A: The best way to answer that question is to review the SEC's complaint. In summary, the SEC alleges that Angelo A. Alleca ("Alleca"), through Summit Wealth Management, Inc. ("Summit Wealth"), fraudulently sold interests in several investment funds, including Summit Investment Fund LP, Asset Diversification Fund LP, and Private Credit Opportunities Fund LLC, that he misused the funds he raised through those sales, and that he sent investors in those funds phony account statements showing fictitious balances.
A: The United States Attorney's Office will have to make that decision. The Receiver has no knowledge about whether the criminal authorities are interested in the case.
A: The Receiver is appointed by the Court. He sorts out the affairs of the receivership companies and secures the return of as much investor money as possible. To that end, the Receiver investigates how the defendants raised money and how they spent the money raised. If the Receiver determines that the defendants used investor money to buy an asset (real estate, artwork, vehicles, etc.), the Receiver can seize and sell the asset to bring more cash into the receivership estate. If the Receiver discovers that a third party wrongfully received investor money, the Receiver will demand return of that money and file a lawsuit if necessary to secure return of the money. At the same time, the Receiver will seek to reduce the liabilities of the receivership companies by reducing or eliminating payroll, negotiating with vendors, and otherwise reducing the costs associated with the receivership companies. If the Receiver successfully brings enough assets back into the Receivership estate, he will recommend a plan for paying money back to investors.
A: It is too early to tell, but the Receiver's goal is to find and secure as much as possible for ultimate return to the investors. It is highly unlikely that investors will receive their entire principal investment. The Receiver will do everything possible to maximize what he is able to return to approved claimants.
A: Assuming success in recovering enough assets to make a distribution, the investors probably will not receive any of their money for several months, at a minimum. The Receiver is mindful that lack of access to these funds creates a hardship for many investors. For that reason the Receiver and his team are working as fast and efficiently as possible to identify and recover assets.
A: Each investor should contact his or her accountant or tax attorney for advice on how to deal with this development at tax time. The Receiver will keep investors posted on important facts bearing upon the case, but he cannot give tax advice.
A: Without a Receiver with special powers grated by a federal court, there would be no one with the authority necessary to search out and recover those assets. Please rest assured that the Receiver is highly motivated to achieve the best possible results for investors. The Receiver does a strict cost-benefit assessment of every project he pursues, and does not pursue work that is either unnecessary or not likely to produce a recovery that exceeds the cost of the pursuit.
A: The Receiver arrived at Summit Wealth Management's offices within minutes of his appointment and secured all investor files. At the end of the case, the Receiver will either return those files to investors or dispose of them in a way that ensures they do not fall into the hands of anyone else.