A liquidating trust
A 5% distribution (5% of allowed claim) to the General Fund (all 7,786 investors) participants in November, 2012.A 7% distribution to the Assigned participants in November, 2013 and the second distribution of 3% to the Assigned participants in April, 2016.It is anticipated that there will be at least one more distribution to General Fund participants once all remaining litigation has been concluded.Joseph Blimline was sentenced to 240 months in federal prison on May 3, 2012 for his role in the Provident investment fraud.LEARN MORE Brendan Coughlin, Henry Harrison, Russ Melbye, and Mark Miller are all serving terms of varying length in federal prison.LEARN MORE The Trust is in the process of liquidating the remaining assets of the Provident entities including pursuing claims brought by the Trust against numerous third parties. Please consult a qualified tax advisor or the IRS regarding Revenue Procedure 2009-20 and other tax advice pertaining to your investment in Provident Royalties, LLC.
For example, the Trustee has resolved litigation against numerous different broker-dealers for their role in soliciting investors without conducting adequate due diligence on the Provident companies.
The broker-dealer litigation also sought the return of over million in commissions these various broker-dealers received from the Provident Royalties companies. Unfortunately, many of the defendants were thinly capitalized and grossly underinsured.
The Trustee has brought litigation against the former directors and officers of the Provident Royalties companies, and numerous other individuals and companies that received monies from the Provident entities without providing fair value in return. The Trustee also commenced litigation against the Jordan River Liquidating Trust and has reached an agreement to compromise and settle those claims as well. The Trustee and the Trust Oversight Committee are committed to prosecuting these claims aggressively to maximize the recovery for the investors and are working hard towards being in a position to make distributions to investors.
The Trustee has achieved substantial success since the establishment of the Trust.
The Trustee has collected approximately .4 million in gross settlements.
Several settlements have been reported by the press or media outlets; however, some of these reports were inaccurate.