Securities and Exchange Commission v. Complete Business Solutions Group, Inc., et al.

Case No. 20-cv-81205-RAR

United States District Court for the Southern District of Florida

Claims Process

Claims Bar Date Information

 

On December 21, 2022, the Receiver filed a Motion Establish and Approve: (1) Proof of Claim Form; (2) Claims Bar Date and Notice Procedures; and (3) Procedure to Administer and Determine Claims (the “Motion”).  A copy of the Motion can be found here. The Court entered an Order granting the Motion on December 23, 2022. A copy of the Order can be found here.

By granting the Receiver’s Motion, the Court has approved a procedure for each person or entity who believes he, she, or it may have a claim against any Receivership Entity to submit a claim to the Receivership assets. If you believe you may have a claim arising out of or in any way related to the acts, conduct, or activities of the Receivership Entities, you MUST submit a Proof of Claim by one of the approved submission methods as set forth in the Order. The Proof of Claim Form must be received by the Receiver’s Claims Agent, Epiq Corporate Restructuring, LLC (“Epiq”), on or before March 22, 2023, at 11:59 p.m. (prevailing Eastern Time). 

FOR INVESTORS, THIS IS THE PROCEDURE BY WHICH YOU MAY SEEK TO RECOVER FOR YOUR LOSSES FROM THE RECEIVERSHIP.

By February 1, 2023, the Receiver will mail to each known Direct Investor, other known potential creditors, and certain other individuals a notice advising of this procedure and a Proof of Claim Form. Click here for a copy of this notice. If you did not receive a letter from the Receiver and you believe that you should have received one, please contact Epiq, the Receiver’s Claims Agent, by emailing:  [email protected], or by calling (855) 943-3942 (Toll Free) or (503) 455-7472. Alternatively, you may obtain information regarding the claims process, including a Proof of Claim Form, from this website.

THE CLAIMS BAR DATE IS March 22, 2023, at 11:59 p.m. (prevailing Eastern Time).

Please note that any Proof of Claim Form submitted after the Claims Bar Date or submitted improperly will be subject to disallowance, which means you: (1) will be forever barred, estopped, and enjoined to the fullest extent allowed by applicable law from asserting, in any manner, any Claim against (a) any Receivership Entity or (b) the Receivership Estate or its assets; and (2) shall not receive any distribution from or have standing to object to any distribution plan proposed by the Receiver. Further, the Receiver shall have no further obligation to provide any notices on account of such Claim and the Receivership Estate is discharged from any and all indebtedness or liability with respect to such Claim.

Who Needs to Submit a Proof of Claim

A Notice of Claims Bar Date and Procedures for Submitting a Proof of Claim (the “Notice”) is being sent to many individuals and entities that have had some relationship or have done business with the Receivership Entities. The fact that a person or entity received a notice does not necessarily mean the recipient has a Claim, or that the Court or the Receiver believes the recipient has a Claim against one of the Receivership Entities or the Receivership Estate.

Except as otherwise provided in the Notice and Order, ALL individuals and entities (including, without limitation, partnerships, corporations, joint ventures, estates, trusts, and governmental units or authorities) that believe they possess a Receivership Entity-Related Claim, a potential or claimed right to payment, or a potential claim of any nature, against any of the Receivership Entities and believe that they are owed money by, or are entitled to a distribution from, the Receivership Estate must submit a Proof of Claim (each a Claimant” or “Administrative Claimant”).

A “Receivership Entity-Related Claim” is a Claim against any Receivership Entity based on the conduct by: (i) any of the Receivership Entities; (ii) any individual employed by a Receivership Entity arising from any action of the employee undertaken in the course and scope of that employment; or (iii) any officer or director of a Receivership Entity arising from any actions undertaken by that person prior to July 27, 2020, in relation to that role. Without limiting the generality of the foregoing, a Receivership Entity-Related Claim includes, but is not limited to a Claim against a Receivership Entity based on: (i) a transaction related to promissory notes or other money loaned to any Receivership Entity; (ii) investments (by subscription or otherwise) in any Receivership Entity; (iii) any contract, lease, or other agreement entered into prior to July 27, 2020, for which payment has not been made in whole or in part or for which payment will become due prior to, on or after July 27, 2020; (iv) the provision of goods or services provided prior to July 27, 2020; (iv an uncashed check issued prior to July 27, 2020; (v) unpaid wages, compensation, or other employment benefits, for periods prior to July 27, 2020; (vi) any legal action or claim filed or otherwise asserted against any of the Receivership Entities; and (vii) taxes payable by a Receivership Entity arising from or attributable to tax periods beginning prior to July 27, 2020, even if due and payable subsequent to July 27, 2020, including those that may be asserted by federal, state, local or other governmental entities or authorities.

An Administrative Claim is a Claim based on: (i) the provision of goods or services for the benefit of the Receivership Estate or at the request of the Receiver, beginning on or after July 27, 2020, which remain unpaid; (ii) any taxes arising from or attributable to tax periods beginning on or after July 27, 2020, including those that may be asserted by federal, state, local or other governmental entities or authorities, which remain unpaid; (iii) an uncashed check issued on or after July 27, 2020; or (iv) any current, future or contingent contractual obligations (including indemnification obligations) arising from any contract entered into by or on behalf of the Receivership Estate.

This notice is being sent to many individuals and entities that have had some relationship or have done business with the Receivership Entities. The fact that you have received this notice does not necessarily mean that you are a Claimant or Administrative Claimant, that you have a valid Claim, or that the Court or the Receiver believes you have a Claim against one of the Receivership Entities or the Receivership Estate.

The Proof of Claim Form can be found here.

Investors in one of the Receivership Entities who wish to submit a Proof of Claim should also fill out and submit the Investor Supplement to Proof of Claim Form, which is attached to the Proof of Claim Form as Exhibit A. 

On January 11, 2023, the Court entered an Order approving an amended Investor Supplement to the Proof of Claim Form.  A copy of this Order can be found here, and the amended Investor Supplement to Proof of Claim Form is available here.

Any Claimants that pooled funds from individual investors for investment in Par Funding, referred to as “Agent Funds,” must complete the Agent Fund Supplement to Proof of Claim Form, which is attached to the Proof of Claim Form as Exhibit B.

Directions for Submitting a Proof of Claim Form

A properly completed and signed Proof of Claim Form, together with supporting documentation, must be timely submitted to the Receiver’s Claims Agent by:

If submitting through the Claims Portal:

Completing the information on the following Claims Portal.

For registration/login instructions and troubleshooting, please click here.

If by first-class mail:

Par Funding Receivership Claims Processing Center

c/o Epiq Corporate Restructuring, LLC

P.O. Box 4421

Beaverton, OR 97076-4421

If by Hand Delivery or Overnight Mail:

Par Funding Receivership Claims Processing Center

c/o Epiq Corporate Restructuring, LLC

10300 SW Allen Blvd.

Beaverton, OR 97005

You must timely submit your Proof of Claim such that if uploaded to the claims portal or sent by courier service, it is delivered to the Claims Agent no later than the Claims Bar Date, or if sent by mail it is postmarked no later than the Claims Bar Date. 

If you choose to submit a Proof of Claim by courier service, you should retain evidence that the Proof of Claim was delivered to the Claims Agent no later than the Claims Bar Date. If you choose to submit a Proof of Claim by mail, it is recommended that you submit your Proof of Claim by certified or registered mail and retain evidence that the Proof of Claim was postmarked no later than the Claims Bar Date.

Proof of Claim Forms submitted with a valid email address will receive email notification from the Claims Agent confirming receipt of the Proof of Claim.

DO NOT SUBMIT A PROOF OF CLAIM OR SUPPORTING DOCUMENTATION BY EMAIL.

Proof of claim submissions by email will not be considered properly submitted.

Proofs of Claim should not be filed with the Court, or sent to the Receiver, his legal counsel, retained professionals, or otherwise delivered to the Receivership Entity, and any Proof of Claim so filed or sent will not be considered properly submitted.

A Claimant or Administrative Claimant who is required to submit a Proof of Claim and who reasonably believes they hold or may hold a Claim against one or more of the Receivership Entities must file separate claims against each of the Receivership Entities against which a Proof of Claim is asserted. In addition, if an investor in an Agent Fund submits a Proof of Claim, that investor should identify the particular Agent Fund through which they invested in one of the Receivership Entities. The failure to identify the correct entity(ies) on a Proof of Claim Form may be grounds for objection to, and disallowance of, such Proof of Claim.

Supporting Documentation

Each submitted Proof of Claim shall include and attach documents that support the Proof of Claim. Such documentation may include, but is not limited to: copies of personal checks, cashier’s checks, wire transfer advices, and other documents evidencing the investment of funds; copies of each signed investment contract; copies of all agreements, promissory notes, purchase orders, invoices, itemized statements of running accounts, contracts, court judgments, mortgages, security agreements, evidence of perfection of lien; Form 1099s, Schedule K-1s, or other similar tax forms related to any investment in, ownership of, or receipt of principal or interest from one of the Receivership Entities; and other documents evidencing the amount and basis of the Claim.  A summary may also be uploaded.  Please attach a copy of any power of attorney, death certificate, or other authorizing documents as needed.

In addition, the Proof of Claim shall include a Form W-9, Form W-8, or other similar IRS form to confirm the Claimant’s name, address, and taxpayer identification number (TIN).

As applicable, supporting documentation must also include a chronological accounting of any withdrawals made by or payments received from any of the Receivership Entities, whether such payments were denominated as the return of principal, interest, commissions, finder’s fee, or otherwise, indicating the date and amount of each withdrawal or payment. Investors must include such information starting from at least January 1, 2017 through July 27, 2020, including completion of the Investor Supplement to Proof of Claim Form, as applicable, which is attached to the Proof of Claim form as Exhibit A. Claimants that pooled funds from individual investors for investment in CBSG, referred to as “Agent Funds,” must complete the Agent Fund Supplement to Proof of Claim Form, which is attached to the Proof of Claim form as Exhibit B.

Please include your name on every document that you submit.

DO NOT SEND ORIGINAL DOCUMENTS.

PLEASE DO NOT SUBMIT THE FOLLOWING TYPES OF DOCUMENTS WITH THE PROOF OF CLAIM FORM UNLESS REQUESTED BY THE RECEIVER OR THE CLAIMS AGENT: (a) marketing brochures and other marketing materials received by you from any of the Receivership Entities, (b) routine or form correspondence received by you from any of the Receivership Entities, (c) copies of pleadings on file in any case involving the Receiver or the Receivership Estate, and (d) other documents received by you from the Receivership Estate.

Please note that claims that are submitted without appropriate supporting documents may be objected to and eventually disallowed. 

Updating Your Contact Information with the Claims Agent

It is the responsibility of Claimants, Administrative Claimants and other interested parties to keep the Receiver apprised with a current e-mail and mailing address in order to receive notices or other communication from the Receiver or the Receivership Estate. 

You may update your contact information through Epiq’s claims portal here by submitting the fields requested in the online form or by uploading a completed Change of Information Form.  A link to a downloadable and printable Change of Information Form that you can complete by hand is available here. Change of Information Forms may also be sent to the Claims Agent by electronic mail, as an attachment in portable document format (.pdf), to [email protected], or sent by mail addressed to Par Funding Receivership Claims Processing Center, c/o Epiq Corporate Restructuring, LLC, P.O. Box 4421, Beaverton, OR 97076-4421.

For More Information

If you have any questions or need any additional information regarding these claims procedures and requirements, please contact the Receiver’s Claims Agent, Epiq, at:

Email: [email protected]

Telephone: (855) 943-3942 (Toll Free) or (503) 455-7472