Beware of USFIA – Review Part 2

The USFIA Receivership and IRS have achieved a resolution addressing tax claims held by the IRS.

Pending court approval, this lays the path for USFIA victim distribution payments to go issued.

As per a stipulation filed on June 1st, the Receiver recommends;

The United States agrees that the claims of investors with Allowed Claims and the Administrative Expenses of the Receiver and the receivership shall take precedence over the present and future claims of the IRS. The United States, on behalf of the IRS, the SEC, and the Receiver, met and conferred about the Motion and resolved their disputes by this Stipulation.

The settlement nullifies the Distribution Plan that the Receiver had previously submitted. The Receivership had originally budgeted $15 million to cover any potential IRS demands.

Now that the funds are available, they will be used to fund the distribution procedure.

The Receivership will proceed to make appropriate distribution payments after the requirement has been granted. For this, there is no timetable.

The court has not yet approved the Receiver’s submission as of the time of publishing. I’ll keep checking the docket for developments.

22nd June 2022 update The Receiver has gained clearance to give out USFIA victim distribution payments.

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