FAQs

About Receivers

Q: What does a Receiver do?

A: The Receiver is appointed by the Court. Huddleston Law Firm's Pat Huddleston, for example, is a Receiver appointed by a federal judge in the case against Coadum Advisors. He sorts out the affairs of the receivership companies used to defraud investors and secures return of as much investor money as possible. To that end, the Receiver investigates how 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.

Q: Does the Receiver get investors' money back for them?

A: The Receiver’s goal is to find and secure as much money as possible for ultimate return to investors. In most receivership cases, it is highly unlikely that investors receive their entire principal investment back. The Receiver will do everything possible to maximize what he is able to return to approved claimants.

Q: How long does it take for investors to get any of their money back?

A: Assuming success in recovering enough assets to make a distribution, investors 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 Huddleston Law Firm work as fast and efficiently as possible to identify and recover assets.

Q: How does a Receiver help investors when he is paid out of assets frozen by the Court?

A: Quick action by federal authorities like the SEC helps preserve some of the funds raised by defendants via the companies that have entered into receivership. It is not uncommon to find that the money stolen from investors has been spent or transferred overseas. Without a Receiver with special powers granted by a federal court, there would be no one with the authority necessary to search out and recover those assets. Rest assured that the Receiver is highly motivated to achieve the best possible result for investors. Although the Receiver's assignments are numerous and time-consuming, he does no unnecessary work and is closely monitoring the time spent by his team to ensure that every minute spent on the case is necessary.