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

Platinum Receivership


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

LEGAL COUNSEL TO RECEIVER
Otterbourg P.C.
230 Park Avenue
New York, NY 10169
Phone: (212) 905-3672
Attention: Erik B. Weinick

FINANCIAL ADVISOR TO RECEIVER
Teneo Capital, 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.

Updates

On August 18, 2022, the Court entered an Order establishing the deadline for Administrative Claimants to file completed and signed Proof of Administrative Claim Forms. The Court has established 5:00 p.m. (prevailing Eastern Time) on October 21, 2022 (the “Administrative Claim Bar Date”) as the deadline for Administrative Claimants to timely file Administrative Claims. You MUST submit a Proof of Administrative Claim to the Receiver, at the e-mail address platinumreceiver@otterbourg.com, if you have an Administrative Claim against any of the Receivership Entities that arose within the Administrative Claim Period, which is defined as the time period beginning December 19, 2016 through and including June 30, 2022. Any Proof of Administrative Claim submitted after the Administrative Claim Bar Date will be subject to disallowance, which means that you will not receive any distribution from the Receiver or the Receivership Entities on account of your alleged Administrative Claim. The Administrative Claim Bar Date Order is not intended to, and should not be construed to, alter, modify or otherwise affect any Claim arising prior to the Receivership Commencement Date, or any bar dates set forth in the Order (I) Establishing Claims Bar Dates and (II) Approving (A) A Proof of Claim Form, (B) the Form and Manner of Notice of the Claims Bar Dates and (C) Procedures for Submitting Proofs of Claim [Dkt. No. 453], or any other Claim bar date established by a prior Order of the Court.

The Court-authorized Notice of the Administrative Claim Bar Date can be found here.

The Court-authorized Proof of Administrative Claim Form can be found here.

Key Documents

Protocols for Parties in Interest to Be Heard on Receiver Motions

Beechwood Litigation

To access the Beechwood Litigation Case Docket, please click below:

On March 29, 2019, Melanie L. Cyganowski, the Court appointed receiver for certain funds commonly referred to as Platinum Partners (the “PPCO Funds”), through her counsel Otterbourg P.C., filed an amended complaint in the United States District Court for the Southern District of New York against, among others, (i) certain so-called Beechwood entities, (ii) Senior Health Insurance Company of Pennsylvania, (iii) Fuzion Analytics, Inc., (iv) CNO Financial Group, Inc., (v) Bankers Conseco Life Insurance Company, (vi) Washington National Insurance Company and (vii) 40|86 Advisors, Inc. Click here to read the amended redacted 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.” now pending as Case 1:18-cv-12018 in the United States District Court for the Southern District of New York. As is fairly standard in similar cases, the Receiver exercised her right under the applicable rules and orders of the court to amend the originally filed complaint.

The Receiver’s amended complaint seeks redress for the innocent investors and creditors of her estate damaged by the defendants’ unlawful and tortious acts. The Receiver alleges that through their creation of Beechwood, a purported independent reinsurance entity, the Platinum insiders expanded a pre-existing fraud that personally enriched them through the generation 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 amended complaint are alleged to have substantially assisted, and participated with, Beechwood and the Platinum insiders to commit fraud and breach their fiduciary duties to the PPCO Funds. Specifically, these defendants – acting through Beechwood – structured and implemented a series of transactions that ultimately saddled the PPCO Funds with approximately $69.1 million of debt owing to Beechwood, as agent for the insurers, secured by liens on substantially all of the PPCO Funds’ assets, including those of nearly all of their portfolio companies, in consideration for assets that were worth a fraction of that amount.

For these reasons, the Receiver asserts causes of action for, among other things, (i) violations of the Racketeer Influenced and Corrupt Organizations Act and/ or federal securities fraud; (ii) aiding and abetting common law fraud; (iii) aiding and abetting breach of fiduciary duty; (iv) actual and constructive fraudulent conveyances; and (v) unjust enrichment. In addition to monetary damages, the Receiver seeks to avoid the first-priority liens asserted against PPCO Funds’ assets by certain defendants which may otherwise adversely impact potential distributions to investors and creditors.

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.

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.

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

(i) 5:00 p.m. (prevailing Eastern Time) on October 21, 2022 as the deadline for Administrative Claimants to submit Proofs of Administrative Claim against the Receivership Entities.

The Administrative Bar Date Order can be viewed here.

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

The Notice of Administrative Claim Bar Date can be viewed here.

Webinar Videos

December 11, 2019 WEBINAR VIDEO – Investor & Creditor Forum


August 14, 2019 WEBINAR VIDEO – Investor & Creditor Forum

March 12, 2019 WEBINAR VIDEO – Investor & Creditor Forum

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