BRIEF: Judge Approves Zeek Receiver’s Motion To Make Interim, Partial Distribution Of Allowed Claims On Sept. 30, 2014

Some money could be in the hands of Zeek victims on Sept. 30. Senior U.S. District Judge Graham C. Mullen has approved a motion by the court-appointed receiver to make an interim, partial distribution of allowed claims.

Receiver Kenneth D. Bell proposed the interim-distribution plan in May. (See “UPDATE FROM THE RECEIVER – May 29, 2014” at the receivership website for details.)

The news that Mullen had approved the motion was reported yesterday by the ASD Updates Blog.

 

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One Response to “BRIEF: Judge Approves Zeek Receiver’s Motion To Make Interim, Partial Distribution Of Allowed Claims On Sept. 30, 2014”

  1. The receiver now has issued a statement about the partial, interim distribution. See “ANNOUNCEMENT FROM THE RECEIVER – August 1, 2014” here:

    http://www.zeekrewardsreceivership.com/

    ____________________________________

    . . . In this distribution, Affiliates with allowed claims will receive an interim distribution of 40% of the amount of their cash investment in ZeekRewards, less any money received from ZeekRewards prior to my appointment as receiver. If an Affiliate holds an allowed claim, but received more than 40% of their cash investment in ZeekRewards from ZeekRewards prior to my appointment as receiver, that Affiliate will not receive an interim distribution.

    We will make the first interim, partial distributions on allowed claims on September 30, 2014. The Court’s order provides that August 15, 2014 is the date for determining whether a claim is allowed and payable on September 30, 2014. This means that if you are an Affiliate that holds an allowed claim on August 15, 2014, you received less than 40% of your cash investment in ZeekRewards prior to my appointment as receiver, and would be entitled to a payment of in excess of $100.00 , the first interim, partial distribution will be mailed to you on September 30, 2014.

    In order for your claim to be allowed and eligible to receive a distribution, you must have received your claim determination, agreed to that claim determination (or resolved any objection you made to such claim determination and agreed to a claim determination), and provided the required release and OFAC certification requested on the claim portal. If you have received your claim determination, but have not agreed to the determination or have not provided the required release and OFAC certification, your claim is not yet allowed. Please submit this information as soon as possible. Without it, we are not permitted by the Court’s orders to include you in the September 30, 2014 interim, partial distribution.

    If you have not provided the tax information requested on the Claims Portal, I will be forced by applicable law to withhold taxes from your distribution. Please submit your tax information so that I can distribute the maximum amount possible to you. Submitting your tax information does not necessarily mean you will owe taxes on your distribution. Please consult your professional tax advisor about your obligations, if any.

    If your claim is not allowed or has not been determined before August 15, 2014, you will be eligible to receive your first interim, partial distribution on a later distribution date after your claim has been allowed. These later distribution dates will occur quarterly. You will receive distributions in the same total amount you would have received if your claim was allowed on August 15, 2014.

    As of yesterday we have sent out approximately 160,000 letters of determination, leaving us with about 15,000 more claims to review. If you have not received your claim determination, please be patient; it is coming. If you have already received a claim determination, or when you do, I encourage you to respond as soon as you are able so that we can provide you with your first interim, partial distribution.

    Let me emphasize that this is only a first distribution. I am entirely confident that we will make additional distributions. As you know, we have sued more than 9,000 individuals in the United States who took more money out of ZeekRewards than they put in. This money rightfully belongs to affiliates with allowed claims. We will also sue foreign net winners in the near future. Also, I believe we will recover several millions of dollars more from financial institutions still holding receivership assets. We also continue to eliminate overstated claims of Affiliates that allow us to release reserves. These reserve releases will fund additional distributions to Affiliates with allowed claims.

    Our efforts on your behalf continue. Thank you for your continued support and patience.

    ____________________________________

    Patrick

      (Quote)

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