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

Platinum Receivership

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.



December 4, 2018 WEBINAR VIDEO – Investor & Creditor Forum

October 17, 2018

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 December 4, 2018 from 12:00 P.M. to 1:00 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: December 4, 2018 12:00 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

AUGUST 15, 2018 WEBINAR VIDEO – Investor & Creditor Forum

July 23, 2018

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 August 15, 2018 from 12:00 P.M. to 1:00 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: August 15, 2018 12:00 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

NOTICE OF ELECTRONIC SYSTEMS SECURITY INCIDENT

The Receiver is in the process of directly notifying certain individuals whose personal information may have been exposed as a result of a recent security incident involving a single email account on a cloud-based service used by Platinum. Specifically, Platinum recently identified suspicious computer-related activity and as a result, the Receiver immediately engaged LMG Security, a leading independent cybersecurity firm, which has been working to further secure Platinum’s systems, as well as conducting a comprehensive forensic review to determine the scope of the incident, including the specific data which may have been impacted.

Based on the investigation thus far, there was limited unauthorized access to a single email account on a cloud-based service used by Platinum from March 19, 2018 to May 19, 2018. Platinum is not aware of any impact on Platinum’s bank accounts or other assets as a result of this incident, nor is Platinum aware of any attempt to misuse any individual personal information which may have been exposed as a result of this incident.

In addition to its forensic analysis, LMG Security and Platinum took steps to minimize and prevent any additional unauthorized access to Platinum’s electronic systems or data. LMG Security’s findings have been reported to law enforcement and the Receiver’s team and professionals continue to work with the appropriate authorities.

While there is no evidence to suggest that there has been any attempt to misuse any of the personal information which may have been contained in the impacted data, those individuals who may have been directly affected by this incident have, or will receive, individual letters apprising them of the incident and informing them of the services which the Receiver is providing to them in an abundance of caution. Specifically, the Receiver, working with the cyber response team at Garden City Group, has established a call center to respond to inquiries by those individuals receiving letters from the Receiver, and is offering complimentary identify theft protection services through ID Experts®. This service includes 12 months of credit monitoring, a $1,000,000 insurance reimbursement policy, and fully managed id theft recovery services. With this protection, MyIDCare will help affected individuals resolve issues if their identity is compromised.

If you would like further information regarding the foregoing, please call (888) 866-5172.

JUNE 6, 2018 WEBINAR VIDEO – Investor & Creditor Forum


May 15, 2018

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 June 6, 2018 from 12:00 P.M. to 1:00 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: June 6, 2018 12:00 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 20, 2017 WEBINAR VIDEO – Investor & Creditor Forum


MELANIE L. CYGANOWSKI, RECEIVER c/o Otterbourg P.C. 230 Park Avenue, 30th Floor New York, NY 10169 E-mail: platinumreceiver@otterbourg.com Website: www.PlatinumReceivership.com

MARCH 1, 2018 WEBINAR VIDEO – Investor & Creditor Forum

February 12, 2018

VIA WEB POSTING

RE:
Securities & Exchange Commission v. Platinum Management (NY) LLC, et al.
United States District Court for the Eastern District of New York
Case No.: 1:16-cv-06848-BMC

Dear Investors:

I am writing to you as the Receiver of the Platinum entities that are under receivership in the above-referenced case. The purpose of this letter is to provide an update on certain key developments. I recently filed my Second Status Report, which covers the period October 1, 2017 through December 31, 2017. A copy of this report can be found on the Receiver’s website (www.platinumreceivership.com).

My primary focus continues to be the monetization of Platinum’s investment portfolio. During the last quarter, Platinum received approximately $11.5 million from the sale of its assets. (This is in addition to the approximately $11 million received by the Platinum Receivership from the liquidation of certain assets during the preceding quarter.) The following investments were liquidated during the period October 1, 2017 through December 31, 2017:

  • Acceleration Bay ($10.54 million, plus a 5% residual interest)
  • AirDye ($1.265 million)
  • Clifford Chance/Excalibur ($99,000)

Moreover, Houlihan Lokey Capital, Inc. (“Houlihan Lokey”), which was previously retained by the Receivership to market certain Platinum assets, has worked diligently to prepare for marketing and sale of the Abdala gold tailings project in Brazil and Platinum’s life settlements portfolio, among other assets. In addition, my team continues to work productively with Conway MacKenzie Capital Advisors, LLC (“Conway MacKenzie”), which was retained to market certain assets not being marketed by Houlihan Lokey. In the period ahead, I anticipate the satisfactory completion of several of these firms’ marketing and disposition efforts. As with the sale of other assets, none of these Receivership Assets are being marketed or sold on a “fire sale” basis.

In addition, since the last report, per my request, three additional Platinum entities have been added to the receivership estate: (i) Platinum Partners Liquid Opportunity Master Fund L.P.; (ii) Platinum Partners Credit Opportunities Fund International Ltd; and (iii) Platinum Partners Credit Opportunities Fund International (A) Ltd. I do not contemplate adding any additional entities at this time, although I reserve the right to make such a request at a future date.

I will report on my continuing efforts to monetize Receivership Assets by filing periodic reports with the Court and organizing “town hall” style webinar/telephone conferences. The first such webinar took place on December 20, 2017. A video of the town hall meeting has been posted on the Receiver’s website (www.platinumreceivership.com). I have scheduled the next webinar for March 1, 2018 from 12:30-1:30 (ET). Notice of the webinar and how to participate has been posted on the Receiver’s website.

Finally, my team of professionals and Platinum’s Chief Financial Officer continue to work with Deloitte Tax LLP in connection with the preparation of Platinum’s local, state and federal tax returns. K-1s for the year ended December 31, 2016 for the PPCO Fund LLC and the PPCO Fund (TE) LLC were mailed to investors on December 13, 2017 and December 28, 2017, respectively. K-1s for investors in the PPLO (USA) Fund LP are near completion and we anticipate sending Final K-1s for the years ended December 31, 2015 and 2016 in the next 2 weeks. Completing and filing these tax returns has required more work, as there have not been any PPLO (USA) Fund LP tax returns completed since 2014.

As a reminder, you can send general email inquiries to platinumreceiver@otterbourg.com. Although we monitor and review all emails, it is not practical for us to respond personally to all messages. We will try to update the Frequently Asked Questions (“FAQ”) section on this website as needed to reflect your inquiries and our responses. If you would like to receive copies of certain notices that we sent out by e-mail (in addition to web postings), please provide us with your e-mail address by sending your name and e-mail to platinumreceiver@otterbourg.com.

Thank you in advance for your cooperation and understanding.


Sincerely,

Melanie L. Cyganowski
Receiver



February 6, 2018

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 1, 2018 from 12:30 P.M. to 1:30 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: Mar 1, 2018 12:30 PM (Eastern Time - US and Canada)

Topic: Investor & Creditor Forum 2

BY COMPUTER:

Please click the link below to join the webinar:
https://zoom.us/j/876909437

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

BY IPHONE ONE-TAP:

Dialing in from the United States: +1 646 876 9923 -OR- +1 669 900 6833

BY TELEPHONE:

Dial(for higher quality, dial a number based on your current location):
US: +1 646 876 9923 -OR- +1 669 900 6833 -OR- +1 408 638 0968

Webinar ID: 876 909 437
Participant CODE: # (no number necessary, just the “#” sign)

International numbers available: https://zoom.us/zoomconference?m=41nGVvyfJteFUk6beTnoLAncvOOs-wT4


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.