FREQUENTLY ASKED QUESTIONS
1. What is a receivership?
A receivership is a tool that a court uses to organize and distribute assets from an entity to defrauded investors. Sometimes at the recommendation of a federal or state agency, and sometimes on its own, a court will appoint a receiver (a neutral third-party) to recover, preserve, and liquidate any assets of the defendants. The receiver maintains a business (if there is one to maintain) while she establishes a process by which investors and creditors can present their claims. Once the assets have been liquidated and all claims have been received, the court will distribute the funds pro rata to each claimant with a valid claim. In this case, the SEC recommended a receiver be appointed, and recommended to the Court that Ferdose al-Taie be the Receiver appointed. The Court vetted and subsequently adopted the SEC’s recommendations and appointed the Receiver by Court order. The Receiver determined that there were no actively running businesses she needed to maintain, and so advised the Court in her first report. At all points in time, Receiver serves as a neutral appointed by the Court to assist defrauded investors.
2. What happened to my investment?
Per the partial settlements they signed, Defendants Cravey and Wiedrich admitted they misused investor funds for fraudulent purposes and personal gain. The Receiver is currently investigating and determining how much money may be available to the Receivership. All assets that the Receiver recovers will be safeguarded and cannot be spent while this case is ongoing. Only the Court can order distributions be made to investors and creditors, when, and if, funds are recovered to distribute.
3. What should I do now?
All investors and creditors should collect any documentation related to their potential claim. By collecting any agreements, receipts, written communications, or any other paperwork, the claim process will be easier for both the claimant and Receiver.
4. How do I submit a claim?
At the appropriate time, the Receiver will create a system for investors and creditors to submit claims. This website will be updated with the information and forms to complete the claim process.
5. How long does this process last?
The length of time for this process is dependent on the time taken to identify, recover, and liquidate all assets of the Receivership Estate. Right now, it is too early to estimate how long this process will last.
6. How much will I receive?
The amount you will receive, if any, will be dependent on the proceeds available from selling or recovering any available assets. Without knowing if there will be sufficient funds to make any distributions, it is uncertain what amount may be distributed to claimants.
7. Do I need a lawyer?
The Receiver cannot and will not provide you with legal advice. If you would like to speak with an attorney, you may hire one. However, the Receiver is charged with acting in the interests of all investors and retaining counsel will not cause for you to be paid sooner or later than any other investor.