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):

 

CASE UPDATES:

 

PROPERTY SALES, DISTRIBUTIONS AND RE-ISSUED DISTRIBUTION CHECKS

 

Ongoing Property Sales
We continue to make steady progress selling properties; escrow was recently opened on two properties in the Tecate area. However, the remaining properties are generally lowered priced, with an average listing price of $500,000. If we exclude two properties that are listed over $1,000,000, the average listing price drops to under $300,000. We continue to monitor marketing activity to ensure we are making progress towards selling all of the remaining properties.

 

Distributions
The first interim distribution checks were mailed to investors in June 2018. To date, there has only been one round of distribution checks, but since there are still remaining properties to sell, future distributions are expected. We do not yet know when future distributions will take place as it will depend on when properties are sold and sufficient funds are accumulated in the receivership estate.

 

Re-issued Distribution Checks
Our goal is to provide a distribution to all approved claimants. To date, over $12,520,000 of the $13,000,000 total in distribution checks have been cashed. The remaining checks are either uncashed (approximately $400,000) or we do not have current contact information for those investors (approximately $80,000).

 

We are already working with most investors whose checks remain uncashed. If we are already working with you, you are not at risk of forfeiting your claim. Please continue to be patient as we are working with each of you individually to try to resolve issues with your distribution. For security reasons, the process for replacing lost checks is time-consuming and will require us to place a stop payment on the check.

 

To date, only investors with unknown contact information are at risk of forfeiting their claims (less than 1%). Distributions that would have gone to the holders of forfeited claims will increase the pool of funds available for future distributions to those who have cashed their distribution checks.

 

Updated Contact Information
As discussed above, if your mailing address or email address has changed, please send your current contact information to wfp@ethreeadvisors.com. 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 previously completed the following sales:

  • WFPC owned Silver Springs property – sold for $115,000
  • 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 at overbid auction 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
  • 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
  • Twin Plant – sold for $35,000
  • Tecate South – sold for $45,000
  • Stead I – sold for $1,282,600
  • Las Vegas 2 – sold for $1,725,000

Expected Sales:

  • Washoe IV – sale approved for $350,000. Buyer has extended escrow to resolve some title issues but has increased the earnest money deposit due to the delay. The sale is expected to close this month.
  • Washoe V – sale approved for $530,000. The buyer has requested a change to the sale approval order for tax purposes which will require a longer time to close. That said, the buyer has deposited substantial funds in escrow to secure the sale. The sale is expected to close in December 2018.
  • Dayton I – sale of property for $550,000 pending Court approval with a hearing date set for December 7, 2018.

 

FREQUENTLY ASKED QUESTIONS:

 

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”). The General Partnerships and underlying properties are included in the receivership.

 

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 (www.ethreeadvisors.com). The Receiver and his staff are happy to take your questions, however to reduce expenses, we ask that you check the FAQ or website first. Please direct inquiries to the Receiver to wfp@ethreeadvisors.com.

 

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 completed the investor claims process and sought authority to make interim distributions to investors with allowed claims. That motion was granted on April 30, 2018, and interim distribution checks were sent to investors with allowed claims on June 12, 2018.

 

–––

Court Filings:

 

Sign Up to Receive Case Updates

* indicates required

–––

Email Thomas C. Hebrank: wfp@ethreeadvisors.com