IPIC Receiver - FREQUENTLY ASKED QUESTIONS (FAQ)


What do I need to do to file a claim against IPIC?: Filing a claim against IPIC requires a special claim form that can be acquired from the office of the IPIC Receivership. Please contact the Receiver's office via e-mail at: ipicreceiver@munsch.com or by phone at: 214.740.5113 to receive this form.
Do I have a chance of getting my money back?: The focus of the Receivership is to salvage the remaining value of the assets purchased and operations funded with investor funds, with the purpose of making restitution to investors. The Receiver’s office is unable to estimate the level or percentage of restitution at this time.
How long will the process take?: In a case such as this where the Receiver must operate without the cooperation of the parties most directly involved in the dispersion of investor funds, it is generally difficult and costly to recover the invested value. Likewise, it is difficult to determine the extent of investor and creditor claims, particularly where, as here, the financial records of the involved parties are either incomplete, destroyed, woefully substandard, or some combination of the foregoing. Thus it often takes considerable time before a plan can be proposed to compensate defrauded investors. Presently, the Receiver?s office is unable to predict a timeframe for investor restitution.
What exactly are the charges against IPIC and against the Setsers?: The United States Securities and Exchange Commission initiated a securities fraud enforcement action against IPIC International on November 17, 2003. At the request of the Commission and based upon a preliminary showing of securities fraud, the Court established an asset freeze and appointed a receiver.
The United States of America has also brought charges of criminal fraud and money laundering against Gregory Setser, Cynthia Setser, and other involved individuals. The criminal matter is pending before the Honorable United States District Judge Barbara Lynn. The Department of Justice is representing the United States in the matter.
Should I hire a lawyer?: Any investor is entitled to retain counsel. Retention of personal counsel is not required in order to participate in the claims process against IPIC.
If I invested through a broker, do I need to file a claim directly with the Receivership?: Individual investors MUST file their claims directly with the IPIC Receiver's office. To obtain the required documentation for filing a claim, please contact our office via e-mail at: ipicreceiver@munsch.com or by phone at: 214.740.5113.
If I invested on behalf of someone else, what should I do?: If you invested on behalf of just one other individual, then you should assist that individual in making a claim and provide supporting documentation of your investment in IPIC (front and back copy of a check, bank wire confirmation report, etc) to them if necessary. The investor, in turn, should include with their claim their proof of payment to you, as well as your proof of payment to IPIC.
If I invested through my personal LLC, what should I do?: You should present an individual claim, which includes proof of payment from you as an individual to your LLC entity as well as the proof of payment for all transactions between your LLC and IPIC.
If I pooled funds from several people, either informally, or through a corporation, partnership, or other venture, what should I do?: You should provide to the Receiver's office, a full accounting for all of your group's transactions with IPIC that shows the net cash loss/gain of each investor, supported by bank statements for all accounts that handled investor funds. You should eliminate from your accounting "paper profits" or reinvested returns. Your accounting should identify any sales commissions or other expenses you may have deducted as a fee for acting on behalf of your investors.
Where can I go for information about the criminal case against the Setsers?: The criminal matter against Gregory Setser, Cynthia Setser and other involved individuals is pending before the Honorable United States District Judge Barbara Lynn. The Department of Justice is representing the United States in that matter.
Copies of select court documents are available on the IPIC Receiver website (www.ipicreceiver.com) and from the Clerk of the United States District Court for the Northern District of Texas.
What will happen to the Receivership and my claim if the Government’s criminal charges are not successful?: The Receivership is not dependent upon the success of the Government’s criminal charges.
What will happen to the Receivership and my claim if the SEC’s civil suit is not successful?: The Receivership is not directly dependent upon the success of the SEC’s claims. Based upon a preliminary showing, the District Court granted the SEC’s request for the appointment of a receiver. The District Court has now approved the solicitation of claims against Receivership Assets. We currently anticipate that a further motion will be made to approve a plan for distribution of Receivership Assets to satisfy claims. The basis of such a motion to distribute Receivership Assets to investors is factually linked to the SEC’s action, but technically independent from it. At present, the Receiver believes that such a motion is well justified by the facts, and expects that such a motion will be granted in principal regardless of whether the SEC pursues its enforcement action.
Will investors who received gains on their investment be required to give them back?: Anyone, including Investors, who received any funds from IPIC can be required to return them. At present, the Receiver has requested that those funds be returned for the benefit of a Supplemental Investor Compensation Fund. Persons who received excess funds should advise the Receiver through this site. Arrangements will be made to address each unique situation presented.
I am not an investor but would like to file a claim; do I need a special form?: No.
Who is paying for the efforts of the IPIC Receivership?: Receivership expenses are borne by the Receivership Estate. Anything that you can do to limit the extent of the efforts required to administer the estate is therefore very much appreciated.
Why was the yacht purchased with $2.3 million of investor funds and sold for $1.9 million?: Greg Setser overpaid for the yacht. The Receivership Team obtained three independent appraisals and sold the yacht for a fair price. The appraisals and the Motion to Approve the sale are posted in the pleadings section on this site.
Supplemental Compensation Fund - In particular, are net gainers generally returning all of what they received?: Most donors have returned all of their 'profits'.
Supplemental Compensation Fund - Are any net gainers only returning a portion?: To date, only CFAN donors have returned a fractional percentage of their gains. However, they have promised to return 100%.
Supplemental Compensation Fund - What percentage must be returned in order to avoid litigation?: A release will only be granted to those paying back 100% of their net gain. Thus CFAN has not received a release at this time.
Supplemental Compensation Fund - Are you considering people's personal circumstances and making allowances for those that do not have the ability to pay?: This is a voluntary fund. No payment, no release.
Supplemental Compensation Fund - Can such a person make some sort of settlement with the receiver and avoid being sued?: That is not the concept of this fund. The release is for those who have returned 100% of their gains.
Supplemental Compensation Fund - Has the fund received enough donations that some distributions are already being made?: We have received over $1.9 million, and are considering distributions. It is generally anticipated that distributions will be made for interim assistance, and thus in small amounts, pending a larger review. It is a strong possiblity that the bulk of the funds will be proposed as a supplement to significantly enhance the general distribution.
Supplemental Compensation Fund - What kind of administrative costs have there been to date?: About $3500 for some promotion and the Trustee's time.