Rcs Capital Corporation (fka RCAPQ)

[Surgex]

Hello Marc/Cents.
Yeah looks to be dragging out a little awhile yet. Wish I could open up law 360 article's. None professional E-mail denied me access. Lots of good info there.
I think cents has access.
Hanging in There until the end. Looks like we might be getting updated my mail soon.
Good luck coming soon.

[marc1p]

Cents/Surgex, a new chapter 11 reorganization doc has been published at prime clerk. I will read it soon. Just wanted to let you know so we can all check it out.

[marc1p]

Yes I am well. thanks. Had some health issues over 2020 (while the pandemic is going on as well), but things are under control now. I'd love to know whether we are considered to have assets via debt as you described. You made this comment a while back, so maybe there's more info now? This recent comment about having to go to trial might show how intransigent the Schorsch people really are. Perhaps a settlement will result if this moves forward.

[marc1p]

I don't know what made me come back here! Honestly! Shaking my head in disbelief that something is actually happening, though. All the best to you both.

[Surgex]

Hello, Cents/Marc.
I just checked in sorry will keep a eye on board .
Keep me posted but also took notice 4 /21 looks to be the hot Day
Surgex

[cents2ks]

Link to Seventh Bi-Annual Report: https://cases.primeclerk.com/RCSCreditorTrust/Home-DownloadPDF?id1=MTUzMzQ0MQ==&id2=0

[cents2ks]

https://www.law360.com/articles/1353237/trustee-tells-chancery-trial-needed-for-rcs-schorsch-suit

[cents2ks]

Hope you are well Marc1p, it has been a long wait. The trial begins in one week. Please stop in and say hi if you can. Should be getting some news from the Chancery Court soon. All the best sir!

[cents2ks]

Well Surgex i thought it best to just let the time pass and the process take its course. There have been many delays and it has been a very long process, indeed. But we have now arrived at the time of reckoning for the self dealing insiders. The trial is set to begin one week from today on March 22nd, 2021. Nearly five years we have been waiting.

I hope you, and Mark are well and wish you both all the very best.
I'll check in again during the week, hope to see you here.
Its about to get interesting!

[Surgex]

Hello Mark/Cents it looks like to me that we became debtors. Prime clerk docs this year show as such. Closed debtors cases except RCS holdings. Not only we have trust funds we also are showing equity as debtors. Called Shane Reil he is the lawyer for debtors. He told me to call the trust. He acted like I was right but to call the trust than if they refer back to debtors to give him a call back. Something don't feel right he is a direct lawyer listed on these filings. He should of new details of what is going on here. It seemed like i needed to have a lawyer. Wish I was a Lawyer that way I would know if I was right.I know we have lawsuit to wait out. I didn't call the trust yet kinda waiting to see if a doc shows up on the prime clerk trust. Does anyone know anything different/new ?..THANKS

[marc1p]

I have also gone long stretches without looking into this, but Cents felt strongly that the Creditor Trust was still looking after what can be done for us. The documentation indicates that there are still things left to be determined, so I am a bit hopeful.

[Surgex]

Yeah Marc.let me know if you get word. Its been a long road. I haven't been following along for awhile. Just recently checked in. It does look better for us now,at one time it looked very grime.

[marc1p]

Hey Surgex, good to hear from another fellow victim. They are still having omnibus hearings, and since the demise I have switched brokers. So I emailed the Credit Trust Administrator, amjadvisors about three weeks ago to ask what if anything I should do , and gotten no response.

[Surgex]

Hello Cents thanks for checking in on me awhile back. Haven't been in the game for long time since this loss kinda gave up. Anyway to Marks question and to what I read looks like we're alive yet,but been wrong before.

[marc1p]

Cents I don’t know if you’re still around but this thing STILL isn’t over is it?

[marc1p]

Sure would be nice to get some justice. They played a giant fraudulent shell game with many millions. Imagine writing off one company's expenses as another's just to drive the second one into bankruptcy, so you can walk away with all those extra profits from the first company.

[cents2ks]

No, and I wouldn't expect to. Equity Interests were given only one possibility of any recovery 5.17s

I can show you in the plan where it says your distribution would come via the DTC.

The records are there...the DTC maintains them, forever.

[marc1p]

Have you been able to look up your own name (or that of your investment firm) as being on the list of creditors in this case? I haven't been able to find either. Are you even supposed to be able to? (on the cases.primeclerk webpage.) I'm not sure what to think.

[cents2ks]

Yes sir! 5.17(s) Excess Distributions...it is all spelled out in the plan.

The action you speak of is an adversary proceeding in the bankruptcy case to subordinate/disallow the claims of the Excluded Parties (Schorsch and his minions).

The real money will flow to the CT via the Chancery Court action, in which we WILL prevail.

There are other Litigation Assets that the CT may pursue as well.
Keep the faith

[marc1p]

Cents, just did some reading. The Jan 31 2018 complaint is especially encouraging. Cuts right to the heart of the matter, and things look bad for Schorsch & co. I want to believe that you and I will actually benefit from all this.

[marc1p]

Thanks for the detailed explanation, cents. I did not realize that the trust was working diligently like that.

[cents2ks]

We are suing Schorsch, the other conflicted insiders and the entities they created specifically to receive profits that should have gone to RCAP. Profits that those entities continue to collect to the tune of hundreds of millions of dollars per year. When the creditor trust prevails in the suit a constructive trust will be imposed upon those entities if that is what is necessary to obtain a full recovery.

There are not a huge amount of claims in front of us Marc,and the trust continues to work to reduce that burden.

Schorsch and his cronies phony "claims" are going to be subordinated to the level of equity...other claims (class 7) are likely to just disappear altogether when it is proven who is truly at fault here.

Did you read in the Third report about the two insiders who have signed tolling agreements and agreed to cooperate with the trust?

I'm sure old scumbag Schorsch must be getting a little worried about that development.

I'm not worried one bit

[marc1p]

Cents, i’ve read more than once that certain stakeholders get taken care of first. How can there even be enough funds for full restitution. How would that play out?

[cents2ks]

Not crumbs Marc. I expect nothing less than a full recovery...and then some.

1 to 100

Anything is possible...and even probable.

[marc1p]

Looks to be moving in the right direction. What crumbs will be left to filter down ?

[cents2ks]

This is getting good mark.

Our Creditor Trust is doing its job in fine fashion...(pun intended; Christian Leone joke there )

The link below sums up pretty well the current status of the Chancery Court action:
https://cases.primeclerk.com/RCSCreditorTrust/Home-DownloadPDF?id1=ODI2MzA2&id2=0

There are also some encouraging facts in the Creditor Trust's Third Bi-Annual report filed recently:
https://cases.primeclerk.com/RCSCreditorTrust/Home-DownloadPDF?id1=ODI2MjU5&id2=0

...keep praying brother...it's coming.

[marc1p]

Hope you're well also. There's a lot of activity at prime clerk. Can't say that I understand exactly what's going on but at least things are in motion.

[cents2ks]

As was mine my friend. The wheels of justice have incremented another cog:

https://www.law360.com/articles/969550/some-claims-to-advance-in-schorsch-rcs-trustee-suit

Hope you are well sir.

[marc1p]

I will keep the faith for sure. Patience where money is concerned is not always easy though. That hit I took was very severe.

[cents2ks]

I disagree Marc, if the Creditor Trust suit in the Delaware Chancery court is successful and enough dollars are recovered, it is all spelled out in the POR...5.17s

The path to recovery is clearly there.

I'm reluctant to get too excited about it yet also, because it could take some time. But I believe we WILL recover.

Even if the chancery suit were to fail, or fail to recover enough to reach us, there are other avenues for the CT to recover from. VER, fka ARCP being one of them, Mr. Block's actions caused immeasurable harm to RCAP, fraudulent actions now proven in court.

I really hope, and expect, to see Nick indicted next.

Keep the faith my friend.

[marc1p]

Cents, thanks again for this link. I hate being hopeful when the result I want seems so nearly impossible. I can't imagine the scenario where we get any restitution. Maybe an eventual class action suit.......

[cents2ks]

http://www.investmentnews.com/article/20170630/FREE/170639998/arcp-ex-cfo-brian-block-guilty-of-securities-fraud

One step at a time Marc, we are getting there!

[marc1p]

Thanks Cents2ks! great that SOME justice might be happening. This case was so clouded all along...how likely is it really that any of this would affect us?

[cents2ks]

Here's a Law360 article on the ARC parties Motion to Dismiss:

https://www.law360.com/articles/929285/schorsch-others-seek-toss-of-rcs-breach-suit-in-chancery

Creditor Trust counter response to this is due around mid July and then again from ARC in August, I'll find the dates and post them here. This a stipulated schedule they have both sides agreed to.

Also Block's trial is to begin soon, in the next few days I think...I suspect this what they have been waiting for, on both sides.

[marc1p]

Hello! I have been quietly hopeful that the truth would come out eventually, but honestly didn't expect anything to happen. I will look into this. Thanks so much for the heads up!

[cents2ks]

marc1p i'm curious if you are still following this mess...check the board sir, important new developments may change the outcome for those of us who went down with the ship.

Hope you are well.

[cents2ks]

Hello 4ward, I'm curious if you have been following the aftermath of this disaster?

Creditor Trust appears to be going after Schorsch and his crew of bandits with a vengeance. There is a link to the suit in one of my recent posts here. A response is due from the Defendants on the 26th of this month.

Hope all is well for you.

[cents2ks]

Surgex! it's been almost a year sir...things are looking up my friend, 5.17(s)...

keep the faith, hope you are well.

[cents2ks]

http://www.investmentnews.com/article/20170310/FREE/170319999/investors-accuse-nicholas-schorsch-of-plundering-rcap-for-own-gain

The Creditor Trust website is here:
https://cases.primeclerk.com/RCSCreditorTrust/

Trust Pursues Claims against Schorsch and ARC Parties Seeking to Recover Damages for Trust Beneficiaries.

On March 8, 2017, the RCS Creditor Trust filed a complaint in the Delaware Chancery Court against Nicholas Schorsch and certain of his colleagues (including Edward Weil, Jr., William Kahane, Peter Budko, Brian Block and Louisa Quarto), as well as certain entities owned and/or controlled by Schorsch and his colleagues, including RCAP Holdings LLC and AR Capital LLC. The complaint seeks to recover damages for the benefit of holders of General Unsecured Claims against certain of the RCS Debtors (and, to the extent applicable, holders of Second Lien Deficiency Claims) resulting from a scheme by Schorsch and his colleagues to exploit their control of RCS to benefit their wholly owned fund management business. The Complaint asserts claims for (i) breach of fiduciary duty, (ii) aiding and abetting breach of fiduciary duty, and (iii) unjust enrichment and constructive trust. A copy of the complaint is available here:
https://cases.primeclerk.com/RCSCreditorTrust/Home-DownloadPDF?id1=NTY3MjI4&id2=0

Law 360 article on the action:
https://www.law360.com/articles/900312/schorsch-others-sued-over-1-4b-rcs-capital-ch-11

[cents2ks]

http://www.wsj.com/articles/former-american-realty-capital-cfo-arrested-on-securities-fraud-charges-1473357330

[4ward]

Bummer

[Renee]

RCAPQ BK PLAN effective. All shares cancelled at 11:59 E.S.T.

http://otce.finra.org/DLDeletions

[cents2ks]

The lights have been turned off...

...[blink blink] ouch!

[Surgex]

No, not at all. Just wanted to point out that there is more than litigation funds from Nick.

[cents2ks]

I don't get your point...

Are you saying the Creditor Trust won't act upon its assigned purpose?

[Surgex]

9019 rule in 10.2 intercreditor issues.and 10.6 release parties mentions about consideration of classifications. 9019 in the definition comprise of classes. I have my moble app. I can't put links of such. They had objections of these releases. Maybe this goes no where but there is impaired and non impaired interest that I would be sueng for if I had the money.

[cents2ks]

Yes, everyone compromised to expedite the bk...compromise included putting all the litigation assets in the creditor trust.

...now we sue him!

[Surgex]

Rule 9019 definition https://www.law.cornell.edu/rules/frbp/rule_9019

[cents2ks]

...well...that was cute...

...market manipulators, be aware...

...I'll hold it for 5 + 3 ...YEARS! If necessary...

Bring on the escrow markers!!!

Hero or Zero!

...I have no choice this time...Larry!

[cents2ks]

Just so we are clear...the reference to litigation in this excerpt applies only to the desire to get Cetera out of bk as expeditiously as possible. The Creditor Trust is now responsible for pursuing the litigation against the ARC parties...