RECEIVERSHIP OF HUNTER WISE COMMODITIES, LLC
HUNTER WISE TRADING, LLC, AND HUNTER WISE SERVICES, LLC

IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF FLORIDA

CASE NO. 12-CV-81311-MIDDLEBROOKS/BRANNON

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Receiver, Special Monitor and Corporate Monitor
Melanie E. Damian, Esq. of Damian & Valori, LLP

 

Lead Counsel to Receiver, Special Monitor and Corporate Monitor
Kenneth Dante Murena, Esq. of
Damian & Valori, LLP

 


 

WARNING 

Some customers have been contacted by a company called Consumer Collection Advocates, which requests that customers sign an agreement and pay a fee to file a claim in this Receivership. This Receivership, the Receiver and the CFTC are in no way affiliated with this company and can not guarantee any information they provide or any promise they make regarding customer claims and distributions. ANY COMPANY claiming to be affiliated with, or work on behalf of, a state or federal government agency, which offers to submit your claim or promises to provide you with a refund or distribution but requires that you pay a fee, is NOT LEGITIMATE.

Customers do not need to use, or sign an agreement with, Consumer Collection Advocates (or any other company) or pay a fee to file a claim in this Receivership.  If you have been contacted, or are contacted in the future, by Consumer Collection Advocates or any other company seeking money from you to file your claim in this Receivership, please contact us by email at hunterwiseclaims@dvllp.com so that we can ensure that your claim is properly submitted to the Receiver and that, if you are determined to be an eligible claimant with an allowed claim, you receive a distribution directly from the Receivership Estate. Also, we recommend that you report any such contact from Consumer Collection Advocates or any other company making similar promises, to the Federal Trade Commission (www.ftccomplaintassistant.gov), the Attorney General of the State in which you reside, and other appropriate law enforcement authorities.


NOTICE OF CLAIMS PROCESS  [click here to download]
EXHIBIT 1 - List of Hunter Wise Dealers
[click here to download]

PROOF OF CLAIM FORM  [click here to download]

EXHIBIT 1 - List of Hunter Wise Dealers [click here to download]

Order entered on 08/05/14 Approving the Receiver’s Claims
Administration Process and Plan of Distribution

[click here to download]


UNITED STATES COMMODITY FUTURES TRADING COMMISSION,

Plaintiff,

vs.

HUNTER WISE COMMODITIES, LLC, HUNTER WISE SERVICES, LLC, HUNTER WISE CREDIT, LLC, HUNTER WISE TRADING, LLC, LLOYDS COMMODITIES, LLC, LLOYDS COMMODITIES CREDIT COMPANY, LLC, LLOYDS SERVICES, LLC, C.D. HOPKINS FINANCIAL, LLC, HARD ASSET LENDING GROUP, LLC, BLACKSTONE METALS GROUP, LLC, NEWBRIDGE ALLIANCE, INC., UNITED STATES CAPITAL TRUST, LLC, HAROLD EDWARD MARTIN, JR., FRED JAGER, JAMES BURBAGE, FRANK GAUDINO, BARIS KESER, CHADEWICK HOPKINS, JOHN KING, AND DAVID A. MOORE,

Defendants


The trial in this CFTC enforcement action was concluded on March 3, 2014.  On May 15, 2014, the U.S. District Court entered its Opinion and Order setting forth its findings of facts, conclusions of law and final ruling on the claims of the CFTC and the defenses asserted on behalf of the Hunter Wise entity defendants and their principals.  In summary, the Court held that the CFTC established by a preponderance of evidence that the Hunter Wise entity defendants, Harold Edward Martin, Jr. and Fred Jager committed fraud and aided and abetted the Lloyds entity defendants and the dealer defendants in defrauding the retail customers.

In addition, on May 15, 2014, the U.S. District Court entered its Order of Final Judgment, Permanent Injunction, Civil Monetary Penalty and Other Equitable Relief (the "Final Judgment") in favor of the CFTC and against the Hunter Wise entity defendants and their principals Martin and Jager (collectively, "Defendants"). In the Final Judgment, the Court ordered Defendants to pay restitution in the amount of fifty-two million, six hundred forty-three thousand, three hundred ninety-nine dollars and nineteen cents ($52,643,399.19).

To read the Court's Opinion and Order and Final Judgement, click on the link set forth below.

Further, the Court ordered Defendants to pay a civil monetary penalty to the CFTC in the amount of fifty-five million, four hundred forty-five thousand, eight hundred ninety–two dollars and thirty nine cents ($55,445,892.39), which represents triple the monetary gain received by the Hunter Wise defendants as a result of their wrongdoing.

Additionally, the Court granted full authority to Melanie E. Damian, the Court-Appointed Special Monitor and Corporate Manager, to act as Equity Receiver of the Hunter Wise entity defendants.  As Equity Receiver, Ms. Damian is authorized to collect the restitution amount from Defendants and to determine the manner and timing of the equitable distribution of any funds collected (previously and in the future) to Defendants' retail customers.

Accordingly, the Receiver has filed with the Court a Motion to Approve (A) Claims Administration Process and (B) Plan of Distribution, along with a proposed Legal of Claims Administration Process and Plan of Distribution, and a proposed Proof of Claim and Release form.

The Court has granted the Receiver's Motion to Approve (A) Claims Administration Process and (B) Plan of Distribution, along with the Legal Notice of Claims Administration Process and Plan of Distribution, and the Proof of Claim and Release form.  To read the Court's Order granting that Motion and the Court-approved Legal Notice and Proof of Claim form, click on the links set forth at the top of this page.


Order Granting Receiver's Motion to Approve Sale of All Personal Property of the Receivership Estate
[click here to download]


Opinion and Final Order
[click here to download]


Order of Final Judgement, Permanent Injunction, Civil Monetary Penalty and Other Equitable Relief
[click here to download]


11th Circuit Court of Appeals Affirmation of Preliminary Injunction [click here to download]

Omnibus Order
[click here to download]

Omnibus Order Denying Defendants' Motions to Dismiss
[click here to download]


Order on Plaintiff's Motion for Preliminary Injunction 
[click here to download]


Order Temporarily Appointing Special Corporate Monitor 
[click here to download]

Complaint for Injunctive and Equitable Relief and Penalties Under the Commodity Exchange Act  [click here to download]

Receiver's Motion to Approve (A) Claims Administration Process and (B) Plan of Distribution
[click here to download]

Exhibit A
Exhibit B








SPECIAL MONITOR AND CORPORATE MANAGER'S FIFTH STATUS REPORT  5/6/14    
[click here]


Exhibit A
Exhibit B
Exhibit C
Exhibit D

SPECIAL MONITOR AND CORPORATE MANAGER'S FOURTH STATUS REPORT 2/19/14    
[click here]


Exhibit A
Exhibit B
Exhibit C
Exhibit D
SPECIAL MONITOR AND CORPORATE MANAGER'S THIRD STATUS REPORT 9/30/13    
[click here
]


Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
SPECIAL MONITOR AND CORPORATE MANAGER'S SECOND STATUS REPORT 7/2/13    [click here]

Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
SPECIAL MONITOR AND CORPORATE MANAGER'S INITIAL STATUS REPORTS 3/22/13  
[click here
]
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Exhibit F
Exhibit G
Exhibit H
Exhibit I
Exhibit J
Exhibit K
Exhibit L
Exhibit M
Exhibit N
Exhibit O
Exhibit P

On December 5, 2012, the Commodity Futures Trading Commission (CFTC) filed a Complaint for Injunctive and Equitable Relief and Penalties Under the Commodity Exchange Act (the "Complaint") against Hunter Wise Commodities, LLC, and the other entities and persons listed above (collectively, "Defendants"), commencing the enforcement action of CFTC v. Hunter Wise Commodities, LLC, et al. (the "CFTC Action") in the U.S. District Court for the Southern District of Florida (the "District Court').  

In the Complaint, the CFTC alleges, among other things, that Hunter Wise Commodities, LLC ("Hunter Wise") and the other Defendants, engaged in illegal, off-exchange, financed commodity transactions with retail customers and made various misrepresentations to dealers, brokers, advisors and retail customers in connection with those transactions, in violation of several federal statutes.  In particular, Defendants claim to sell physical commodities, including gold, silver, platinum, palladium and copper, in off-exchange transactions to retail customers (through dealers, brokers, and advisors) throughout the United States, representing that the investment product is physical metal rather than stocks in metal companies or exchange-traded commodity futures.  In fact, no physical metals actually backed those transactions.  As a result, on February 22, 2013, the District Court entered the attached Order Temporarily Appointing Special Corporate Monitor (the "Appointment Order"), and, on February 25, 2013, entered the Order on Plaintiff's Motion for Preliminary Injunction (the "Preliminary Injunction Order").  In accordance with the Appointment Order and the Preliminary Injunction, the Court-appointed Special Monitor/Corporate Manager has taken immediate steps, and will make every possible effort, to marshal and preserve the assets of all retail customers.

The Special Monitor/Corporate Manager encourages retail customers, dealers, brokers and advisors who conducted transactions with Hunter Wise and any of the other Defendants to carefully review the Complaint and the District Court's Orders (links to which are set forth above) so they understand the nature of the claims alleged against Defendants in the CFTC Action and the extent and scope of the Special Monitor/Corporate Manager's duties and authority under those Orders.  On or before March 24, 2013, the Special Monitor/Corporate Manager will provide (on this website) additional information regarding the investigation into Defendants' business operations and the assets of their retail customers.  For further information regarding the CFTC Action and how it may affect retail customers, dealers, brokers and advisors, please contact the CFTC's hotline at 312-596-0608 and visit the CFTC's website (www.cftc.gov/ConsumerProtection/CaseStatusReports/HunterWise). You may also contact a representative of the Special Monitor/Corporate Manager at 305-542-4410 and HunterWiseManager@dvllp.com.  Finally, you may visit the Hunter Wise website (http://www.hwcom.com), which is now under the control of, and will contain information provided by, the Special Monitor/Corporate Manager.

Please understand that neither the Special Monitor/Corporate Manager nor any of her attorneys or other representatives may provide you with legal, tax and/or accounting advice in connection with this or any other matter.  Should you require such advice, the Special Monitor/Corporate Manager asks that you contact your own attorney, accountant or other professional.

The Special Monitor/Corporate Manager encourages you to periodically visit the CFTC website and the Hunter Wise website as they will be updated with additional information throughout the course of the CFTC Action. Thank you.

 
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