KCC Precedent Search Options

KCC's Corporate Restructuring Court Documents Search provides access to thousands of historical court documents located on KCC public access websites. Please use the form below to refine and maximize search results.

For information about the data provided, please review the Disclaimer statement.

Disclaimer


Frequently Asked Questions



What is a “receivership”?

When will I receive any of my investment back?

How much of my investment will I receive back?

What is the best way to get in touch with the Receiver if I have a question?

What do I need to do next?

Do you advise that I hire an attorney?

Jesenik, Oliver and Gillis have been named in the Complaint but what about other individuals within the firm?

I do not see the ACF Private Note listed on Exhibit A as part of the Receivership entities. Why?

Why have the companies settled the SEC enforcement action?

How do I file a claim for my investment?

Second Proposed Distribution:

I see an Allowed Claim listed for me but a zero proposed distribution. Why is that?

How was my Defrauded Investor distribution calculated?

I am a member of an individually named plaintiff group. Will that affect the amount of the distribution I will receive?

When will I get my distribution? Will I receive any additional distributions?

How will the Receiver be sending distributions?

What if I have more than one type of claim (Administrative / Former-Employee / Convenience / Creditor / Defrauded Investor / Pass-through Investor)?

Do I have to file a response or anything else with the Court or the Receiver?

What is the deadline for objection to the Receiver’s proposed classification or distribution amount of your claim?

How do I get a copy of the Receiver’s Second Distribution Motion or the Declaration of Ronald F. Greenspan and attached exhibits?

I do not see my name on any of the Exhibits to the motion, why am I not included on this motion?

I see my name on an Exhibit, but do not understand why “TBD” is set forth in one or more fields on the Exhibit?

I am a member of the class action lawsuit receiving communications from Epiq and from the Receiver. I’m sometimes confused by the different communications from Epiq.


What is a “receivership”?

When a judicial enforcement action is brought by the U.S. Securities and Exchange Commission (the “SEC”) to enjoin conduct prohibited under various securities laws, the SEC frequently seeks appointment by the Court of a receiver to take control of the assets of the defendant pending the outcome of the litigation. The Receiver is an officer of, and overseen by, the Court. Accordingly, in this case, the Receiver was appointed by the United States District Court for the District of Oregon and charged with, among other things, marshaling and preserving the assets of the defendant entities pending a determination whether or not Aequitas Management, LLC, Aequitas Holdings, LLC, Aequitas Commercial Finance, Inc., Aequitas Capital Management, Inc., Aequitas Investment Management, LLC and Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis, and/or other defendants violated any securities law.


When will I receive any of my investment back?

The Receiver made an initial round of distributions to certain categories of claimants who are senior in priority to Defrauded Investors in June and July of 2020. The Receiver anticipates another round of distributions that will include Defrauded Investors and certain other creditors before the end of 2020. The precise timing of those distributions will depend on the progress of the claims resolution process which is currently underway. There will be multiple rounds of distributions.


How much of my investment will I receive back?

While the majority of the Receivership assets have been monetized, the Receiver continues to pursue additional recoveries through both the sale of remaining assets and litigation of Receivership claims against third parties. Until all of the assets are monetized, all of the claims are determined and approved by the Court, and the distribution plan is approved, it is not possible to determine exactly what the ultimate recovery will be on an individual claim. The amount recovered on each claim will be determined based on the terms of the distribution plan ultimately approved by the Court and the total amount available for distribution. Many investors may or have already received distributions from separate settlements between investors and former Aequitas professionals and/or registered investment advisors that were achieved with the significant assistance from the Receiver and his professionals. Please see the Distribution Plan for illustrative information about Receivership distributions.


What is the best way to get in touch with the Receiver if I have a question?

The best way to contact the Receiver is to submit your question, along with your contact information, through the "Submit an Inquiry" tab on this website.


What do I need to do next?

The Receiver will periodically post case updates as well as other important information at this website. We encourage parties in interest to visit this website and check for updates periodically.


Do you advise that I hire an attorney?

We cannot and are not giving legal advice, including whether or not to hire an attorney. Further, we do not know any individual’s situation so it might be prudent to have your situation evaluated by your lawyer. There is a “stay” in place pursuant to the Receivership Order which prohibits the filing of any action against the Receivership Entity (and all related parties) but it has a limited exception for actions against unrelated entities on causes of action that differ from what might be brought by the Receiver.


Jesenik, Oliver and Gillis have been named in the Complaint but what about other individuals within the firm?

The SEC has filed the complaint against the three individuals named. We cannot comment in regards to their investigation. The SEC may add or drop names from the complaint as they continue their investigation.


I do not see the ACF Private Note listed on Exhibit A as part of the Receivership entities. Why?

Aequitas Commercial Finance (ACF) is a receivership entity and is the entity which issued the Private Notes. Thus the entity which is obligated on the Private Notes is part of the Receivership Entity and is covered by the Receivership Order.


Why have the companies settled the SEC enforcement action?

The Receiver believes that resolving the SEC action is in the best interests of investors. As set forth in the settlement papers, the Receiver, on behalf of the Aequitas-related entities, has committed to continuing to cooperate fully with the SEC staff as the matter progresses.

How do I file a claim for my investment?

Key information about filing a claim and related documentation are included in the Claims Process section of this website. For more details, please refer to the Claims Agent website at www.AequitasClaims.com. PLEASE NOTE, A CLAIMS BAR DATE OF JULY 31, 2019 HAS BEEN ESTABLISHED BY THE COURT AND HAS ALREADY PASSED. ANY CLAIMS NOT TIMELY SUBMITTED OR NOT IN THE PROPER FORM WILL BE SUBJECT TO DISALLOWANCE, WHICH MEANS YOU WOULD NOT BE ELIGIBLE TO RECEIVE ANY DISTRIBUTION FROM A COURT APPROVED DISTRIBUTION PLAN.

Second Proposed Distribution:


I see an Allowed Claim listed for me but a zero proposed distribution. Why is that?

The Court-approved Distribution Plan provides that the Receiver is not required to pay de minimis claims that would result in distributions of $50.00 or less. Nonetheless, the Receiver will make distributions on Allowed Claims that result in a payment of $25.00 or more; distributions will not be made if the distribution would be less than $25.00 as the cost of handling the distribution would be disproportionate to the benefit.

How was my Defrauded Investor distribution calculated?

For purposes of calculating this distribution, the Interim Recovery Threshold is twenty-eight percent (28%). If the Receiver is specifying a non-zero Proposed Distribution, that amount is your Total Investment x the Interim Recovery Threshold (28%) minus any amounts received as a Pre-Receivership Return. You may also want to review the Distribution Plan [Docket No. 787] at 45-55.

Some Defrauded Investors who do not qualify for the current interim distribution may become eligible for future distributions as more funds are distributed.


I am a member of an individually named plaintiff group. Will that affect the amount of the distribution I will receive?

Defrauded Investors who are members of an individually named plaintiff group have or will receive moneys on account of the third-party settlements of those claims. You might also receive a distribution from the Receivership (that for some plaintiff groups may come to you via your legal counsel), which distribution might be somewhat more or less than the Receiver’s Calculated Interim Distribution. The difference can arise because the intra-group agreement might contain allocation provisions that differ from the Court-approved distribution plan.

When will I get my distribution? Will I receive any additional distributions?

Ultimately, the timing of a distribution is dependent on the claims resolution process and on the timing of court approval of the Receiver’s Second Distribution Motion. If there is no objection, we anticipate being able to make the distribution in November-December of 2020. Defrauded Investors who otherwise qualify for a distribution might receive additional distributions in the future. Some Defrauded Investors who do not qualify for the current interim distribution may become eligible for future distributions. No further distributions are expected with regard to allowed claims that are fully resolved in the subject Motion for Classes other than the Defrauded Investors.

Additionally, you are highly encouraged to monitor the Receivership websites (this site and www.AequitasClaims.com) for announcements and additional distribution or related information.


How will the Receiver be sending distributions?

Where a Claimant informed the Receiver in writing prior to the filing of this motion that the ownership of the Claim had been transferred, the Receiver will make a good faith effort to direct payment to the last known owner of the claim. Where appropriate, distributions may also be made to a Specified Claimant’s investment custodian or counsel. Some Defrauded Investors, for example, have investment accounts held by custodians or some Claimants might be represented by counsel. The Receiver is authorized and has discretion to make distributions to a Specified Claimant’s custodian or counsel and if not held in a custodial account, the distribution will be made directly to the Defrauded Investor.

You are further reminded that it is your responsibility to keep the Receiver apprised of your current email address, mailing address and any change in the custodian of your account. The Receiver’s latest information of the name of the custodian is set forth on the Exhibits attached to the subject Motion. If there has been an address or custodian change, please notify the Receiver by completing and emailing a Change of Information Form. A link to the Change of Information Form can be found at www.AequitasClaims.com. The completed Change of Information Form must be sent to the Receivership Estate by electronic mail, as an attachment in portable document format (.pdf), to Aequitas@epiqglobal.com.

What if I have more than one type of claim (Administrative / Former-Employee / Convenience / Creditor / Defrauded Investor / Pass-through Investor)?

To the extent you have more than one type of Allowed Claim (Administrative /Former-Employee / Convenience / Creditor / Defrauded Investor / Pass-through Investor), each of your claims is treated separately based on the type of claim. Exhibits 1-7 of the motion outline each type of claim and the amount to be distributed (if any) on that claim to the extent such determination has been made. The proposed distribution is calculated consistent with the provisions of the Court-approved Distribution Plan.

To the extent a single claim was submitted multiple times, for example by submission via email and regular mail, the claim is addressed or resolved as set forth in Exhibits 1 – 7 and the duplicate(s) claims are disallowed.


Do I have to file a response or anything else with the Court or the Receiver?

You do not need to file a response if you agree with the Classification, allowed claim amount and the distribution you are receiving, which are set forth in the exhibits attached to the Declaration of Ronald F. Greenspan filed in connection with the Receiver’s Second Distribution Motion. Your distribution will be made based on the information outlined in the Motion and the exhibits mentioned above.

If you believe the Court-approved Distribution Plan provides for the treatment of your claim different than the distribution set forth in the exhibits, or the Receiver has made an error in the manner in which your claim has been Classified or treated, then you should file a response with the Court (with a copy to the Receiver’s counsel, as detailed below) and discuss your objection with the Receiver. Should you have inquiries regarding the Receiver’s Second Distribution Motion you may submit your inquiry by email through this website or by email to Receiver’s counsel, Larry Ream, at lream@schwabe.com.


What is the deadline for objection to the Receiver’s proposed classification or distribution amount of your claim?

If you intend to object, you must do so no later than November 4, 2020 and you must serve a copy of your written objection on counsel for the Receiver (Troy Greenfield or Larry Ream at Schwabe, Williamson & Wyatt, 1211 SW 5th, Suite 1900, Portland, OR 97204) AND file your written response with the United States District Court, District of Oregon, Portland Division, located at 1000 SW Third Ave., Portland, OR 97204.


How do I get a copy of the Receiver’s Second Distribution Motion or the Declaration of Ronald F. Greenspan and attached exhibits?

A copy of the Receiver’s Second Distribution Motion and the Declaration of Ronald F. Greenspan (and attached exhibits) can be found on the same website as this FAQ. They can be found here:


I do not see my name on any of the Exhibits to the motion, why am I not included on this motion?


The Receiver’s Second Distribution Motion addresses most parties who may have a claim in the Administrative Class, Non-officer Former Employee Class, Convenience Class, Defrauded Investor Class, Creditor Class, Individual Defendant Class and Pass-through Investor Class. If you have one of these types of claims and you are not listed on any of the Exhibits, then it is likely the Receiver has not yet made a determination on your claim. All such claims will be addressed in a future motion.

Should you have a question regarding the Receiver’s Second Distribution Motion you may submit your inquiry by email through the Aequitas Receiver’s website (www.kccllc.net/aequitasreceivership) or by email to Receiver’s counsel, Larry Ream, at lream@schwabe.com.


I see my name on an Exhibit, but do not understand why “TBD” is set forth in one or more fields on the Exhibit?

If “TBD” is listed in one or more of the fields on an Exhibit, then the Receiver is still in the process of determining how your claim should be handled for that particular field. The Subject Motion does not adjudicate whatsoever that field. The resolution of those issue(s) will be addressed in a future motion.


I am a member of the class action lawsuit receiving communications from Epiq and from the Receiver. I’m sometimes confused by the different communications from Epiq.

We are sorry for any confusion that might be caused by Epiq’s two roles. Epiq is assisting counsel for the class action lawsuit and Epiq is also assisting the Receiver with the claims and noticing process. Counsel for the class action lawsuit requested Epiq’s assistance as it was more efficient because of Epiq’s existing work for the Receivership.

Please understand and be advised that class action lawsuit communications are separate and not related to the communications initiated by the Receiver. Please direct your class action related inquiries to class action counsel or Epiq at www.aequitassettlements.com.

Should you have a question regarding the Receiver’s Second Distribution Motion, you may submit your inquiry by email through the Aequitas Receiver’s website (www.kccllc.net/aequitasreceivership) or by email to Receiver’s counsel, Larry Ream, at lream@schwabe.com.