UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Plaintiff, V. ROBERT G. PEARSON and ILLINOIS STOCK TRANSFER COMPANY (d/b/a IST SHAREHOLDER SERVICES), Case No. 14 C 3785 Hon. Rebecca R. Pallmeyer Magistrate Judge Young B. Kim Defendants. NOTICE OF MOTION PLEASE TAKE notice that on August 4, 2014, at 9:00 a.m., I shall appear before the Honorable Rebecca R. Pallmeyer, or any judge sitting in her stead, in Room 2144 of the United States District Court for the Northern District of Illinois, 219 S. Dearborn Street, Chicago, Illinois 60604, and then and there present the RECEIVER'S MOTION FOR ORDER APPROVING CLAIMS PROCEDURES, ESTABLISHING CLAIMS BAR DATE, AND APPROVING OTHER RELATED RELIEF. Respectfully submitted, By: /s/ Geoffrey S. Goodman Geoffrey S. Goodman (ARDC # 6272297) Foley & Lardner LLP 321 North Clark Street, Suite 2800 Chicago, IL 60654-5313 Phone: (312) 832-4500 Fax: (312) 832-4700 [email protected]Counsel to the Receiver Case: 1:14-cv-03785 Document #: 63 Filed: 07/25/14 Page 1 of 42 PageID #:462
42
Embed
NOTICE OF MOTION - KCC Class Actionclassaction.kccllc.net/Documents/SEI0001/DE63 claims motion.pdf · NOTICE OF MOTION and RECEIVER'S MOTION FOR ORDER APPROVING CLAIMS PROCEDURES,
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
ROBERT G. PEARSON and ILLINOIS STOCK TRANSFER COMPANY (d/b/a IST SHAREHOLDER SERVICES),
Case No. 14 C 3785
Hon. Rebecca R. Pallmeyer Magistrate Judge Young B. Kim
Defendants.
NOTICE OF MOTION
PLEASE TAKE notice that on August 4, 2014, at 9:00 a.m., I shall appear before the Honorable Rebecca R. Pallmeyer, or any judge sitting in her stead, in Room 2144 of the United States District Court for the Northern District of Illinois, 219 S. Dearborn Street, Chicago, Illinois 60604, and then and there present the RECEIVER'S MOTION FOR ORDER APPROVING CLAIMS PROCEDURES, ESTABLISHING CLAIMS BAR DATE, AND APPROVING OTHER RELATED RELIEF.
Respectfully submitted,
By: /s/ Geoffrey S. Goodman
Geoffrey S. Goodman (ARDC # 6272297) Foley & Lardner LLP 321 North Clark Street, Suite 2800 Chicago, IL 60654-5313 Phone: (312) 832-4500 Fax: (312) 832-4700 [email protected] Counsel to the Receiver
I, Geoffrey S. Goodman, hereby certify that on July 25, 2014, I caused to be electronically filed the NOTICE OF MOTION and RECEIVER'S MOTION FOR ORDER APPROVING CLAIMS PROCEDURES, ESTABLISHING CLAIMS BAR DATE, AND APPROVING OTHER RELATED RELIEF, each of which is being served electronically via the Court's ECF system on all registered parties of record listed below.
I also hereby certify that on July 25, 2014, I caused a true and correct copy of the NOTICE OF MOTION and RECEIVER'S MOTION FOR ORDER APPROVING CLAIMS PROCEDURES, ESTABLISHING CLAIMS BAR DATE, AND APPROVING OTHER RELATED RELIEF to be served via U.S. mail, upon the following and via e-mail on the issuers listed on the attached:
Randall W. Graff 11611 N. Meridian St., Ste. 350 Carmel, IN 46032 [email protected]
35. Summary procedures (as proposed herein) should be used to adjudicate the
amounts and priority of any claims asserted against the Receivership Estates, since using plenary
proceedings for the adjudication of claims would unnecessarily consume the resources of the
Receivership Estates.
CONCLUSION
36. For all of the foregoing reasons, the Receiver requests that the Court enter the
proposed Order attached hereto as Exhibit A:
a. Approving the relief requested herein;
b. Setting the Claims Bar Date as 5:00 p.m. Central Standard Time on September 30, 2014;
c. Approving the Proof of Claim Form;
d. Approving the proposed (i) form of Notice of Claims Bar Date, (ii) the publication procedure, and (iii) form of publication;
e. Approving the Claims Process described above, along with the use of summary procedures to resolve claim objections; and
f. Granting further relief as appropriate.
Dated: July 23, 2014 /s/ Jill Nicholson Not individually, but solely as Receiver for the Estates of Illinois Stock Transfer Company and Robert G. Pearson Foley & Lardner LLP 321 North Clark Street, Suite 2800 Chicago, IL 60654 Ph: (312) 832-4500 Fax: (312) 832-4700
/s/ Geoffrey Goodman Counsel to the Receiver Foley & Lardner LLP 321 North Clark Street, Suite 2800 Chicago, IL 60654 Ph: (312) 832-4500 Fax: (312) 832-4700
Exhibit A — Draft Order Exhibit B — Summary Exhibit C — Issuer Affidavit (Relating to Claims of Shareholders Satisfied by Issuers) Exhibit D — Proof of Claim Form Exhibit E — Notice to Be Published in the Wall Street Journal Exhibit F — Notice of Claims Bar Date to Be Sent with Proof of Claim Form Exhibit G — Answers to Frequently Asked Questions (FAQs) to Be Added to Receiver Website
Relief Requested Relevant Dates/ Other
Deadline for Issuers to Provide Issuer Affidavit(s) to Receiver re Voluntary Payment of Issuer's Shareholders
2. The issuer must submit an Issuer Affidavit for each shareholder it has paid ("Satisfied Shareholder Claim") in the form attached as Exhibit C. A consolidated Issuer Affidavit or an Issuer Affidavit identifying more than one shareholder will not be accepted.
3. The Issuer Affidavit may not be modified except to fill in the blanks provided.
4. Shareholders identified in Issuer Affidavits will not receive a Proof of Claim Form.
5. Receiver may seek court approval to enforce remedies against any Issuer who misrepresents amounts paid to shareholders.
Claims Bar Date September 30, 2014 at 5:00 p.m. CST
1. Proof of Claim Forms to be received by SEC v. Illinois Stock Transfer Company & Robert G. Pearson, c/o KCC LLC, 2335 Alaska Avenue, El Segundo, California 90245.
2. Claims not received by Claims Bar Date will be barred from seeking claims against the Receivership Estates.
3. Proof of Claim Forms will only be sent to those Interested Parties with claims as reflected by the Receivership
Estates' books and records in an amount greater than $10.00.
Claims Process for Issuers Who Have Paid Their Shareholders' Claims
September 30, 2014 at 5:00 p.m. CST
1. Proof of Claim Forms to be received by SEC v. Illinois Stock Transfer Company & Robert G. Pearson, c/o KCC 2335 Alaska Avenue, El Segundo, California 90245.
2. Claims not received by Claims Bar Date will be barred from seeking claims against the Receivership Estates.
3. To be eligible for a potential distribution on account of a Satisfied Shareholder Claim, issuer must submit a single Proof of Claim Form with a schedule of each Satisfied Shareholder Claim, identifying: (a) the amount paid to the shareholder; (b) how the amount was paid (check, wire, etc.); (c) when the amount was paid; (d) to whom the amount was paid, including name and address; (e) why the amount was paid; and (e) any additional information the issuer may believe is relevant.
3. In addition to Proof of Claim Form, issuer must also include Issuer Affidavits with Proof of Claim Form.
4. The issuer must submit an Issuer Affidavit for each shareholder it has paid in the form attached as Exhibit C. A consolidated Issuer Affidavit or an Issuer Affidavit identifying more than one shareholder will not be accepted.
Publication of Claims Bar Date in Wall Street
Notice to Run the 1st Monday after the District Court enters the order approving the Claims Procedure Motion on the docket
Approximate cost for notice is $4,157.15.
Journal
Claim Objection Process Interested Party has 20 1. Interested Party's objection to Claims
Determination must be mailed to Illinois Receiver's Claim
Stock Transfer Company & Robert G. Determination to submit
Pearson Receivership, P.O. Box 10351,
objection
Chicago, IL 60610.
2. In the event Interested Party's objection is not received by the Receiver within 20 days after mailing of Claim Determination, Receiver's Claim Determination will be final.
3. If objection is timely submitted and no consensual resolution is reached, Receiver will file Claims Determination Motion with Court, and Interested Party may file objection to Claims Determination Motion with Court.
5. In event (a) consensual resolution is not reached; (b) the Interested Party files written objection with the Court, and (c) such objection is overruled, Receiver may seek recovery of reasonable fees incurred by the Receiver in connection with objection and any related litigation. Receiver will not seek such remedies absent advance court approval.
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS
EASTERN DWISION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
ROBERT G. PEARSON and ILLINOIS STOCK TRANSFER COMPANY (d/b/a IST SHAREHOLDER SERVICES)
Defendants.
Case No.: 14-cv-3785
Judge: Honorable Rebecca R. Pallmeyer
PROOF OF CLAIM FORM
DEADLINE FOR FILING PROOF OF CLAIM FORM. This Proof of Claim Form must be actually received by the Receiver at SEC v. Illinois Stock Transfer Company & Robert G. Pearson c/o KCC LLC, PO Box 43034, Providence, RI 02940-3034 no later than 5:00 p.m. Central Standard Time on September 30, 2014. Note that certain mail delivery companies may not deliver to or may not
with any mailing service that you may ensure timely delivery. Failure to timely a waiver of your right to make any claim right to participate in any distribution of
Defendants" are defined as Illinois Stock G. Pearson.
guaranty delivery to a P.O. Box. Please carefully consult utilize when sending your Proof of Claim Form to submit a proper Proof of Claim Form will result in against the receivership estates and a waiver of your funds pursuant to any Liquidation Plan. The "Receivership Transfer Company d/b/a ist Shareholder Services and Robert
CLAIMANT CONTACT INFORMATION:
Name of Claimant:
CLAIM
Principal
Interest, Penalties, Charges**
Total
*If your a statement claim.
**Please interest,
such amounts
AMOUNT:*
$
Name of Person Submitting Form (if different from Claimant):
Late Fees, or Other
$ Name and Address Where Notices Should Be Sent:
$
and a description
claim is not for money, please attach describing the nature of your
attach a statement that itemizes all late fees, penalties, or other charges
of the basis for seeking in your claim.
Telephone No.:
Email Address:
Fax No.:
Account Number Used with Receivership Defendants, if any:
Cusip Number and/or Issuer Name, if any:
All information is provided under penalty of perjury. Additionally, providing false, misleading or incomplete information or incomplete documentation will delay the resolution of your claim and could result in the disallowance of your claim.
1. Please specify the Receivership Defendant or Defendants against whom you make this claim and the amount you are claiming. (You may check more than one box.) Identify which amounts were due before May 22, 2014 and which amounts were due on or after May 22, 2014.
Illinois Stock Transfer Company d/b/a ist Shareholder Services (BEFORE MAY 22, 2014)
$
n Robert G. Pearson (BEFORE MAY 22, 2014)
$
E Illinois Stock Transfer Company d/b/a ist Shareholder Services (ON OR AFTER MAY 22, 2014)
$
Robert G. Pearson (ON OR AFTER MAY 22, 2014)
$
2. Please specify your relationship with the Receivership Defendant or Defendants.
n Employee or Independent Contractor
Governmental Authority
Issuer
I- Lender
ri Regulatory Agency
Shareholder
E Stock Exchange
E Vendor/Trade Creditor
1-1 Other*
*If other, please attach a statement explaining the relationship.
3. Please state the basis for your claim. (Set forth briefly the relevant dates and facts and explain how the claim arose. If additional room is needed, please attach additional pages.)
4. Please check the box below if you believe your claim is secured by a lien. Please attach all documentation evidencing your lien.
Claim is secured by a lien.
5. Please identify any amounts you owe to the Receivership Defendant or Defendants (including, but not limited to all deconversion fees, commissions, funds, accounts payable, amounts due under any contracts, rebates, refunds, etc.) Please also identify the nature of such amounts you owe.
Illinois Stock Transfer Company d/b/a ist Shareholder Services
$
Robert G. Pearson
$
All information is provided under penalty ofperjury. Additionally, providing false, misleading or incomplete information or incomplete documentation will delay the resolution of your claim and could result in the disallowance of your claim.
Nature of Amounts Owed by Claimant to Receivership Defendant:
Nature of Amounts Owed by Claimant to Receivership Defendant:
6. Please identify if you have or ever had any of the following relationships with any of the Receivership Defendants:
E I am a present or former officer, director, employee, or agent of a Receivership Defendant.
E I am a relative, legal representative, heir, successor, or assignee of a Receivership Defendant.
7. In support of this claim, I attach the following documents which constitute all of the documents in my possession regarding this claim. (Describe briefly each document attached. If additional room is needed, please attach additional pages).
Certification of Truthfulness
I, the undersigned, hereby certify, under penalty of perjury, that all of the information provided in this Proof of Claim Form, including all schedules and attachments to the Proof of Claim Form, is true and correct and that the undersigned is authorized to make this claim.
Signed, under penalty of perjury, this day of , 2014.
Signature:
Print Name:
Name of Claimant:
Relationship to Claimant (Title):
[Sign and print your name, the name of the Claimant on whose behalf you are submitting this Claim and your relationship to the Claimant. If you are signing on behalf of the Claimant, state the basis for your authorization to sign on behalf of claimant and attach any power of attorney or other relevant authorization.]
All information is provided under penalty of perjury. Additionally, providing false, misleading or incomplete information or incomplete documentation will delay the resolution of your claim and could result in the disallowance of your claim.
1. Deadline and Location for Sending Proof of Claim Forms. The Proof of Claim Form must be actually received by the Receiver at SEC v. Illinois Stock Transfer Company & Robert G. Pearson c/o KCC LLC, PO Box 43034, Providence, RI 02940-3034 no later than 5:00 p.m. Central Standard Time on September 30, 2014. Note that certain mail delivery companies may not deliver to or
may not guaranty delivery to a P.O. Box. Please carefully consult with any mailing service that you may utilize
when sending your proof of claim form to ensure timely delivery. Failure to timely submit a proper Proof of Claim Form will result in a waiver of your right to make any claim against the receivership estates and a waiver of your right to participate in any distribution of funds pursuant to any Liquidation Plan.
2. Information and Documentation to be Provided by Claimant.
Each item of information and documentation requested
in the Proof of Claim Form will be used by the Receiver in
determining each Claimant's eligibility to participate in
any Liquidation Plan and in calculating the appropriate
amount of your claim, if any. Please be as detailed and
complete as possible with regard to submissions and accounts attached to the Proof of Claim form, as such
information may affect both your eligibility to participate and the amount of any claim you may have against the receivership estates.
3. Accuracy of Proof of Claim and Information Provided by Claimant.
All information provided by Claimant is made under
penalty of perjury. Providing false information will result
in the denial of your claim. Misleading or incomplete
information or incomplete documentation will delay a resolution of your claim and may result in the denial of your claim.
4. Computing Your Allowed Claim. The Receiver will review the information provided in and
with your Proof of Claim Form, including the amount you claim is due from the receivership estates. The Receiver
will determine what the Receiver believes is the amount
of your Allowed Claim, if any, and will provide notice to you of such determination.
5. Supporting Documents. You must attach to the Proof of Claim Form copies of all
documents that show the basis for your claim. If
documents are not available, you must attach an
explanation as to why they are not available. Do not send original documents. Please make sure that you sequentially label all of the documents that you produce to the Receiver in connection with your claim. It is recommended that you label on the bottom right hand corner of each document using your initials and beginning with the number 001 (e.g., for John Q. Smith, the first page of the documents would be labeled "JQS001 " the second page "JQS002" and so on). Labeling by hand is acceptable.
6. Signatures — Legal Authority to Submit Claim. The Proof of Claim Form must be signed and dated by the Claimant, or a duly authorized officer or legal
representative in the space provided on the final page. To
the extent that the signatory is authorized pursuant to a
power of attorney or court appointment, documentation of such authority must be provided.
7. Cooperation with Law Enforcement Authorities. Failure to cooperate with federal or state authorities
investigating possible unlawful activity relating to the Illinois Stock Transfer Company d/b/a ist Shareholder
Services and/or Robert G. Pearson may result in the disallowance of your claim.
8. Independent Verification of Claims — Requests for Supplemental Information or Documents.
All claims are subject to independent verification by the
Receiver. It is important to provide complete and
accurate information to facilitate this effort. Claimants
may be asked to provide additional information to complete this process. Claims may not be considered for payment until they have been verified. By submitting a Proof of Claim Form, each Claimant agrees to cooperate and to provide to the Receiver information relevant to your Proof of Claim Form. Failure to timely provide all requested information may result in the delay of the claims process or may result in the partial or complete disallowance of your claim.
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS UNITED STATES SECURITIES and EXCHANGE COMMISSION, Plaintiff, v. ROBERT G.
PEARSON and ILLINOIS STOCK TRANSFER COMPANY (d/b/a 1ST SHAREHOLDER SERVICES), Defendants
Case No. 14 C 3785 Hon. Rebecca R. Pallmeyer Illinois Stock Transfer Company d/b/a ist Shareholder Services located at 433 South Carlton Avenue, Wheaton, Illinois and Robert G. Pearson have been placed into receivership in connection with the above-captioned case pending in Chicago, Illinois. If you believe you are owed money from Illinois Stock Transfer Company or Robert G. Pearson, the court-appointed receiver must receive a Proof of Claim Form on or before 5:00 p.m. Central Standard Time on September 30, 2014 in order for you to be considered for a possible distribution on your claim. Proof of Claim Forms received after that date shall be denied. Proof of Claim Forms and additional instructions are available at www.istreceivership.com .
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
ROBERT G. PEARSON and ILLINOIS STOCK TRANSFER COMPANY (d/b/a IST SHAREHOLDER SERVICES),
Case No. 14 CV 3785
Hon. Rebecca R. Pallmeyer Magistrate Judge Young B. Kim
Defendants.
NOTICE OF SEPTEMBER 30, 2014 CLAIMS BAR DATE
Background
Illinois Stock Transfer Company d/b/a ist Shareholder Services located at 433 South Carlton Avenue, Wheaton, Illinois and Robert G. Pearson have been placed into receivership in connection with the above-captioned case pending in Chicago, Illinois. If you believe you are owed money from Illinois Stock Transfer Company or Robert G. Pearson, you must timely complete and submit a Proof of Claim Form. The Proof of Claim Form is enclosed with this notice and is also available at www.istreceivership.com . PLEASE NOTE that the court-appointed Receiver (the "Receiver") must receive a Proof of Claim Form on or before 5:00 p.m. Central Standard Time on September 30, 2014 in order for you to be considered for a possible distribution from the receivership estates. PLEASE FURTHER NOTE that filing a Proof of Claim Form is a requirement, but does not guarantee that any distribution will be provided to you. Whether you may receive a distribution will depend on: (1) whether your claim is allowed by the Receiver and (2) the treatment of your claim under a Liquidation Plan which will be filed by the Receiver at a later date.
The Receiver is responsible for reviewing Proof of Claim Forms, and when appropriate, objecting to Proof of Claim Forms, as well as making distributions on account of claims that are allowed. The purpose of the Proof of Claim Form is to help the Receiver learn who you are, how much you are owed, the reason(s) you have a claim, and how the Receiver can contact you. The more information you provide (including supporting documentation), the more quickly and efficiently your Proof of Claim Form can be reviewed.
INSTRUCTIONS
Your completed Proof of Claim Form must be executed by an individual: (a) who is authorized to represent the amount of the claim and (2) who has knowledge of the submitted claim. Failure to have a Proof of Claim Form executed by an authorized individual with knowledge of the claim will result in the disallowance of your claim. COMPLETED PROOF
OF CLAIM FORMS AND SUPPORTING DOCUMENTATION MUST BE DELIVERED TO THE ADDRESS BELOW PURSUANT TO THE FOLLOWING INSTRUCTIONS ON OR BEFORE 5:00 P.M. CENTRAL STANDARD TIME ON SEPTEMBER 30, 2014 IN ORDER TO BE CONSIDERED TIMELY:
SEC v. Illinois Stock Transfer Company & Robert G. Pearson c/o KCC LLC 2335 Alaska Avenue El Segundo, California 90245
FAILURE TO SUBMIT A TIMELY PROOF OF CLAIM FORM WILL RESULT IN THE DENIAL OF ANY RIGHT YOU MAY HAVE TO SHARE IN DISTRIBUTIONS UNDER ANY LIQUIDATION PLAN, AND YOU SHALL BE PERMANENTLY ENJOINED FROM SEEKING ANY RELIEF OR EXERCISING ANY RIGHTS OR REMEDIES WHATSOEVER WITH RESPECT TO CLAIMS YOU MAY HAVE AGAINST THE RECEIVERSHIP ESTATES OF ILLINOIS STOCK TRANSFER COMPANY AND ROBERT G. PEARSON. Do not send originals of supporting documentation with your Proof of Claim Form. Do not file your Proof of Claim Form with the District Court.
In the event the Receiver has questions about or objections to your Proof of Claim Form, you will be contacted by the Receiver or her designee. For more information about the receivership and for answers to frequently asked questions (FAQs), please visit www.istreceivership.com .
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
ROBERT G. PEARSON and ILLINOIS STOCK TRANSFER COMPANY (d/b/a IST SHAREHOLDER SERVICES),
Case No. 14 CV 3785
Hon. Rebecca R. Pallmeyer Magistrate Judge Young B. Kim
Defendants.
FREQUENTLY ASKED QUESTIONS (FAQS)
Q: Who serves as Receiver?
A: Jill L. Nicholson has been appointed as the Receiver by the United States District Court for the Eastern District of Illinois (the "District Court") in Chicago, Illinois. Ms. Nicholson is acting in her capacity solely as receiver and not in any individual capacity.
Q: What is the Receiver's job?
A: The Receiver identifies, collects, and seeks to preserve the assets (the "Receivership Property") of certain defendants in S.E.C. v. Pearson, et al., including Illinois Stock Transfer Company d/b/a ist Shareholder Services (the "Company") and Robert G. Pearson ("Pearson," and together with the Company, the "Receivership Defendants"). The Receiver will, among other activities, review and evaluate claims submitted in connection with the Receivership Defendants' estates. The Receiver will also file a proposed Liquidation Plan pursuant to which funds will be distributed to those claimants who are determined to have allowed claims (the "Allowed Claims").
Q: What must you do in order to be considered for a recovery under the Liquidation Plan?
A: You must submit a Proof of Claim Form and any supporting documentation to the following address so that it is received on or before 5:00 p.m. Central Standard Time on September 30, 2014:
SEC v. Illinois Stock Transfer Company & Robert G. Pearson dio KCC LLC 2335 Alaska Avenue El Segundo, California 90245
Do I file my Proof of Claim form with the District Court?
A: No. You should mail the Proof of Claim Form only to the address specified above.
Q: What happens if I fail to submit a Proof of Claim Form to the address specified above so that it is received by the September 30, 2014 deadline?
A. Failure to submit a timely Proof of Claim Form will result in the denial of your claim and any right you may have to share in distributions under any Liquidation Plan. You will be permanently enjoined from seeking any relief or exercising any rights or remedies whatsoever with respect to claims you may have against the receivership estates of Illinois Stock Transfer Company and Robert G. Pearson.
Q: Do I need to hire an attorney?
A: It is entirely up to each claimant to decide whether to consult with an attorney on this matter. You are not required to have an attorney submit a Proof of Claim Form on your behalf. However, you should understand that your rights may be affected if, among other things, the Proof of Claim Form is not timely submitted or if it lacks the requested information. Please note that the Receiver and her attorneys cannot provide legal advice to you.
Q:
What happens after I submit my Proof of Claim Form?
A: Upon receipt of your Proof of Claim Form, the Receiver will review the claim to determine, among other things, its validity and timeliness (the "Claim Determination"). It is anticipated that there will be a significant number of claims. As such, the Receiver may not send you a Claim Determination for several months. Once a Claim Determination is made, you will be promptly notified.
Q:
What can I do if I do not agree with the Claim Determination?
A. You will have twenty (20) calendar days after the date the Claim Determination was mailed to you to submit a written objection. Your objection to the Claim Determination must be mailed to the Receiver at Illinois Stock Transfer Company & Robert G. Pearson Receivership, P.O. Box 10351, Chicago, IL 60610. Failure to send a written objection to the Claim Determination will result in your claim being treated as set forth in the Receiver's Claim Determination.
If your claim cannot be consensually resolved, the Receiver will file a motion (the "Claims Determination Motion") with the District Court to establish final treatment for your claim. You will receive notice of the Claims Determination Motion and will have an opportunity to file a written objection with the District Court at that time.
Any litigation surrounding the claims process will only reduce the ultimate amount to be distributed under the Liquidation Plan. As such, the Receiver will endeavor under the applicable circumstances to work with claimants towards a consensual resolution of claims to the extent
feasible and as appropriate. In the event (a) a consensual resolution is not reached; (b) you submit a written objection regarding the Claim Determination with the District Court; and (c) your objection is overruled, the Receiver reserves the right to seek permission from the District Court to seek reasonable fees incurred by the Receiver in connection with your overruled claim. Such a request must be authorized and approved by the District Court.
Additional information and instructions will be provided to you regarding this process when the Claim Determination is sent to you.
Q:
Will I get all of my money back?
A: It is too early to tell how much money will be available for distribution. The Receiver will make every effort to return to each claimant with an Allowed Claim as much of the Allowed Claim as possible and consistent with the claimant's treatment under the Liquidation Plan. At this early stage in the Receiver's investigation, it appears that the Receivership Property available for distribution is less than the sum of outstanding amounts, absent additional recoveries to the receivership estates.
Q:
Does the Receiver get paid a percentage of the funds in this case?
A: No. Subject to the District Court's approval, the Receiver's fees and expenses, as well as those of Retained Personnel, are paid out of any Receivership Property as expenses necessary to the administration of the receivership estates.
Q: I am an issuer who has paid the claims of shareholders who lost money in connection with Illinois Stock Transfer Company. Will my shareholders receive a Proof of Claim Form?
A: Yes. All shareholders with claims over $10.00 as reflected by the Receivership Defendants' books and records will receive a Proof of Claim Form unless you submit an affidavit indicating that you have paid the claims of your shareholders (the "Shareholder Satisfied Claims"). The Affidavit (the "Issuer Affidavit") can be found at www.istreceivership.com and is identified as "Issuer Affidavit." The Issuer Affidavit must be notarized and received by the Receiver on or before 5:00 p.m. Central Standard Time on August 12, 2014 at [email protected] . The issuer must submit an Issuer Affidavit for each shareholder it has paid. A consolidated Issuer Affidavit or an Issuer Affidavit identifying more than one shareholder will not be accepted. The Issuer Affidavit may not be modified except to fill in the blanks provided. In the event any issuer misrepresents the amount the issuer paid to the shareholder, the Receiver, upon receiving District Court Approval, (a) will send the applicable shareholder a Proof of Claim Form, (b) will deduct the amount of the alleged Shareholder Satisfied Claim from any claims that may be asserted by the issuer, and (c) may seek an appropriate remedy to be determined by the Court against the issuer for the misrepresentation.
Q: I am an issuer who has paid the claims of individuals who lost money in connection with Illinois Stock Transfer Company. May I submit a Proof of Claim Form on behalf of the shareholders whose claims I have satisfied?
A: Yes. Issuers who have Satisfied Shareholder Claims may submit a Proof of Claim Form for the Satisfied Shareholder Claims. To be eligible for a potential distribution on account of a Satisfied Shareholder Claim, such issuer must submit a single Proof of Claim Form by the Claims Bar Date with a schedule of each Satisfied Shareholder Claim, identifying: (a) the amount paid to the shareholder; (b) how the amount was paid (check, wire, etc.); (c) when the amount was paid; (d) to whom the amount was paid, including name and address; and (e) why the amount was paid. The issuer must also submit the Issuer Affidavit with its Proof of Claim Form. The issuer must submit an Issuer Affidavit for each shareholder it has paid. A consolidated Issuer Affidavit or an Issuer Affidavit identifying more than one shareholder will not be accepted. The Issuer Affidavit may not be modified except to fill in the blanks provided. Submitting these materials does not guarantee that your claim will be determined to be an Allowed Claim.
Q:
Whom do I contact if I have a question?
A: Please direct all telephone or written inquiries to:
Katherine Hall Foley & Lardner LLP 321 North Clark Street, Suite 2800 Chicago, IL 60654 Phone: (312) 832-4718 Email: istreceiverfoley.com
Q:
What is the address for the Receiver?
A: The Receiver's address is:
Illinois Stock Transfer Company & Robert G. Pearson Receivership P.O. Box 10351 Chicago, IL 60610
Q: What if I have information that may be helpful to the Receiver or any regulatory agencies or investigators?
A: You may contact the Receiver by any of the methods stated above. If you have information that you believe would be helpful to the United States Securities and Exchange Commission (the "SEC") in this investigation or in any other investigation, please contact the SEC at:
Daniel J. Hayes, Esq. U.S. Securities and Exchange Commission 175 West Jackson Blvd, Suite 900 Chicago, IL 60604