Securities and Exchange Commission v. Rex Venture Group, LLC et al

Filing 229

ORDER granting #210 MOTION to Authorize First Interim Distribution, Establish Record Dates and Set First Interim Distribution Date. Signed by Senior Judge Graham Mullen on 7/31/2014. (Pro se litigant served by US Mail.)(eef)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION

SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
REX VENTURE GROUP, LLC
d/b/a ZEEKREWARDS.COM, and
PAUL BURKS,
Defendants.

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No. 3:12-CV-519

ORDER APPROVING MOTION TO AUTHORIZE
FIRST INTERIM DISTRIBUTION, ESTABLISH RECORD DATES
AND SET FIRST INTERIM DISTRIBUTION DATE
This matter is before the Court upon the Receiver’s Motion for an Order Approving his
motion to (i) authorize an interim distribution on account of allowed class 3 claims, (ii) establish
a record date for eligibility to receive the First Interim Distribution on the First Interim
Distribution Date, (iii) set the First Interim Distribution Date, and (iv) establish Subsequent
Record Dates and Subsequent Distribution Dates for making the First Interim Distribution to
Class 3 Claimants whose claims are allowed prior to a Subsequent Record Date (the “Motion”).1
Non-party Plastic Cash International, LLC (“PCI”) filed a response objecting to the Receiver’s
motion.
This Court, having reviewed and considered the Motion, and upon all of the proceedings
had before this Court, and after due deliberation and sufficient cause having been shown, the
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Capitalized terms used, but not defined herein, shall have the meanings ascribed them in the Motion.

Court hereby GRANTS the Motion in all respects. The Court specifically notes that this Order
does not purport to determine the validity or priority of PCI’s claim. The PCI Claim will be
addressed through the Claim Determination process and separate litigation.
IT IS HEREBY FOUND, DETERMINED, ORDERED, ADJUDGED, AND DECREED,
AS FOLLOWS:
1.

The notice of the Motion sent via electronic mail to all entities that fully

submitted claims on the Claims Portal via the electronic mail address provided in the Claim
submission process by such entity constitutes good and sufficient notice of the Motion and all the
relief sought therein.
2.

The Receiver is authorized, but not directed, to make the First Interim

Distribution directly to the Claimants who hold Allowed Claims in Class 3 pursuant to the
Distribution Plan.
3.

The First Interim Distribution Record Date shall be August 15, 2014.

4.

The First Interim Distribution Date shall be September 30, 2014.

5.

The first Subsequent Record Date for the First Interim Distribution shall be

December 31, 2014.
6.

Additional Subsequent Record Dates for the First Interim Distribution shall occur

on each of the last business days of each calendar quarter subsequent to the first Subsequent
Record Date.
7.

The first Subsequent Distribution Date for the First Interim Distribution shall be

January 30, 2015.

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8.

Additional Subsequent Distribution Dates for the First Interim Distribution shall

occur on the last business day of the calendar month that directly follows a Subsequent Record
Date.
9.

The methodology for determining the amount of reserves to be held by the

Receiver for the holders of Class 3 Claims that are not allowed by the First Distribution Record
Date, but have not been disallowed, is proper. The amount to be reserved by the Receiver for the
holders of Class 3 Claims that are not allowed as of the First Distribution Record Date shall be
determined and held in the manner set forth in the Motion.
10.

The Receiver shall establish a reserve on account of Class 3 Claims that are not

allowed as of the First Distribution Record Date in the aggregate amount of the First Interim
Distribution Amount that would be necessary to pay such Class 3 Claimant based on the amount
that such Class 3 Claimant asserted in the Claim Process, after applying Rising Tide to the First
Interim Distribution Amount in accordance with the Distribution Plan.
11.

The Receiver shall not reserve on account of any Claim asserted or classified in

Class 2, 4 or 5.
12.

The Receiver shall not reserve on account of any Claim asserted in Class 3 that

has been disallowed.
13.

The Receiver shall reserve sufficient funds to pay all the costs, fees and expenses

incurred in administrating the Receivership Estate in accordance with orders of this Court.
14.

No Claimant has asserted a valid Claim that shall be classified in Class 2 pursuant

to the Distribution Plan. All Claimants that assert that his or her Claim should be treated in Class
2 shall be classified in Class 3, 4 or 5, as applicable, in accordance with such Claimant’s initial
filings and applicable law.

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Signed: July 31, 2014

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