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Welcome to the Retirement Value LLC Receivership website. This website was established to provide information regarding the status of the case as well as our efforts to recover assets for the investors’ benefit.

  Contacting the Court

Please do not call or write the Judge directly. It there is something that you wish to bring to the Judge’s attention, you must file a motion, pleading or other document with the Travis County District Clerk at the following address:

Amalia Rodriguez-Mendoza
Travis County District Clerk
P.O. Box 679003
Austin, TX 78767-9003

Your document should identify this case by its title and cause number (State of Texas vs. Retirement Value, LLC et al; In the 126th Judicial District Court of Travis County, Texas; Cause No. D-1-GV-10-000454). You must also send a copy to the Receiver and to the other parties to the case. Upon request, the Receiver will provide a copy of the current list for service on the parties and counsel. The Travis County Law Library has forms and other useful information for parties without lawyers.

  Maturity of Policies

On July 21,2014, the insured under policy AGL06L-102009-LM ($2,500,000) died.  We requested a Certificate of Death on July 28, 2014 and received it on 8/25/14.  We have since filed a claim with the carrier and are awaiting payment.   Please note that the proceeds from this policy will NOT be distributed pursuant to the participation agreements but instead used for the purposes set out in the Plan of Distribution.

# Policies
Lives
Face Value
Initial Portfolio
54
45
$141,585,000
Maturities
     RV/MWM Forecast To Date
39
30
$100,750,000
     Actual To Date
4
3
$15,000,000

 

  Receiver’s Report

On July 8, 2014, the Receiver filed a his Report as of May 31, 2014, a copy of which is available here

  Distributions

The Receiver has made two distributions to date totaling $8.5 million.  The last distribution was in February 2014.  While the Receiver anticipates making additional distributions, he does not know when the next distribution will be made or how much it will be.  Whether a distribution will be made and the amount of the distribution depends largely on the number and size of the policies that mature.  Each maturity will not necessarily result in a distribution.  Distributions can only be made when the cash held by the Receive exceeds the amount he is required to keep in reserve to pay premiums and other expenses.

 

Completion of the Litigation

The litigation surrounding Retirement Value has largely ended.  The claims by and among the State, Retirement Value, the Receiver, and the various parties involved with Retirement Value have been resolved either by agreement among the parties or by judgments entered by the Court.  The completion of the litigation does not mean that the receivership will end but merely that it will move into a new, less active phase as the Receiver continues to: (i) manage the portfolio of insurance policies for the benefit of the investors; and (ii) collect on the judgments and settlement agreements entered into in the course of litigation.


The State’s Claims


The State of Texas filed this case in an effort to end Retirement Value’s fraudulent scheme and to recapture as many of the assets taken from the investors as possible.   The Court granted the State’s motion for partial summary judgment against Retirement Value finding that “Retirement Value engaged in fraud or fraudulent practices in the course of selling unregistered securities” in violation of the Texas Securities Act. The Court ordered Retirement Value to make restitution to the RV investor-victims. While it will not change the total amount of money payable to the investors, the order supports the Plan of Distribution and supports the ability of investors to claim that recoveries from the estate should be treated as the recovery of theft losses for tax purposes.
The State also sued various principals of Retirement Value including Dick Gray, Wendy Rogers, Bruce Collins and Ron James.  All of these claims have been resolved by settlement.

The Receiver’s Claims

The Receiver has asserted claims against various parties involved with Retirement Value and its fraudulent scheme.  He has asserted claims against;

  • Principals of Retirement Value such as Dick Gray and Wendy Rogers;
  • Consultants and other affiliated parties such as Ron James and Mike Beste;
  • The escrow agent, Kiesling Porter Kiesling & Free; and
  • Licensees such as Michael McDermott and “Doc” Gallagher.

As a result of his efforts, the Receiver has entered into settlement agreements totaling $9,546,268.46 and recovered judgments in the estate’s favor totaling $6,049,497.74.  Between the settlements and the judgments, the Receiver has recovered $9,192,541.39 for the benefit of the estate.  This number does not include the $13,043,327.12 in non-litigation recoveries by the Receiver. 
Some of the judgments in favor of the Receiver may be appealed.  If so, the Receiver will have to defend the appeals and, potentially, may have to engage in further litigation with those defendants.  The appeals and any further litigation will be handled by the Receiver’s contingency fee counsel.

The Special Receiver’s Claims

The Court appointed Janet Mortensen as special receiver to investigate and prosecute claims against Wells Fargo.  The Special Receiver asserted claims in arbitration against various Wells Fargo entities and employees.  The arbitration panel found in favor of the Wells Fargo parties and against the Special Receiver.  The Court recently entered a judgment confirming the arbitration award and ending the Special Receiver’s claims against Wells Fargo.

Intervenors’ Claims

Several groups of investors intervened in the case to assert claims against Retirement Value and others.  The Intervenors and the Receiver agreed to resolve the claims against Retirement Value through an agreed judgment against Retirement Value finding that Retirement Value committed fraud in the sale of securities.  The Court entered the agreed judgment in May 2014.  The agreed judgment will have no effect on the distribution of funds from the estate to investors or on the amount of any investor’s claim.

Tracy Moss Lawsuit

The employment discrimination lawsuit by Tracy Moss against Retirement Value has been resolved.  In order to avoid further litigation costs, the Receiver agreed to a judgment in favor of Ms. Moss in the amount of $150,000.  Under the Plan of Distribution, this judgment is treated as a Class III (non-investor) claim and will not be payable until the investors are paid in full.  However, Ms. Moss’s counsel has indicated that he may seek a modification of the Plan so that Ms. Moss’s claim is treated at least as well as the investors’ claims.  The Receiver will oppose any such attempt if and when it materializes

  Recent Settlements

On May 25, 2013, the Court approved a negotiated settlement by and among the State of Texas, the Retirement Value Receiver, the Retirement Value Special Receiver, the Hill Country Funding Receiver and James Settlement Services, Ron James, Don James (the “James Parties”) and Michael Beste (“Beste”). Pursuant to the settlement, the James Parties and Beste agreed to: (i) pay the estate $5.5 million; and (ii) be enjoined from certain specific activity, as more fully delineated in the Agreed Permanent Injunction. The settling defendants have already paid $3.4 million of the agreed settlement and the balance is payable in installments due on July 31, 2013 and October 31, 2013.

  Court Finds Retirement Value Engaged In Fraud

On February 21, 2013, the Court granted the State’s motion for partial summary judgment against Retirement Value finding that “Retirement Value engaged in fraud or fraudulent practices in the course of selling unregistered securities” in violation of the Texas Securities Act. The Court ordered Retirement Value to make restitution to the RV investor-victims. While it will not change the total amount of money payable to the investors, the order supports the Plan of Distribution and supports the ability of investors to claim that recoveries from the estate should be treated as the recovery of theft losses for tax purposes.

On the Case Information page you can find copies of selected court documents from the State’s case against Retirement Value and its principals as well as the various suits brought by the Receiver against parties accused of wrongdoing against Retirement Value or its estate. The website also contains information regarding the Receiver, communications with investors, Frequently Asked Questions, and other helpful information.

 

Current Events
   
05/28/2014 Agreed Judgment with Intervenors
05/28/2014 Order on Receiver's 2nd Motion to Approve Settlement with Judgment Debtors
05/28/2014 Order on Receiver's10th Motion for Approval of Settlements with 3rd Party Defendant\Licensees
04/14/2014 Receiver's Certification of no Objections re: 15th Mtn to Pay Professionals
04/14/2014 Receiver's Certification of no Objections re: 21st Mtn to Fee Applications
03/31/2014 21st Application for Fees by the Receiver and the Receiver's Counsel
03/31/2014 Receiver's 15th Motion for Approval of Payment ofProfessionals
02/18/2014 Order on Receiver's 1st Motion for Approval Settlement with Judgment Debtors
01/09/2014 Order on Receiver's 9th Motion for Approval of Settlements with 3rd Party Defendants\Licensees
On the Case Information page you can find copies of selected court documents from the State’s case against Retirement Value and its principals as well as the various suits brought by the Receiver against parties accused of wrongdoing against Retirement Value or its estate. The website also contains information regarding the Receiver, communications with investors, Frequently Asked Questions, and other helpful information