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U.S. Commodity Futures Trading Commission
and U.S. Securities and Exchange Commission
v. Trevor Cook, et al.
SEVENTH INTERIM DISTRIBUTION
On or about December 19, 2014, the Receiver will begin mailing checks to claimants on the Third Amended Final Claims List for pro rata shares of the Seventh Interim Distribution, which was approved by the Court on December 18, 2014. See Order Approving the Seventh Interim Distribution, 09-cv-3333 Docket 1123, 09-cv-3332 Docket 1174, 11-cv-574 Docket 500 (December 18, 2014). The total of the checks and credits issued as part of the Receiver's Seventh Interim Distribution is $1,001,000.00 in checks and $59.72 in credits.
FIFTH INTERIM DISTRIBUTION
The Receiver has made the fifth interim distribution in these civil cases of approximately $1.7 million on a pro rata basis to claimants identified in the Receiver's Second Amended Final Claims List. Order filed on 6/7/13.
NOTICE OF DISTRIBUTION OF PROCEEDS FROM SETTLEMENTS WITH WESTERN AND NRP
PLEASE TAKE NOTICE that on Monday, May 7, 2012, the Receiver mailed two checks to each of 711 claimants for their pro rata shares of the proceeds from the Receiver's Settlement Agreements with NRP Financial, Inc. and Western International Securities, Inc., totaling $1,163,249.78. The Court approved the distribution of the Settlement Proceeds on March 23, 2012. See Order Approving Distribution of Proceeds from Settlements with Western and NRP, 09-cv-3333 Docket No. 951, 09-cv-3332 Docket No. 915, 11-cv-574 Docket No. 280 (Mar. 23, 2012). Pursuant to the Receiver's Settlement Agreements and the Court's Order approving them, claimants who cash these checks will release any claims they may have against NRP and Western. (May 8, 2012)
NOTICE OF MAILING OF RECEIVER'S THIRD INTERIM DISTRIBUTION PLEASE TAKE NOTICE that on Wednesday, March 28, 2012, the Receiver, via the Clerk of Court for the United States District Court for the District of Minnesota, mailed checks to 710 claimants for their pro rata shares of the Receiver's Third Interim Distribution, which was approved by the Court on February 24, 2012, and totaled $1,379,955.63. See Order Approving Partial Settlement with FINRA Claimants, Releasing Certain Funds from Escrow and Approving Third Interim Distribution, 09-cv-3333 Docket No. 933, 09-cv-3332 Docket No. 899, 11-cv-574 Docket No. 264 (Feb. 24, 2012); see also Supplemental Order Concerning Order Approving Third Interim Distribution, 09-cv-3333 Docket 948, 09-cv-3332 Docket 912, 11-cv-574 Docket 277 (Mar. 22, 2012).
PLEASE TAKE NOTICE that on Tuesday, August 2, 2011, the Receiver, via the Clerk of Court for the United States District Court for the District of Minnesota, mailed checks to 710 claimants for their pro rata shares of the Receiver's Second Interim Distribution that was approved by the Court on July 22, 2011, totaling $1,027,729.04.
The first interim distribution mailing of victim restitution checks will be assembled next week and put in the mail on November 12, 2010 for all victims in the Trevor Cook case. Identified victims may expect to receive checks starting the week of November 15, 2010.
Currently pending before Chief Judge Michael J. Davis are two related cases: S.E.C. v. Trevor Cook et al., Civ. No. 09-333 and C.F.T.C. v. Trevor Cook d/b/a Crown Forex, LLC et al., Civ. No. 09-3332. In both cases, Trevor Cook and Patrick Kiley, along with many business entities owned and/or controlled by Cook and Kiley, are charged with conducting a fraudulent investment scheme that has taken in approximately $190 million from at least 1,000 victims. The Defendants allegedly represented to these investors that they were involved in a foreign currency trading venture by which the investors could earn annual returns of 10% to 12%. The Defendants further represented that each investors' funds would be kept in segregated accounts and that their funds could be withdrawn at any time. Instead, the Defendants are alleged to have pooled the investor funds they obtained, and diverted approximately $51 million to pay ostensible returns and principal to other investors or misappropriated the funds for their own personal use, or used the funds for trading in foreign currencies that involved significant risks. At least $48 million was lost in this trading.
Both the SEC and the CFTC moved for preliminary injunctive relief by which to freeze assets of the Defendants and to enjoin the Defendants from further engaging in wrongful trading. The Court granted the motions for injunctive relief, and as part of these orders, the Court appointed a Receiver in order to locate and preserve assets for later distribution to the investor victims. The Receiver, with the Court's permission, has established a website as a resource of information as to case updates and as a means for investor/victims to provide information to the Receiver. The following link is the Receiver website. To contact the Cook Kiley Receivership, please call 877-316-6129 or 612-436-9664, or via email.
Case # 09-cv-3332: U.S. Commodity Futures Trading Commission v. Trevor Cook, et al.
Case # 09-cv-3333: U.S. Securities and Exchange Commission v. Trevor Cook, et
Case # 11-cv-0574: U.S. Securities and Exchange Commission v. Jason Bo-Alan Beckman, et al.
Transcript from the motion hearing on 8/12/14 where the Receiver is Requesting to Sell the Receiver Estates' Claim in the Peregrine Financial Group Inc. The Trascript is relevant in cases 09-3332, 09-3333 and 11-574.
Eighth Circuit - Court of Appeals - Oral Arguments (MP3 Files):
On June 12, 2012, the jury in the criminal case against Jason Bo-Alan Beckman, Gerald Joseph Durand, and Patrick Joseph Kiley (Case No. 11-cr-228) returned a verdict of guilty as to each Defendant on all charges. On January 3, 2013, Chief Judge Michael J. Davis sentenced Mr. Beckman to 30 years in prison for his role in the scheme, Mr. Durand to 20 years, and Christopher Pettengill (Case No. 11-cr-192) to 7.5 years. On July 15, 2013, Judge Davis sentenced Mr. Kiley to 20 years. The three Defendants appealed their convictions and on October 8, 2014, the United States Court of Appeals for the Eighth Circuit heard oral argument on their appeals. More information about the criminal cases can be found on the U.S. Attorney's website here.
Oral argument in the Receiver's appeal of the Associated Bank case was held October 9, 2014. An audio recording of the proceeding can be found here.
USA v. Jason Bo-Alan Beckman (13-1162), Gerald Joseph Durand (13-1163) and Patrick Joseph Kiley (13-2603)
Link to PACER (Public Access to Court Electronic Records - a fee based system that allows parties to access documents filed.)