The Receiver has filed his Status Report for the 3rd Quarter of 2014, and below are a few of the highlights from this filing:
Marshaling and Preserving Receivership Assets
a. Accounts for Holding Receivership Assets
In addition to the four interest-bearing bank accounts holding Receivership Assets that the Receiver has reported on in previous status reports (the “Affiliate Account,” the “Seized Asset Account,” the “Pre-Filing Account,” and the “Settlement Account”), the Receiver opened two new accounts during the third quarter: one for the purpose of withholding amounts that may be owed to the IRS on distributions made to affiliates (the “Withholding Account”), and another for the purpose of maintaining payments owed for professional services provided to the Receivership Estate (the “Holdback Account”).
Excluding transfers between accounts, the Receiver deposited the following funds into its accounts during the third quarter of 2014:
• $259,294.00 into the Affiliate Account from payments from various financial institutions relating to previously dishonored cashier’s checks, teller’s checks and bank money orders; and
• $1,868,251.77 into the Settlement Account from settlements with net-winners.
As of September 30, 2014, the Receivership Estate held approximately $90.7 million in the Affiliate Account, approximately $204 million in the Seized Asset Account, approximately $295,000 in the Pre-Filing Account, approximately $4.3 million in the Settlement Account, approximately $23 million in the Withholding Account, and approximately $858,000 in the Holdback Account.
b. Cashier’s Checks
During the quarter, EBCM collected payments on these dishonored instruments and transferred those payments to the Receiver, resulting in the deposit of $259,294.00.
As of September 30, EBCM was working thirty-nine (39) unresolved claims currently valued at $506,258.
c. Funds Held by E-Wallets
As stated in our prior report, the Receiver Team recovered approximately $3.98 million from NxPay.
It is likely that the Receiver will commence litigation against NxPay to recover the approximately $9 million in outstanding assets that should have been frozen and remitted to the Receiver.
d. Additional Asset Recovery
The Receiver Team, with FTI, continues to investigate and pursue the recovery of Receivership Assets from Preferred Merchants and its CEO Jaymes Meyer. The Receiver Team filed an opposition to this motion requesting that the Court maintain the litigation stay and decide the issues in a contempt proceeding to prevent Preferred Merchants from circumventing the Court’s claims process and the onslaught of similar suits.
The Receiver Team also moved for an order finding Preferred Merchants and Jaymes Meyer in contempt for violating the Court’s freeze order by failing to return the $4.8 million that Preferred Merchants fraudulently transferred to itself from an account held in trust for the benefit of RVG upon notice of the asset freeze and imminent shutdown of RVG.
e. Foreign Accounts
The Receiver Team is continuing its investigation and pursuit of outstanding funds from Payza, Payment World, Solid Trust Pay, and Cyber Profit. With respect to the approximately $13.2 million outstanding from Payza and/or Payment World, during the third quarter, the Receiver Team reviewed numerous documents that Payment World produced in response to the Receiver’s subpoena. The Receiver Team also continues to pursue avenues of communication with, and options to recover assets directly from, VictoriaBank in Moldova, the bank that purportedly holds these outstanding Receivership Assets. Finally, the Receiver Team is working with various United States and international government agencies in efforts to recover the outstanding funds.
This is a rather lengthy filing and these are but the pertinent parts from the beginning of the filing; you can read the full document and the 2 Exhibits on the Files website.