{"id":70,"date":"2009-11-12T16:20:07","date_gmt":"2009-11-12T23:20:07","guid":{"rendered":"http:\/\/www.kleinutah.com\/?page_id=70"},"modified":"2016-08-30T13:27:49","modified_gmt":"2016-08-30T20:27:49","slug":"ffcf","status":"publish","type":"page","link":"http:\/\/www.kleinutah.com\/index.php\/receiverships\/ffcf","title":{"rendered":"FFCF Investors LLC, Ascendus Capital Management LLC & Smith Holdings LLC"},"content":{"rendered":"

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RECEIVERSHIPS: FFCF INVESTORS LLC, ASCENDUS CAPITAL MANAGEMENT LLC & SMITH HOLDINGS LLC.<\/strong><\/span><\/p>\n

WAYNE KLEIN, RECEIVER FOR<\/strong>
\nFFCF Investors, LLC, Ascendus Capital Management, LLC, and Smith Holdings, LLC.
\nPO Box 1836, Salt Lake City, UT 84110, (801) 824-9616<\/strong><\/p>\n\n\n\n
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Updates and Descriptions of Recent Developments<\/span><\/em><\/strong><\/p>\n

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February 25, 2015:<\/strong> The Court entered an order authorizing the receiver to make a limited distribution to investors who assigned their claims against Penson Financial Services to the Receivership Estate. The order also closes the Receivership Estate. The Receiver regrets that the bankruptcy of Penson prevented him from recovering additional funds that could have been paid to victims of this fraud, but he has exhausted the potential for further recoveries in this case. A copy of the court\u2019s order can be found here<\/a>.<\/p>\n

January 29, 2015:<\/strong> The Receiver filed a motion today recommending that the FFCF\/Ascendus Receivership be terminated. The Receiver provided a status report summarizing developments in the case since May 2010. The motion asks court approval to make limited distributions to investors who assigned their claims against Penson to the Receiver and to enter an order dealing with termination of the estate. A copy of the status report and memorandum in support of the motion can be found here<\/a>.<\/p>\n

June 6, 2013:<\/strong> In the Penson bankruptcy case, a plan of liquidation and disclosure statement describing the liquidation plan<\/a> have been filed by Penson. The Receiver intends to submit a vote in favor of the proposed liquidation plan. It will be several years before any funds might be available for distribution from the bankruptcy estate. At that point, the Receiver will still need to prove the legitimacy of the claims he has asserted.<\/p>\n

February 4, 2013:<\/strong> A copy of the bankruptcy notice filed by Penson Financial Services on January 11, 2013 can be found here.<\/a><\/p>\n

February 1, 2013:<\/strong> A letter was received today from the Financial Regulatory Authority notifying the Receiver that the arbitration proceeding would be dismissed due to Penson\u2019s bankruptcy. A copy of the letter can be found here.<\/a> Penson\u2019s bankruptcy attorneys have also filed a notice of the bankruptcy filing with the state court. That means the arbitration proceeding will be dismissed and the court case will both be put on hold. The Receiver is investigating the wisdom of filing a claim in the bankruptcy proceeding.<\/p>\n

January 11, 2013:<\/strong> The Wall Street Journal reports that Penson filed for bankruptcy on Friday, January 11. That story can be found here.<\/a> The news story said the bankruptcy filing is a Chapter 11 reorganization, but the company apparently has ceased operations and plans to liquidate its assets. In the meanwhile, bankruptcy laws prohibit us from proceeding with our litigation or the arbitration while the company is in bankruptcy. We are pursuing options, including making a claim in the bankruptcy proceeding. Here is a link to another news story about the bankruptcy.<\/a><\/p>\n

November 13, 2012:<\/strong> The Court today entered a judgment against Richard Smith for $3,228,491.89. This judgment was entered by default, after Mr. Smith failed to appear and defend himself in the Receiver\u2019s lawsuit. The Court did hold an evidentiary hearing September 24, 2012 at which time the Court took testimony on the amount of damages. A copy of the judgment can be found here.<\/a> The findings of fact and conclusions of law issued by the Court in connection with the judgment can be found here.<\/a><\/p>\n

October 29, 2012:<\/strong> The court today issued a ruling in the lawsuit that the Receiver filed against Capital One Bank, seeking a return of credit card payments made by Ascendus on Richard Smith\u2019s credit card. The judge\u2019s order said that the receiver\u2019s claims for fraudulent transfer were beyond the statute of limitations and he dismissed those allegations. The order says that the receiver\u2019s claims for unjust enrichment are valid and can proceed. A copy of the ruling can be found here.<\/a><\/p>\n

September 10, 2012:<\/strong> Penson filed its answer today in the arbitration action brought by the Receiver. Not surprisingly, Penson denies any responsibility. A copy of Penson\u2019s answer can be found here.<\/a><\/p>\n

July 11, 2012: <\/strong>The Receiver today filed an arbitration claim against Penson Financial Services. The arbitration proceedings will be with FINRA, the organization that oversees disputes against brokerage firms. A copy of the “statement of claim” can be found here.<\/a><\/p>\n

June 12, 2012:<\/strong> The court today issued its ruling on Penson\u2019s motion to dismiss the Receiver\u2019s lawsuit against it. Penson had asked the court to dismiss the lawsuit based on allegations the Receiver lacked standing to assert claims against Penson, the Receiver\u2019s claims were barred by Taylor\u2019s and Smith\u2019s complicity in the wrongdoing, and that the statute of limitations had expired. The court denied Penson\u2019s motion, affirming the Receiver\u2019s authority to proceed with the lawsuit. A copy of the opinion can be read here.<\/a> This is the latest in a series of vigorous efforts by Penson to prevent the Receiver from proceeding with the litigation. The case will now move forward with some claims proceeding in court and some claims proceeding in arbitration.<\/p>\n

March 29, 2012:<\/strong> The Receiver today filed his brief in opposition<\/a> to Penson\u2019s motion to dismiss the Receiver\u2019s lawsuit against it. The court has set a hearing on this matter for April 12, 2012.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Welcome!!!<\/span><\/em><\/strong><\/p>\n

Welcome to the Klein & Associates website! This page contains information regarding the Receivership of FFCF Investors, LLC, Ascendus Capital Management, LLC and Smith Holdings, LLC. On this page, you will find:<\/span><\/p>\n