Claims Process

Receiver Mails Out Second Interim Distribution Checks, distributing $3.5M to Investor Claimants in Court-Approved Second Distribution

The Receiver received Court approval for his Unopposed Motion to Approve Second Interim Distribution, in which the Receiver sought an Order approving a distribution of $3,500,000.02 to the Investor Claimants. (Doc. 304.) This distribution amount represents a recovery of $10.6% of the Total Allowed Amounts of Investor Claims. Through his CPA Professionals, the Receiver prepared individual checks to the investor claimants designating the distribution amount for each claimant. The Receiver prepared letters to accompany the distribution checks explaining the process and each individual claimant’s distribution amount. At present, all claimant investors have cashed their Second Distribution checks and the money has been distributed to the investors. Many investors have expressed gratitude to the Receiver for effectuating this Second Distribution. At present, the Receiver and his staff are preparing a motion for a Third Interim Distribution of $2.3M to the investors, which will leave approximately $2.3M in the Receivership Estates Servis Accounts.

To date, the Receiver has returned a total amount of $18,037,656.82 to the investor claimants in this Receivership.

Receiver Mails Out First Interim Distribution Checks

On October 29, 2021, the Court entered an Order granting the Receiver’s Motion to Approve First Interim Distribution and authorizing the Receiver to proceed with an initial distribution of 40% of each Investor Claimant with an Approved Claim.  A copy of the Order is here.  The Receiver subsequently mailed out distribution checks to Investor Claimants with approved claims on November 9, 2021.

The Receiver anticipates making one or more future distributions as warranted by the case status and ongoing asset recovery efforts.

For more information, see the Claims Process page here.

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Court Grants the Receiver’s Claims Determination Motion; Letters mailed out July 23, 2021; Objection Deadline is August 23, 2021.

On July 21, 2021, the Court entered an Order granting the Receiver’s Claim Determination Motion in its entirety, including the Objection Procedure.  A copy of the Order is available here.  The Order provided that, among other things, the Receiver will send notice to each Claimant notifying them of the Objection Procedure and that any Claimant that disagrees with the Receiver’s determination of their claim must serve a written response to the Receiver within 30 days of that letter.  The failure to serve a timely response shall permanently waive the Claimant’s right to object to or contest the Receiver’s Claim Determination, claim priority, and plan of distribution, and the final claim amount shall be set as the Allowed Amount determined by the Receiver as set forth in the Exhibits attached to the Claim Determination Motion.

On July 23, 2021, the Receiver mailed out letters to each Claimant notifying them of the Order and the Objection Procedure, and thus any Claimant that disagrees with the Receiver’s determination of their claim is required to serve a written response to the Receiver so that it is received on or before August 23, 2021.  Otherwise

Once the Objection Deadline passes, the Receiver intends to seek Court approval to move forward with an interim distribution to all Claimants with approved claims and holding the highest priority.

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On August 20, 2020, the Receiver filed an Amended Motion to Establish and Approve (i) Procedure to Administer and Determine Claims; (ii) Proof of Claim Form; and (iii) Claims Bar Date and Notice Procedures (the “Motion”). A copy of the Motion can be found here. The Court entered an order granting the Motion on November 5, 2020. A copy of the Order can be found here. By granting the Receiver’s Motion, the Court has approved a procedure for each person or entity who thinks that he, she, or it may have a claim against any Receivership Entity  arising from the fraudulent investment scheme set forth in the Complaint filed by the Securities and Exchange Commission to submit a claim to the Receivership assets. If you believe you may have a claim arising out of or in any way related to the acts, conduct, or activities of the Receivership Entities, you MUST submit an original, written Proof of Claim Form as set forth in the Claim Process Instructions and Proof of Claim Form. A copy of a sample Proof of Claim Form is here.  The Court also established a Claims Bar Date requiring that any Proof of Claim Form must be received by the Receiver on or before February 15, 2021 in order to be considered timely.  A notice of the Claim Bar Date which was published in various news publications is here.

On December 28, 2020, the Receiver filed his Notice of (i) February 15, 2021 Claim Bar Date, and (ii) Publication of Claim Bar Date.  You can download that Notice here.

FOR INVESTORS, THIS IS THE PROCEDURE BY WHICH YOU MAY SEEK TO RECOVER FOR YOUR LOSSES FROM THE RECEIVERSHIP.

On November 17, 2020, the Receiver mailed each known investor, other known potential creditors, and certain other individuals a letter advising of this procedure, a Proof of Claim Form, and the Claims Process Instructions. A sample copy of this Initial Letter is available here.  If you did not receive a letter from the Receiver and you believe that you should have received one, please contact Lauren V. Humphries at (813) 222-1141 or Lauren.Humphries@BIPC.com. Alternatively, a copy of the Proof of Claim Form can be found here and a copy of the Claims Process Instructions can be found here.

THE CLAIMS BAR DATE WAS FEBRUARY 15, 2021. ANY PERSON OR ENTITY WHO FAILED TO SUBMIT A PROOF OF CLAIM TO THE RECEIVER ON OR BEFORE THE CLAIMS BAR DATE (FEBRUARY 15, 2021) SHALL BE FOREVER BARRED AND PRECLUDED FROM ASSERTING A CLAIM AGAINST THE RECEIVERSHIP OR RECEIVERSHIP ENTITIES.