $2,220.00
Schedule J - Monthly Business Income and Expenditures
Rent/Mortgage Payment 0.00 [was Sammy teaching in his basement in 1997?]
Electricity and heating fuel 0.00
Telephone $100.00
Insurance 0.00
Taxes 0.00
Rental/lease payments 0.00
Advertising $260.00
Office Expenses $ 25.00
Travel and entertainment 0.00
Supplies and Materials $ 50.00
total current monthly expenses, $435.00, excess of income over expenses, $2,565.00
Individual Expenditures (monthy)
Rent or home mortgage payment: $1,230.00 (no real estate taxes or property insurance
included)
Electric and heating fuel $ 125.00
Water and Sewer $ 30.00
Telephone $ 100.00
Garabage $ 11.00
Cable $ 20.00
Home maintenance $ 50.00
Food $ 175.00
Clothing $ 50.00
Transportation (not including car $ 125.00
payments)
Recreation, clubs, entertainment $ 25.00
Charitable contributions $ 0.00
Insurance (auto only) $ 118.00
Taxes (not deducted from wages or $ 0.00
included in home mortgage payments)
Auto installment payments $ 684.00
Regular expenses from operating $ 435.00
business.
Total monthly expenses $ 3,178.00
Interrogatory
GMAC, to whom Sammy owned 37 K, were a little pissy, so they filed a Section 341 Interrogatory which Sammy had to fill out.
It confirmed that Sammy did not own any real property “real estate”. That he also owned a 1994 Blazer, and that he had a lease on the Blazer and a house.
At the time he obtained the Blazer, in April of 1994, Self Defense Systems Inc, was based at 1065 Seven Locks Rd, Rockville, MD 20854. Sammy’s driver’s licence number was z-975-001-150-195.
Sammy was released from his dischargable debts on 5-8-1998
Why Did Sammy Declare Bankruptcy?
On his installment sales contract for the Blazer, Sammy promised to make a “balloon” payment of $10,504.65 on 3-14-98, less then two months from when he filed for bankruptcy. Given that he also had approximately $26,000 in credit card debts, my theory is that Sammy couldn’t keep up with his payments. Financially his biggest mistake was to get two expensive, new cars, (vet & blazer) which represented roughly 60K of car debts. This is what happens when one lives through their cars.
I also searched for Sammy’s birthdate on this paperwork. It was not provided. 
[huh? if he ran a school]
He doesn’t. He teaches out of his house. Only has one mat for that matter.
Osiris, mind if I print this in the contributor section as an lesson in my how to investigate thread?
In case anyone’s wondering what happened, I took winter break to train instead of running around worrying about Franco. Any hope of my regaining interest was completely crushed when my great grandmother died halfway through.
Sweet.