Q: When will another distribution be made?
A: The Trust continues to litigate lawsuits. The Courts have continued the remaining lawsuits until early 2015. There are two (2) remaining active cases, Ruthven Oil and Sovereign Bank. A 7% distribution check for the approved claim amount was sent to the investors that assigned their claims to the Trust, in November, 2013. Additional distributions from the Trust, for the investors that assigned their claims to the Trust, will be made as litigation is completed and funds received by the Trust. There is no plan to make a final distribution for the Provident Bankruptcy Estate until all litigation is finalized. All 7786 investors will receive a final Provident Bankruptcy Estate distribution. Again, timing and amount of these distributions are unknown.
Q: What is the status of the criminal prosecution of the various principals involved in Provident?
A: Joseph Blimline was sentenced to 240 months in federal prison on May 3, 2012 for his role in the Provident investment fraud. LEARN MORE
Brendan Coughlin, Henry Harrison, Russ Melbye, and Mark Miller are all serving terms of varying length in federal prison. LEARN MORE
Q: Where can I view my bankruptcy proof(s) of claim and the claim numbers given them?
A: All of these details are available here.
What investors want to know:
The Trust is in the process of liquidating the remaining assets of the Provident entities including pursuing claims brought by the Trust against numerous third parties. In the future, you will receive a pro-rata distribution from the Trust of any recoveries received from these efforts.
We cannot give tax advice. You should consult your own tax advisor regarding the tax consequences and reporting obligations relating to your investment based upon your individual circumstances.
The Trust has filed suit against numerous broker-dealers seeking to recover both the commissions paid them and additional damages caused by the broker-dealers. Many of the Trust’s claims have been resolved. You can review the resolved claims here.
- What do I do about taxes?
The Trust does not provide tax advice. Please consult a qualified tax advisor or the IRS regarding Revenue Procedure 2009-20 and other tax advice pertaining to your investment in Provident Royalties, LLC.
You and your tax professional may find the attached documents useful in determining the appropriate tax treatment for your situation:
- Who has been sued and what lawsuits are presently being pursued by the Trustee on behalf of the Provident Royalties' investors?
Milo H. Segner, Jr., Liquidating Trustee of the PR Liquidating Trust, has undertaken significant litigation efforts to maximize the recovery for all investors in the Provident Royalties family of companies. Attached to this update you will find a table listing the pending litigation the Trustee has resolved. For example, the Trustee has resolved litigation against numerous different broker-dealers for their role in soliciting investors without conducting adequate due diligence on the Provident companies. The broker-dealer litigation also sought the return of over $30 million in commissions these various broker-dealers received from the Provident Royalties companies. This litigation has been resolved. Unfortunately, many of the defendants were thinly capitalized and grossly underinsured.
The Trustee has brought litigation against the former directors and officers of the Provident Royalties companies, and numerous other individuals and companies that received monies from the Provident entities without providing fair value in return.
The Trustee also commenced litigation against the Jordan River Liquidating Trust and has reached an agreement to compromise and settle those claims as well. The attached chart provides a summary of the litigation and the numerous lawsuits the Trustee has prosecuted.
The Trustee and the Trust Oversight Committee are committed to prosecuting these claims aggressively to maximize the recovery for the investors and are working hard towards being in a position to make distributions to investors.
- How much money has the Trustee recovered on behalf of the Provident Royalties' investors?
The Trustee has achieved substantial success since the establishment of the Trust. The Trustee has collected approximately $52.2 million in gross settlements.
Several settlements have been reported by the press or media outlets; however, some of these reports were inaccurate. Administrative costs and the economies of scale for distribution to all investors must be taken into account by the Trustee before actual distribution to keep costs at the lowest possible price point to maximize pro rata distributions to the individual investors.
- How much money can I expect to receive from the PR Liquidating Trust?
The Trust has made two distributions to investors. The first was made in November, 2012, a 5% distribution to all allowed claim of the Trust. The second was made in November, 2013, a 7% distribution to all allowed claimants who had assigned their claims to the Trust.
At this time, the Trustee does not have sufficient information to be able to provide an accurate estimate of the exact amount of monies to be distributed and what each investors' pro rata share will be. The ultimate answer to this question depends on many factors not entirely within the Trustee's control, including, for example, the financial health and solvency of the defendants sued, the total amount of recoveries collected and the total amount of litigation costs to achieve the recoveries.
- How do I contact the Trust with other questions?
You can submit all questions and comments to us through our Contact page and we will get back to you as quickly as we can.