Frequently Asked Questions
Table of Contents
- Who is the Receiver and what are his responsibilities?
- What happened to my investment in Kinetic Funds?
- How much of my investment can I expect to receive back?
- Should I file a claim now?
- What is the best way for me to find out what is happening in the Receivership?
- Does the Receiver represent me? Do I need my own attorney?
- Who pays for the Receiver (and other professionals)?
- What tax consequences will I have?
- What if I have information that may be helpful to the Receiver or the SEC?
Who is the Receiver and what are his responsibilities?
The Court appointed Mark A. Kornfeld, Esq. as Receiver to oversee the marshalling of assets of the entities in this Receivership, and to make recommendations to the Court regarding the plan of distribution of assets to qualifying claimants. Mr. Kornfeld will also file periodic reports with the Court to advise of his progress, findings, and proposals. These reports will be posted to this website after they are filed with the Court.
What happened to my investment in Kinetic Funds?
The SEC alleges in its Complaint that Kinetic Funds made numerous material misrepresentations and omissions to investors concerning the use of their funds. The Receiver, and the other professionals that he retains, such as attorneys, accountants, and investigators, will identify and gather the assets that belong to the entities in this Receivership and determine whether any other funds exist. The availability of funds to pay investors will depend upon the results of the liquidation of the Defendants’ and Receivership Entities’ assets and other undertakings by the Receiver and other parties in connection with the Receivership.
How much of my investment can I expect to receive back?
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 Receiver will make every effort to recover and distribute as much as possible to qualifying investors.
Should I file a claim now?
No. If the Receiver believes it is appropriate to seek the Court’s approval for the commencement and parameters of a claims process, he will file a Motion with the Court that will also be posted on this website and mailed to all interested parties including investors. The Court will then have the final say as to the terms and appropriateness of a claims process.
What is the best way for me to find out what is happening in the Receivership?
The Receiver’s website, www.kineticfundsreceivership.com, is the best way to monitor the activities of the Receivership. Additionally, completion of the “Registration” section located here ensures that you will receive any updates provided by the Receiver. Due to the 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 or his counsel as noted below.
Does the Receiver represent me? Do I need my own attorney?
The Receiver is not your legal counsel. He has been appointed by the Court to recover assets, and to administer the process of returning those assets to injured investors and other creditors, but not to represent them. It is entirely up to each investor or other interested party to decide whether to consult an attorney on this matter.
Who pays for the Receiver (and other professionals)?
As stated in the Court’s Order appointing the Receiver, the Receiver is paid from the assets of the entities in this Receivership upon approval by the Court. The Receiver also has been granted permission to retain other professionals, such as attorneys, accountants, and investigators, to assist in the process of identifying and gathering assets that belong to the entities in this Receivership, and otherwise discharging the Receiver’s duties. These other professionals are also paid from the assets of the entities in this Receivership, upon prior approval of the Court.
What if I have information that may be helpful to the Receiver or the SEC?
You may contact the Receiver by completing the Registration Form on this website. You also may contact the Receiver or his counsel directly at:
Mark A. Kornfeld, as Receiver
c/o Quarles & Brady LLP
101 East Kennedy Blvd., Ste 3400
Tampa, FL 33602
Attn: Rebecca Wilt