Claims Process

On January 20, 2023, the Receiver filed his Motion to (1) Approve Determination and Priority of Claims, (2) Approve Plan of Distribution, and (3) Establish Objection Procedure (“Claims Determination Motion”).  A copy of the motion is available here. This motion contains the Receiver’s recommendations on the 1,877 claims received and reviewed by the Receiver and his team. The Claims Determination Motion and Exhibits do not reference specific Claimant names. Rather, the Receiver has assigned each claim a number and has submitted a separate cross-reference list to the Court under seal so that the Court may match claimants to their claims while protecting the privacy of investors and their financial repercussions. Only the Court and a limited number of attorneys will have access to the cross-reference list.

After the Court rules on the Claims Determination Motion, the Receiver will send individual letters for each claim, which will identify the claim number assigned to that claim. The letter will allow the claimant to review the pertinent claim determination. You will not be able to determine the Receiver’s recommendation of your specific claim until you receive this letter. To minimize expenses to the Receivership and conserve resources, please do not contact the Receiver’s team to ask questions about your determination while the motion is pending. No information on the recommended determinations, including the assigned claim number, will be provided until after the Court enters an order on the motion.

The Receiver proposed an objection procedure in the Claims Determination Motion. Once the Court approves a procedure for handling objections, the Receiver will provide that information on his website and in the letters sent to claimants with their respective claim numbers. There is no need for the submission of any objections at this time.

The Receiver will make every effort to make a prompt distribution after the objection period has ended and he and his team have reviewed all timely-served objections. The timing of the Receiver’s first distribution will depend on the number and nature of objections received and may have to be delayed if the Receiver determines an objection warrants such a delay.

The Receiver has tried to make the claims process as simple and unintrusive as possible. Each claim has been carefully considered, and the Receiver believes that all claims have been afforded fair and equitable treatment. Unfortunately, the claims process is not an expeditious one, and your patience is appreciated.