Distributions

Fourth Interim Distribution – Proceeds from NRP and Western Settlements

Western International Securities, Inc. Settlement, Release, and Distribution

On January 20, 2012, the Court entered an Order approving the Receiver's Settlement Agreement with Western International Securities, Inc.  The Settlement Agreement can be found here and the Court Order approving the Settlement Agreement can be found here.

On April XX, 2012, the Receiver mailed checks to claimants for their pro rata shares of these settlement funds.  Please be aware that if you cash this check, you release any claims you may have against Western relating to this Ponzi scheme.  The provision of the settlement agreement that contains the full terms of the release you agree to by cashing these checks can be found here.

NRP Financial, Inc. Settlement, Release, and Distribution

On March 23, 2012, the Court entered an Order approving the Receiver’s settlement agreement with NRP Financial, Inc.  The Settlement Agreement can be found here and the Court Order approving the Settlement Agreement can be found here.

On April XX, 2012, the Receiver mailed checks to claimants for their pro rata shares of these settlement funds.  Please be aware that if you cash this check, you release any claims you may have against NRP relating to this Ponzi scheme.  The provision of the settlement agreement that contains the full terms of the release you agree to by cashing these checks can be found here.

These releases apply only to the checks that contain proceeds from the Receiver’s settlement with Western and NRP.  These checks contain a notation in the memo line stating “Cashing Releases Western” and “Cashing Releases NRP”, respectively.  The cover letter enclosing these checks also notifies recipients about the release.

If you do not want to give up your claims against NRP or Western, please return the uncashed check or checks to the Receiver with a letter, signed by you, stating that you have declined to accept the proceeds from the NRP and/or Western settlements.

The distribution of the NRP and Western settlement funds translates to 0.8 cents paid out for every dollar lost to Cook’s fraud and will bring the total median distribution rate to approximately 4.3 cents for every dollar lost to the fraud.

Third Interim Distribution

On February 24, 2012, the Court entered an Order in the civil cases of SEC v. Cook, CFTC v. Cook, and SEC v. Beckman approving the Receiver’s partial settlement with the FINRA Claimants and authorizing the Receiver to distribute these settlement funds to investors. This third interim distribution was made to claimants identified in the Receiver's First Amended Final Claims List. This distribution, which was made on a pro rata basis based on each claimant’s Recognized Claim Amount, translated to 0.95 cents paid out for every dollar lost to Cook's fraud and brought the total median distribution rate to approximately 3.5 cents for every dollar lost to the fraud. The checks for this distribution were mailed on March 28, 2012.  

Second Interim Distribution

On August 1, 2011, the Court entered an Order in the civil cases of SEC v. Cook, CFTC v. Cook, and SEC v. Beckman authorizing the Receiver to make an interim distribution of $1,027,729.04 that the Receiver repatriated from Trevor Cook’s Swiss bank account at UBS AG. This second interim distribution was made to claimants identified in the Receiver's First Amended Final Claims List. This distribution, which was made on a pro rata basis based on each claimant’s Recognized Claim Amount, translated to 0.71 cents paid out for every dollar lost to Cook's fraud and brought the total median distribution rate to approximately 2.5 cents for every dollar lost to the fraud. The checks for this distribution were mailed on August 2, 2011.  

Supplemental Distributions

On May 5, 2011, as directed by the Court, the Receiver, mailed supplemental distribution checks to claimants based on adjustments made to their Recognized Claim Amounts. More information about the May 5, 2011 supplemental distribution can be found here.

After the November 1, 2010 Order, the Court also directed the Receiver to make a supplemental interim distribution to employee claimants who were not part of the first interim distribution, and to not deduct any compensation that they may have received from Receivership Entities.  Employee claimants were paid out on the same pro rata basis as the other investors.  Interim distribution checks were mailed to employee claimants on November 30, 2010. More information about the supplemental interim distribution to employee claimants can be found here.

First Interim Distribution

On November 1, 2010, the Court entered an Order in the civil cases of SEC v. Cook and CFTC v. Cook authorizing the Receiver to distribute $2.25 million to claimants.  This first interim distribution, which was made on a pro rata basis based on each claimant’s Recognized Claim Amount, translated to 1.581 cents paid out for every dollar lost to Cook’s fraud.  The Receiver’s interim distribution checks were mailed on November 12, 2010. 

The Court also directed the Receiver to release $363,700 for use as restitution in the criminal case against Trevor Cook.  This criminal restitution was distributed by the U.S. Probation Office in November 2010.  With the criminal restitution, the total mediation distribution rate was approximately 1.815 cents for every dollar lost to the fraud.

Claim Submission and Bar Date

The deadline for submitting a claim to the Receiver for civil restitution has passed.  On November 1, 2010, the Court set January 14, 2011 as the Claim Bar Date.  Any claims for civil restitution that were not postmarked or received by January 14, 2011, are barred. 

If you have a claim for civil restitution arising from clawback litigation initiated by the Receiver that was not resolved by the Claim Bar Date, you may submit that information by email or in hard copy. Please print the claim form available here and mail it, along with the requested information, to the Receiver at the address listed below.

If you are not sure if you have submitted a claim to the Receiver, please contact the Receiver’s Office locally at (612) 436-9664, toll-free at (877) 316-6129, or by email at info@cookkileyreceiver.com.

Questions

If you have questions about the Receiver’s distributions, your recognized claim amount, the claim finalization process, or any other issue involved in the Receivership, please contact the Receiver’s office locally at (612) 436-9664, toll-free at (877) 316-6129, or by email at info@cookkileyreceiver.com.

Please note that the Receiver is handling the distributions in the civil cases, and the U.S. Probation Office is handling the distribution in the criminal case.  Please direct any questions about the civil distributions to the Receiver’s office.  If you have questions about the criminal distribution, please contact Peter Madsen at 651-848-1246 or Peter_Madsen@mnp.uscourts.gov.