Securities & Exchange Commission v. Platinum Management (NY) LLC, et al.

Platinum Receivership


Bar Date

The Court has established the following dates by which claims by non-investor creditors against the Receivership Entities must be filed:

(i) 5:00 p.m. (prevailing Eastern Time) on March 29, 2019 as the deadline for Claimants other than Governmental Units to submit Proofs of Claim against the Receivership Entities; and

(ii) 5:00 p.m. (prevailing Eastern Time) on April 12, 2019 as the deadline for Governmental Units to submit Proofs of Claim against the Receivership Entities.

The Bar Date Order can be viewed here.

The Proof of Claim Form, which includes instructions for filing a claim, can be downloaded here.

The Notice of the Bar Date can be viewed here.

DEADLINE for filing a claim against LC ENERGY only: March 4, 2019 at 5:00pm (ET). For additional information on how to file a claim, see Notice of Proposed Sale of LC Energy and Establishment of LC Energy Claims Bar Date In Connection Therewith and Order Authorizing the Receiver to Sell the Receivership’s Rights in LC Energy and Establishing LC Energy Claims Bar Date in Key Documents section for more information.


Upcoming Investor & Creditor Forum

February 19, 2019

VIA WEB POSTING

TO:
FROM:
RE:
Platinum Partners Investors and Creditors
Melanie L. Cyganowski, as Receiver
Investor & Creditor Forum

I am pleased to announce that I will hold a virtual forum for Platinum Partners Investors and Creditors on March 12, 2019 from 1:00 P.M. to 2:00 P.M. Eastern. During the forum, I plan to provide an update on the Receivership, including the steps I have taken since the last forum and our plans moving forward. There will also be time for questions.

Instructions for registering and participating in the forum by computer or telephone are provided below. If you would like to submit questions in advance, or have any questions regarding the forum, please direct them to platinumreceiver@otterbourg.com. Those participating by computer will be able to submit questions during the event using the computer service, but those participating by phone will be on mute and will need to send questions through the platinumreceiver@otterbourg.com email address. Finally, please note that we will utilize a court reporter, as well as video, to record the session. Thank you and I look forward to speaking with you soon.


Sincerely,

Melanie L. Cyganowski
Receiver

You are invited to a Platinum Receivership webinar.
When: March 12, 2019 1:00 PM (Eastern Time - US and Canada)

Topic: Investor & Creditor Forum

BY COMPUTER:

Please click the link below to join the webinar:
https://zoom.us/j/995380643

Please note: You must first download “Zoom” webinar software. Simply google “zoom.us” to download this free software.

OR IPHONE ONE-TAP:

+16699006833,,995380643# -OR- +16468769923,,995380643#

OR TELEPHONE:

Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 -OR- +1 646 876 9923

Webinar ID: 995 380 643

International numbers available: https://zoom.us/u/eBFnaDFpk


December 4, 2018 WEBINAR VIDEO – Investor & Creditor Forum

AUGUST 15, 2018 WEBINAR VIDEO – Investor & Creditor Forum

JUNE 6, 2018 WEBINAR VIDEO – Investor & Creditor Forum


DECEMBER 20, 2017 WEBINAR VIDEO – Investor & Creditor Forum


MARCH 1, 2018 WEBINAR VIDEO – Investor & Creditor Forum

DECEMBER 20, 2017 WEBINAR VIDEO – Investor & Creditor Forum

Key Documents

Learn more about the Settlement by downloading the documents below.

Beechwood Litigation

To access the Beechwood Litigation Case Docket, please click here

On December 19, 2018, Melanie L. Cyganowski, as the Court appointed receiver for certain funds commonly referred to as the Platinum Partners Credit Opportunities Funds (the “Platinum Credit Funds”), through her counsel Otterbourg P.C., filed suit in the United States District Court for the Southern District of New York, against a group of defendants, including certain so-called Beechwood entities, Senior Health Insurance Company of Pennsylvania, Fuzion Analytics, Inc., Bankers Conseco Life Insurance Company, Washington National Insurance Company and CNO Financial Group, Inc. Click here to read the complaint in the action captioned “Melanie L. Cyganowski, as Equity Receiver for Platinum Partners Credit Opportunities Master Fund LP, et al. v. Beechwood RE Ltd., et al.” is now pending as Case 1:18-cv-12018 in the United States District Court for the Southern District of New York.

The Receiver’s complaint seeks redress for the massive fraudulent scheme perpetrated to the detriment of the Platinum Credit Funds and its innocent investors by certain of the now indicted and/or convicted insiders of Platinum. Specifically, the Receiver alleges that through the creation of what was a thinly disguised independent reinsurance entity, Beechwood, the Platinum insiders, fueled with money knowingly or recklessly contributed by Senior Health Insurance Company of Pennsylvania, Fuzion Analytics, Inc., Bankers Conseco Life Insurance Company, Washington National Insurance Company and CNO Financial Group, Inc., were able to prolong and expand a massive fraud that personally enriched the insiders through the generation of tens of millions of dollars in management fees, incentive fees, false profits and other remuneration over the years.

Certain of the defendants named in the Receiver’s complaint are alleged to be willing participants in the fraud, turning a blind eye from multiple red flags of fraud that left the Platinum Credit Funds in receivership gravely damaged in the form of limited liquidity, loss of their most valued assets for less than reasonably equivalent value and liens against substantially all of their assets for which less than adequate consideration was provided.

The Receiver asserts thirteen causes of action, including common law fraud, aiding and abetting of common law fraud, aiding and abetting of breach of fiduciary duty, fraudulent conveyances, federal securities fraud, and violations of the Racketeer Influenced and Corrupt Organizations Act, which collectively seek to remedy the harm inflicted on the Platinum Credit Funds in receivership for the ultimate benefit of their innocent investors and creditors. In addition to monetary damages, the Receiver seeks to avoid the first-priority liens asserted against Platinum Credit Funds’ assets by certain defendants which may otherwise adversely impact potential distributions to investors and creditors of funds.

The Receiver will update her website, http://www.platinumreceivership.com/index, with developments in the case and will address investor/ creditor inquiries regarding the suit at her next Town Hall meeting, the date and time of which have not yet been scheduled but which will be announced on the Receiver’s website. Any questions or concerns in the interim should be submitted via email to platinumreceiver@otterbourg.com.

Protocols for Parties in Interest to Be Heard on Receiver Motions

Case Information

RECEIVERSHIP ENTITIES
Platinum Credit Management, L.P.
Platinum Partners Credit Opportunities Master Fund L.P.
Platinum Partners Credit Opportunities Fund (TE) LLC
Platinum Partners Credit Opportunities Fund LLC
Platinum Partners Credit Opportunity Fund (BL) LLC
Platinum Liquid Opportunity Management (NY) LLC
Platinum Partners Liquid Opportunity Fund (USA) L.P.
Platinum Partners Liquid Opportunity Master Fund L.P.
Platinum Partners Credit Opportunities Fund International Ltd.
Platinum Partners Credit Opportunities Fund International (A) Ltd.

CASE NUMBER
1:16-cv-6848 (BMC)(VMS)

COURT
United States District Court for the Eastern District of New York

JUDGE
Judge Brian M. Cogan

DATE FILED
December 19, 2016

LC ENERGY CLAIMS BAR DATE
March 4, 2019 at 5:00pm (ET) - See Notice of Proposed Sale in Key Documents section or Click Here for more info.

LEGAL COUNSEL TO RECEIVER
Otterbourg P.C.
230 Park Avenue
New York, NY 10169
Phone: 212-661-9100
Fax: 212-682-6104
Attention: Adam C. Silverstein
Erik B. Weinick

FINANCIAL ADVISOR TO RECEIVER
Goldin Associates LLC
350 Fifth Avenue
The Empire State Building
New York, NY 10118
Phone: 212-593-2255
Fax: 212-888-2841
Attention: Marc Kirschner
William Edwards

RELATED CASES
1:16-cr-00640-BMC USA v. Nordlicht et al
1:16-cr-00640-BMC-1 Mark Nordlicht
1:16-cr-00640-BMC-2 David Levy
1:16-cr-00640-BMC-3 Uri Landesman
1:16-cr-00640-BMC-4 Joseph Sanfilippo
1:16-cr-00640-BMC-5 Joseph Mann
1:16-cr-00640-BMC-6 Daniel Small
1:16-cr-00640-BMC-7 Jeffrey Shulse

Docket Items for the above cases can be located at the PACER portal for the Eastern District of New York, located here.

Purchasing Platinum Assets

The Receiver continues to work diligently to monetize Platinum’s assets for the benefit of the Receivership Estate. She has retained Houlihan Lokey Capital, Inc. and Conway MacKenzie Capital Advisors, LLC to assist with these monetization efforts. Below, please find brief descriptions of certain Platinum assets which are, or soon may be, marketed for sale.

If you would like further information regarding any of the listed assets, please send a message so indicating to the following address: platinumreceiver@otterbourg.com. A member of the Receivership Team will respond to your inquiry as soon as practicable.

American Patriot Gold

American Patriot Gold refers to Platinum’s ownership interest in approximately 370 acres of land fee simple in Montezuma County, Colorado. The Receiver has retained a local broker, Wells Group of Durango, Inc., to market and show the property to potential purchasers.

LC Energy Holdings, LLC

Platinum maintains an interest in Goldstar Coal Mine in Green County, Indiana. Should you wish to learn more about LC Energy and bid on its assets, you should contact Richard Saltzman of Houlihan Lokey by telephone at (212) 497-4100 or by email at RSaltzman@HL.com.