RECEIVERSHIP:

SEC vs. WESTMOORE

MANAGEMENT, LLC, ET AL.

 

David A. Gill, Receiver

Frequently Asked Questions


1.  Who is the Receiver and what are his responsibilities?

 

2.  What happened to my investment in funds controlled by Westmoore and Mr. Jennings?

 

3.  How much of my investment can I expect to receive back?

 

4.  Should I file a claim now?

 

5.  What is the best way for me to find out what is happening in the Receivership?

 

6.  Does the Receiver represent me?  Do I need my own attorney?

 

7.  Who pays for the Receiver (and other professionals)?

 

8.  What tax consequences will I have?

 

9.  What if I have information that may be helpful to the Receiver or the SEC?

 

10.  What happened to the money that I deposited with Westmoore?

 

11.  Is there a government fund from which to pay investors?

 

12.  Am I able to take a tax deduction for the money I invested with the Westmoore Entities?

 

13.  When are you filing an asset list?

 

14.  Are you going to liquidate the Westmoore Entities?

 

15.  When will we be paid?

 

16.  How often do you plan to update the website?

 

 


1.  Who is the Receiver and what are his responsibilities?

 

The Court appointed David A. Gill, Esq., as Receiver to oversee the collection and disposition of the assets of the companies subject to this Receivership, and to make recommendations to the Court regarding distribution of any recoveries to qualifying claimants.  Mr. Gill will also file periodic reports with the Court to advise of his progress, findings, and proposals.  These reports will be posted to this website after they are filed with the Court.

 

 


 

2.  What happened to my investment in funds controlled by Westmoore and Mr. Jennings?

The Receiver is in the process of identifying existing assets of the Westmoore Entities and the manner in which funds invested with the Westmoore Entities were utilized.  The Receiver, with the assistance of professionals that he retains, such as attorneys, accountants, and investigators, hopes to be able to identify and gather the assets that belong to the entities in this Receivership.  The availability of funds to pay investors will depend upon the results of the identification and liquidation of the assets subject to Receivership, and other efforts by the Receiver and other parties in connection with the Receivership.  Some preliminary answers can be found in the answer to FAQ 10.  As many of the investments were made several years ago the trail is somewhat cold.


 

3.  How much of my investment can I expect to receive back?

 

It is too early to tell how much money will be available for distribution to injured investors.  The Receiver will make every effort to recover and distribute as much as possible to investors and other creditors.  It does appear that recoveries on Westmoore investments are either problematic or will take a long time, and that ultimate recoveries may depend on recovery of moneys paid or transferred under circumstances where it might be recoverable in litigation.  See Answer to FAQ 10.

 


 

4.  Should I file a claim now?

 

No.  When the Receiver believes that it is appropriate for creditors to incur the time and expense of submitting claims, the Receiver will recommend that the Court approve a process for parties to submit claims.  Once the procedure is approved and in place, the Receiver will provide notice of the procedure to investors and others and will post the procedure on this website.

 


 

5.  What is the best way for me to find out what is happening in the Receivership?

 

The Receiver's website, www.westmoorereceivership.com, is the best way to monitor the activities of the Receivership.  Due to the large number of investors and other interested persons, the website will be the most efficient and cost-effective way of communicating these activities.  Of course, you may also contact the Receiver or his counsel in the manner noted below.

 


 

6.  Does the Receiver represent me?  Do I need my own attorney?

 

The Receiver is not your legal counsel, and neither he nor his professionals provide legal or other advice to investors and other creditors.  Nor does he represent the U.S. Government or the SEC.  The Receiver has been appointed by and is responsible to the Court to investigate and recover assets and, if possible, to distribute proceeds in due course.  It is up to each investor or other interested party to decide whether to consult an attorney in this matter.

 


 

7.  Who pays for the Receiver (and other professionals)?

 

As stated in the Court's Judgment appointing the Receiver, the Receiver will be paid in amounts to be fixed by the Court from the assets of the Westmoore Entities.  The Receiver also has been granted permission to retain professionals, such as attorneys, accountants, and investigators, to assist him in the process of identifying and gathering assets that belong to the Westmoore Entities and otherwise discharging the Receiver's duties.  These professionals will also be paid from any assets of the entities in this Receivership, upon prior approval of the Court.

 

 


 

8.  What tax consequences will I have?

 

The Receiver cannot advise you of any tax consequences of your investment or of this proceeding.  Investors and other creditors should consult their own tax professionals with any questions.

 

 


 

9.  What if I have information that may be helpful to the Receiver or the SEC?

 

You may contact the Receiver or his counsel directly by e-mail at kmeek@dgdk.com, or by United States mail at one of the following addresses:

 

David A. Gill, Receiver

1900 Avenue of the Stars, 11th Floor

Los Angeles, CA  90067

 


 

10.  What happened to the money that I deposited with Westmoore?

 

The Receiver does not know the actual value of all of the assets over which he has control.  The receipt of additional funds pursuant to the judgment entered against Matthew Jennings, and from the sale of some securities, are anticipated but are not at all certain.  There may also be claims and causes of action that the Receiver may determine to pursue.

 

 


 

11.  Is there a government fund from which to pay investors?

 

To the best of the Receiver's knowledge, there is no government fund that has been established to compensate investors.

 

 


 

12.  Am I able to take a tax deduction for the money I invested with the Westmoore Entities?

 

The Receiver is unable to provide you legal advice or advice relating to your personal financial affairs, including whether you are able to or should take a deduction for your loss or potential loss.  You would be well advised to contact your tax professional.

 

 


 

13.  When are you filing an asset list?

 

In the absence of books and records and cooperation by the Defendants, a general description of assets thus far revealed to the Receiver was included in his first report and account filed in October 2011 and his second report and account filed in May 2012.  The Receiver will file a third report and account on or before November 5, 2012.

 

 


 

14.  Are you going to liquidate the Westmoore Entities?

 

It does not appear that any of the Westmoore Entities are operating and it appears that their operations ceased well before the Receiver's appointment.  Because the Westmoore Entities do not have ongoing operations, the Receiver assumes that the Court and parties intended that he liquidate or abandon interests in all assets subject to the Judgment.  Except with respect to publicly traded securities that may be sold through an exchange or over-the-counter market, the Receiver anticipates that he will seek court permission to sell assets when, as and if such assets are located and to be liquidated.

 

 


 

15.  When will we be paid?

 

It is premature to know when, if or in what amount creditors will be paid.

 

 


 

16.  How often do you plan to update the website?

 

As events occur which we deem to be of significance to creditors, we will update this website.