U.S. Commodity Futures Trading Commission v. Yellowstone Partners, Inc. et al

Filing 125

ORDER granting 121 MOTION to Establish Claim Procedures and to Approve Claim Form - Signed by District Judge Louise Wood Flanagan on 08/06/2013. (Baker, C.)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
WESTERN DIVISION
NO. 5:10-CV-85-FL

U.S. COMMODITY FUTURES
TRADING COMMISSION,
Plaintiff
v.
YELLOWSTONE PARTNERS, INC.
and DENNIS TODD HAGEMANN,
Defendants

ORDER APPROVING MOTION BY
RECEIVER TO ESTABLISH
PLAN FOR DISPOSITION OF
CLAIMS ASSERTED AGAINST
RECEIVERSHIP ESTATE

This matter comes before the court on the unopposed motion
of the Receiver, L. Bruce McDaniel, to approve proposed claims
procedures for the dispositions of claims against the defendants
and the receivership estate and to establish a claims bar date
by which all such claims would need to be submitted or would be
forever barred.
The motion was unopposed by the parties to this action,
Yellowstone Partners,

Inc. and Dennis Todd Hagemann, which was

initiated by the U.S. Commodity Futures Trading Commission
involving those two defendants.
Notice was given to the parties based upon the Certificate
of Service to the Receiver's motion for this order, and the
court notes that no party, including the U.S. Commodity Futures
Trading Commission, has filed any objection to this motion by
the Receiver, nor requested a hearing in connection therewith.
The court has reviewed this motion and the supporting papers,
together with all other papers on file in this action.

Being so

informed, the court finds that good and sufficient cause exists
for the relief requested in the motion and that the procedures,

mechanisms, and deadlines set forth in the motion will assist in
the administration and distribution of receivership assets to
legitimate claimants, creditors, and/or investors against the
receivership estate.
Accordingly,

IT IS ORDERED that:

1.

The Receiver's motion is GRANTED in all respects;

2.

The Receiver is authorized to establish and implement

the formal claims procedures more particularly set forth in this
order and in the motion;
3.

All claims against the defendants and the receivership

assets must be submitted to the Receiver under the procedures
defined in this motion and by this order no later than 60 days
from the date of mailing of the Official Court-Approved Claim
Form to claimants, creditors, and/or investors.

This date will

be known as the "Claims Bar Date," and the requirement to submit
claims before the Claims Bar Date is enforceable notwithstanding
any otherwise applicable law that could govern the timing of the
assertion of a Claim Form (defined below) against the
receivership estate.

The Claims Bar Date will, under this

order, serve as the bar date after which any claimant, creditor,
investor, or party in interest shall be estopped from forever
asserting claims against the receivership estate;
4.

Unless any claimant, creditor, and/or investor has

previously furnished all the information required by the Claim
Form, with supporting documentation, every claimant, creditor,
and/or investor seeking to be returned funds must complete a
Claim Form and submit that Claim Form to the Receiver at his
address at Post Office Box 58186, Raleigh, North Carolina 27658,
pursuant to the instructions more particularly contained in this
order and in the Notice.

Each Claim Form must be complete,

signed under penalty of perjury, and must include appropriate

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documentary evidence in support of the claim.

A signed original

Claim Form is required; fax and electronic copies will not be
accepted;
5.

Claim Forms must be actually received by the Receiver,

at the following address, no later than 5:00 p.m., Eastern
Standard Time, on the Claims Bar Date:

L. Bruce McDaniel,

Receiver, McDaniel & Anderson, L.L.P., Post Office Box 58186,
Raleigh, North Carolina 27658.

A Claim Form shall be deemed

received only when actually received by the Receiver.

Claim

Forms must be completed in English and stated in lawful currency
of the United States (to the extent known and determinable).
Any claimant, creditor, and/or investor who wishes to receive an
acknowledgement that his, her, or its Claim Form has been
received by the Receiver must provide an additional copy of the
Claim Form and a postage-paid, self-addressed, return envelope;
6.

Following the expiration of the Claims Bar Date, based

on the Claim Forms and the documentary evidence supporting them,
the Receiver will verify the information contained in the Claim
Form for each individual claimant, creditor, and/or investor and
the amount of money invested by each claimant, creditor, and/or
investor;
7.

Upon receipt of the Claim Forms and the determination

by the Receiver of claimants, creditors, and/or investors
entitled to compensation, the Receiver will thereafter file a
proposed distribution plan, a copy of which will be sent to all
claimants, creditors, and/or investors, whether the claim is
approved or disallowed in whole or in part;
8.

If any funds cannot be delivered to a claimant,

creditor, and/or investor based on the information available in
the Claim Forms, or if funds are unclaimed or returned to the

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Receiver, the Receiver must hold them for future disposition on
further order of this court;
9.

These claim procedures shall not impose any liability

on the Receiver, the professionals retained by the Receiver, or
the receivership estate;
10.

Unless otherwise specifically ordered by this court,

any claimant, creditor, and/or investor who is required to, but
does not, timely file a Claim Form in compliance with the
procedures and deadline established by this court:
a.

Is forever barred from participating in the

receivership estate and receiving distributions from the
Receiver; and
b.

Is no longer entitled to receive further mailings

or notices in this case;
11.

The Receiver must mail the Notice and the Claim Form

to all claimants, creditors, and/or investors for whom the
Receiver has been provided complete contact information, and to
all defendants or other parties who have appeared of record in
this action.

However, the Receiver is relieved of any

obligation to mail such documents to potential claimants,
creditors, and/or investors for which:
a.

There is no complete mailing address; or

b.

The address is known to be inaccurate or

defective.
With respect to envelopes that are returned as undeliverable
following the mailing of the Notice and Claim Form, the Receiver
shall re-mail such envelopes to the forwarding address set forth
on such envelopes, if any.

The Receiver may also provide the

Notice to any other potential claimants, creditors, and/or
investors whom the Receiver may be able to contact, but the
Receiver is relieved of any affirmative obligation to do so;

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12.

A form of the Claim Form in substantially the form

attached to the motion as Exhibit "A" (the "Claim Form") will be
utilized; and
13.

Following approval of the motion by this court,

claimants, creditors, investors, and parties in interest may
obtain additional copies of the Notice and Claim Form by
contacting the Receiver's office, L. Bruce McDaniel, Receiver,
McDaniel & Anderson, L.L.P., Post Office Box 58186, Raleigh,
North Carolina 27658, or by telephone at 919-872-3000, and
requesting copies for updated information on the claims process.

so ORDERED, this the

ft;T~

day of

5

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2013.