On April 9, 2024, the Receiver filed a motion (the “Motion”) for entry of an order to establish a schedule for the Court’s consideration of the Receiver’s proposed plan of distribution (the “Plan”). While the Motion includes the Plan itself, as well as a Summary of the Plan, the Motion seeks only to establish a schedule for the Court’s consideration of the Receiver’s Plan.   If the Court approves the Motion, investors, claimants and other parties-in-interest will be given ample opportunity to provide responses to the Plan itself.  A copy of the Motion [Dkt 303, 304] and the Declaration of the Receiver in support of the Motion, which includes as exhibits the Plan and a Summary of the Plan [Dkt 305], can be accessed on the Civil Docket Page here.

Although the proceeds of the Scopely buyout have been received by the Receivership, funds and other Receivership Assets may only be used by the Receiver in the manner authorized by the Court. The Scopely proceeds will be distributed in accordance with the Plan, if it is approved.

The Receiver encourages investors to regularly check the Receivership website for updates, including quarterly status reports. Further, the Receiver encourages investors to either attend town hall meetings or watch the recorded videos, which are available on the Receivership Website. The Receiver encourages investors to read the Plan and the summary of the Plan. 

On November 29, 2023, the United States Attorney’s Office (“USAO”) for the Southern District of New York announced the Indictment of Michael Castillero, a/k/a Michael Alejandro, Francine Lanaia, and Brian Martinsen charging them with, among other things, conspiracy, securities fraud, wire fraud, and investment adviser fraud in connection with their management of StraightPath Venture Partners LLC, StraightPath Management LLC, and nine related StraightPath Funds.  The USAO’s press release announcing the Indictment can be found by clicking here. All three defendants have pleaded not guilty.

On April 1, 2024, Rubrik, Inc., filed a Form S-1 with the SEC for the proposed initial public offering of its Class A common stock. The Receiver continues to monitor developments relating to Rubrik and is taking steps in an effort to protect the Receivership’s interests should an IPO occur.  

The Receiver has not recovered any funds from the Individual Defendants through a settlement or otherwise, and she has not commenced any actions against them to date.  Should the Receiver commence litigation or enter into any settlements, she will do so through the procedures required by the Receivership Order.

Triller filed in amended S-1 on January 30, 2024. The Receiver continues to monitor developments relating to Triller and is taking steps in an effort to protect the Receivership’s interests should an IPO occur.  

No. The Receivership will reach out to investors if any additional information is needed.

In September 2023, the Receiver issued amended 2021 Schedule K-1s and 2022 Schedule K-1s.  

Your 2022 Schedule K-1 may reflect a distribution and a loss as a result of certain tax regulations applicable to the StraightPath Receivership.  Pursuant to applicable United States Treasury Regulations, the StraightPath Receivership Estate is treated as a Qualified Settlement Fund (“QSF”) effective as of the date of the commencement of the Receivership, June 14, 2022.  A QSF is a separate entity that is subject to federal income tax requirements that are independent of the Receivership Entities and individual investors’ tax requirements.    

On June 14, 2022, the Receivership Entities’ assets were transferred to the QSF by operation of law.  The QSF’s initial tax basis is the fair market value of the Receivership Entities’ assets on the date of the transfer to the QSF.  A valuation was performed of the Receivership Entities’ ownership interests in private and public companies as of June 14, 2022.  The fair value of the respective interests were allocated to each investor in accordance with the “Welcome Letters” StraightPath sent to each investor, respectively, and deemed distributed to each investor. A deemed distribution is for tax reporting purposes only, and does not involve the transfer of actual cash or other assets. 

In most instances, the Receivership Entities’ assets that were allocated to investors had a fair value that was lower than the respective investors’ capital contributions to StraightPath.  In those instances, the 2022 Schedule K-1s reflect a loss for the applicable investor. This loss is the difference between the investor’s initial capital contribution to StraightPath and the fair value of the respective interest (i.e. Pre-IPO Company) stated on the investor’s Welcome Letter, as of June 14, 2022.

The distributions and losses reflected on the 2022 Schedule K-1s are a result of the transfer of the Receivership Entities’ assets to the QSF by operation of law.  No Receivership Assets have been sold and there have been no distributions in cash or shares to investors since the Receiver’s appointment on June 14, 2022. 

The information in the 2022 Schedule K-1s does not reflect what you might receive pursuant to the Plan of distribution from the StraightPath Receivership.

The 2022 Schedule K-1s will be the final K-1s issued for the Receivership Entities. K-1s will not be issued for the QSF in the future.

The Receiver and her team are unable to provide you with any advice as you handle your personal tax situation.  For that, you will have to consult your personal tax advisor. 

Yes. The Securities and Exchange Commission filed an action in the U.S. District Court for the Southern District of New York, entitled, SEC v. Legend Venture Partners LLC, Case No. 23-cv-5326-LAK (S.D.N.Y.).  By order dated July 7, 2023, Judge Kaplan appointed Melanie L. Cyganowski as Receiver of various Legend entities.  Inquiries may be directed to legendreceivership@stout.com.

The Receiver and her team are reviewing Investor Objections and other inquiries that were submitted by investors and communicating with the respective investor regarding their disputes.  Please visit the Claims and Interests page here for more information.

On April 19, 2023, each Investor, respectively, was sent an individual statement (an “Investor Statement”).

Any Investor who disagreed with the information contained in the Investor Statement was required to serve on the Receiver’s Claims Agent any disputes they may have to the accuracy of the information in the Investor Statement (an “Investor Objection”).  Investor Objections were required to be served by June 5, 2023.
 

The Receiver is reviewing and analyzing proofs of claim (each a “Proof of Claim”) submitted by parties asserting creditor claims against the Receivership Entities.  Please visit the Claims and Interests page here for more information. 

Claimants (i.e. creditors) were not sent an Investor Statement with respect to their Claims.  Claimants were required to serve a completed Proof of Claim Form on the Receiver’s Claims Agent.  The Receiver may disallow any Proof of Claim filed by an Investor on account of an Interest on grounds, among others and without limitation, that it is duplicative of an Investor Statement.  A copy of the Proof of Claim Form may be found by clicking here.  

Proofs of Claim against the Receivership Entities were required to be served by the following dates: (i) May 30, 2023 was the deadline for Claimants other than Governmental Units to serve Proofs of Claim against the Receivership Entities; (ii) July 28, 2023 was the deadline for Governmental Units to serve Proofs of Claim against the Receivership Entities.  Claimants holding Claims that arose after the Receiver was appointed on June 14, 2022 were not required to serve Proofs of Claim on or before the Bar Dates and will not be subject to the Bar Dates.

The Receiver has received over $15 million in cash proceeds of StraightPath’s Scopely shares.

On April 5, 2023, Scopely announced that it signed an agreement to be acquired by Savvy Games Group, in a deal valued at $4.9 billion in cash.  As the Receiver has previously reported, StraightPath purchased 332,278 shares of Scopely, which are comprised of common and preferred shares.

On June 14, 2022, the Honorable Lewis A. Kaplan of the United States District Court for the Southern District of New York appointed the Honorable Melanie L. Cyganowski (Ret.) as the receiver (“Receiver”) of SP Ventures Fund LLC, SP Ventures Fund 2 LLC, SP Ventures Fund 3 LLC, SP Ventures Fund 4 LLC, SP Ventures Fund 5 LLC, SP Ventures Fund 6 LLC, SP Ventures Fund 7 LLC, SP Ventures Fund 8 LLC, and SP Ventures Fund 9 LLC, (collectively, the “Funds”), as well as StraightPath Venture Partners LLC (“Manager”) and StraightPath Management LLC (“Adviser” and together with the Funds and Manager, the “Receivership Entities”).  See, Securities and Exchange Commission v. StraightPath Venture Partners LLC, et al., Case No. 22-cv-03897, S.D.N.Y., Dkt. No. 56, June 14, 2022 (the “Order”).  Additional relevant orders and filings may be found at www.straightpathreceivership.com/civildocket.

See the Complaint filed by the Securities and Exchange Commission at Dkt. No.1 filed on May 13, 2022 at www.straightpathreceivership.com/civildocket for a summary of the alleged reasons for the filing.

Receivership is a process in which a court-appointed receiver acts as a custodian to marshal and preserve a company’s property.  A receiver can be authorized to investigate the financial and business affairs of the company, and in certain circumstances, institute legal proceeding on behalf of the company’s estate. Additionally, a receiver is normally tasked with the duty of proposing a plan to distribute the property to investors, subject to approval by the Court.  It is common for receivers to retain professionals, including attorneys and financial advisors, to assist them in their duties.

Pursuant to the Order, the Receiver has, among other things, succeeded prior management of the Receivership Entities, and is in the process of taking custody and control of all of the assets and books and records of the Receivership Entities.  Prior management is no longer authorized to act on behalf of any of the Receivership Entities in anyway.

The Receiver’s powers and duties are set forth in the Order that was issued by Judge Kaplan, who has oversight over the Receiver’s activities in administering the receivership. The beneficiaries of the Receiver’s work include the investors in the Receivership Entities, and parties who have an interest in the estate.

The Receiver is not your lawyer, and she cannot provide you with legal advice.

StraightPath will not be accepting any additional investor funds. The goal of the Receiver is to marshal the Receivership Entities’ property and propose a plan to liquidate the company’s property and distribute the property to investors.

Additional information about the StraightPath Receivership can be found on this website. The Order requires the Receiver to file quarterly status reports with the Court, which will be posted to this website as soon as they become available.

Periodic review of this website is the best way to stay up-to-date on developments in this Receivership. The website will be updated on a regular basis.  You can register to receive email updates on this page.

At this stage of the proceedings, we cannot predict how long it will take to complete this process.
 

You have the right to hire or consult with your own lawyer, and the Receiver encourages you to speak with your own lawyer should you feel more comfortable.

No.  At this time, funds and other Receivership Assets may only be used by the Receiver in the manner authorized by the Court, and the Court has not yet authorized any distributions to investors or other creditors.

You may submit an inquiry by email to straightpathreceiver@otterbourg.com.