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

Platinum Receivership


Frequently Asked Questions

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1. Who is the Receiver and what are her responsibilities?

The Court appointed Melanie L. Cyganowski, Esq., as Receiver to marshal the assets of the entities in Receivership and, ultimately, develop a plan for the disposition of these assets. In addition, the Receiver will file periodic reports with the Court regarding her activities. These reports will be posted to this website after they are filed with the Court.

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2. Can I get my money back now?

All funds must remain frozen until the Court authorizes otherwise.

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3. Will I get all of my money back?

It is too soon to determine how much investors will receive or when. Although the Receiver cannot provide a date certain for when distributions will be made, based upon her review to date of all the assets of the entities in Receivership, she does not expect that investors will recover 100% of their invested funds. Indeed, it is likely that they will recover significantly less. The Receiver will make every effort, within the context of a liquidation process, to recover and distribute as much as possible to investors.

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4. If the Receiver believes that it is likely investors will not recover 100% of their invested funds, then should investors “write-off” their investment?

The Receiver cannot provide investors with tax advice; thus, everyone should consult their own tax advisor on this issue.

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5. How can I stay informed of progress in this case?

Periodic review of this website is the best way to stay abreast of developments in this Receivership. The website will be updated on a regular basis.

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6. Do I need to file a claim form?

Not at this time. At some point, the Receiver will recommend that the Court approve a process for investors to submit claims. Once the protocol is approved and established, the Receiver will provide notice of it to investors, including by posting the relevant details on this website.

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7. What if I already filed a claim form with the prior receiver, Bart M. Schwartz?

Previously filed claim forms do not need to be resubmitted to the Receiver.

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8. If I have other questions, how can I get them answered?

You can contact the Receiver by emailing platinumreceiver@otterbourg.com or calling William Edwards at Goldin Associates, tel. no. (212) 593-2255.

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9. Is the Receiver my lawyer?

The Receiver is not your lawyer, and she cannot provide you with legal advice. She is the Court’s agent, and she is charged with effectuating the provisions of the Court’s Orders. The Receiver will, however, be investigating potential claims and/or methods of recovery for the benefit of investors.

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10. I have not received a K-1 for this tax year. When can I expect to receive one?

The PPCO and PPLO tax returns for the year ended December 31, 2017 have been completed and all K-1s have now been sent out to investors. If you have not received your K-1 for tax year 2017, then please contact the Receiver by emailing platinumreceiver@otterbourg.com or by calling her Legal Counsel listed under “Contact Information” on this website.

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11. Will any investors be paid ahead of others?

The Receiver has not yet devised a plan by which funds will be distributed to investors. The Receiver, however, is mindful that any such plan must be fair and equitable. That plan will ultimately be subject to review and approval by the Court upon proper adequate notice to all investors.

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12. Who can I contact regarding any of my questions as a PPVA (USA) investor?

Borrelli Walsh has been appointed in the Cayman Islands to serve as liquidator of PPVA (USA). If you are a PPVA investor, please email your questions to ppvaonshore@borelliwalsh.com or call Robert Shifman at (345) 743-8800.

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13. There are approximately thirty-three (33) investments that were held by PPCO as of December 31, 2015, which do not seem to appear in the Status Reports. Can you please explain these discrepancies?

There are several reasons why certain assets held by PPCO as of year-end 2015 are not referenced in the Receiver’s Status Reports.

(a) Many of these assets were sold (or, if loans, were repaid) between December 31, 2015 and the start of the receivership.

Investment NameInvestment TypeStatus
1083 McDonald Ave / 77 Clinton AveLoan Repaid
1654 49th Street, BrooklynLoanRepaid
5137 MiddletownLoanRepaid
Beach 21st Street / 21-12 Cornaga AveLoanRepaid
BellicoseLoanSold
Edson Avenue, BronxLoanRepaid
Middletown Shopping CenterLoanRepaid
Minque LtdCommon EquitySold
Stanford International Bank Participation InterestRepaid
Wohl & FruchterLoanRepaid

(b) Many of these assets were written-off by prior management between December 31, 2015 and the start of the receivership. Although prior management had written down these assets to zero on PPCO’s books, the Receiver is investigating the propriety of such write-downs and is independently reviewing collection options.

Investment NameInvestment TypeStatus
ArrowheadLoanWritten down
ARSLoanWritten down
Atlanta AutoLoanWritten down
CABLLoanWritten down
Del PradoLoanWritten down
DeldanLoanWritten down
DoverLoanWritten down
Evergreen EnergyLoanWritten down
HartskoLoanWritten down
Island Breeze Int’l Inc.Loan + Common EquityWritten down
Jett CapitalCommon EquityWritten down
Link ResourcesLoanWritten down
Panamanian DevelopmentLoanWritten down
Santa Maria EnergyCommon EquityWritten down
WhitehavenLoanWritten down

(c) Some of these assets are disclosed in the Status Reports, but with slightly different names.

Investment Name (pre-receivership file)Investment Name (Status Report)
Bradley FriedelPro Player Athletes
CRECarbon Credits
EVSPEnvironmental Service Professionals, Inc.
KPAKhorrami Pollard & Abir LLP
Marquis Healthcare TechnologiesDiamed Partners LLC
MHCC – CSMillennium Healthcare
Reed SmithEstate of William Davidson v. Deloitte Tax, LLP
TKN PetroleumFreedom Well Services / Pea & Eigh Company LLC

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14. There are approximately eighteen (18) investments identified in the Status Reports that are not contained in the information provided by pre-receivership management. Please explain why these investments did not appear in information provided by prior management.

There are several different reasons why some assets appear on the Receiver’s Status Reports, but are not referenced in any reports from prior management. Below is a summary, by asset, of the reason for the inclusion of these assets in the Status Reports:

(a) Some assets were received in a settlement agreement dated April 2015 with Blumont Ltd, a borrower of PPCO Master Fund LP.

Investment NameInvestment Type
Azarga Uranium Corp.Common Stock
Celsius ResourcesCommon Stock
Elysium Resources, LtdCommon Stock
Genesis ResourcesCommon Stock
Merlin Diamonds LimitedCommon Stock

(b) Some assets were received via pre-receivership transactions with Platinum Partners Value Arbitrage Fund LP (“PPVA”), an affiliate of PPCO.

Investment NameInvestment Type
AirDye Holdings, LLCLoan
Urigen Pharmaceuticals, Inc.Preferred Equity

(c) Some assets were received as consideration in the pre-receivership sale of Agera Energy, LLC. These assets are owned through a vehicle named Principal Growth Strategies, LLC, which is co-owned by PPCO and PPVA.

Investment NameInvestment Type
China Horizon / Yellow RiverLoan and Common Equity
Golden Gate Oil LLCLoan
Montsant Partners, LLCLoan

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