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12/14/2017

Update:  November 6, 2017

On November 3, 2017, the Receiver filed his Ninth Status Report.  
A copy of the Status Report
has been posted to this website, and can be viewed by clicking on
"Receiver's Updates and Reports" above.

Update:  June 12, 2017

 

The Receiver’s counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational telephone conference call with investors on Monday, June 26, 2016 beginning at 11:00 a.m. EDT.

 

The Receiver’s counsel will offer an overview and update on the claims made against Mayer Brown and E&Y, the status of the litigation and related proceedings, and a general discussion of next steps and case management issues going forward. The Receiver’s counsel will also answer questions about the status of the litigation [and the claims and defenses asserted], to the extent that they can be addressed in a telephone conference call setting. In order to avoid duplication of questions and confusion during the conference, questions must be submitted in advance of the conference to Scot Stirling by telephone at (480) 429-3032 (office) or (602) 318-3650 (cell). To the extent that time and the conference setting permit, other questions submitted by email during the conference may be taken and addressed during, or by further communication after, the conference on June 26.

 

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Friday, June 23.

 

*The Receiver's counsel include Leo Beus, Scot Stirling, Malcolm Loeb, and Rob Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).

 

Update:  May 1, 2017
On April 28, 2017, the Court entered an Order Setting Trial and Pre-Trial Instructions in the action filed by the Receiver against Ernst & Young LLP and Mayer Brown LLP.  A copy of the Order has been posted to this website, along with other recent filings, and can be viewed by clicking on "Selected Court Filings" above.
  
Update:  December 20, 2016
On December 15, 2016, the Receiver filed his Eighth Status Report.  A copy of the Status Report
has been posted to this website, and can be viewed by clicking on
"Receiver's Updates and Reports" above.

Update:  October 25, 2016
The Receiver’s counsel* in the litigation against Mayer Brown and Ernst & Young (E&Y) will be available for an informational videoconference/conference call with investors on Monday, November 7, 2016 beginning at 11:00 a.m. EST (Daylight Savings ends November 6).

The Receiver’s counsel will offer an overview and update on the claims made against Mayer Brown and E&Y, the status of the litigation and related proceedings, and a general discussion of next steps and case management issues going forward. The Receiver’s counsel will also answer questions about the litigation and the claims and defenses asserted, to the extent that they can be addressed in a videoconference/conference call setting. In order to avoid duplication of questions and confusion during the conference, questions must be submitted in advance of the conference by email to Scot Stirling at sstirling@beusgilbert.com or by telephone at (480) 429-3032. To the extent that time and the conference setting permit, other questions submitted by email during the conference may be taken and addressed during, or by further communication after, the conference on November 7.

If you are an investor and wish to participate in the conference, please indicate your intent to participate by email to Elvis Sulejmani at Beus Gilbert (esulejmani@beusgilbert.com), with your name and email address. An email with information required to access the conference by videoconference or by telephone will be provided by return email. In order to ensure timely access to the conference, please send notice of your desire to participate by Friday, November 4.

*The Receiver's counsel include Leo Beus, Scot Stirling, Malcolm Loeb, and Rob Stirling of Beus Gilbert PLLC in Phoenix, Arizona (http://beusgilbert.com) and Stuart Grossman and Rachel Furst of Grossman Roth Yaffa Cohen in Coral Gables, Florida (http://www.grossmanroth.com).


Update:  June 3, 2016

On May 20, 2016, the Court entered an Order on Mayer Brown, LLP's Motion to Dismiss, and an Order on Ernst & Young, LLP's Revised Motion to Compel Arbitration and Stay or Abate the Claims Against It. A copy of both Orders has been posted to this website, and can be viewed by clicking on "Selected Court Filings" above.

Update:  June 9, 2015

On June 8, 2015, the Receiver filed his Seventh Status Report.  A copy of the Status Report
has been posted to this website, and can be viewed by clicking on
"Receiver's Updates and Reports" above.

Update: July 7, 2014

On July 3, 2014, the Court entered its Opinion and Order Approving Receiver's Recommendations and Fairness of Distribution of FP Designee Interests Pursuant to Section 3(a)(10) of the Securities Law. A copy of the Opinion and Order has been posted to this website, and can be viewed by clicking on "Selected Court Filings" above.

Update:  May 28, 2014

A hearing has been set by the Court on June 10, 2014 @ 2:00 p.m. to: (i) rule on any objections that are timely filed (ii) rule on the Receiver's recommendations on Allowed Amounts and FP Designee Distributions; and (iii) determine whether the proposed issuance of securities in the first interim distribution meets the fairness requirement under the securities law.  The Receiver's office will post on this website the Court's ruling and/or outcome of that hearing.

Update:  March 19, 2014

Please be advised that the Receiver hereby provides notice that the Settlement Transaction
(as that term is used in the Court's Amended Order Approving Settlement Agreement at D.E. 308) closed on March 17, 2014.  You can view this filing by clicking on the above link
"Receiver's Updates and Reports."

Update:  March 7, 2014

On March 6, 2014, the Court issued four orders on a variety of motions.  All four orders are posted here in this website under the section "Selected Court Filings."  One of the orders addresses the Receiver's July 10, 2013 Motion for Court Approval of (a) the Receiver's Recommendations Concerning Claims; (b) an Interim Distribution of Interests in the FP Designee; and (c) the Receiver's Proposed Objection Schedule ("Motion").  Among other things, the Court approved
a schedule to allow objections to the Receiver's proposed claims distribution recommendation.  A copy of the Receiver's Motion has already been posted on this website under the section "Selected Court Filings."  The Order Approving Receiver's Recommendation for Proposed Objection and Hearing Schedule [D.E. 409] sets forth a schedule and deadlines for objections to the Receiver's recommendations.

Please pay close acction to the Court's deadlines as failure to timely object will waive any objection.

Update:  February 6, 2014

As with prior years, in order to properly reflect the Receivership Entities’ tax obligations, it is necessary for the Receiver’s accountants to be in possession of all Forms 1099 and K-1 Forms issued to the Receivership Entities by Third Parties. Accordingly, the Receiver's accountants plan to have K-1 Forms mailed to Founding Partners investors by mid-August.

Update:  July 31, 2013

A package containing the Receiver's Motion for Court Approval of (a) the Receiver's Recommendations Concerning Claims; (b) an Interim Distribution of Interests in the FP Designee; and (c) the Receiver's Proposed Objection Schedule (the "Claims Motion") , and the proposed Order on the Claims Motion, has been mailed and emailed to all Investors. Also, a copy of the Claims Motion has been posted to this website. Each package also contains your Claimant Number which identifies your claim in the Claims Motion.

There is no current deadline for the filing of objections to the Receiver's recommendations. The Receiver has requested that the Court set a deadline for such objection through entry of the proposed Order. When the Court issues an Order setting deadlines, the Receiver will distribute the Order to investors, and post the Order on the Receiver's website.

Update:  June 14, 2013

FOR CURRENT NEWS, PLEASE SEE "RECEIVER'S UPDATES AND REPORTS" SECTION

Updated:  April 15, 2013

Please be advised that in order to properly reflect the Receivership Entities’ tax obligations, it is necessary for the Receiver’s accountants to be in possession of all Forms 1099 and K-1 Forms issued to the Receivership Entities by Third Parties. Because this has not yet happened, the Receiver’s accountants have requested an extension with the Internal Revenue Service to file the tax returns for the Receivership Entities. Accordingly, K-1 Forms cannot be provided prior to April 15, 2013.

Please consult with your individual tax advisors to determine what, if any actions, you may wish to take in light of the above.  Thank you for your consideration in this matter.

__________________________________________

Updated: March 20, 2013

The Proof of Claim forms, supporting documentation, and Investor Releases which have been submitted to the Receiver's office are being analyzed by the Receiver's retained professionals. The Receiver and his retained professionals continue to work toward the closing of the Settlement Transaction. You can access the Receiver's recently filed Fourth Status Report by clicking on the link above: Receiver's Updates and Reports.


Initiation of Founding Partners Claims Process

Updated:  August 30, 2012

In connection with the Court’s approval of both the proposed Claims Process and the Settlement Agreement between Daniel S. Newman (the "Receiver") and the Sun Capital entities, all Investors who seek to be eligible for recoveries from the Receivership Estate must complete, execute and return a Proof of Claim form. Investors who seek to be eligible to obtain a benefit from the settlement transaction must also complete, execute and return an Investor Release. Those Investors with multiple accounts must submit a Proof of Claim Form and Investor Release for each account. Copies of all documents referenced in this letter are available on the Receivership website, under Receiver's Updates and Reports. Fully-executed and conforming Proof of Claim Forms and Investor Releases as described above must be received at this office no later than 5:00 pm EDT on Friday, October 12, 2012 (the "Claims Bar Date").

Proof of Claim Forms and Investor Releases received after the Claims Bar Date will not be accepted and the claims will be barred. Please direct all Proof of Claim Forms and Investor Releases to: Daniel S. Newman, Receiver c/o Jonathan Etra, Esq., Broad and Cassel, One Biscayne Tower, 2 South Biscayne Boulevard, 21st Floor, Miami, FL 33131, and, if possible, by electronic mail to: tanzalone@broadandcassel.com.

__________________________________

NEW INFORMATION
The Receiver has scheduled a conference call for July 31, 2012, at 2:00 p.m. EDT, at which time he will address the status of the Receivership and the Settlement Agreement with the Sun Capital entities.

The Receiver invites all investors in the various Founding Partners Funds to dial-in to the call on July 31, 2012, using the following information:

Event:

Founding Partners Receivership Conference Call

Time:

July 31, 2012, at 2:00 p.m. EDT

US Dial-in Number:

(866) 288-5389

Int’l Dial-in Number:

(706) 645-4037

Passcode:

1412106

The Receiver expects to address the following topics during the call: (i) the Court’s conditional approval of the Settlement Agreement; (ii) the latest changes and developments with respect to the Settlement Agreement; (iii) the status of the Receiver’s Motion to Approve the Claims Process; and (iv) the various third-party litigations.

The Receiver will also dedicate a portion of the call to answering investor questions. Questions must be received in writing no later than close of business on Thursday July 26, 2012. All questions should be directed to Trish Anzalone of Broad & Cassel at her electronic mail contact – tanzalone@broadandcassel.com. Alternatively, you may submit your questions by U.S. Mail to: Trish Anzalone, One Biscayne Tower, 21st Floor, 2 South Biscayne Boulevard, Miami, Florida 33131. Investors who utilize U.S. Mail should also ensure that their questions are received by Trish Anzalone no later than close of business on Thursday July 26, 2012.

The Receiver will do his best to answer as many questions submitted by investors as possible, but cannot guarantee that he will answer them all.  Please also notify Trish Anzalone if you plan to attend this Conference Call.  We look forward to your questions and attendance during the call.

______________________________

On April 20, 2009, the United States Securities and Exchange Commission filed its complaint against Founding Partners Capital Management Co. (“Founding Partners”) and William L. Gunlicks, alleging that Founding Partners and Mr. Gunlicks had engaged, and were engaging in, violations of the federal securities laws. After reviewing the SEC’s submission, on April 20, 2009, Judge John E. Steele of the United States District Court for the Middle District of Florida entered an Order Freezing Assets of Founding Partners and Mr. Gunlicks (the “Asset Freeze Order”). The Asset Freeze Order also applies to Founding Partners Stable-Value Fund, L.P., Founding Partners Stable-Value Fund II, L.P., Founding Partners Global Fund, Ltd., and Founding Partners Hybrid-Value Fund, L.P. (collectively, the “Founding Partners Funds”).

Judge Steele also entered an Order on April 20, 2009 appointing a Receiver over Founding Partners and the Founding Partners Funds (collectively, the “Receivership Entities”). On May 13, 2009, that Receiver was removed by Court Order and Daniel S. Newman, Esq. was appointed Receiver by the Court over the Receivership Entities on May 20, 2009.

This website has been set up by Daniel S. Newman, Esq. as the Court-appointed Receiver. The Receiver will update this website on a regular basis to keep investors informed of the progress of the Receivership. I encourage anyone with questions about the Receivership to contact us.

On December 9, 2011, the Receiver and Sun Capital Healthcare, Inc., Sun Capital, Inc., and HLP Properties of Port Arthur, LLC filed their Joint Motion for Expedited Approval of Proposed Procedure to Obtain Court Approval of the Proposed Settlement Transaction in the litigation styled Daniel S. Newman, as Receiver for Founding Partners Capital Management Company; Founding Partners Stable-Value Fund, L.P.; Founding Partners Stable-Value Fund II, L.P.; Founding Partners Global Fund, Ltd.; and Founding Partners Hybrid-Value Fund, L.P. vs. Sun Capital, Inc., Sun Capital Healthcare, Inc., and HLP Properties of Port Arthur, LLC.  On December 27, 2011 the Court entered its Order Approving Settlement Transaction and Scheduling Deadlines. In accordance with that Order, the Receiver has caused a Disclosure Package to be mailed to all investors in the receivership funds. The Disclosure Package can also be found by clicking here: Disclosure Package or by clicking on the Receiver’s Updates link above. 

In accordance with the Receiver's email, the confidential materials can be accessed with your specific username number and password by clicking here.

On May 17, 2012, the Court entered an Opinion and Order ("Order") on the parties' Joint Motion to Approve the Settlement Agreement.  The Court found that the financial terms of the Settlement Agreement were fair and reasonable. However, the Court also found that certain non-financial provisions relating to law enforcement matters, as written, were of concern to the Court and the Court would not approve the Settlement Agreement in its current form because it contains those provisions.  As such, the Court held that it was withholding approval of the Settlement Agreement in its current form, and the Court invited the parties to submit a proposed amendment removing the provisions that were objectionable to the Court.  The parties have prepared a proposed revision to the confidentiality provisions of the Settlement Agreement which they will be submitting to the Court.  The parties are hopeful that the Court will approve that language and enter formal approval of the Settlement Agreement as amended in its entirety.  If you have any questions after reviewing Judge Steele's Order, please feel free to contact Christopher Cavallo at 305-373-9645, or via email at ccavallo@broadandcassel.com.


FOR CURRENT NEWS, PLEASE SEE "RECEIVER'S UPDATES AND REPORTS" SECTION