Frequently Asked Questions
What is a Receiver?
A Receiver is an individual appointed by the United States District Court to act as a neutral party responsible for administering the assets of the receivership entities and to distribute them to the investors and creditors. The Court provides instructions concerning the Receiver’s various responsibilities, duties and obligations. The Order Appointing Receiver sets forth the Receiver’s duties in this case. The Receiver makes periodic reports to the Court. The Receiver will distribute the recovered assets to investors and creditors in accordance with an order from the Court.
Who does the Receiver work for?
The Receiver is an agent of the Court and therefore works for the appointing judge. The beneficiaries of the Receiver’s work are the investors and creditors.
Can I write off my investment loss?
The Receiver cannot give tax or other legal advice. Please consult with your accountant or tax advisor and seek their advice.
Do you have an estimate of what percent of our original investment may be returned to us in the form of a distribution?
It is too early to make such an estimate. Once the claims bar date has run and all claims have been submitted, the Receiver will be able to better assess the amount of assets and claims in the case and to start to fashion an equitable distribution plan.
Is there a deadline to file a claim?
The Court has set a claims bar date for April 6, 2020. If you believe you have a claim against the Receivership Defendants, make sure to submit a completed Proof of Claim form to the Receiver on or before April 6, 2020.
Is my Broker Dealer, responsible for my losses, and, if so, what will the Receiver do?
Investors will need to consult with their own attorney to ascertain their rights to pursue personal claims against brokers.
How do I contact the Receiver?
All parties are encouraged to search the site first, before attempting to contact the Receiver directly, which will keep costs down and limit the administrative burden to the estate. If direct contact is necessary, the Receiver can be contacted at:
Kathy Bazoian Phelps, Receiver
Raines Feldman LLP
1800 Avenue of the Stars, 12th Floor
Los Angeles, CA 90067
The website will also be updated to reflect significant receivership events.