At the request of the Agencies, ASIC provided the following update on the status of related proceedings in Australia:
“ASIC has been investigating Investment Intelligence Corporation and Senen Pousa and on 26 July 2012, ASIC obtained interim orders, by consent, in the Queensland Supreme Court over $3,092,799 held by St George Bank and $313,136 held by American Express Australia in the accounts of Investment Intelligence. ASIC subsequently sought order from the Court to have Investment Intelligence wound up, but prior to the trial of the proceeding, on 31 May 2013, Mr. Pousa appointed Blair Pleash and Richard Albarran of Hall Chadwick as administrators of Investment Intelligence.On 7 June 2013 ASIC filed an application to have the administration terminated and PricewaterhouseCoopers appointed as provisional liquidators of Investment Intelligence. On 12 June 2013 the Court made orders that the administration be terminated and that Mr. Pleash of Hall Chadwick be appointed as a provisional liquidator of Investment Intelligence. Hall Chadwick were subsequently appointed as liquidators of Investment Intelligence on 19 June 2013 after a creditor had Investment Intelligence wound up on the grounds of insolvency. Investment Intelligence Corporation Pty Ltd Creditors of Investment Intelligence Corporation Pty Ltd should contact Hall Chadwick [http://www.hallchadwick.com.au/media-releases/investment- intelligence-corporation-pty-ltd]. ASIC's investigation is continuing.”
Though the Agencies cannot provide you with legal advice, all victims should consider submitting their claims for return of their misappropriated funds to the Australian liquidator. This will help ensure that your losses are properly recorded and considered in the Australian proceedings.
We would like to give you a brief update regarding the Receiver’s efforts throughout the past few months and his plans moving forward. As you may recall, the Receiver was beginning preparations for a distribution last summer. Around that time the Liquidator was appointed in Australia, which raised certain questions including how best to go about the Receiver’s and Liquidator’s claims processes and distributions. Since his appointment the Receiver has been working with the Liquidator to reduce duplication of efforts where possible, and it was our hope that the Liquidator and Receiver would be able to conduct a joint distribution, thereby reducing the costs associated with the claims approval process and distribution itself. However, it is our understanding at this point that the laws applicable to the Liquidator will prevent him from participating in our claims and distribution processes.
Nevertheless, the United States Commodity Futures Trading Commission (“CFTC”) has been working with the National Futures Association (“NFA”), which will most likely conduct the distribution(s) to investors at no charge. At this stage the Receiver is prepared to move the Court to approve a claims approval and distribution process, and sincerely hopes to be able to conduct a distribution in the near future. However, an important outstanding matter remains involving funds held by an entity overseas, which the Liquidator and Receiver both believe should be remitted to their respective estates. The Receiver most recently proposed the funds be split 50/50 with the Liquidator, and received a counteroffer of a 90/10 split in favor of the Liquidator. Not only does the Receiver view the Liquidator’s counteroffer to be unreasonable, he also has concerns that such a split would constitute a violation of his fiduciary duties given that the Liquidator represents a more broad group of constituents than the Receiver. The Receiver has been working diligently with the Liquidator and also the CFTC, Securities Exchange Commission, and directly with the entity holding the funds to resolve the matter, but may be required to institute litigation against the entity to recover the funds. The Receiver and Hohmann, Taube & Summers have opened a separate matter dedicated to recovery of the funds, and the Receiver and his counsel have discounted their rates by 50% for fees incurred pursuing that litigation. It is the Receiver’s goal to obtain resolution regarding the funds prior to conducting a distribution in the event the Receiver obtains additional funds for the Receivership Estate, as he hopes to conduct only one distribution.
As a related matter, the Receiver would like to clarify that the Liquidator and Receiver are in fact engaging in separate claims approval and distribution processes. Therefore, investors should anticipate providing the Receiver with information in addition to and separately from any information sent to the Liquidator. The Receiver will let investors know when, where, and what to send his team as the time for a distribution nears, but nothing is needed at this time.
Thank you for your patience, and as always, please feel free to contact us if you have any questions. We will continue to update our website and Facebook page with any significant updates, and ask that you monitor the website regularly in the coming months as the Receiver begins to prepare for a distribution.-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Please see the links below to documents recently received from the IIC Liquidator in Australia. The links consist of: (1) a notice of the Liquidator’s meeting of creditors, to be webcast from Brisbane, Australia next Thursday, December 19 at 10:00 am (various local date and time conversions are listed in the notice); (2) an appointment of proxy form for voting purposes; (3) a formal proof of debt or claim form; and (4) a committee of inspection nomination form.
It is our understanding that investors must submit the Formal Proof of Debt or Claim form to IIC@hallchadwick.com.au at least 24 hours before the creditors’ meeting to be eligible to vote on any resolutions raised in the meeting. It is also our understanding that investors will be given additional time to submit the form for determination of individual losses and claim amounts in the Australian proceedings, but we continue to suggest that investors submit their proof of claim form to the Liquidator as soon as possible, and list all losses (including ProphetMax membership fees and investment amounts that have not been returned). To the extent you have specific questions regarding the voting process, appointment of proxy form, committee of inspection nomination form, or proof of debt or claim form, we recommend you direct those questions to the Liquidator. The Liquidator has suggested that all questions, either related to the forms or general questions to be addressed during the creditors’ meeting, should be sent to email@example.com at least 24 hours before the creditor's meeting. All forms other than the Formal Proof of Debt of Claim form should also be sent to firstname.lastname@example.org.
It is our understanding that investors must register at the following link to participate in or view the webcast: http://events.knowledgevision.com/staging/MELB_HALL_CHADWICK.html. Also, it is our understanding that in addition to submitting proofs of claim, investors must register at the following link to be eligible to vote: https://www.polleverywhere.com/register?p=2m5rx-1jtd&pg=ED8pHGy. The Liquidator has posted both links on the left-hand side of his website: http://www.hallchadwick.com.au/iic.
We have received a number of messages from investors that they have not received a response from the Liquidator to questions related to proving claims and/or filling out the proof of debt or claim form; the Receiver will request that the Liquidator address this issue in the creditors’ meeting, and again suggests that any specific questions are sent to the Liquidator prior to the creditors’ meeting.
Guy Hohmann,Receiver for the ProphetMax Receivership Estate