Draft Spreadsheet of Contributions and Distributions

18 Feb

Below is a link to a draft spreadsheet prepared by the Receiver showing contributions made by customers to the Relief Defendants and distributions made by the Relief Defendants to customers. The Receiver asks that you locate your account number(s) on the spreadsheet and review the information appearing for your account(s). Please contact Michael Martinez at 704/332.0209 or mmartinez@grierlaw.com to notify the Receiver of any inaccurate information.

The column labeled “Contribution” lists each and every transfer made by customers to the Relief Defendants that the Receiver was able verify, with reasonable certainty, based on the Relief Defendants’ internal records and bank account records. The column labeled “Total Contribution” should equal the total amount of money deposited with the Relief Defendants per account.

The column labeled “Distribution” lists each and every transfer made by the Relief Defendants to a customer that the Receiver was able verify, with reasonable certainty, based on the Relief Defendants’ internal records and bank account records. The column labeled “Total Distribution” should equal the total amount of money withdrawn from each account.

The column labeled “Net Investment” should equal the difference per account between all funds contributed to Relief Defendants and all funds distributed back to the customer. By listing an amount on the Net Investment column, the Receiver is not admitting that you have an allowable claim for the amount shown. Rather, the Receiver’s investigation of claims is ongoing and the Receiver may have various legal and equitable defenses to the allowance of your claim.

In lieu of the above information, several accounts contain only the note: “Please contact Receiver.” This note may appear for a variety of reasons, including if the Receiver lacks your current contact information, if the Receiver is waiting for a response from correspondence previously sent to you or if some discrepancy exists as to your account between the Relief Defendants’ bank account records and internal records. In the event your account contains a note to “Please contact Receiver,” the Receiver again asks that you contact Michael Martinez at 704/332.0209 or mmartinez@grierlaw.com to further discuss whatever issue may exist.

This spreadsheet is being distributed to customers of the Relief Defendants as part of the Receiver’s ongoing claims investigation. A thorough claims analysis and proposed treatment of claims against the Relief Defendants’ receivership estate will be proposed to the Court at a later date.

The Receiver cannot distribute funds back to customers until Mason’s liability has been adjudicated in the civil case against the Relief Defendants. In turn, the civil case is currently stayed pending a resolution of the criminal case against Mason, which is scheduled for trial in June. Additional information regarding either the civil or criminal case is available through the U.S. District Court’s electronic records system, accessible through http://www.ncwd.uscourts.gov/. However, reviewing this spreadsheet now will aid the Receiver in making the appropriate pro rata distribution to each customer once the funds collected by the Receiver are ripe for distribution.

The Receiver appreciates any and all comments and other assistance you are able to provide to ensure that his proposed claims analysis is as accurate as possible. Thank you.

Mason Spreadsheet for Comment by Customers

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5 Responses to “Draft Spreadsheet of Contributions and Distributions”

  1. Richard February 20, 2014 at 2:21 pm #

    I’m very shocked and disappointed with the receiver’s thoughtless publication of such information.
    The info they disclose is in a sense Personal Information although no name or address is specified. The info could be used by anybody, yes anybody including those who have malicious intension.

    Does the receiver believe there are no other parties who have members’ detail information than himself?
    No way, it should be safe to assume that there are reasonably enough people who happened to acquire those info from the insiders of this fraudulent scheme in the past, they may have shared the info with financial institutions, prospective business contacts, scam friends, and they may have even sold to several commercial institutions.

    The point is simply we don’t know who has our information.

    Now, this table allows those who have such information to identify who lost (or gained) how much.
    Then, is it only me who is afraid that someone who has criminal mind may approach to the individual victims to cheat?
    For example, people can pretend to be a representative / agent of the receiver and say “we will fully compensate your loss if you pay certain deposit in advance”, Yes, sounds ridiculous but for the victims who are desperate (there are a few people who lost even 6 digits) it does not.
    I’m sure con artists will create much smarter trick and vulnerable victims could be swindled easily.
    Or for the accounts labelled “Please contact the receiver”, people may guess some of them are net winners, then the same story, someone who has bad intension may contact them by pretending a receiver and make negotiation of payback settlement with litigation or even arresting threat.

    How can the receiver be responsible for such possible consequence?

    Is the receiver protecting the members or risking them into further scam?

    No matter what the receiver expects from this disclosure, the receiver should not have done by considering the above risk, I am now casting huge doubt on the receiver’s professionalism.

    The receiver should delete this info from the public asap and verification of individual account should be done privately as all the other receivers do.

    Richard

  2. Richard February 21, 2014 at 1:09 pm #

    Now,
    firstly, let me quote a few basic principles from various sites explaining Equity Receiver’s Code of Conduct:
    – A Receiver Should Never Disclose confidential information received in the course of official duties (this list is surely Confidential Information)
    – A Receiver Must Maintain the Confidentiality of Non-Public Information (this list is surely Non-Public Information).
    – A Receiver Should Ensure that Personal and Financial Information is Redacted from all documents and information filed with the court or posted on the receiver’s website (means all the info in the list should be redacted)

    Then, let me elaborate / make comments on the above common rules as follows;

    1. As said before, the receiver is an officer / agent of the court but acts primarily in the best interests of the victims by protecting the recovered assets and returning them to the victims of fraud. So, we victims are considered as beneficiaries of the receiver’s work and the receiver represents the interests of the victims. As the beneficiaries of his fiduciary obligations, we may be in a sense (not purely client-attorney relationship though) his “clients” at least, for purposes of the receivership.
    With all that said, the basic Rules of Professional Conduct would require and the receiver’s ethical duty of confidentiality extends to all information he learns during the course of a retainer from whatever source, whether or not the information is confidential.

    2. It is my personal belief that “A Receiver Must uphold the integrity and honesty of the receivership process”.
    From this perspective, the receiver’s publication of the list is Breaching Duty of Care because the receiver fails to adhere to a standard of reasonable care and performs the act that could foreseeably harm others as explained in my previous post. The duty of care is regarded as formalization of the social contract, the implicit responsibilities by each individuals and no need to say Professional Institutions toward others, and I’m afraid the receiver is not capable of following this concept.

    Simply, the receiver has not only professional but also ethical obligation to avoid disclosure of such information.

    Again, I’m very disappointed with the lack of professional integrity caused by the publication of the list and the receiver’s neglect of my message will surely lose my entire faith (I believe so do many members) in him and must result in serious credibility loss as a professional attorney in the industry.

    Hope I made myself clear.

    Richard

  3. mlmgfc February 21, 2014 at 2:44 pm #

    The Receiver, mindful of the risks and adverse consequences of inadvertent disclosure of personally identifiable information, has made, and will continue to make, substantial efforts to protect the privacy of customers of the Defendants.

    The Receiver is unaware of any list that links account numbers with customer names or contact information that is generally accessible to customers or the public at large. Although certain customers who were also employees or insiders of the Defendants had access to lists that associate account numbers to personally identifiable information, those customers already had access to the limited information appearing in the published spreadsheet (and much more).

    Further, mindful of the costs incurred by the receivership in determining claim amounts, publication of the spreadsheet with account numbers is a more efficient and therefore less expensive way of having customers verify the information on the spreadsheet than the receiver contacting each customer individually.

    Finally, the Receiver has a duty to report to the Court, which is a public report, on his efforts to marshal and collect assets and administer the receivership estate. As a part of administering the receivership estate, the Receiver will need to determine customer claim amounts and make a recommendation to the Court on claim amounts. Since the Receiver anticipates that he will pay less than the full amount of claims, the Receiver believes it is important for customers to know how he arrives at the claim amounts he ultimately recommends to the Court, both as to a customer’s own claim and the claims of others. The spreadsheet recently publicized by the Receiver will form the basis for the Receiver’s ultimate recommendation to the Court on claim amounts.

    However, if you are aware of any publication that links account numbers to customer names or contact information, please notify the Receiver immediately at: masonreceivership@grierlaw.com.

    Also, if anyone purports to represent the Receiver but is not employed by Grier Furr & Crisp, PA, please contact the Receiver immediately to verify to veracity of the purported representative of the Receiver.

  4. Richard February 25, 2014 at 6:43 am #

    I completely lost the receiver’s logic in the previous comments.

    Firstly, “Receiver will need to determine customer claim amounts and make a recommendation to the Court on claim amounts.“, the standard practice is to Assign Completely New Claim Number for each investor, which should have nothing to do with the prior deal of the original fraudulent scheme.
    Then anybody who happens to possess / access to the customers list is not able to identify the financial information of each member – Privacy Protection by Segregation of Information is a bare minimal professional practice you should achieve during your said process.

    Secondary, “it is important for customers to know how he arrives at the claim amounts he ultimately recommends to the Court, both as to a customer’s own claim and the claims of others.“, I am utterly shocked with your sense of right / rights, what makes you believe “it’s important for customers to know the other members’ claim details”? I must have misunderstood your point, are you trying to say it’s important for a customer to know the final payment of others to prove fair distribution? Yes, the final repayment must be a pro-rata distribution (if not, please explain the rationale behind), which can be explained by the total financial summary – let’s say Total Customer Loss Claim is $2 million and final Available Amount to Payout is $1 million, so that 50% of every customer’s claim (50 cents for every dollar) will be paid back. Frankly speaking, I can’t foresee any reasons allowing you to make discriminatory payout such as you cover 70% to customer A while 30% to customer B, therefore your comment doesn’t make any sense but only puzzled me.

    Thirdly, “therefore less expensive way of having customers verify the information on the spreadsheet than the receiver contacting each customer individually“, we would appreciate your cost conscious approach, but what you disclosed is individual financial information in numbers with detail investment & withdrawal history of all members which are particularly sensitive, and you are trying to justify it with the incomprehensible reason of “it’s important for customers to know the other members’ claim details”. I would say the possible cost saving you can expect through this practice can’t account for the risk of protecting personal information, in fact your publication of such sensitive data has gone beyond what can be considered acceptable conduct.

    Lastly, “The Receiver is unaware of any list that links account numbers with customer names or contact information that is generally accessible to customers or the public at large. “
    Please be a real professional.
    This is a sucker list, you should assume that the list had already been spreading WITHOUT your knowledge. I hate to admit myself as a sucker but the fact is that our member information is viewed as such. Your disclosure of the list is “Round Off” to complete the “Sucker List”. Such conduct is something you should not / can’t do unless you were ordered by the court which I don’t believe the court did.
    Your effort of “if anyone purports to represent the Receiver but is not employed by Grier Furr & Crisp, PA, please contact the Receiver immediately to verify to veracity of the purported representative of the Receiver. “ doesn’t help because you can’t prevent the members’ from any suffering caused by future new fraudulent scheme.

    Unfortunately, your word of “The Receiver, mindful of the risks and adverse consequences of inadvertent disclosure of personally identifiable information, has made “ sounds unwarranted and if you commit “substantial efforts to protect the privacy of customers of the Defendants. “, please hide the information from public / be responsible for all the consequences we believe we should avoid.

    Otherwise your professional credibility will keep loosing.

    Richard

  5. Jody July 3, 2014 at 9:53 pm #

    Check your accounts, folks. Mine showed “contributions” AND disbursements! Not once did I ever receive any money back from that crook! What a load of crap this whole mess has been!! I immediately contacted the Receiver after a fellow “investor” brought this to my attention back in February. The man I spoke with was a nice enough fellow but declined my offer to send documentation for verification and indicated it was not necessary. However, it’s now July and I’ve seen no updated spreadsheet. I just contacted them again via email and am awaiting a response.

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