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

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

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

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

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

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

DECEMBER 20, 2017 WEBINAR VIDEO – Investor & Creditor Forum