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:

 

FIRST INTERIM DISTRIBUTION AND STATUS OF PROPERTY SALES

 

First Interim Distribution & Potential Forfeiture of Unclaimed Distributions
The first interim distribution checks were mailed to investors in June 2018, however, a small number of checks remain un-cashed. If you did not cash your check, please contact the receiver immediately at WFP@ethreeadvisors.com to discuss options for a replacement 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 or if we do not have current contact information, may subject the investor to forfeiture of their claim. We are making reasonable efforts to locate those investors who have not claimed their distribution but will likely discontinue those efforts this quarter. To date, only a very small percentage of claims are at risk for forfeiture (less than 1%). Distributions that are forfeited will increase the pool of funds available for future distributions.  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.

 

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

Sales since last update:

  • Stead I (partial sale of approximately 40% of available land) – sold at overbid auction for $1,282,600.
  • Las Vegas 2 – sold for $1,725,000.

Expected Sales:

  • Washoe IV – sale approved for $350,000. Expected to close in October 2018
  • 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.

 

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.

 

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Court Filings:

 

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Email Thomas C. Hebrank: wfp@ethreeadvisors.com