IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
v. Civil No. 1:18-cv-01262
TODD ELLIOTT HITT, KIDDAR
KIDDAR HERNDON STATION LLC,
On October 5, 2018, the Securities and Exchange Commission (“SEC”) commenced this case by filing a complaint against the Receivership Defendants, among others, for violations of federal securities laws. The complaint requested certain relief, including an injunction against the dissipation of assets, an accounting of assets and liabilities, and a civil penalty.
By Order dated October 12, 2018, the Court entered an order appointing Bruce H. Matson as the permanent Receiver (the “Receivership Order”). Pursuant to the Receivership Order, the Receiver is charged with, among other things, administering and managing the business affairs and assets of the Receivership Defendants, marshalling and safeguarding all of the assets of the Receivership Defendants and taking such actions as necessary to protect and reimburse all parties holding claims against the estates.
Receivers Recommended Plan of Restitution and Distribution
Consent Motion for an Order Confirming Settlement
On February 14, 2019, The Receiver filed a Consent Motion for an Order Confirming Settlement related to Kiddar Herndon Station.
General Bar Date (Deadline to File Claims)
Pursuant to the Claims Bar Date Order, the last date and time for filing proofs of claim for any claim against one or more of the Receivership Defendants is January 28, 2019 at 5:00 p.m. (prevailing EasternTime) (the “General Bar Date”).
PROPOSED CLAIMS PROCEDURES
Claims. For the purposes of the proposed Order, a “Creditor Claim” is defined as: (a) a right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, mature, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured, against one or more of the Receivership Defendants; or (b) a right to an equitable remedy for breach of performance if such breach gives rise to a right of payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, mature, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured, against one or more of the Receivership Defendants.
Claimants. For the purposes of the Claims Bar Date Order, a “Claimant” should be defined as and includes any person or entity (including, without limitation, individuals, partnerships, corporations, estates, trusts, and governmental units) that holds a Creditor Claim against one or more of the Receivership Defendants.
Bar Date. The last date and time for filing proofs of claim for any claim against one or more of the Receivership Defendants is January 28, 2019 at 5:00 p.m. (prevailing EasternTime), which is 45 days after the entry of the Claims Bar Date Order as the deadline for Claimants to submit Proofs of Claim against the Receivership Defendants (hereinafter “Bar Date”).
Claims Procedure. The following Claims Procedures, including the Notices and the Proof of Claim Form (defined below), are requested:
Obligation to Submit Proofs of Claim. The Receiver respectfully requests that this Court define a Claimant’s obligation to submit a Proof(s) of Claim in the Claims Bar Date Order as follows: Proofs of Claim shall be submitted by all persons or entities (including, without limitation, individuals, partnerships, corporations, joint ventures, estates, trusts and governmental units) that are Claimants, regardless of whether the Claim at issue has been acknowledged by the Receiver or whether the Claim at issue is held with or through any person or entity or based on primary, secondary, direct, indirect, secured, unsecured or contingent liability.
Administrative and Professional Claims. The Receiver further requests that the Court exclude administrative and professional claims from the process and requirements of the Claims Bar Date Order in the following manner: Creditors holding Claims based on the provision of goods or services actually provided to the Receivership Defendants or the Receiver at the express request of the Receiver (the “Administrative Claims”) arising at or after the October 12, 2018 appointment of the Receiver will not be required to submit Proofs of Claim on or before the Bar Date and will not be subject to the Bar Date. Additionally, the Receiver and any retained professional will not be required to submit Proofs of Claim on or before the Bar Date, and all Claims of the Receiver and retained professional (the “Professional Claims”) will be addressed in accordance with the October 12, 2018 Order Appointing Receiver and other relevant orders of this Court.
Procedures for Submitting Proofs of Claim. Except as otherwise ordered by the Court or provided below, each Claimant must submit a completed and signed Creditor Proof of Claim Form under penalty of perjury and evidencing such Claimant’s Claim, together with supporting documentation, to the Receiver in the manner indicated below so that such Proof of Claim is actually received on or before the Bar Date. Proofs of Claim may be submitted to the Receiver (a) in person, by courier, overnight service or by regular mail addressed to:
If by US Mail:
Bruce H. Matson, Court-appointed Receiver
P.O. Box 23650
Jacksonville, FL 32241
If by Hand, Courier, or Overnight Service:
Bruce H. Matson, Court-appointed Receiver
8021 Philips Highway, STE 1
Jacksonville, FL 32256
or (b) by electronic mail, as an attachment in portable document format (.pdf) to [email protected]. Creditor Proofs of Claim filed in any other manner, including with the Court, will not be considered properly submitted. Prior submissions by Claimants will not be treated as properly filed Claims; such Claimants must submit completed and signed Proofs of Claim to the Receiver on or before the Bar Date.
Contents and Form of Proof of Claim. The Receiver also requests that each Creditor Proof of Claim submitted to the Receiver conform substantially to and contain all of the information sought in the Creditor Proof of Claim Form (attached as Exhibit C) as approved by the Court. The Receiver proposes to reserve the right to reject any Creditor Proof of Claim Form that is altered, not filled out completely, not properly executed by the correct legal entity or individual or fails to include reasonable documentation to support the Claim(s). The Receiver proposes that the following rules apply to the preparation and submission of Proofs of Claim:
General. Each Creditor Proof of Claim Form must be signed by the Claimant or the authorized agent of the Claimant. The Claimant must attest under penalty of perjury that the information in the form is true and correct. Each form must be legible, written in English and denominated in United States currency.
Creditor Proof of Claim. Each Creditor Proof of Claim Form shall identify the amount of each such claim and the date on which such claim arose.
Supporting Documentation. Each Claimant should attach to each Creditor Proof of Claim Form copies of any and all documents, including any electronic data, available to the Claimant that substantiate the Proof of Claim, including, but not limited to, (a) copies of personal checks, cashier’s checks, wire transfer advices and other documents evidencing the investment funds; (b) copies of investment documents; (c) copies of all agreements, promissory notes, purchase orders, invoices, itemized statements of running accounts, contracts, court judgments, mortgages, security agreements, or other evidence of perfection of liens; and other documents evidencing the amount and basis of the Claim
Effect of Failure to Submit Proof of Claim On or Before the Bar Date. The Receiver proposes that any Claimant who is required to submit a Proof of Claim, but fails to do so in a timely manner or in the proper form, (i) be forever barred, estopped, and enjoined to the fullest extent allowed by applicable law from asserting, in any manner, such Claim against the Receiver and the estates or property of the Receivership Defendants and their respective estates or property; (ii) be denied standing to object to any distribution plan proposed by the Receiver on account of such Claim; (iii) be denied any distributions under any distribution plan implemented by the Receiver on account of such Claim; and (iv) not receive any further notices on account of such Claim. The Receivership Defendants and their respective property or estates will be discharged from any and all indebtedness or liability with respect to untimely or improperly formatted Claims.
Request for Additional Information on Submitted Proofs of Claim. The Receiver proposes that, if, after receiving a Creditor Proof of Claim, the Receiver determines that he needs additional information to review the Claim, the Receiver may contact the Claimant by telephone or email to request such additional information.
Claim Disputes and Resolutions. The Receiver will review all the Claims properly submitted, negotiate with Claimants regarding any disputed Claims and attempt to resolve all such Claims. Pursuant to Paragraph 5(i), the Receiver has authority to compromise and settle any Claim, at any time, as appropriate, and all parties should be directed to cooperate with the Receiver to the maximum extent possible to achieve swift resolution of disputes concerning Claims. In the event that a Claimant and the Receiver are unable to resolve a dispute over a Claim, the Receiver will object to such claim and will move the Court for summary disposition of the dispute.
Reservation of Rights. Nothing in these proposed Claims Procedures is intended to prejudice the Receiver’s right to dispute, or assert offsets or defenses as to the nature, amount, liability, classification or other against, any amount asserted in any Proof of Claim. Furthermore, nothing in these proposed Claims Procedures is intended to preclude the Receiver from objecting to any Proof of Claim on any ground.
Note: American Legal Claim Services, LLC ("ALCS") maintains this website for the public's convenience at the direction of LeClair Ryan LLP, counsel to the Receiver. While ALCS makes every attempt to ensure the accuracy of the information contained herein, this website is not the website of the United States District Court, and does not contain the complete official record of the Court.