The USFIA Receiver has allowed sufferer claims totaling $45.2 million.
As at November ninth, $15.3 million in claims and a further $11.1 million in duplicate claims have been disallowed.
The figures have been supplied by the Receiver in his Twentieth Interim Report, spanning the second quarter of 2020.
Throughout associated entities tied to USFIA founder Steve Chen (proper), $80.4 million in claims have been allowed.
The Receiver has decided $53.7 million in claims have been disallowed.
As of June thirtieth, 2020, the USFIA Receivership is sitting on $63.8 million.
Trying ahead, the Receiver writes he
is making ready a movement to approve the Receiver’s objections to claims and set up a Plan of Distribution.
With respect to USFIA’s ongoing tax points (detailed in our earlier report);
Now that the Receiver’s Forensic Accounting Report has been filed, that accounting is getting used to arrange revenue tax returns for the pre-receiver tax durations.
It seems that the Receivership Entities may have important potential revenue tax liabilities.
The Receiver may very well be personally liable to the IRS if he makes a distribution to traders with out first resolving the excellent federal tax liabilities.
The Receiver believes any tax declare of the IRS and Franchise Tax Board needs to be equitably subordinated to all investor claims.
The Receiver has subsequently made contact with the IRS and Franchise Tax Board so as to set up communications and hopefully acquire the taxing businesses consent to subordination of their claims till all traders are paid in full.
There was a related scenario between the IRS and TelexFree Trustee, probably placing sufferer claims in danger.
That was finally resolved with the IRS drastically lowering their $429 million greenback declare, permitting sufferer distributions to go forward.
I’d think about the same decision will happen with USFIA however can’t say for positive. I’ll proceed to observe the case docket for updates.