United States District Court, W.D. Virginia, Charlottesville Division
ORDER ADOPTING REPORT AND RECOMMENDATION
K. MOON SENIOR UNITED STATES DISTRICT JUDGE
the Court is the Report and Recommendation
(“R&R”) of Magistrate Judge Robert S. Ballou
on the Receiver's final report and motion to conclude the
receivership. (Dkts. 965, 975). The period for objections to
the R&R has expired without any objections being filed.
Accordingly, the R&R is hereby ADOPTED,
and it is ORDERED as follows:
Motion to Approve Financial Statements, attached as Exhibit A
to the Receiver's Report in Preparation for Final
Distribution (Dkt. No. 965) is GRANTED.
Final Report is APPROVED.
Receiver is authorized to establish a reserve of $30, 323 for
fees needed to conclude the receivership.
Receiver is authorized to pay from the reserve any reasonable
professional fees and expenses performed after April 30,
2017, including the conclusion of activities undertaken in
implementing the provisions of this Report and
Recommendation. The Receiver shall seek court approval for
any professional fees and expenses to be paid greater than
five thousand dollars ($5, 000.00).
Receiver and his agents are authorized to undertake any and
all activities necessary to wind up the affairs of the
Receivership, including but not limited to, filing tax
returns for 2016 and 2017.
Receiver is authorized in his discretion to destroy all of
the pre-receivership records and records created during the
course of the Receivership that he deems unnecessary to
maintain. The Receiver shall exercise sound business judgment
in executing document retention decisions.
Receiver is authorized to make a final distribution to
investor claimants. Any funds from the final distribution not
claimed within ninety (90) days from the date on the check
shall be forfeited to the Clerk of Court.
After all activities of the Receiver have been completed, the
Receiver shall: a) pay into a Court deposit fund all
forfeited and unclaimed funds, judgment payments, restitution
payments, and unused funds from the reserve; b) provide to
the Clerk of Court in a compatible electronic format the
Receiver's mailing matrix listing the percentage of
distribution to each claimant with an Approved Claim, and any
related information including the balance due on each
Approved Claim; c) file a supplemental accounting of all
activity after December 31, 2016, and c) file a Notice with
the Court advising that all matters of the Receivership have
been concluded. The Receiver shall file the Notice within
seven (7) months from the entry of an order approving the
Motion to Conclude Receivership.
Within thirty (30) days of entry of an order approving the
Motion to Conclude Receivership, the Receiver shall provide
to the Clerk of Court the remaining amount of restitution due
in USA v. Dowdell, No. 3:02-cr-107.
Upon receiving funds from the Receiver at the conclusion of
the Receivership, the Clerk of Court shall: a) place those
funds into the deposit fund currently existing for criminal
cases USA v. Dowdell, No. 3:02-cr-107 and USA v.
Ganger, et al., No. 3:07-cr-10; b) allocate the funds
against those defendants ordered to pay restitution in both
cases on a pro rata basis; c) and maintain the deposit fund
in the Clerk of Court's usual procedure and course of
Upon filing of the Notice that the Receivership is concluded,
the Receivership shall be terminated and the Receiver will be
discharged from any and all claims and causes of action which
might be brought against him arising from his administration
of the assets turned over to him.
the Receiver or Securities and Exchange Commission is
presented with additional funds from civil judgments after
the conclusion of this Receivership, ...