united states district court ... - jed horwitt, receiver
TRANSCRIPT
UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT
) SECURITIES AND EXCHANGE COMMISSION, ) ) Plaintiff, ) ) v. ) Civil Action No. ) 3:17-cv-00155-VAB MARK J. VARACCHI and ) SENTINEL GROWTH FUND ) MANAGEMENT, LLC, ) ) Defendants, ) and ) ) RADAR ALTERNATIVE FUND LP and ) RADAR ALTERNATIVE MASTER FUND SPC, ) ) Relief Defendants. ) )
RECEIVER’S MOTION TO SUPPLEMENT CLAIMS PROCEDURE
Jed Horwitt, Esq., the Court-appointed receiver in this action (the “Receiver”), by and
through his undersigned counsel, Zeisler & Zeisler, P.C., hereby files this motion (the
“Supplemental Claims Procedure Motion”) seeking the entry of an order by this Court which
approves and orders the proposed supplemental procedures set forth in the order submitted
herewith in furtherance of the determination of claims against the Receivership Estate (as defined
below), solely with respect to certain additional creditors specifically identified herein including,
but not limited to, the following: (i) the approval of the notice actually provided by the Receiver
to certain creditors four (4) days later than previously ordered by this Court (the “Late Notice
Creditors”), (ii) the establishment of a deadline for submitting claims to the Receiver by additional
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potential creditors identified herein (the “New Creditors”), (iii) the form and manner of notice of
the claims procedures for the New Creditors, (iv) the form and manner for the submission of such
claims by the New Creditors, and (v) the procedure for the adjudication of disputed claims. In
support of this Supplemental Claims Procedure Motion, the Receiver states as follows:
I. BACKGROUND
1. On February 2, 2017, the plaintiff, the Securities and Exchange Commission (the
“Commission”) commenced this action by filing its Complaint against the defendants, Mark J.
Varacchi (“Varacchi”) and Sentinel Growth Fund Management, LLC (“Sentinel,” and together
with Varacchi, the “Defendants”), and the relief defendants, Radar Alternative Fund LP (“Radar
LP”) and Radar Alternative Master Fund SPC (“Radar SPC,” and together with Radar LP, the
“Relief Defendants,” and together with Sentinel, the “Receivership Defendants”).
2. The Commission’s Complaint alleges that the Defendants engaged in a fraudulent
scheme to misappropriate the assets of certain individuals and businesses who sought to invest in
the Relief Defendants (collectively, the “Investors”), and that in the course of their scheme, the
Defendants commingled their assets with investor assets.
3. On April 18, 2017, the Commission filed its Assented to Motion for Appointment
of a Receiver (“Motion to Appoint”) seeking the appointment of Jed Horwitt, Esq. as receiver over
the Receivership Defendants and the Receivership Assets, as defined herein
4. On May 1, 2017, this Court entered its order (the “Receivership Order”) appointing
Jed Horwitt, Esq., to serve as the Receiver.
5. In support of the Receivership Order, this Court found that “the appointment of a
receiver in this action is necessary and appropriate … to assess the optimal treatment of assets held
by the Radar Funds for the eventual return of assets to investors or creditors, including those
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investors who may have been harmed by the misconduct alleged in the Complaint….”
(Receivership Order, at 1.)
6. Accordingly, in appointing the Receiver, this Court directed the Receiver “to
assume control of, marshal, pursue, and preserve the Receivership Assets with the objective of
maximizing the recovery of assets….” (Receivership Order ¶ 2.)
7. “Receivership Assets” and the “Receivership Estate” are defined in the
Receivership Order as “all property of whatever kind of Sentinel and the Relief
Defendants…including the Radar Funds’ remaining assets, the Private Investments, and any
additional assets of the Receivership Defendants that may be recovered….” (Id., ¶ 1.)1
8. Pursuant to the Receivership Order, the Receiver has since been marshaling and
liquidating assets for the Receivership Estate for the benefit of creditors who hold claims against
and interests in the Receivership Estate.
9. In particular, the Receiver has already obtained possession of $2,498,777.22
transferred from various accounts maintained for the Receivership Defendants, and held by the
Receiver as of September 30, 2017.
10. On July 27, 2017, the Receiver filed the Receiver’s Motion to Approve Claims
Procedure seeking the entry of an order by this Court which approved and ordered the proposed
procedures set forth therein for the determination of claims against the Receivership Estate,
including, but not limited to, the following: (i) the establishment of a deadline for submitting such
claims to the Receiver, (ii) the form and manner of notice of the claims procedures, (iii) the form
and manner for the submission of such claims by investors and other creditors, and (iv) the
procedure for the adjudication of disputed claims.
1 “Private Investments” are defined in the Motion to Appoint as “investments held in the name of Sentinel or Varacchi” made with funds from Sentinel or the Radar Funds. (Motion to Appoint, p. 3.)
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11. On July 31, 2017, this Court entered its Order Approving Claims Procedure
granting the relief requested.
12. The Order Approving Claims Procedure established September 29, 2017, at 5:00
p.m. (Prevailing Eastern Time) (the “Bar Date”) as the deadline by which any and all “Creditors”
(as defined therein) must submit their completed and signed Proof of Claim to the Receiver, or be
barred and precluded from receiving any distribution from the Receiver in this receivership
proceeding.
13. The Order Approving Claims Procedure also provided that the “Receiver shall
within fourteen (14) calendar days from the entry of this Claims Procedure Order provide a copy
of the Notice of Claims Procedure (completed to include all appropriate dates) to all Creditors
currently and reasonably known to the Receiver by first class U.S Mail, postage prepaid, and post
such Notice of Claims Procedure on the website maintained by the Receiver with respect to this
matter.”
14. The Receiver timely provided such notice as required by the Order Approving
Claims Procedure except with respect to a certain group of potential creditors, defined above as
the “Late Notice Creditors” and the “New Creditors.”
15. Upon determining that the Late Notice Creditors should also be provided with
notice pursuant to the Order Approving Claims Procedure, the Receiver, by his counsel, provided
such notice on August 18, 2017—four (4) days later than required by the Order Approving Claims
Procedure (requiring such notice within fourteen (14) calendar days of its entry).
16. The Late Notice Creditors have been specifically identified in Exhibit A appended
hereto.
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17. Additionally, as the Bar Date approached, the Receiver determined that certain
other potential creditors should be provided notice and an opportunity to submit a claim, which
potential creditors are defined herein as the “New Creditors.”
18. The New Creditors have been specifically identified in Exhibit B appended hereto.
19. The Receiver’s counsel reached out to these New Creditors in the week prior to
September 29, 2017, and informed them of the claims determination procedure including the Bar
Date and, for some, provided them with the applicable documents. Notwithstanding, the Receiver
believes that, considering the delay in providing them with notice, the New Creditors should be
provided with an additional opportunity to submit a claim.
II. RELIEF REQUESTED
20. The Receiver has prepared and seeks this Court’s approval of the supplemental
claims procedure order submitted herewith approving the prior notice provided to the Late Notice
Creditors and establishing a claims determination procedure with respect to the New Creditors.
A. Basis for Relief
(i) This Court Has Broad Equitable Discretion to Establish Procedures for the Administration of Claims
21. The Second Circuit has long acknowledged that district courts supervising federal
equity receiverships have broad discretion to adopt appropriate procedures to administer the assets
of, and claims asserte, against, a receivership estate. See, e.g., SEC v. Certain Unknown
Purchasers of Common Stock etc., 817 F.2d 1018, 1020 (2d Cir. 1987) (“‘[I]n shaping equity
decrees, [a] trial court is vested with broad discretionary power; appellate review is
correspondingly narrow.’”) (quoting Lemon v. Kurtzman, 411 U.S. 192, 200 (1971)); SEC v.
Manor Nursing Centers, Inc., 458 F.2d 1082, 1103 (2d Cir. 1972) (“Once the equity jurisdiction
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of the district court has been properly invoked by a showing of a securities law violation, the court
possesses the necessary power to fashion an appropriate remedy.”).
22. A district court’s power to supervise an equity receivership and to determine the
appropriate action to be taken in the administration of the receivership is extremely
comprehensive. Broad deference is accorded to a district court’s supervisory role in equity
receiverships because most receiverships involve multiple parties and complex transactions.
Accordingly, a district court’s determinations concerning the supervision of an equitable
receivership is reviewed only for abuse of discretion. SEC v. Capital Consultants, L.L.C., 397
F.3d 733, 738; see also CFTC v. Topworth Int’l, Ltd., 205 F.3d 1107, 1115 (9th Cir. 1999)
(reasonable procedures district court institutes upheld when such procedures serve the “purpose of
orderly and efficient administration of the receivership for the benefit of creditors”).
23. Therefore, this Court has broad authority to grant the relief requested in this motion
to ensure the timely and efficient administration of any claims against the Receivership Estate.
(ii) The Receiver Should Be Permitted to Use Summary Procedures
24. Equity receivership courts have the general power to use summary procedures in
allowing, disallowing, and subordinating claims. See, e.g., SEC v. Hardy, 803 F.2d 1034, 1037
(9th Cir. 1986) (summary proceeding to approve categorization scheme regarding investors’
claims was reasonable; fair notice and a reasonable opportunity to respond was given); SEC v.
Lincoln Thrift Ass’n, 577 F.2d 600, 606 (9th Cir. 1978); SEC v. Safety Fin. Serv., Inc., 674 F.2d
368, 373 (5th Cir. 1982); SEC v. Elliott, 953 F.2d 1560, 1571 (11th Cir. 1992) (summary claim
determinations upheld where claimants cannot demonstrate their rights would have been better
protected by a fuller proceeding). See also Fed. Deposit Ins. Corp. v. Bernstein, 786 F. Supp. 170
(E.D.N.Y. 1992) (district court has extremely broad discretion in supervising an equity
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receivership and in determining the appropriate procedures to be used in its administration); 7 J.
Moore, Moore’s Federal Practice, 66.08 (2d ed. 1991).
B. The Proposed Supplemental Claims Procedure Order
(i) The Late Notice Creditors
25. With respect to the Late Notice Creditors, the Receiver respectfully submits that
the notice actually furnished to them by service on August 18th was sufficient to provide them with
a full and fair opportunity to submit a claim to the Receiver by the September 29th Bar Date.
26. The Receiver served the Notice of Claims Procedure (including the Notice of
Claims Procedure for Asserting Claims, Bar Date and Proof of Claim Instructions, and the Proof
of Claim form) on the Late Notice Creditors on August 18, 2017, forty-two (42) calendar days
prior to the September 29th deadline to submit their claim. Such amount of time provided the Late
Notice Creditors with an ample opportunity to evaluate their claims and other relevant
circumstances, and complete and submit the Proof of Claim to the Receiver. This time frame was
only four (4) days fewer than the amount of time required by this Court.
27. Thus, the Receiver respectfully requests that this Court approve such notice
provided to the Late Notice Claims and affirm that the provisions contained in the Order
Approving Claims Procedure including, in particular, the “Bar Date,” applies equally to the Late
Notice Creditors, notwithstanding the slightly delayed service of the Notice of Claims Procedure.
(ii) The New Creditors
28. With respect to the New Creditors, although they were provided notice of the claims
determination procedure including the Bar Date in the week prior to the Bar Date, the Receiver
recognizes that they were not provided with reasonably sufficient time to submit a Claim to the
Receiver.
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29. Accordingly, the Receiver respectfully requests that this Court approve and order
the supplemental claims determination procedure (the “Supplemental Claims Procedure”) set forth
in the Order Approving Supplemental Claims Procedure.
30. The Supplemental Claims Procedure mirrors the structure of the prior claims
procedure ordered by this Court in its Order Approving Claims Procedure except that it (i) sets the
“Second Bar Date” for thirty (30) days after the entry of the order (instead of sixty (60) days), (ii)
requires the Receiver to make service within three (3) calendar days (instead of fourteen (14)
calendar days), and (iii) makes certain other changes to conform them to the current circumstances,
e.g., using the term “Second Bar Date.”
31. The Receiver submits that this slightly accelerated time frame is warranted since
the Receiver already provided the New Creditors with notice of the prior claims determination
procedure and Bar Date and, although late, put such New Creditors on notice that this Court had
imposed a claims determination procedure and ordered a limited time frame within which to assert
a claim against the Receivership Estate or be barred. Such New Creditors should, consequently,
already be on notice that they must act expeditiously to protect their rights and interests in this
receivership proceeding with respect to any claim.
32. Furthermore, the Receiver seeks to finalize the claims submission process and the
imposition of the Second Bar Date so that he can fully understand the universe of Claims asserted
against the Receivership Estate and proceed accordingly – including with an interim distribution.
33. Thus, the Receiver submits that the Supplemental Claims Procedure Order fairly
balances the various competing interests in this receivership proceeding, while, at the same time,
protecting the rights and interests of the New Creditors to be provided with reasonable notice and
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a full and fair opportunity to be heard with respect to the adjudication of their claims against and
interests in the Receivership Estate.
34. The Receiver has provided this Supplemental Claims Procedure Motion and the
proposed Order Approving Supplemental Claims Procedure along with all related forms to the
SEC for its review, and the SEC has indicated that it has no objection to the relief requested by the
Receiver.
WHEREFORE, the Jed Horwitt, Esq., Receiver, respectfully requests that this Court enter
the Supplemental Claims Procedures Order submitted herewith, and grant such other further relief
as this Court deems just and proper.
Dated on this 1st day of November, 2017, at Bridgeport, Connecticut.
Respectfully submitted,
JED HORWITT, ESQ., RECEIVER
By: /s/Stephen M. Kindseth
Stephen M. Kindseth (ct14640) Joanna M. Kornafel (ct29199) Zeisler & Zeisler, P.C. 10 Middle Street, 15th Floor Bridgeport, CT 06604 Telephone: 203-368-4234 X 245 Facsimile: 203-549-0903 Email: [email protected] [email protected] His Attorneys
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CERTIFICATE OF SERVICE I, Stephen M. Kindseth, hereby certify that a copy of foregoing was filed electronically and
served by mail on anyone unable to accept electronic filing. Notice of this filing will be sent by
e-mail to all parties by operation of the Court’s electronic filing system or by mail to anyone unable
to accept electronic filing as indicated on the Notice of Electronic Filing. Parties may access this
filing through the Court’s CM/ECF System.
/s/Stephen M. Kindseth Stephen M. Kindseth (ct14640)
Case 3:17-cv-00155-VAB Document 35 Filed 11/01/17 Page 10 of 10
Exhibit B
Edwin J. Glatzel
21 Ridgeway
Easton, CT 06612
Laurence Galli
68 2nd
Street
Garden City, NY 11530
Balcony Partners
540 Madison Avenue, 18th
Floor
New York, NY 10022
Logan N. Sugarman
134 E 22nd
Street
New York, NY 10010
Kirk C and Karen L Dizon
3536 Baker Street
San Francisco, CA 94123
Craig Jay Greenwald
1510 Lexington Ave.
Apt. 11S
New York, NY 10029
Refresh Body, Inc.
Attn: President
127 West 26th
Street
New York, NY 10001
Prague Capital Management, LLC
c/o: Corporation Service Company
2711 Centerville Road
Suite 400
Wilmington, DE 19808
Prague Capital Management, LLC
c/o: Corporation Service Company
251 Little Falls Drive
Wilmington, DE 19808
Prague Capital Management, LLC
Attn: Andrej Schon
5 Parsons Road
East Brunswick, NJ 08816
Case 3:17-cv-00155-VAB Document 35-1 Filed 11/01/17 Page 2 of 4
Exhibit B
Mastronardi Family Investments
Found:
Mastronardi Family, Inc.
1774 Cedar Street
Elmira, NY 14904
JOW Capital, LLC
c/o The Company Corporation
251 Little Falls Drive
Wilmington, DE 19809
Melva Construction Corp.
36-23 23rd
Street
Long Island City, NY 11106
Dean Generalis
94 Dabney Road
New Canaan, CT 06840
Jared Dulski
70 Dogwood Ct.
Stamford, CT 06903
Atlas Construction of New York, Inc.
5921 56th
St.
Maspeth, NY 11378
Ralph Giorgio
4 Cowdray Park Dr.
Greenwich, CT 06831
Joseph J. Conetta
9437 Shore Road, Apt. D#
Brooklyn, NY 11209
Joseph J. Conetta
8009 Shore Road
Brooklyn, NY 11209
Lauren Faktor
245 E 54 Street
New York, NY 10022
John A. Varacchi
233 W 26th
Street
Apt. A8W
Case 3:17-cv-00155-VAB Document 35-1 Filed 11/01/17 Page 3 of 4
Exhibit B
New York, NY 10001
Nevena Vatachka
24 Paragon Lane
Stamford, CT 06905
Case 3:17-cv-00155-VAB Document 35-1 Filed 11/01/17 Page 4 of 4
Richard Hirsch:
1. 1233 Lincoln Ave. S
Highland Park, IL 60035
2. 25 E Superior St.
Apt. 506
Chicago, IL 60611
Alton Bay Capital, LLC:
1. 320 Ohio Street #3
Chicago, IL 60654
2. 500 N. Michigan Avenue
Chicago, IL 60611
3. 2711 Centerville Road
Suite 400
Wilmington, DE 19808
Heather Pitts-Schon:
1. 5 Parsons Road
East Brunswick, NJ 08816
Case 3:17-cv-00155-VAB Document 35-2 Filed 11/01/17 Page 2 of 2
ORDER APPROVING SUPPLEMENTAL CLAIMS PROCEDURE
On November __, 2017, Jed Horwitt, Esq. (the “Receiver”), the Court-appointed receiver
in the above-captioned case, filed a motion (the “Supplemental Claims Procedure Motion”)
seeking an order from this Court approving and ordering the proposed claims procedures set forth
below to supplement the claims determination procedures previously set forth in this Court’s Order
Approving Claims Procedure (Doc. No. 24). The Supplemental Claims Procedures Motion
outlined procedures for the determination of any and all claims against and interests in (including
all such claims and interests that are disputed, unliquidated or contingent (collectively, the
“Claims”)) the following: (i) Sentinel Growth Fund Management, LLC (“Sentinel”), Radar
Alternative Fund LP (“Radar LP”), and Radar Alternative Master Fund SPC (“Radar SPC” and
together with Radar LP, the “Radar Funds” or the “Relief Defendants,” and together with Sentinel,
the “Receivership Defendants”), and (ii) any and all property of whatever kind of the Receivership
UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT
) SECURITIES AND EXCHANGE COMMISSION, ) ) Plaintiff, ) ) v. ) Civil Action No. ) 3:17-cv-00155-VAB MARK J. VARACCHI and ) SENTINEL GROWTH FUND ) MANAGEMENT, LLC, ) ) Defendants, ) and ) ) RADAR ALTERNATIVE FUND LP and ) RADAR ALTERNATIVE MASTER FUND SPC, ) ) Relief Defendants. ) )
Case 3:17-cv-00155-VAB Document 35-3 Filed 11/01/17 Page 1 of 12
Defendants (the “Receivership Assets”), solely with respect to such Claims held by certain
additional creditors specifically identified in the Supplemental Claims Procedure Motion and
defined therein as the “Late Notice Creditors” and the “New Creditors” (as such “Late Notice
Creditors” and “New Creditors” have been specifically identified and defined in the Supplemental
Claims Procedure Motion, which identifications and definitions are incorporated herein by
reference).
Due and proper notice of the Supplemental Claims Procedure Motion has been provided,
and it appears that no other or further notice need be provided. The Court has reviewed the
Supplemental Claims Procedure Motion and proposed supplemental claims procedure and finds
that the reasons set forth in the Supplemental Claims Procedure Motion and by the Receiver
establish just cause for the relief granted. The Late Notice Creditors have been provided, and the
proposed supplemental claims procedure set forth below shall provide the New Creditors holding
such Claims, with due and sufficient notice and a full and fair opportunity to be heard with respect
to the determination of their Claims. Therefore, it is hereby ORDERED that:
1. The relief requested in the Supplemental Claims Procedure Motion is GRANTED on the
terms and conditions set forth in this Order Approving Supplemental Claims Procedure
(the “Supplemental Claims Procedure Order”).
2. The provisions contained in the Order Approving Claims Procedure (Doc. No. 24)
including, in particular, those governing the “Bar Date” (as defined therein), shall apply,
inter alia, to the Late Notice Creditors notwithstanding the Receiver’s four (4) day late
service of the Notice of Claims Procedure upon them.
3. The form of the Notice of Supplemental Claims Procedure for Asserting Claims, Second
Bar Date, and Proof of Claim Instructions, and the form of the Proof of Claim, each
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attached hereto as Schedule 1 (collectively, the “Notice of Claims Procedure”) is approved
for use by the Receiver in accordance with this Supplemental Claim Procedure Order.
4. The Receiver shall within three (3) calendar days from the entry of this Supplemental
Claims Procedure Order provide a copy of the Notice of Claims Procedure (completed to
include all appropriate dates) to all New Creditors by first-class U.S Mail, postage prepaid,
and post such Notice of Claims Procedure on the website maintained by the Receiver with
respect to this matter. Such notice by the Receiver shall constitute due and sufficient notice
of the claims determination procedure, bar date and other provisions effectuated by this
Supplemental Clams Procedure Order to all New Creditors who hold Claims.
5. In order to be determined to hold an allowed Claim in this receivership proceeding and
thereby entitled to receive distributions from the receivership estate, any and all New
Creditors shall fully and accurately complete and sign the Proof of Claim form and deliver
such Proof of Claim along with all supporting documentation required by the Notice of
Claim Procedures to the Receiver on or before the __ day of _____, 2017 at 5:00 p.m.
(Prevailing Eastern Time), (the “Second Bar Date”) at the following address:
Zeisler & Zeisler, P.C. Attn: Receiver Claims 10 Middle St., 15th Floor Bridgeport, CT 06604
Or via email (in PDF format) to the following address:
6. Any New Creditor who fails to deliver a Proof of Claim to the Receiver fully in accordance
with this Supplemental Claims Procedure Order and the Notice of Claims Procedure,
including, but not limited to, on or before the Second Bar Date, shall be barred and
precluded from receiving any distribution from the Receiver in this receivership proceeding
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unless and until all timely filed and allowed Claims and all expenses of administering the
receivership estate have been paid in full.
7. In the event the Receiver disputes any Claim asserted in any timely delivered Proof of
Claim, the Receiver shall file a motion (a “Claim Determination Motion”) seeking this
Court’s determination of such Claim, and serve upon such New Creditor a copy of the
Claims Determination Motion. Each Claim Determination Motion shall set forth: (a) the
amount alleged in the New Creditor’s Proof of Claim; (b) the factual and legal basis for the
Receiver’s challenge to such Claim; and (c) the determination sought by the Receiver,
including the extent to which the Receiver submits that the Claim should be allowed and
disallowed.
8. Any objection to the Receiver’s Claim Determination Motion shall be filed within twenty-
one (21) days of the filing of the Claim Determination Motion.
9. Upon the timely filing of any objection to any Claim Determination Motion, to ensure the
expeditious administration of this receivership proceeding, the Court will finally determine
the allowed amount of such Claim by utilizing summary procedures to be set forth in a
further Order of this Court.
The Court shall retain jurisdiction to enforce and implement the terms and provisions of
this Supplemental Claim Procedure Order.
IT IS SO ORDERED, this __ day of _____, 2017, at Bridgeport, CT.
VICTOR A. BOLDEN UNITED STATES DISTRICT JUDGE
Case 3:17-cv-00155-VAB Document 35-3 Filed 11/01/17 Page 4 of 12
UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT
) SECURITIES AND EXCHANGE COMMISSION, ) ) Plaintiff, ) ) v. ) Civil Action No. ) 3:17-cv-00155-VAB MARK J. VARACCHI and ) SENTINEL GROWTH FUND ) MANAGEMENT, LLC, ) ) Defendants, ) and ) ) RADAR ALTERNATIVE FUND LP and ) RADAR ALTERNATIVE MASTER FUND SPC, ) ) Relief Defendants. ) )
NOTICE OF SUPPLEMENTAL CLAIMS PROCEDURE FOR ASSERTING CLAIMS,
SECOND BAR DATE, AND PROOF OF CLAIM INSTRUCTIONS TO ALL NEW CREDITORS1 INCLUDING INVESTORS OF THE RECEIVERSHIP DEFENDANTS, PLEASE TAKE NOTICE OF THE FOLLOWING: On _____ __, 2017, the United States District Court for the District of Connecticut (the “District Court”) entered an order in the above-captioned case (the “Supplemental Claims Procedure Order”) establishing ______ __, 2017, by 5:00 p.m. (Prevailing Eastern Time) as the deadline (the “Second Bar Date”) for the submission of a completed and signed Proof of Claim by any and all New Creditors holding any and all claims against and interests in (including all such claims and interests that are disputed, unliquidated or contingent) the following:
(i) Sentinel Growth Fund Management, LLC (“Sentinel”), Radar Alternative Fund LP
(“Radar LP”), and Radar Alternative Master Fund SPC (“Radar SPC” and together with Radar LP, the “Radar Funds” or the “Relief Defendants,” and together with Sentinel, the “Receivership Defendants”), or
(ii) Any and all property of whatever kind of the Receivership Defendants (the “Receivership Assets”).
(Collectively, the “Claims”).
1 The term “New Creditors” includes only those particular creditors specifically identified in the Receiver’s Motion to Supplement Claims Procedure (Doc. No. __) as such New Creditors.
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YOU ARE RECEIVING THIS NOTICE BECAUSE YOU ARE A PERSON (INCLUDING INDIVIDUALS AND BUSINESSES) WHO MAY POTENTIALLY HOLD A CLAIM IN THIS MATTER. Enclosed you will find the Proof of Claim form to be used in asserting a Claim against any of the following entities or their property:
Sentinel Growth Fund Management, LLC; Radar Alternative Fund LP; or Radar Alternative Master Fund SPC
The Supplemental Claims Procedure Order requires all New Creditors who wish to receive a distribution from the proceeds of the liquidation of the Receivership Assets to fully and accurately complete and sign Proof of Claim form and deliver such Proof of Claim along with all supporting documentation evidencing such Claim to the Receiver so that it is received on or before the Second Bar Date, specifically, 5:00 p.m. (Prevailing Eastern Time) on _____ __, 2017, at the following address:
Zeisler & Zeisler, P.C. Attn: Receiver Claims 10 Middle Street, 15th Floor Bridgeport, CT 06604 Or Via email (in PDF format) to the following address: [email protected].
Your assertion of a Claim against any of the Receivership Defendants should include any claim for services provided and/or goods sold, as well as any monies paid to any of these entities for loan or investment purposes. In calculating the amount of your claim, please include only the principal amount owed to you or invested by you less all credits, offsets, and payments received by you. Do not add any interest, penalties, or other charges.
CONSEQUENCES OF FAILURE TO FILE PROOF OF CLAIM FORMS Should you fail to return this Proof of Claim form to the Receiver on or before 5:00 p.m. (Prevailing Eastern Time) on _____ __, 2017, your assertion of a claim or interest against any of the Receivership Defendants may be disallowed, meaning that you will not receive any distribution or payments. A signed Proof of Claim form, together with accompanying documentation, must be delivered to the Receiver so as to be actually received no later than 5:00 p.m., Prevailing Eastern Time, on _____ __, 2017.
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ANY NEW CREDITOR WHO FAILS TO DELIVER A PROOF OF CLAIM TO THE RECEIVER FULLY IN ACCORDANCE WITH THIS NOTICE, INCLUDING, BUT NOT LIMITED TO, ON OR BEFORE THE SECOND BAR DATE, SHALL BE BARRED AND PRECLUDED FROM RECEIVING ANY DISTRIBUTION FROM THE RECEIVER IN THIS RECEIVERSHIP PROCEEDING UNLESS AND UNTIL ALL TIMELY FILED AND ALLOWED CLAIMS AND ALL EXPENSES OF ADMINISTERING THE RECEIVERSHIP ESTATE HAVE BEEN PAID IN FULL Therefore, please allow sufficient time for delivery. If you wish to receive acknowledgement of the Receiver’s receipt of your mailed Proof of Claim, you must submit a copy of your original, completed Proof of Claim form and a self-addressed, stamped envelope. Please do not send originals of supporting documentation with your Proof of Claim. Please do not file your Proof of Claim form with the District Court. You may obtain a Proof of Claim form and review other information about the receivership proceeding by visiting the Receivership website at: www.jedhorwittreceiver.com. Please note that all Proof of Claim submitted are subject to review and objection by the Receiver and the submission of a Proof of Claim does not guarantee allowance of your Claims. IF YOUR MAILING ADDRESS OR EMAIL ADDRESS CHANGES AFTER SUBMITTING THIS FORM TO THE RECEIVER, PLEASE NOTIFY THE RECEIVER OF YOUR NEW ADDRESS AS SOON AS POSSIBLE. IT IS YOUR RESPONSIBILITY TO KEEP THE RECEIVER ADVISED OF YOUR CURRENT ADDRESS. Due to the need to thoroughly verify each Claim, the process of collecting, evaluating, and presenting all relevant information to the Court may be lengthy. You can facilitate the process by following the instructions contained on the Proof of Claim form closely, explaining all relevant information as clearly as possible, and including all documents that will validate your claim. Once the Receiver has completed his review of the Proof of Claim, the Receiver may challenge your Claim by filing a motion with the District Court seeking a determination of your Claim (the “Claim Determination Motion”). The Claim Determination Motion will be based on the information contained in the Proof of Claim and information otherwise acquired by the Receiver. If filed with the District Court, a copy of the Receiver’s Claim Determination Motion will be mailed to you by First Class, U.S. Mail, postage prepaid, to the address stated on your Proof of Claim. IF YOU OBJECT TO THE DETERMINATION SOUGHT BY THE RECEIVER IN HIS CLAIM DETERMINATION MOTION, YOU MUST FULLY ARTICULATE AND FILE YOUR OBJECTION WITH THE DISTRICT COURT WITHIN TWENTY-ONE (21) DAYS OF THE FILING OF THE CLAIM DETERMINATION MOTION. Upon the timely filing of any objection to any Claim Determination Motion, to ensure the expeditious administration of this receivership proceeding, the District Court will finally determine the allowed amount of such Claim by utilizing summary procedures to be set forth in a further Order entered by the District Court. A COPY OF THESE SUMMARY PROCEDURES WILL ALSO BE MAILED TO YOU AT THE ADDRESS STATED ON YOUR PROOF OF CLAIM.
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Should you have any questions, please either (i) call one of the Receiver’s attorneys, Stephen M. Kindseth or Joanna Kornafel at (203) 368-4234, or (ii) email the Receiver at [email protected].
Case 3:17-cv-00155-VAB Document 35-3 Filed 11/01/17 Page 9 of 12
PROOF OF CLAIM
TO BE SUBMITTED TO:
JED HORWITT, ESQ., RECEIVER,
SENTINEL GROWTH FUND MANAGEMENT, LLC, RADAR ALTERNATIVE FUND LP AND RADAR ALTERNATIVE MASTER FUND SPC
INSTRUCTIONS
1. Credits: By signing this Proof of Claim, you are stating under oath that in calculating the amount of your claim, you have given the entity against whom you may have a claim credit for all payments received from such entity.
2. Supporting Documents: YOU MUST attach copies of any and all documentation supporting your claim, such as promissory notes, purchase orders, invoices, itemized statements of running accounts, contracts, court judgments, mortgages, security agreements, and evidence of perfection of lien. DO NOT SEND ORIGINAL DOCUMENTS. If the documents are not available, explain. If the documents are voluminous, please attach a summary instead.
3. Date-Stamped Copy: To receive an acknowledgment of the filing of your claim, enclose a stamped, self-addressed envelope and copy of this Proof of Claim.
4. Certification: By signing and returning this Proof of Claim, you are certifying, under penalty of perjury, to the truth and accuracy of the information set forth herein.
5. Deadline for Filing: Return this fully and accurately completed and signed Proof of Claim, together with all required supporting documentation, to: Zeisler & Zeisler, P.C. Attn: Receiver Claims 10 Middle Street, 15th Floor Bridgeport, CT 06604, Or Via email (in PDF format) to the following address: [email protected]; SO THAT IT IS ACTUALLY RECEIVED no later than ____ __, 2017 at 5:00 p.m. (Prevailing Eastern Time). FACSIMILE COPIES OF THIS FORM WILL NOT BE ACCEPTED. If this Proof of Claim form is not actually received by such deadline, you may be precluded from asserting any claim against any of the Receivership Defendants and their property, and you may be precluded from any recovery obtained by the Receiver.
6. Inquiries: If you have any questions concerning the filing or processing of this Proof of Claim Form, please contact the Receiver’s attorneys, Stephen Kindseth or Joanna M. Kornafel, at (203) 368-4234, or via email at [email protected].
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Proof of Claim Jed Horwitt, Esq., Receiver
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WHO IS THE CREDITOR? ___________________________________________________________________________ Name of the current creditor (the person or entity to be paid for this claim) Other names the creditor used ________________________________________________ Has this claim been acquired from someone else? No Yes From whom? ______________________________________________________________ WHERE SHOULD NOTICES AND PAYMENTS BE SENT?
Name and address where notices should be sent: ___________________________________________________________________________ Name ___________________________________________________________________________ Street ___________________________________________________________________________ City ___________________________________________________________________________ State ___________________________________________________________________________ Zip Code Telephone Number: ____________________________________________________________________________ Email address (if available): ____________________________________________________________________________
Name of entity against whom you may have a claim (check one only; use additional forms if you have claims against more than one entity):
Sentinel Growth Fund Management LP; Radar Alternative Fund LP; or Radar Alternative Master Fund SPC
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Proof of Claim Jed Horwitt, Esq., Receiver
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Account or other number by which creditor identifies the claim: ___________________________________________________________
1. Basis for Claim – Example: goods sold, money loaned, lease, services performed, investment, taxes, etc.
If wages, salaries, and compensation, please fill out below: Your SS#: ______ ______ ________ Unpaid compensation for services performed from ______________________________ to ___________________________ (date) (date) Other _____________________________________________________________________
2. Date debt was incurred: ________________________________________________
3. Total Amount of Claim as of February 2, 2017: _____________________________ Do not include interest or other charges in addition to the principal amount of the claim. Please attach supporting documents demonstrating the basis of your claim.
4. Is this claim subject to a right of setoff? No Yes Identify the property: ___________________________________________________
The person signing this proof of claim is (check as appropriate): Creditor, or Creditor’s attorney or authorized agent Sign and print the name and title (if any) of the creditor or other person authorized to file this claim (attach copy of power of attorney, if any): I understand that an authorized signature on this Proof of Claim serves as an acknowledgement that when calculating the amount of the claim, the claimant gave credit for any payments received toward the debt. I have examined the information in this Proof of Claim and have a reasonable belief that the information is true and correct. I declare under penalty of perjury that the foregoing is true and correct. ____________________________________________________ Name Title ____________________________________________________ Date
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