![]() ![]() In the event Investor A receives $20,000.00 in distributions and there remain additional funds to distribute, Investor B will begin receiving distributions with Investor A proportionate to their Allowed Claims. Investor B will not receive a distribution unless and until Investor A has received a 20% percentage return or, in this illustration, distributions of $20,000.00. Under this scenario, Investor A would be the first to receive a distribution, as their percentage return is 0%. The Receiver uses the following hypothetical to explain the calculations: Investor This is essentially a pro rata distribution that takes into consideration not only how much a person invested with Rust Rare Coin, but also what percentage of their investment was returned to them before the Receiver was appointed. Second, the Receiver proposes distributing assets using the rising tide method. ![]() Non-recognized trade creditor claims andĪs a practical matter, the Receiver believes the first, second, and third classes will be paid in full, the fourth class will be paid in part, and the fifth and sixth classes will receive no payments. Unsecured creditors and defrauded investors ĥ. Secured creditors (to be paid out of the proceeds of their collateral) Ĥ. Administrative costs of the Receiver and the Rust Rare Coin estate ģ. The Receiver's plan is made up of two key components: the use of a class system to categorize and rank the types of claims received and a distribution method based on the rising tide principles.įirst, the Receiver proposes dividing the potential claims into six distinct classes, with claims in lower classes receiving no distributions until the claims in higher classes have been fully satisfied. Receivership assets" is known as the "rising tide" method. The type of pro rata distribution method that is "most commonly used (and judicially approved) for apportioning 2002) (" he use of a pro rata distribution has been deemed especially appropriate for fraud victims of a Ponzi scheme."). 2017) ( "Courts have 'routinely endorsed' the pro rata distribution of assets to investors as the most fair and equitable approach in fraud cases.") (collecting cases) S.E.C. In crafting a distribution plan, courts frequently favor a pro rata distribution of funds and disfavor attempts to trace losses to individual investors. ![]() relief in an equity receivership.") (internal quotations omitted). 2010) ( "It is generally recognized that the district court has broad powers and wide discretion to determine. 2009) (internal quotation omitted) (collecting cases) S.E.C. The Court has the authority to approve any plan provided it is fair and reasonable." S.E.C. "In general, this Court has broad authority to craft remedies for violations of the federal securities laws. Having reviewed each objection and having considered the arguments made by the objectors at three separate hearings held on August 17 and 18, the court now overrules the objections and grants the Receiver's motion. 298.) The court has received fourteen objections to this proposal. The Receiver has now filed a motion to approve his proposed distribution plan to compensate the victims of the Rust Rare Coin fraud. 22, 53, 54, 59, 69, 77.) The court also appointed Jonathan Hafen as Receiver for the Rust Rare Coin estate and instructed him to liquidate its assets. 1.) Through a series of preliminary injunctions, theĬourt froze all of the assets of Rust Rare Coin. ![]() In November 2018, the Commodity Futures Trading Commission (CFTC) and the State of Utah brought this action against Defendants Rust Rare Coin, Inc., Gaylen Dean Rust, Denise Gunderson Rust, and Joshua Daniel Rust (collectively, "Rust Rare Coin"), accusing them of operating a major Ponzi scheme. ORDER AND MEMORANDUM DECISION OVERRULING OBJECTIONS AND GRANTING RECEIVER'S MOTION TO APPROVE DISTRIBUTION PLAN UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH CENTRAL DIVISION RUST RARE COIN, INC., a Utah corporation, GAYLEN DEAN RUST, an individual,ĭENISE GUNDERSON RUST, an individual, and JOSHUA DANIEL RUST, an individual, Defendants ĪLEESHA RUST FRANKLIN, an individual, R LEGACY RACING INC.,Ī Utah corporation, R LEGACY ENTERTAINMENT LLC, a Utah limited liability company,Īnd R LEGACY INVESTSMENTS LLC, a Utah limited liability company, Relief Defendants. STATE OF UTAH DIVISION OF SECURITIES, through Attorney General Sean D. COMMODITY FUTURES TRADING COMMISSION, and ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |