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. What is the status of the claims process?

The deadline to submit proofs of claim against the Receivership Entities was March 29, 2019 for claimants other than governmental units and was April 12, 2019 for governmental units. The Receiver is reviewing all claims received and will propose a claims resolution and distribution plan in due course. Among other things, the availability and timing of any distributions is contingent on resolution of the Beechwood Litigation.

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7. 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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8. 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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9. When can I expect to receive a K-1 Statement for the 2018 Tax Year?

Preparation of PPCO’s and PPLO’s 2018 tax returns is currently in process. The Receiver anticipates mailing K-1s to investors by July 2019 and filing the returns with the appropriate government authorities shortly thereafter. The K-1 statements will show significant decreases in the value of investors’ interests in the funds. These decreases reflect that the monetization of certain significant receivership assets have achieved less in proceeds than the value recorded on Platinum’s books. The Receivership has not otherwise made any adjustments to the book values of the investments. The significant decreases in values of investors’ interests compared to the realized amounts are reflective of the fact that assets were significantly overvalued by prior management. The amounts listed on the K-1s are not necessarily reflective of what distributions investors may ultimately receive in this case. The Receiver cannot provide any tax advice. Investors are encouraged to consult their own tax advisor on the impact of the K-1 statements on individual tax returns.

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10. 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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11. 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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12. How will the jury verdict in the criminal trial of Mark Nordlicht, David Levy and Joseph SanFilippo impact the receivership?

The Receivership was established with Mark Nordlicht’s consent in the civil enforcement case brought by the Securities and Exchange Commission titled SEC v. Platinum Management (NY) LLC, et al., case No. 16-cv-06848 (E.D.N.Y.) (BMC). Unlike the criminal trial, it is a civil action which will, at a certain point, be resolved before Judge Cogan. Our role is to administer the Receivership. We are not involved in either the prosecution of the criminal case by the Department of Justice or the advancement of the civil litigation by the SEC. The Receiver will continue her work as governed by the Court Orders, and will continue to provide updates on her progress.

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