On August 19, 2024, the Receiver filed a motion to approve the proposed plan of distribution (the “Plan”).  A copy of the Plan may be found here. 

On November 26, 2024, the Court approved the Plan.  A copy of the Memorandum and Order approving the Plan (the “Approval Order”) may be found here. 

Please continue to monitor this website for updated information about the Plan, including concerning any distributions under the Plan.  

On April 25, 2024, Rubrik’s shares began to trade publicly on the New York Stock Exchange.

All shares of Rubrik owned by SPVP have been transferred to the Receiver’s custodial account and will treated in accordance with the Plan.   Please continue to monitor this website for updated information concerning the Rubrik shares.

Triller Group’s common stock began trading publicly on October 16, 2024. According to information provided by Triller Group, prior to the merger, a reverse stock split was implemented, which resulted in shareholders of Triller receiving one (1) share of Triller Group for every four (4) shares of Triller. The Receiver is advised that shareholders of Triller Group are generally subject to a lock up and their shares will become freely tradeable after a six month holding period that commenced on October 15, 2024, the date of the completion of the merger.

StraightPath purchased Pre-IPO Shares in “Triller” through two different channels. The first type was through economic interest agreements between StraightPath and one entity and certain trusts that held equity in Triller Acquisition LLC. The second type was through economic interest agreements between StraightPath and a foreign entity that itself holds interests in another foreign entity that owns “Triller” equity. The Receivership Entities bear the risk as to whether the counterparties to the agreements will perform their obligations under the agreements.

On July 12, 2023, Savvy Games Group acquired Scopely for $4.9 billion in cash (the “Scopely Buyout”). StraightPath purchased 332,278 shares of Scopely, which were comprised of common and preferred shares. The Receivership has received $15,121,266.53 in cash proceeds (the “Scopely Proceeds”) for those shares.

Although the proceeds of the Scopely Buyout have been received by the Receivership, funds and other Receivership Assets may only be used or distributed by the Receiver in the manner authorized by the Court. The Scopely Proceeds will be distributed in accordance with the Plan.

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. 

You can subscribe to the Court docket through the receivership website to receive email notifications of documents as they are filed with the Court.  The civil docket page can be accessed by clicking here.

No documents are required from investors at this time. The Receivership Team will contact investors when and if any additional information is needed.

A copy of the Plan may be found here. 

A Summary of the Plan can be accessed by clicking here.

The Plan Summary provides a concise explanation of certain aspects of the Plan and includes examples to illustrate the Plan.

The Receiver cannot speculate as to the timing, nature or value of distributions given, among other things, the uncertainty as to i) when future liquidity events will occur; and ii) the value of Receivership assets at the time of distribution.

The Receiver will hold shares or the proceeds of any liquidity event in Receivership custody until such time that i) any applicable lock-up period expires; and ii) the Receivership Team has prepared for an orderly distribution, which will include receiving information from investors, at which time she will proceed in accordance with the Plan.

No. The Plan only provides for cash distributions.

No. The Receivership Team will contact investors when and if any additional information is needed.

On January 6, 2023, the Receiver filed with the Court an Interim Status Report Concerning Preliminary Findings on Commingling and Share Shortfall (the "Interim Report"). A copy of the Interim Report can be found by clicking here. This report provides analysis comparing the number of pre-IPO acquired by StraightPath to the number of shares to which the investors were told their contributions corresponded.

The Receiver prepared a compendium of information containing consolidated data regarding StraightPath’s pre-receivership operations.  The compendium can be found by clicking here.

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 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. 

No. The 2022 Schedule K-1 will be the final Schedule K-1 issued for the Receivership Entities. The QSF will not issue a Schedule K-1.

The Receiver may provide a Form 8986 to investors in the future to correct any previously filed tax returns and K-1s.

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 “SP Funds”), as well as StraightPath Venture Partners LLC (“SPVP”) and StraightPath Management LLC (“SPM” and together with the SP Funds and SPVP, 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 “Receivership 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 Receivership 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 Receivership 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.

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”).

Investor Objections to information contained in the Investor Statement were required to be served by June 5, 2023.

The deadline has passed to file Proofs of Claim against the Receivership Entities.

The Claims and Interests page here for more information. 

On January 6, 2023, the Receiver filed with the Court an Interim Status Report Concerning Preliminary Findings on Commingling and Share Shortfall (the "Interim Report"). A copy of the Interim Report can be found by clicking here.

Investors are also encouraged to review quarterly status reports (available on the Receiver’s homepage) which include discussion of the Receiver’s activities each quarter.

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 SPVP, SPM, and nine related SP Funds.  The USAO’s press release announcing the Indictment can be found by clicking here. All three defendants have pleaded not guilty.

The Receiver has not commenced any actions against the Individual Defendants to date. While the Receiver continues to evaluate potential claims, it is important to understand that under the Receivership Order, any proposed legal proceedings by the Receiver against the Individual Defendants must be approved by the Court.

Additionally, the United States Attorney’s Office (“USAO”) has announced the indictment of the Individual Defendants.  If any of the Individual Defendants are found guilty, the USAO may seek forfeiture of assets. The trial in the criminal action is currently scheduled to commence in June of 2025. 

 The SEC’s complaint also seeks substantial recovery from the Individual Defendants. However, the SEC action is stayed by Court order until the conclusion of the criminal action.

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.
 

Please review the contents of this FAQ page and other information available on the Receivership website prior to contacting the Receiver. You may submit an inquiry by email to StraightPathReceivership@stout.com.

Additional information about the StraightPath Receivership can be found on this website. The Receivership 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.

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

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.