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Federal Restraining Order Issued For Hendrix Auction
By Mi2N
(more articles from this author)
2006-11-19
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On October 18, 2006, Experience Hendrix filed a complaint in the US Federal District Court in the Southern District of New York seeking to enjoin pending auction sales by Ed Chalpin and one or more of his "PPX" companies in the Ocean Tomo auction scheduled for October 26, which has been promoted as a sale of numerous properties related to Jimi Hendrix. Chalpin and PPX Enterprises have owed a $727,000 court judgment to Experience Hendrix since 2003, and have made no payment whatsoever. The complaint alleges fraudulent conveyances of the auction properties between Chalpin and his commonly controlled PPX companies.

On October 23rd, attorneys representing Experience Hendrix, LLC, auction firm Ocean Tomo, LLC, and Ed Chalpin and his related companies appeared before Judge Lewis A. Kaplan at United States District Court for the Southern District of New York. Experience Hendrix sought to ensure that auction proceeds from the Chalpin-related lots would be applied toward payment of a debt of over $941,000 (including accrued interest), which Chalpin and his principal company PPX Enterprises owe to Experience Hendrix pursuant to 2003 court judgments. Judge Kaplan at that time issued a temporary restraining order against proceeding with auction of the Chalpin-related items.

In a further hearing yesterday, attended by attorneys for Experience Hendrix, Ocean Tomo and Chalpin and his companies, Judge Kaplan modified the order to allow the Ocean Tomo auction of the Chalpin lots to proceed, provided the sales proceeds are paid by Ocean Tomo into the court until the debt repayment amount is fully reached.

The temporary restraining order remains in place, as modified, until Ocean Tomo deposits the sales proceeds into the court. Under that order, Chalpin is enjoined from transferring any property or property of his companies to any third party. The order is worded to include "all persons in active concert and participation with them who receive actual notice of this order" -- which would include any buyer of these properties outside the auction who has actual knowledge of the order.

Chalpin and/or his companies are involved in three of the auction lots. Lot 64 claims to contain the early recordings of Jimi Hendrix with Curtis Knight, which PPX has licensed for decades. Lot 62 claims to contain rights to an unreleased live Public Enemy album. Lot 65 claims to contain Hendrix-related rights of the revived estate of Jimi Hendrix's manager Michael Jeffery, who died in 1973, and his father and heir Frank Jeffery, who died later. Chalpin revived these estates and is now the administrator. His claim is based upon allegations which a New York court dismissed as a fabrication several years ago.

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