Q: What is a Receiver?

A: A Receiver is a fiduciary who is appointed by the court to take over control of all of a company's property and to administer it for the benefit of its creditors and investors.  Generally, the Receiver gathers and liquidates all of the company's property at the highest available price.  The proceeds obtained from those sales, after the costs of administration are subtracted, are then returned pro-rata to defrauded investors.  In addition to the funds on hand in the receivership companies at the time that the receiver is appointed, the receiver can also bring suit against and collect from persons who have wrongfully taken money from the company or committed other acts of wrongdoing. 

Q: What Authority Does a Receiver Have?

A: Federal equity receivers are governed by Rule 66 of the Federal Rules of Civil Procedure and by Title 28 of the United States Code.  While these provisions give the receiver and the court general guidelines about the conduct of receiverships, they are necessarily broad.  Each receivership presents unique factual circumstances.  Receivership courts are vested with wide discretion as they try to fairly administer the receivership.

Q: Do I need to file a claim form?

A: At some point, the Receiver will request claim forms.  The Receiver intends to gather more information before doing so.  The Receiver will post the claim form on this site and will mail it to the most recent address he has for you when the time comes.  The Receiver will also notify you of the date the complete claim form must be submitted.

Q: What is a Ponzi Scheme?

A: The SEC alleges that James G. Temme, the Stewardship Fund, LP, and other Stewardship Fund related entities were violating the federal securities laws by conducting a "Ponzi Scheme."  A Ponzi Scheme is an illegal investment scheme where money from new investors is used to pay off earlier investors.

Q: What happened to my money?

A: The SEC alleges that your money was improperly used to repay other investors and pay overhead expense for various companies controlled by James Temme.

Q: Will I get my money back? If so, how much and when?

A: It is too early to tell how much money will be available for distribution to injured investors, but it appears the value of money or other assets the Receiver may recover will be less than the sum of all original investments.  The answer to these questions depends on the results of the Receiver’s efforts to recover from third parties who owe money to the Receivership estate.

The Receiver will make every effort to recover and distribute as much as possible to qualifying investors.

Q: What do I need to do?

A: The Receiver requests that at this time investors begin to gather their records which reflect investments with the receivership companies.  Claim forms have not yet been sent to investors, but when they are sent there will likely be a deadline for submitting proofs of claim. Gathering your records now will help ensure you do not miss the deadline for submitting your claim.

Please do not send this documentation to the Receiver at this time.  The Receiver will request this information once claim forms are sent.

Q: Do I have claims that I should assert? Do I need a lawyer?

A: The Receiver cannot give investors legal or business advice.  If you have legitimate claims against the receivership companies, they should be submitted through the proof of claim process when appropriate.  If there is a dispute between you and the Receiver as to the validity or amount of your claim, you may need counsel to represent you.

Also, the Receiver will be evaluating and asserting claims against third parties.  You may also have claims against those same parties or against others which the Receiver cannot assert.  If you do not assert those claims, they may be lost.  You will need to consider and make your own decision whether to hire counsel and whether to assert any personal claims you may have. Although the Receiver cannot advise you on the matter, you and/or your counsel are welcome to discuss these matters with the Receiver or the Receiver's counsel.

Q: Are all investors treated equally? What does "pro-rata" distribution mean?

A: All investors with legitimate claims must be treated equally and all distributions will be made "pro-rata."  That means that each investor of an allowed claim will receive the same percentage distribution on his or her claim.  For example, if the Receiver has $50,000 in proceeds from the liquidation of receivership company assets to distribute to a total of two investors, and if Investor "A" has a claim of $100,000 and Investor "B" has a claim of $150,000, then the combined investor claims will total $250,000, and investors will be able to receive 20% of their claims.  Investor "A" will receive $20,000 and Investor "B" will receive $30,000.

Q: How does the Receiver get paid? How are the costs of administration of the receivership companies' estates paid?

A: Receivers' compensation and the expenses incurred in pursuing claims and administering the receivership estates must come from the assets of the receivership estate --they are not funded or supported by the SEC or other government funding. The Receiver must pay counsel, accountants and other professionals, and other service providers to assist in the administration of the estates.

The SEC does have the right to seek and recover monetary penalties and disgorgement that will be turned over to the Receiver for the benefit of investors. However, the SEC is not in a position to pursue all available avenues of recovery. There are certain parties and certain claims that only the Receiver can pursue. The Receiver will be weighing the cost-effectiveness of recovery efforts and looking for ways in which to minimize receivership expenses. The Receiver requests that investors keep administration costs in mind when seeking information regarding the status of the receiverships and check the information on this website before contacting the Receiver or his counsel.

Q: What is the best way for me to find out what is happening in the Receivership?

A: The Receiver’s website, www.stewardshipfundreceivership.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 feel free to contact the Receiver as noted below.

If you have questions regarding this matter, please feel free to direct them to:

Keith M. Aurzada

Bryan Cave LLP

2200 Ross, Avenue, Suite 3300

Dallas, Texas 75201

Tel: 1 214 721 8000

Fax: 1 214 220 6741

email: keith.aurzada@bryancave.com




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