The Broadway Avenue property, a 47-unit mobile home park generating over $30,000 per month in rental income, was sold out of the EquiAlt receivership to a buyer with documented familial ties to receivership counsel. Before the sale, $76,000 in debt appeared on the property’s financials with no public explanation or documentation. The transaction was characterized as an arms-length sale. The financial records show that characterization does not hold under scrutiny.
The Property: What Broadway Avenue Was Worth
The Broadway Avenue property was a 47-unit mobile home park positioned as a high-value asset within the receivership estate. Financial records preserved in connection with the receivership show consistent monthly rental income exceeding $30,000 during the period leading up to the sale, with annual gross income documented at $415,592.90 across a 12-month trailing period reviewed through September 2021.
The property sold to Percy Rosemurgy for $3.52 million, a figure that on its face appears to exceed the appraised value. The introduction of the $76,000 debt and undisclosed property improvements raise questions about the true net value reflected in that sale price and whether competitive market exposure would have produced a higher return for investors.
The Phantom Debt: $76,000 With No Explanation
Broadway Avenue had no recorded debt prior to October 2020. Then, in that month, $76,000 in debt appears on the property’s financials. The income statement submitted in connection with the receivership records the entry explicitly: $76,000 in interest expense posted under the December 2020 column, consistent with debt introduced in October of that year and accruing through year-end.
No public documentation filed with the court explains the origin of the $76,000 debt, who authorized it, what it was for, or how it affected the property’s valuation or sale process. The receivership’s public website does not contain specific financial records for Broadway Avenue that would clarify the entry. October 2020 court filings, which would be the natural vehicle for such disclosure, do not include the necessary detail. A $76,000 debt appearing without explanation on an income-producing asset immediately before a sale to a buyer connected to receivership counsel is not a bookkeeping anomaly that resolves itself. It is a question the record should answer and currently does not.
When debt appears on an asset’s financials before a sale, it affects the net proceeds calculation, can suppress the apparent value of the asset to prospective competing buyers, and in some structures reduces the purchase price adjustment paid at closing. In a receivership context, where every dollar of net proceeds is supposed to reach defrauded investors, unexplained pre-sale debt introduction is a material transparency issue regardless of its ultimate origin.
The Buyer: Who Is Percy Rosemurgy
The Broadway Avenue property was sold to Percy Rosemurgy. Public records establish that Percy Rosemurgy is the brother-in-law of R. Max McKinley, whose email address at mmckinley@guerraking.com is documented in court filings as counsel of record for Receiver Burton W. Wiand at Guerra King P.A. McKinley’s wife is Carolyn Rosemurgy-McKinley, establishing the familial link between the buyer and receivership counsel through the Rosemurgy family connection.
Brother-in-law of R. Max McKinley, counsel of record for Receiver Burton W. Wiand at Guerra King P.A. (formerly Wiand Guerra King P.A.). McKinley is documented in court filings in Case No. 8:20-cv-00325 as receivership counsel. The Rosemurgy-McKinley family connection is established through Carolyn Rosemurgy-McKinley.
McKinley is listed as counsel of record in court filings in the EquiAlt receivership matter. His email address, mmckinley@guerraking.com, appears in a January 2021 court notice documenting the firm name change from Wiand Guerra King P.A. to Guerra King P.A. His wife’s surname, Rosemurgy-McKinley, connects him by marriage to the buyer of the Broadway Avenue property.
The Arms-Length Misrepresentation
An arms-length transaction is a sale between two independent, unrelated parties where neither has a material interest in the other’s position. The standard exists specifically to ensure that receivership assets are sold at fair market value, free from the distortions introduced when buyers and sellers have personal or professional relationships that might lead either party to accept terms they would not accept from a stranger.
A sale from a court-supervised receivership to the brother-in-law of the receivership’s own counsel of record is not an arms-length transaction by any standard definition. The buyer’s familial connection to McKinley gives him access to information, relationships, and insight into the receivership’s operations, priorities, and asset valuations that no independent market buyer would possess. The characterization of this transaction as arms-length in the public record is inaccurate on its face and represents a misrepresentation that bears directly on the court’s ability to evaluate whether the sale protected investor interests.
Questions about the Broadway Avenue sale’s market exposure compound the insider buyer concern. Whether the property was listed on the open MLS market, whether competing bids were solicited and documented, and whether an independent appraisal was obtained and submitted to the court prior to the sale are not clearly answerable from the public record. A property generating over $30,000 per month in rental income, sold to a buyer with direct family ties to receivership counsel, without clear documentation of competitive market exposure, presents a significant transparency gap in the court record.
The Fiduciary Failure
The receiver owes a fiduciary duty to the 1,100-plus investors who were allegedly defrauded by the underlying EquiAlt scheme. That duty requires, at minimum, that asset sales be conducted at maximum market value through transparent processes that exclude conflicted parties. The Broadway Avenue transaction fails spectacularly on that standard on two independent grounds: the unexplained pre-sale debt and the insider buyer’s connection to counsel.
Every dollar below fair market value in the Broadway Avenue sale is a dollar that did not reach a defrauded investor. In short, this is effectively negating the entire reason for the receivership. The combination of an unexplained $76,000 debt, a buyer with direct family ties to receivership counsel, characterization of the transaction as arms-length, and the absence of detailed public financial records for the sale represents a cluster of transparency failures that individually warrant explanation and collectively warrant independent review.
What the Court Record Should Show
For a receivership transaction of this type to satisfy its fiduciary and disclosure obligations, the court record should be able to answer several specific questions that the current public record does not address clearly. The origin and authorization of the $76,000 debt. The market exposure process for the Broadway Avenue property, including any MLS listing, auction, or competing bid documentation. Whether McKinley disclosed his familial relationship to Rosemurgy to the court and to the receiver before the sale was approved. Whether the court was aware of the buyer’s connection to receivership counsel when it approved the transaction. And the specific basis for characterizing the transaction as arms-length in any filing that did so.
These are not speculative questions. They are the minimum disclosures required of any court-supervised receivership transaction involving a buyer with documented ties to the receiver’s legal team. Their absence from the accessible public record is itself a finding.
Sources and Documentation
Rita Williams, The Broadway Avenue Sale: A $76,000 Phantom Debt, an Insider Buyer, and a Receivership That Called It Arms-Length, Clutch Justice (Apr. 23, 2026), https://clutchjustice.com/2026/05/07/equialt-broadway-avenue-sale-insider-transaction/.
Williams, R. (2026, April 23). The Broadway Avenue sale: A $76,000 phantom debt, an insider buyer, and a receivership that called it arms-length. Clutch Justice. https://clutchjustice.com/2026/05/07/equialt-broadway-avenue-sale-insider-transaction/
Williams, Rita. “The Broadway Avenue Sale: A $76,000 Phantom Debt, an Insider Buyer, and a Receivership That Called It Arms-Length.” Clutch Justice, 23 April 2026, clutchjustice.com/equialt-broadway-avenue-sale-insider-transaction/.
Williams, Rita. “The Broadway Avenue Sale: A $76,000 Phantom Debt, an Insider Buyer, and a Receivership That Called It Arms-Length.” Clutch Justice, April 23, 2026. https://clutchjustice.com/2026/05/07/equialt-broadway-avenue-sale-insider-transaction/.
