The Receiver has posted a Memo related to Estimated Taxable Income which can be found by clicking on "Receiver's Updates and Reports" above.

On February 13, 2024, the Receiver filed his Motion for Court Approval of Second Interim Distribution of Funds, and on that same day, the Court entered an Order Approving Receiver's Proposed Objection Procedure. Copies of both filings can be found by clicking "Selected Court Filings" above. 

The hearing on the Receiver’s Motion to Approve Proposed Settlement with Ernst & Young LLP, to Approve the Proposed Notice of Settlement and Bar Order Proceedings, and to Enter the Final Settlement Approval & Bar Order (the “Motion”) was held on October 25, 2023. We are very pleased to report that on October 31, 2023, the Court entered a Final Settlement Approval and Bar Order, and partial final judgment.

Pursuant to the terms of the Settlement Agreement, which was made a part of the Motion, there is a 60-day appeals period (as the SEC, a governmental agency, is a party to this litigation) which began running after entry of the partial final judgment. Based on the appeal period needing to run, we anticipate the filing of the Receiver’s Motion for Court Approval of Distribution of Funds in the first quarter of 2024. The Receiver will seek approval in that motion to make a distribution of funds to holders of approved claims. The Court-approved payout percentages to holders of approved claims should remain the same, and the Receiver intends to attach to the upcoming motion a schedule which will list, among other things, approved claims by claimant number, court-approved claim amounts, proposed distribution percentages, and the proposed prorated distribution amount for each approved claim.

The Receiver is not yet in position to confirm the next total distribution amount and continues to work with his retained professionals to make that determination but expects this to be a substantial distribution in an amount in excess of the net recovery to the Receivership (after payment of attorneys’ fees associated with the settled matter) from the recent settlement.

Please continue to refer to this website as the Receiver posts all key filings and updates to this website in order to keep the investors updated as to the status of any matters related to the Receivership.

The following documents have been added to this website and can be viewed by clicking on the “Selected Court Filings” tab above: 1) A copy of the Receiver’s Motion to Approve Proposed Settlement with Ernst & Young LLP, to Approve the Proposed Notice of Settlement and Bar Order Proceedings, and to Enter the Final Settlement Approval and Bar Order, which was filed with the Court on August 1, 2023; 2) Preliminary Approval of Settlement and Scheduling Order, entered by the Court on August 16, 2023 (“Order”); and 3) Notice of Settlement and Bar Order Proceedings.

The Order identified in item 2 above sets forth deadlines for objections and responses to objections, as well as the scheduling of the settlement final approval hearing on October 25, 2023.

Dear Founding Partners Approved Claimant:

As previously discussed during our recent conference call, the Receiver and Ernst & Young agreed at Mediation to settle the above action.  Further, as discussed, the Receiver and counsel for Ernst & Young have been engaged for several months in negotiations toward finalizing the language of a formal Settlement Agreement.  The Receiver is pleased to announce that the Receiver and Ernst & Young have reached a final agreement on the terms of the Settlement Agreement, subject to Court approval. The Receiver will be moving the United States District Court for the Middle District of Florida for approval of the Settlement Agreement. A copy of the Settlement Agreement and Consent have been posted to this website, and can be viewed by clicking on "Receiver's Updates and Reports" above. 

We would appreciate your indicating on the attached Consent your consent to the Court’s approval of the Settlement Agreement, so that the Receiver and his counsel may represent your approval to the Court in support of the Receiver’s Motion for Approval of the Settlement Agreement. 

Thank you for your assistance, and please let us know if you have any questions.

The Receiver and his counsel* wish to update you on the settlement of the litigation against E&Y. If you wish to be updated on the settlement of the E&Y litigation, you are invited to a Zoom telephone conference on Wednesday, July 5, 2023, at 12:00 p.m. Eastern Time.

If you are an approved claimant and wish to participate in the telephone conference, please indicate your intent to participate by email to Trish Anzalone  (trish.anzalone@nelsonmullins.com) with your name and email address.  An email with information required to access the telephone conference will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Monday, July 3, 2023, at 2:00 p.m. Eastern Time. 

The Receiver and his counsel will also answer questions about the E&Y settlement. In order to avoid duplication of questions and confusion during the conference, questions should be submitted in advance, by email to trish.anzalone@nelsonmullins.com no later than Monday, July 3, 2023, at 10:00 a.m. Eastern time.

Additionally, if you have moved, changed your phone number or your email address,  please send an email to Trish Anzalone at the Receiver’s Office (trish.anzalone@nelsonmullins.com) so we have the most updated contact information in our files.

In order to avoid any interruptions during the conference call and/or repetition of general instructions or content of the call, please make maximum effort to dial on time or a few minutes before the starting time (12:00 p.m. Eastern Time)

 *Richard Williams of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

Please be advised that as of Thursday, May 27, 2021, except as otherwise communicated to certain individuals and entities, all distribution checks were sent out via Federal Express (Express Saver) to all approved claimants. 

To All Approved Claimants:

The Receiver's Motion for Court Approval of Interim Distribution of Funds (the "Motion") and its exhibits, including Schedule A, a proposed order approving the Motion, and the Court Order entered on April 5, 2021 setting the objection schedule (the “Order”) on the Motion have been posted to this website.

 Exhibit A attached to the Motion identifies the proposed prorated distribution amount.

 As stated in the Order, approved claimants shall have 14 days from the date of the Order to file an objection.

I am pleased to report that the settlement agreement with Mayer Brown has received final approval.

On February 10, 2021, the Circuit Court for the 17th Judicial Circuit, in and for Broward County Florida, entered a Final Judgment Concerning Claims Against Mayer Brown LLP. Further, on February 5, 2021, after a hearing during which the Receiver and his counsel made presentations to the Federal District Court, the Federal District Court entered its Final Settlement Approval and Bar Order Regarding Receiver’s Litigation With Mayer Brown (“Bar Order”). On February 12, 2012, the Federal District Court entered a Final Judgment concerning that matter.

Upon the expiration of the appeal period on or about April 13, 2021, so long as no appeal is filed, the First Settlement Payment totaling $370 million will be transferred to the Receiver’s account. The Receiver, upon receipt of approval from the Federal District Court, will make a distribution of a portion of the First Settlement Payment to holders of approved claims as soon as possible after that time.

The Receiver's Motion for Approval of Settlement Agreement with Mayer Brown has been scheduled for hearing on February 3, 2021 at 10:00 AM.

The Receiver filed his Motion for Court Approval of the Receiver's Recommendations Concerning Claims (“Recommendations”) on January 25, 2021. A copy of the Recommendations can be found by clicking on "Selected Court Filings" above.  The Court will be setting deadlines for any objections to the Recommendations. 

Dear Founding Partners Claimant:

As previously disclosed on the Receiver’s website, and consistent with filings with the Court, the Receiver and Mayer Brown have been engaged for many months in settlement negotiations toward resolving the above-referenced action. We are pleased to announce that the Receiver and Mayer Brown have reached final agreement on the terms of the Settlement Agreement.  A copy of the Settlement Agreement and Consent have been posted to this website, and can be viewed by clicking on "Receiver's Updates and Reports" above. We will be moving the United States District Court for the Middle District of Florida for approval of the Settlement Agreement. We would appreciate your indicating on the attached Investor Consent your consent to the Court’s approval of the Settlement Agreement, so that we may represent your approval to the Court in support of our motion for approval of the Settlement Agreement.

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Tuesday, October 13, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Monday, October 12, 2020, at 5:00 p.m. Eastern Time. 

The Receiver’s counsel will also answer questions about the litigation and the claims and defenses asserted, to the extent that they can be addressed in a conference call setting. In order to avoid duplication of questions and confusion during the conference, questions should be submitted in advance, if possible, by email to Scot Stirling at sstirling@beusgilbert.com

Additionally, if you believe that your contact information with the Receiver’s Office  (e.g. email / address / phone) has changed and/or you would like to confirm that your contact information is the most recent, please send an email to Trish Anzalone at the Receiver’s Office (trish.anzalone@nelsonmullins.com) to confirm your contact information.

In order to avoid any interruptions during the conference call and/or repetition of general instructions or content of the call, please make maximum effort to dial on time or a few minutes before the starting time (Noon Eastern Time)

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Wednesday, September 30, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Tuesday, September 29, 2020, at 5:00 p.m. Eastern Time. 

The Receiver’s counsel will also answer questions about the litigation and the claims and defenses asserted, to the extent that they can be addressed in a conference call setting. In order to avoid duplication of questions and confusion during the conference, questions should be submitted in advance, if possible, by email to Scot Stirling at sstirling@beusgilbert.com

Additionally, if you believe that your contact information with the Receiver’s Office  (e.g. email / address / phone) has changed and/or you would like to confirm that your contact information is the most recent, please send an email to Trish Anzalone at the Receiver’s Office (trish.anzalone@nelsonmullins.com) to confirm your contact information.

In order to avoid any interruptions during the conference call and/or repetition of general instructions or content of the call, please make maximum effort to dial on time or a few minutes before the starting time (Noon Eastern Time)

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Tuesday, September 15, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Monday, September 14, 2020, at 5:00 p.m. Eastern Time. 

The Receiver’s counsel will also answer questions about the litigation and the claims and defenses asserted, to the extent that they can be addressed in a conference call setting. In order to avoid duplication of questions and confusion during the conference, questions should be submitted in advance, if possible, by email to Scot Stirling at sstirling@beusgilbert.com

Additionally, if you believe that your contact information with the Receiver’s Office  (e.g. email / address / phone) has changed and/or you would like to confirm that your contact information is the most recent, please send an email to Trish Anzalone at the Receiver’s Office (trish.anzalone@nelsonmullins.com) to confirm your contact information.

In order to avoid any interruptions during the conference call and/or repetition of general instructions or content of the call, please make maximum effort to dial on time or a few minutes before the starting time (Noon Eastern Time)

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

NOTICE TO POTENTIAL NON-INVESTOR CREDITORS

TO:  All non-investor creditors who may have a claim against Founding Partners Capital Management Company; Founding Partners Stable-Value Fund, L.P.; Founding Partners Stable-Value Fund II, L.P.; Founding Partners Global Fund, Ltd.; and Founding Partners Hybrid-Value Fund, L.P. (the "Receivership Entities"), which arose prior to April 20, 2009.

Non-investor creditors are those who: (i) did not invest with the Receivership Entities; and (ii) did not participate in the prior Court-approved claims process.

All potential non-investor creditors who seek to be eligible for recoveries from the Receivership Entities must complete, sign and return the Non-Investor Creditor Proof of Claim Form and Release. The Proof of Claim Form and Release must be returned to Daniel S. Newman, Receiver, c/o Trish Anzalone, Nelson Mullins Broad and Cassel, 2 S. Biscayne Blvd., Suite 2100, Miami, FL 33131.

Copies of the Proof of Claim Form and Release are available by downloading copies from this website under the "Receiver's Updates and Reports" tab above.  Do not file the Proof of Claim and Release with the Court. The Proof of Claim Form and Release must be sent to the Receiver, postmarked on or before October 26, 2020.  Failure to file a claim timely shall result in a waiver of any rights to participate in any distribution of funds through the Receivership.

 

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Thursday, September 3, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Wednesday, September 2, 2020, at 5:00 p.m. Eastern Time. 

The Receiver’s counsel will also answer questions about the litigation and the claims and defenses asserted, to the extent that they can be addressed in a conference call setting. In order to avoid duplication of questions and confusion during the conference, questions should be submitted in advance, if possible, by email to Scot Stirling at sstirling@beusgilbert.com

Additionally, if you believe that your contact information with the Receiver’s Office  (e.g. email / address / phone) has changed and/or you would like to confirm that your contact information is the most recent, please send an email to Trish Anzalone at the Receiver’s Office (trish.anzalone@nelsonmullins.com) to confirm your contact information.

In order to avoid any interruptions during the conference call and/or repetitions of general instructions or content of the call, please make maximum effort to dial on time or a few minutes before the starting time (Noon Eastern Time)

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Monday, August 24, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by videoconference or by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Sunday, August 23, 2020, at 5:00 p.m. Eastern Time. 

We apologize for the late notice, but we were waiting to obtain as much information as possible for this telephone call.

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Friday, August 14, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by videoconference or by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Thursday, August 13, 2020, at 5:00 p.m. Eastern Time. 

We apologize for the late notice, but we were waiting to obtain as much information as possible for this telephone call.

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Friday, August 7, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by videoconference or by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Thursday, August 6, 2020, at 5:00 p.m. Eastern Time. 

We apologize for the late notice, but we were waiting to obtain as much information as possible for this telephone call.

 

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Friday, July 31, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by videoconference or by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Thursday, July 30, 2020, at 5:00 p.m. Eastern Time. 

We apologize for the late notice, but we were waiting to obtain as much information as possible for this telephone call.

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Monday, July 27, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by videoconference or by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Sunday, July 26, 2020, at 5:00 p.m. Eastern Time. 

We apologize for the late notice, but we were waiting to obtain as much information as possible for this telephone call.

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown (but not E&Y which is subject to arbitration) has made progress in settling the Mayer Brown case.  Even though the settlement is not complete, many deal points have been negotiated and tentatively agreed upon.  If you wish to be updated on the status of the settlement discussions, you are invited to an informational telephone conference with investors on Tuesday, July 21, 2020, at Noon Eastern Time.

If you are an investor and wish to participate in the conference call, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert McGroder PLLC (esulejmani@beusgilbert.com) with your name and email address.  An email with information required to access the conference by videoconference or by telephone call will be provided by return email.  In order to ensure timely access, please send your notice of your desire to participate by Monday, July 20, 2020, at 5:00 p.m. Eastern Time. 

We apologize for the late notice, but we were waiting to obtain as much information as possible for this telephone call.

*Leo Beus and Scot Stirling of Beus Gilbert McGroder PLLC in Phoenix, Arizona (https://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (https://grossmanroth.com).

 

The Receiver's counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational telephone conference call with investors on Wednesday, August 7, 2019 @ 4:00 p.m. EST to provide an update on the current status of the litigation against Mayer Brown and E&Y.

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Tuesday, August 6, 2019 at 5:00 p.m. EST.

*Leo Beus and Scot Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).

On November 5, 2018, Promise Healthcare Group, LLC, et al. (“Debtors”) filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. This filing causes an automatic stay against the Debtor’s property and most collection activities.  Debtor (formerly Founding Partners Designee, LLC”) creditor deadline to file a Proof of Claim in the bankruptcy proceeding is May 31, 2019. Any claims not filed by that date will be barred. The Receiver is unable to provide legal advice but encourages each former Founding Partners investors to consult with counsel and consider if they should file a Proof of Claim in the Bankruptcy proceeding.  A Proof of Claim describes the creditor’s claim against the debtor.

The Receiver's counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational telephone conference call with investors on Friday, October 26, 2018 at 1:00 p.m. EST to provide an update on the current status of the litigation against Mayer Brown and E&Y.

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Thursday, October 25, 2018 at 5:00 p.m. EST.

*Leo Beus, Scot Stirling, Malcolm Loeb, and Rob Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).

The Receiver’s counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational telephone conference call with investors on Tuesday, January 9, 2018 at 2:00 p.m. EST.

The Receiver’s counsel will discuss the current status of the litigation against Mayer Brown and E&Y including the recent Order from the Florida Fourth District Court of Appeal that denied E&Y’s Motion for Rehearing of that Court’s October 11, 2017 Order compelling E&Y to litigate the assignor claims for negligent misrepresentation, fraud and aiding and abetting breaches of statutory duties.

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Monday, January 8, 2018 at 5:00 p.m. EST.

*Leo Beus, Scot Stirling, Malcolm Loeb, and Rob Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).

See Fourth District Court of Appeal Order dated January 3, 2018 by clicking on "Selected Court Filings - Selected Court Orders" above.

On November 3, 2017, the Receiver filed his Ninth Status Report.  A copy of the Status Report has been posted to this website, and can be viewed by clicking on "Receiver's Updates and Reports" above.

The Receiver’s counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational telephone conference call with investors on Monday, June 26, 2016 beginning at 11:00 a.m. EDT.

The Receiver’s counsel will offer an overview and update on the claims made against Mayer Brown and E&Y, the status of the litigation and related proceedings, and a general discussion of next steps and case management issues going forward. The Receiver’s counsel will also answer questions about the status of the litigation [and the claims and defenses asserted], to the extent that they can be addressed in a telephone conference call setting. In order to avoid duplication of questions and confusion during the conference, questions must be submitted in advance of the conference to Scot Stirling by telephone at (480) 429-3032 (office) or (602) 318-3650 (cell). To the extent that time and the conference setting permit, other questions submitted by email during the conference may be taken and addressed during, or by further communication after, the conference on June 26.

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Friday, June 23.

*The Receiver's counsel include Leo Beus, Scot Stirling, Malcolm Loeb, and Rob Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).

On April 28, 2017, the Court entered an Order Setting Trial and Pre-Trial Instructions in the action filed by the Receiver against Ernst & Young LLP and Mayer Brown LLP. A copy of the Order has been posted to this website, along with other recent filings, and can be viewed by clicking on "Selected Court Filings" above.

On December 15, 2016, the Receiver filed his Eighth Status Report.  A copy of the Status Report has been posted to this website, and can be viewed by clicking on "Receiver's Updates and Reports" above.

The Receiver’s counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational videoconference/conference call with investors on Monday, November 7, 2016 beginning at 11:00 a.m. EST (Daylight Savings ends November 6).

The Receiver’s counsel will offer an overview and update on the claims made against Mayer Brown and E&Y, the status of the litigation and related proceedings, and a general discussion of next steps and case management issues going forward. The Receiver’s counsel will also answer questions about the litigation and the claims and defenses asserted, to the extent that they can be addressed in a videoconference/conference call setting. In order to avoid duplication of questions and confusion during the conference, questions must be submitted in advance of the conference by email to Scot Stirling at sstirling@beusgilbert.com or by telephone at (480) 429-3032. To the extent that time and the conference setting permit, other questions submitted by email during the conference may be taken and addressed during, or by further communication after, the conference on November 7.

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Friday, November 4.

*The Receiver's counsel include Leo Beus, Scot Stirling, Malcolm Loeb, and Rob Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).

On May 20, 2016, the Court entered an Order on Mayer Brown, LLP's Motion to Dismiss, and an Order on Ernst & Young, LLP's Revised Motion to Compel Arbitration and Stay or Abate the Claims Against It. A copy of both Orders has been posted to this website, and can be viewed by clicking on "Selected Court Filings" above.

On June 8, 2015, the Receiver filed his Seventh Status Report. A copy of the Status Report has been posted to this website, and can be viewed by clicking on "Receiver's Updates and Reports" above.

On July 3, 2014, the Court entered its Opinion and Order Approving Receiver's Recommendations and Fairness of Distribution of FP Designee Interests Pursuant to Section 3(a)(10) of the Securities Law. A copy of the Opinion and Order has been posted to this website, and can be viewed by clicking on "Selected Court Filings" above.

A hearing has been set by the Court on June 10, 2014 @ 2:00 p.m. to: (i) rule on any objections that are timely filed (ii) rule on the Receiver's recommendations on Allowed Amounts and FP Designee Distributions; and (iii) determine whether the proposed issuance of securities in the first interim distribution meets the fairness requirement under the securities law. The Receiver's office will post on this website the Court's ruling and/or outcome of that hearing.

Please be advised that the Receiver hereby provides notice that the Settlement Transaction (as that term is used in the Court's Amended Order Approving Settlement Agreement at D.E. 308) closed on March 17, 2014. You can view this filing by clicking on the above link "Receiver's Updates and Reports."

On March 6, 2014, the Court issued four orders on a variety of motions. All four orders are posted here in this website under the section "Selected Court Filings." One of the orders addresses the Receiver's July 10, 2013 Motion for Court Approval of (a) the Receiver's Recommendations Concerning Claims; (b) an Interim Distribution of Interests in the FP Designee; and (c) the Receiver's Proposed Objection Schedule ("Motion"). Among other things, the Court approved a schedule to allow objections to the Receiver's proposed claims distribution recommendation. A copy of the Receiver's Motion has already been posted on this website under the section "Selected Court Filings." The Order Approving Receiver's Recommendation for Proposed Objection and Hearing Schedule [D.E. 409] sets forth a schedule and deadlines for objections to the Receiver's recommendations.

Please pay close acction to the Court's deadlines as failure to timely object will waive any objection.

As with prior years, in order to properly reflect the Receivership Entities’ tax obligations, it is necessary for the Receiver’s accountants to be in possession of all Forms 1099 and K-1 Forms issued to the Receivership Entities by Third Parties. Accordingly, the Receiver's accountants plan to have K-1 Forms mailed to Founding Partners investors by mid-August.

A package containing the Receiver's Motion for Court Approval of (a) the Receiver's Recommendations Concerning Claims; (b) an Interim Distribution of Interests in the FP Designee; and (c) the Receiver's Proposed Objection Schedule (the "Claims Motion") , and the proposed Order on the Claims Motion, has been mailed and emailed to all Investors. Also, a copy of the Claims Motion has been posted to this website. Each package also contains your Claimant Number which identifies your claim in the Claims Motion.

There is no current deadline for the filing of objections to the Receiver's recommendations. The Receiver has requested that the Court set a deadline for such objection through entry of the proposed Order. When the Court issues an Order setting deadlines, the Receiver will distribute the Order to investors, and post the Order on the Receiver's website.

FOR CURRENT NEWS, PLEASE SEE "RECEIVER'S UPDATES AND REPORTS" SECTION

Please be advised that in order to properly reflect the Receivership Entities’ tax obligations, it is necessary for the Receiver’s accountants to be in possession of all Forms 1099 and K-1 Forms issued to the Receivership Entities by Third Parties. Because this has not yet happened, the Receiver’s accountants have requested an extension with the Internal Revenue Service to file the tax returns for the Receivership Entities. Accordingly, K-1 Forms cannot be provided prior to April 15, 2013.

Please consult with your individual tax advisors to determine what, if any actions, you may wish to take in light of the above. Thank you for your consideration in this matter.

The Proof of Claim forms, supporting documentation, and Investor Releases which have been submitted to the Receiver's office are being analyzed by the Receiver's retained professionals. The Receiver and his retained professionals continue to work toward the closing of the Settlement Transaction. You can access the Receiver's recently filed Fourth Status Report by clicking on the link above: Receiver's Updates and Reports.

Initiation of Founding Partners Claims Process

In connection with the Court’s approval of both the proposed Claims Process and the Settlement Agreement between Daniel S. Newman (the "Receiver") and the Sun Capital entities, all Investors who seek to be eligible for recoveries from the Receivership Estate must complete, execute and return a Proof of Claim form. Investors who seek to be eligible to obtain a benefit from the settlement transaction must also complete, execute and return an Investor Release. Those Investors with multiple accounts must submit a Proof of Claim Form and Investor Release for each account. Copies of all documents referenced in this letter are available on the Receivership website, under Receiver's Updates and Reports. Fully-executed and conforming Proof of Claim Forms and Investor Releases as described above must be received at this office no later than 5:00 pm EDT on Friday, October 12, 2012 (the "Claims Bar Date").

Proof of Claim Forms and Investor Releases received after the Claims Bar Date will not be accepted and the claims will be barred. Please direct all Proof of Claim Forms and Investor Releases to: Daniel S. Newman, Receiver c/o Jonathan Etra, Esq., Broad and Cassel, One Biscayne Tower, 2 South Biscayne Boulevard, 21st Floor, Miami, FL 33131, and, if possible, by electronic mail to: tanzalone@broadandcassel.com.

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NEW INFORMATION

The Receiver has scheduled a conference call for July 31, 2012, at 2:00 p.m. EDT, at which time he will address the status of the Receivership and the Settlement Agreement with the Sun Capital entities.

The Receiver invites all investors in the various Founding Partners Funds to dial-in to the call on July 31, 2012, using the following information:

Event:	Founding Partners Receivership Conference Call
Time:	July 31, 2012, at 2:00 p.m. EDT
US Dial-in Number:	(866) 288-5389
Int’l Dial-in Number:	(706) 645-4037
Passcode:	1412106

 

The Receiver expects to address the following topics during the call: (i) the Court’s conditional approval of the Settlement Agreement; (ii) the latest changes and developments with respect to the Settlement Agreement; (iii) the status of the Receiver’s Motion to Approve the Claims Process; and (iv) the various third-party litigations.

The Receiver will also dedicate a portion of the call to answering investor questions. Questions must be received in writing no later than close of business on Thursday July 26, 2012. All questions should be directed to Trish Anzalone of Broad & Cassel at her electronic mail contact – tanzalone@broadandcassel.com. Alternatively, you may submit your questions by U.S. Mail to: Trish Anzalone, One Biscayne Tower, 21st Floor, 2 South Biscayne Boulevard, Miami, Florida 33131. Investors who utilize U.S. Mail should also ensure that their questions are received by Trish Anzalone no later than close of business on Thursday July 26, 2012.

The Receiver will do his best to answer as many questions submitted by investors as possible, but cannot guarantee that he will answer them all.  Please also notify Trish Anzalone if you plan to attend this Conference Call.  We look forward to your questions and attendance during the call.

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On April 20, 2009, the United States Securities and Exchange Commission filed its complaint against Founding Partners Capital Management Co. (“Founding Partners”) and William L. Gunlicks, alleging that Founding Partners and Mr. Gunlicks had engaged, and were engaging in, violations of the federal securities laws. After reviewing the SEC’s submission, on April 20, 2009, Judge John E. Steele of the United States District Court for the Middle District of Florida entered an Order Freezing Assets of Founding Partners and Mr. Gunlicks (the “Asset Freeze Order”). The Asset Freeze Order also applies to Founding Partners Stable-Value Fund, L.P., Founding Partners Stable-Value Fund II, L.P., Founding Partners Global Fund, Ltd., and Founding Partners Hybrid-Value Fund, L.P. (collectively, the “Founding Partners Funds”).

Judge Steele also entered an Order on April 20, 2009 appointing a Receiver over Founding Partners and the Founding Partners Funds (collectively, the “Receivership Entities”). On May 13, 2009, that Receiver was removed by Court Order and Daniel S. Newman, Esq. was appointed Receiver by the Court over the Receivership Entities on May 20, 2009.

This website has been set up by Daniel S. Newman, Esq. as the Court-appointed Receiver. The Receiver will update this website on a regular basis to keep investors informed of the progress of the Receivership. I encourage anyone with questions about the Receivership to contact us.

On December 9, 2011, the Receiver and Sun Capital Healthcare, Inc., Sun Capital, Inc., and HLP Properties of Port Arthur, LLC filed their Joint Motion for Expedited Approval of Proposed Procedure to Obtain Court Approval of the Proposed Settlement Transaction in the litigation styled Daniel S. Newman, as Receiver for Founding Partners Capital Management Company; Founding Partners Stable-Value Fund, L.P.; Founding Partners Stable-Value Fund II, L.P.; Founding Partners Global Fund, Ltd.; and Founding Partners Hybrid-Value Fund, L.P. vs. Sun Capital, Inc., Sun Capital Healthcare, Inc., and HLP Properties of Port Arthur, LLC.  On December 27, 2011 the Court entered its Order Approving Settlement Transaction and Scheduling Deadlines. In accordance with that Order, the Receiver has caused a Disclosure Package to be mailed to all investors in the receivership funds. The Disclosure Package can also be found by clicking here: Disclosure Package or by clicking on the Receiver’s Updates link above. 

In accordance with the Receiver's email, the confidential materials can be accessed with your specific username number and password by clicking here.

On May 17, 2012, the Court entered an Opinion and Order ("Order") on the parties' Joint Motion to Approve the Settlement Agreement.  The Court found that the financial terms of the Settlement Agreement were fair and reasonable. However, the Court also found that certain non-financial provisions relating to law enforcement matters, as written, were of concern to the Court and the Court would not approve the Settlement Agreement in its current form because it contains those provisions.  As such, the Court held that it was withholding approval of the Settlement Agreement in its current form, and the Court invited the parties to submit a proposed amendment removing the provisions that were objectionable to the Court.  The parties have prepared a proposed revision to the confidentiality provisions of the Settlement Agreement which they will be submitting to the Court.  The parties are hopeful that the Court will approve that language and enter formal approval of the Settlement Agreement as amended in its entirety.  If you have any questions after reviewing Judge Steele's Order, please feel free to contact Christopher Cavallo at 305-373-9645, or via email at ccavallo@broadandcassel.com.