Securities and Exchange Commission v. Nadel et al

Filing 1383

MOTION for miscellaneous relief, specifically to (1) Approve Determinations and Priority of Claims, (2) Pool Receivership Assets and Liabilities, (3) Approve Plan of Distribution and (4) Establish Objection Procedure by Burton W. Wiand. (Attachments: # 1 Exhibit A - Quest Blank Proof of Claim Form, # 2 Exhibit B - Secured Tax, # 3 Exhibit C - Secured, # 4 Exhibit D - Allowed, # 5 Exhibit E - Allowed in Part, # 6 Exhibit F - NI Allowed, # 7 Exhibit G - Denied, # 8 Exhibit H - NI Denied)(Perez, Jared)

EXHIBIT C

EXHIBIT C
Secured Claims - Allowed In Part
Class 2
Claim
Number

5

Investment
Amount

$0.00

Total
Payments

$0.00

Net Investment Claim Amount
Amount

$0.00

Recommended Claim Determination

$198,250.14 The Claimant loaned $76,000 to Quest for the purchase of
certain real property in Shackleford County, Texas from
which the Downeys operated Quest (the "Office" and the
"Office Loan"). The Claimant also loaned Quest $700,000
in 2010, which was secured by certain oil and gas leases,
personal property, and equipment (the "2010 Loan"). The
Claimant and Quest entered into a modification and
extension of the 2010 Loan in February 2013 with an
outstanding principal balance of $213,057.30. As set
forth in the motion, the Claimant knew or should have
known that Quest was insolvent and the Downeys were
operating fraudulently at the time of the 2010 Loan and
modification. Accordingly, the Receiver recommends
that (1) the portion of this claim related to the Office Loan
should be allowed in the amount of the principal balance
of the loan at the time of the Receiver's appointment
($46,522.00), but only be allowed to receive distributions
from the proceeds of the sale of the Office up to the
Allowed Amount less fees and costs incurred by the
Receivership to maintain and sell the property, and (2) the
portion of the claim related to the 2010 Loan should be
denied.

Page 1 of 2

Allowed
Amount

$46,522.00, which is
the principal amount
outstanding on the
Office Loan at the time
of the Receiver's
appointment, but only
allowed to receive
distributions from the
proceeds of the sale of
the Office, less fees
and expenses incurred
by the Receivership for
maintaining and selling
the property.

Claim
Number

6

Total

Investment
Amount

$0.00

Total
Payments

$0.00

Net Investment Claim Amount
Amount

$0.00

Recommended Claim Determination

$795,201.59 In January 2007, Quest assumed the Claimant's loan in the
amount of $832,000. In December 2011, Quest and the
Claimant entered into a modification and renewal of this
loan wherein the parties agreed that the outstanding
principal balance was $652,005.86 (the "Renewal Note").
From January 1, 2007 through May 24, 2013 (the date of
the Receiver's appointment), Quest paid the Claimant
$719,072.60 in principal and interest. The Renewal
Note’s outstanding principal balance on or shortly before
Quest’s inclusion in this Receivership was $496,614.52.
The Claimant's claim amount includes $89,011.85 in legal
fees and $207,157.50 in interest, the recovery of which
would not be equitable under these circumstances. The
Receiver recommends that this claim be allowed but only
in the amount of the outstanding principal balance of the
Renewal Note at the time of the Receiver’s appointment,
$496,614.52.

$993,451.73

Page 2 of 2

Allowed
Amount

$496,614.52, which is
the principal amount
outstanding on the
Renewal Note at the
time of the Receiver's
appointment.

$543,136.52, subject
to limitations set
forth above