SEC v. Louis V. Schooler and First Financial Planning Corp d/b/a Western Financial Planning Corp

Case Summary:

On September 6, 2012, Thomas C. Hebrank of E3 Advisors was appointed temporary receiver for Western Financial Planning Corporation and the entities it controls, including the general partnerships (“Defendants”), pursuant to an Order entered by the United States District Court for the Southern District of California in an action against Defendants filed by the Securities and Exchange Commission.

Document Links (PDF Format):



As we mentioned in our last email update, the K-1s for 2017 that were recently sent to you contained an error. The CPA firm that prepares the K-1s previously mischaracterized your GP investments as being in operating businesses, as opposed to properties held for appreciation and resale. The error requires changes to your K-1, including to where the loss or gain was previously reported (Box 9a vs. Box 10) and a change in your capital accounts. As we recently advised you, this error is being corrected and revised K-1s are being sent out beginning on March 30th.. Please note they are sent out as prepared, not all at once, so if you are invested in more than one GP, you will likely receive them on different dates.These corrections should make it easier for you to consult with your tax preparer/planner and may aide in helping to write off investment losses, if applicable. To assist your tax preparer/planner, we have prepared FAQs and a few sample forms to show how a gain or loss would be recorded on your taxes. This information is not meant to replace seeking professional advice from your tax preparer/planner and we highly recommend you get professional tax guidance. Depending on how you prepare your taxes, you may need to declare future distributions as income. Again, we highly recommend that you discuss these forms and your estimated total distribution from the receivership estate (which is currently projected to be approximately 14% of your allowed claim amount) with your tax preparer/planner.


LINK: Western K-1 Update


Case Updates:




INTERIM DISTRIBUTIONS: The Court has approved the receiver’s request to distribute a total of $13 million to investors, and those checks have been mailed as of June 12, 2018. Allow up to one week for your check\ to be delivered before emailing to inquire about your check. Please note, you have until September 12, 2018 to cash the check. Pursuant to the Court’s distribution order, any checks that go uncashed after 90 days may subject the investor to forfeiture of their claim. Likewise, checks that are returned undeliverable may subject the investor to forfeiture of their claim.


If you have your investment in an IRA, please speak to your IRA administrator as the partnerships have been dissolved and it may be appropriate to close your IRA account. Please speak to your tax preparer or financial advisor about the tax implications of closing your IRA account. The receiver cannot provide individual tax advice.


Updated Contact Information
As discussed above, if your mailing address or email address has changed, please send your current contact information to If you are not receiving monthly case updates, you can sign up for them using the link at the bottom of this page.


Status of Property Sales
The Receiver has thus far completed the following sales:

  • Reno Partners – sold for $32,000
  • Honey Springs Partners – sold for $240,000
  • Valley Vista Partners – sold for $240,000
  • Jamul Valley – sold for $520,000
  • Bratton View – sold for $265,000
  • Reno View and Reno Vista – sold for $75,640
  • Silver Springs North – sold for $700,000
  • Park Vegas – sold for $1,150,000
  • Washoe V – sold for $640,000
  • Production – sold for $4,000,000
  • Silver State – sold for $1,500,000
  • LV Kade – sold for $9,500,000
  • Dayton IV – sold for $300,000
  • Dayton II – sold for $305,000
  • International – sold for $39,000




Who is the Receiver? Why was there a Receiver appointed? Thomas C. Hebrank was appointed by the Federal District Court on September 6, 2012. The Receiver was appointed after a complaint was filed by the Securities and Exchange Commission against Louis V. Schooler and First Financial Planning Corp. dba Western Financial Planning Corp. (“Western”). Your partnership was created by Western and is one of the subjects of the ongoing litigation between the SEC and Louis Schooler.


Who can I talk to about my investment? You can periodically visit the Receiver’s website for additional updates as far as the case, Receiver’s Reports and other legal filings ( The Receiver and his staff are happy to take your questions, however to keep expenses low we ask that you check the FAQ or website first. Please direct inquiries to the Receiver to


What are the next steps in the receivership? As ordered by the Court, the Receiver has pooled all GP bank accounts, closed out the GPs, and is in the process of selling properties pursuant to the Court-approved sale process. The Receiver has completed the investor claims process and has recently sought authority to make distributions to investors with allowed claims. That motion is set to be heard by the Court on May 4, 2018.



Court Filings:


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