James D. Sallah, Esq.
Corporate Monitor
Jeffrey C. Schneider, P.A.
Patrick J. Rengstl, Esq.
Counsel for Corporate Monitor
PAYTON & ASSOCIATES, LLC
and
LEVINE KELLOGG LEHMAN SCHNEIDER + GROSSMAN LLP
Attorneys at Law
Telephone: (305) 372-3500 x23
Email: rengstl@payton-law.com
The Corporate Monitor has filed his Tenth Report, which summarizes the case from April through the present. The link to the Tenth Report is below for review.
The United States of America, through the Fraud Section of the Criminal Division of the United States Department of Justice and the United States Attorney’s Office for the Middle District of Florida, has filed criminal charges against Gignesh Movalia relating to OM Global. Mr. Movalia has signed a Plea Agreement for one count, which charges him with investment adviser’s fraud in violation of 15 U.S.C. § 80b-6. The elements of the criminal charge are: (i) Mr. Movalia is an investment adviser regarding investments in securities; (ii) Mr. Movalia used the mail or interstate commerce to defraud investors; and (iii) Mr. Movalia did so knowingly and willfully. The charge carries a maximum term of imprisonment of five (5) years.
The plea date, on which the Court will accept or reject the Plea Agreement, is August 13, 2015. If the Court accepts the plea, a sentencing hearing will then be scheduled. It is anticipated that a sentencing hearing would occur a few months after the August plea date. Links to the Plea Agreement and the Information charging Mr. Movalia are below.
The Corporate Monitor has filed his Ninth Report, which summarizes the case from January 2015 through the present. The link to the Ninth Report is below for review.
FANTASTIC NEWS!! On March 4, 2015, the Court granted the Corporate Monitor’s motion authorizing a second distribution of $1 million to holders of allowed claims in OM Global Investment Fund LLC. The Corporate Monitor is now beginning the process of preparing checks to holders of allowed claims. As soon as the checks have been prepared, the Corporate Monitor will sign the checks and they will be mailed out. The Corporate Monitor is hopeful to complete the mailings as soon as possible.
GREAT NEWS! On February 13, 2015, the Corporate Monitor filed his Motion for Second Interim Distribution. Upon approval by the Court, the Corporate Monitor will begin paying second distribution checks to claimants with “allowed claims.” The Corporate Monitor will post the Court’s Order approving the second distribution on the website upon Court approval. The hearing date is scheduled for March 4, 2015. The second distribution will be in the amount of $1 million to holders of “allowed claims” in OM Global Investment Fund LLC. Claimants will be receiving a cover letter and a copy of the Motion for Second Distribution. The cover letter explains the second distribution process. Please carefully review the cover letter and Motion as soon as possible. Please see the links below to download a copy of the Motion, cover letter, and Claim Matrices. If you have any questions, please do not hesitate to contact the Corporate Monitor’s attorney, Patrick J. Rengstl, at 305.372.3500 ext. 23 or by email at rengstl@payton-law.com.
The Corporate Monitor has filed his Eighth Report, which summarizes the case from November 2014 through the present. The link to the Eighth Report is below for review.
The Corporate Monitor has filed his Seventh Report, which summarizes the case from August 2014 through the present. The link to the Seventh Report is below for review.
The Corporate Monitor recently mailed K-1 forms to investors with an explanatory cover letter. Please review the cover letter carefully and please provide the letter and K-1 to your accountant or tax professional. If you have not received a K-1, please call the Corporate Monitor’s attorney, Patrick Rengstl, at 305.722.8894. The link to the cover letter is below for review.
The United States Securities and Exchange Commission (the “SEC”) has obtained a judgment against Gignesh Movalia for $1,729,800.04 and a civil monetary penalty against Movalia for $300,000 for violating federal securities laws. Links to the SEC’s motion and the Court’s judgment are below for review.
The Corporate Monitor is currently litigating seven lawsuits against targets whom the Corporate Monitor contends improperly received funds from OM Global. There is no time- table for resolving the lawsuits, although the Corporate Monitor intends to resolve each lawsuit in an efficient, favorable manner as soon as possible. In addition, the Corporate Monitor continues to evaluate filing other potential lawsuits. Like prior recoveries, any future recoveries will be deposited into the estate’s account for the benefit of investors with allowed claims and, therefore, for purposes of a second distribution. The Corporate Monitor will determine when and how much of a second distribution in the coming months. Please continue to check the website periodically for updates in all the headings on the website. Please also call or email the Corporate Monitor’s attorney, Patrick J. Rengstl, with any questions. As always, thank you for your patience during this proceeding.
TERRIFIC NEWS!! On April 10, 2014, the Corporate Monitor mailed first distribution checks to investors with allowed claims in OM Global Investment Fund LLC. The Corporate Monitor also included a cover letter explaining the distribution check. Please carefully review the cover letter because there is a deadline to deposit each check, as well as a deadline to roll-over the check back into a retirement account if the claimant initially invested through a retirement account. The first distribution check is approximately 14% of the claimant’s allowed claim amount for OM Global Investment Fund LLC. If you have any questions, please do not hesitate to contact the Corporate Monitor's attorney, Patrick J. Rengstl, at 305.722.8894 or by email at pjr@lklsg.com.
FANTASTIC NEWS!! On March 12, 2014, the Court granted the Corporate Monitor’s motion authorizing a first distribution of $2,250,000 to holders of allowed claims in OM Global Investment Fund LLC and $200,000 to holders of allowed claims in OM Global LP. The Corporate Monitor will begin the process of preparing checks to holders of allowed claims. As soon as the checks have been prepared, the Corporate Monitor will sign the checks and they will be mailed out. The Corporate Monitor is hopeful to complete the mailings by the end of March.
GREAT NEWS! On February 28, 2014, the Corporate Monitor filed his Motion for First Interim Distribution. Upon approval by the Court, the Corporate Monitor will begin paying distribution checks to claimants with “allowed claims.” The Corporate Monitor will post the Court’s Order approving the distribution on the website upon Court approval. The hearing date will likely be in mid-March. As the Corporate Monitor previously stated, his first distribution will be in the amount of $2,250,000 to holders of allowed claims in OM Global Investment Fund LLC and $200,000 to holders of allowed claims in OM Global LP. Claimants will be receiving a cover letter and Claim Matrices, which the Corporate Monitor mailed to claimants on February 28, 2014, and which list the claims that the Corporate Monitor has recommended allowing and the claims to which the Corporate Monitor has objected. The cover letter explains the Claim Matrices and the claims process. Please carefully review the cover letter and Claim Matrices as soon as possible, because there are important deadlines affecting your claims. Please see the links below to download a copy of the Corporate Monitor’s Motion, cover letter, and Claim Matrices. If you have any questions at all, please do not hesitate to contact the Corporate Monitor’s attorney, Patrick J. Rengstl, at 305.722.8894 or by email at pjr@lklsg.com.
The Corporate Monitor is pleased to report that the Court has established a claims and distribution procedure through which distributions can be made to holders of allowed claims. The first distribution will be in the amount of $2,250,000 to holders of allowed claims in OM Global Investment Fund LLC. For holders of allowed claims in OM Global LP, the first distribution will be in the amount of $200,000. The Corporate Monitor plans to move for Court-authorization to make a first distribution in February 2014.
Please see the link below to download a copy of the Motion and Court's Order.
On October 9, 2013, the Corporate Monitor sued Chhatrala Group LLC for breach of an unpaid loan owed to OM Global Investment Fund LLC. The case is pending in Circuit Court in Miami-Dade County, Florida, where the OM Global liquidation proceeding is also pending. A copy of the Complaint is attached to the link below.
GREAT NEWS! On October 7, 2013, the Corporate Monitor filed his Motion to Approve Form and Manner of Proof of Claim Form. The Court granted the Motion and thereby approved the Claim Form. On October 18, 2013, the Corporate Monitor, through his attorneys, mailed the Claim Form to each investor, along with a cover letter explaining the process. The Claim Form is the document that investors must complete under penalty of perjury in order for the Court to approve a repayment of funds by the Corporate Monitor to them. In other words, if you are an investor in OM Global Investment Fund LLC or OM Global LP, you must complete the Claim Form in order to receive a repayment of funds from the Corporate Monitor. The Claim Form must be completed and returned to the Corporate Monitor’s attorneys on or before December 17, 2013. Please follow the instructions on the Claim Form. Please see the links below to download a copy of the Claim Form, cover letter, and Corporate Monitor’s Motion. If you have any questions at all, please do not hesitate to call the Corporate Monitor’s attorney, Patrick J. Rengstl, at 305-722-8894 (or by email at pjr@LKLSG.com).
On September 27, 2013, the United States Securities and Exchange Commission (the “SEC”) sued Gignesh Movalia and alleged multiple investor violations, including violations of the Securities Act of 1933, Rule 10b-5 of the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Investment Company Act of 1940. The case is pending in the United States District Court in the Southern District of Florida. Mr. Movalia has consented to the entry of a permanent injunction restraining him from violating federal securities laws, an order directing him to pay disgorgement (amount to be determined), an order directing him to pay a civil monetary penalty (amount to be determined), and an order freezing his assets. The SEC’s lawsuit will not affect the OM Global legal proceeding or the Corporate Monitor reimbursing OM Global investors. Links to the SEC’s legal filings are below for review.