Plan of Distribution

The Plan of Distribution entered by the Court in 2012 controls how the Receiver will manage the estate’s remaining assets and determines when he can make a distribution to the investors and how much he is allowed to distribute at any given time. The Receiver may not make a distribution unless he has more cash on hand than is required to maintain adequate reserves to pay future premiums and future expenses. Reserves are adequate if they are equal to “the needed premium reserves calculated at the 97 ½ percentile in the most recent stochastic model prepared by the Receiver's actuaries plus (b) the amount calculated by the Receiver as necessary to meet anticipated future expenses.” Plan at 14. The Receiver may retain larger reserves if he deems it necessary. Id. The Court must approve any distribution. Id.
The Receiver will pay premiums as they come due reducing his premium reserves. As maturities occur, the Receiver will use the death benefits from the policies to replenish the premium reserves. Once the Receiver has more cash than he needs, he will seek permission from the Court to make a distribution.

Because of the Plan’s reserve requirements and the uncertainty inherent in predicting the life expectancy of individuals, the Receiver does not know when he will be able to make distributions to the investors. The Receiver currently expects to be able to return approximately 100% of the money invested, plus or minus 20%. To date, he has distributed about $11 million or 13.7% of the amount invested.

Schedule of Claims

The Receiver maintains a schedule of claims identifying all of the known claims against the estate, including claims by Retirement Value and HCF investors. Originally, there were $80 million in investor claims against the estate approved by the Court. To date, the estate has distributed approximately $11 million to the investors, leaving an outstanding claims balance of $69 million. The Receiver periodically files an updated schedule of claims with the Court as necessary to reflect changes in the ownership of claims.

In addition to the investor claims, there are approximately $270,000 in approved non-investor claims against the estate. There are also $500,000 in unapproved non-investor claims. Because the non-investor claims are unlikely to be paid, the Receiver has not yet undertaken to resolve the disputed non-investor claims. 


02/16/2016      Sixth Amended and Restated Schedule of Claims

05/31/2014      Fifth Amended and Restated Schedule of Claims

12/09/2013      Fourth Amended Schedule of Claims

07/25/2013      Third Amended Schedule of Claims (with notice of filing)

09/07/2012      Second Amended and Restated Schedule of Claims

08/02/2012      Proof of Claim form & instructions – Retirement Value

08/02/2012      Proof of Claim form & instructions – Hill Country Funding

07/20/2012      Plan of Distribution