COViSAL letter to US Receiver -THIRD REQUEST: $8.1 Million Swiss Funds Unresolved & 12th Distribution Payments Not Confirmed – No Response to Previous Letters
April 15. 2026
Subject:
THIRD REQUEST: $8.1 Million Swiss Funds Unresolved & 12th Distribution
Payments Not Confirmed – No Response to Previous Letters
To:
Ralph Janvey, U.S. Receiver; Receiver's attorneys from Baker Botts LLP: Kevin
Sadler, Scott Powers, David Arlington, and Brendan Day; Members of the Official
Stanford Investors Committee (OSIC): John Little (Examiner & OSIC
President), Ed Snyder, Judith Blakeway
Cc:
Gilardi & Co. (US Receiver's Claims Agent); COViSAL (for record)
Dear Mr. Janvey, Counsel, Mr. Little, Mr. Snyder, Ms.
Blakeway, and Members of OSIC,
I am writing to you for the third time regarding two
urgent matters. To date, I have received no substantive response to my previous
letters.
Summary
of unresolved issues:
1. $8.1
Million Swiss Funds – Transferred to the Receiver on December 17, 2025,
pursuant to the 2013 Cross-Border Protocol. The Joint Liquidators confirmed
these funds are for creditor distribution. However, they were not included in the
Final Distribution Schedule filed on March 9, 2026. They have been in the
Receiver's possession for nearly four months with no explanation or plan.
2. 12th
Distribution – On April 6, 2026, the Receiver announced that
payments totaling $47.5 million were issued on April 3 to over 2,000 claimant
groups. However, twelve
days have passed and no
member of COViSAL has reported receiving any payment. Gilardi
& Co. has confirmed the method of payment but provided no timeline.
History of my attempts to
communicate:
|
Date |
Action |
Response |
|
March 2, 2026 |
First Request sent |
Kevin Sadler
responded only to say an update would be posted March 9. No
answers to my specific questions. |
|
March 9, 2026 |
Receiver posted Final
Distribution Schedule |
Did
NOT address the $8.1 million Swiss funds. |
|
March 11, 2026 |
Second Request with
detailed 6-page letter |
No
response of any kind. |
|
April 15, 2026 |
Third Request (this
email + attached PDF) |
Awaiting response. |
Attached is my detailed
Third Request with 12 specific questions requiring answers.
I request a written response within 10 business days.
Sincerely,
Jaime R. Escalona
On behalf of COViSAL for Restitution, since 2009.
Twitter: @COViSAL
THIRD REQUEST: $8.1 Million Swiss Funds Unresolved
& 12th Distribution Payments Not Confirmed – No Response to Previous
Letters
Date:
April 15, 2026
To:
Ralph Janvey, U.S. Receiver; Receiver's attorneys from Baker Botts LLP: Kevin
Sadler, Scott Powers, David Arlington, and Brendan Day; Members of the Official
Stanford Investors Committee (OSIC): John Little (Examiner & OSIC
President), Ed Snyder, Judith Blakeway
Cc:
Gilardi & Co. (US Receiver's Claims Agent); COViSAL (for record)
Dear
Mr. Janvey, Counsel, Mr. Little, Mr. Snyder, Ms. Blakeway, and Members of OSIC,
I am
writing to you for the third
time regarding two urgent matters. To date, I have received no
substantive response to my previous letters.
This
letter serves as a formal Third Request. Attached herewith are all supporting
documents and a complete history of my previous communications.
PART ONE: HISTORY OF COMMUNICATIONS – NO SUBSTANTIVE
RESPONSES
The
following timeline demonstrates my persistent efforts to obtain clarity on
behalf of the victims COViSAL represents, and the lack of meaningful response
from the Receiver, his counsel, the Examiner, and OSIC.
|
Date |
Action |
Response |
|
March 2, 2026 |
First Request sent to the Receiver, his counsel, and
OSIC. Specific questions were asked regarding: (1) completion of Distribution
Plans 1-11, (2) the timeline for the 12th Distribution, and (3) the $8.1
million Swiss funds (whether they would be included in the Final Distribution
or distributed separately). |
Kevin Sadler (Baker Botts LLP) responded on March 4,
2026, stating only that "The
Receiver anticipates posting an update to the Receivership website on Monday
March 9 concerning the Final Distribution." None of my specific questions were
answered. |
|
March
9, 2026 |
The Receiver posted the Final Distribution Schedule
on the official website, as promised. |
The announcement stated that payments totaling more
than $339 million would be issued to over 14,000 claim groups. The announcement did NOT address the
$8.1 million Swiss funds or answer any of my specific questions. |
|
March
11, 2026 |
Second Request sent with a detailed 6-page letter
attached, including all supporting documentation: the Receiver's own January
2026 announcement, the Joint Liquidators' November 2025 report (sections 3.8
and 3.9), and citations to the 2013 Cross-Border Protocol (Section 8.4). |
No response of any kind. To
date, I have received no acknowledgment, no answers, and no explanation. |
|
April
15, 2026 |
Third Request
(this letter) |
Awaiting
response. |
PART TWO: THE
$8.1 MILLION SWISS FUNDS REMAIN UNRESOLVED
Background
On December 17, 2025, the
Antiguan Joint Liquidators (JLs) transferred $8.1 million in Swiss funds to the U.S.
Receiver, Ralph Janvey, pursuant to the 2013 Cross-Border Protocol.
The
Receiver himself confirmed receipt of these funds on his website in January
2026, stating:
*"The
JLs have transferred to the Receiver, pursuant to the Cross-Border Protocol,
$8.1 million in funds from the Swiss bankruptcy proceeding."*
The
Joint Liquidators confirmed in their November 2025 Report to Creditors
(sections 3.8 and 3.9):
*"These
funds will be treated as Swiss Frozen Funds under the 2013 Protocol Agreement,
which requires two-thirds of the value involved to be transferred to the US
Receiver for creditor distribution."*
The Problem
Despite
the clear language of the 2013 Cross-Border Protocol, despite the Joint
Liquidators' explicit confirmation that these funds are for creditor distribution,
and despite the Receiver's own acknowledgment that he received them pursuant to the Protocol,
the $8.1 million were not
included in the Final Distribution Schedule filed with the
Court on March 9, 2026.
The
Final Distribution Schedule totals $339
million (7.10%). The $8.1 million are nowhere to be found.
The 2013 Protocol is Clear
Section
8.4 of the 2013 Cross-Border Protocol states:
"All
of the Covered Assets that are allocated to the JLs and the Receiver, except
for the Working Capital, will be distributed to Creditor-victims and only to
Creditor-victims."
The
$8.1 million are Covered Assets. They were allocated to the Receiver. The only
exception – Working Capital – was already allocated to the JLs from UK Assets
and has no relation to these Swiss funds.
These
funds belong to the victims. They have been in the Receiver's possession for
nearly four months. No explanation has been provided. No distribution plan has
been announced.
PART THREE: THE 12TH DISTRIBUTION – NO CONFIRMATION OF
PAYMENTS
The Receiver's Announcement (April 6, 2026)
On
April 6, 2026, the Receiver posted the following update on his website:
"April
6, 2026 Update Concerning Payments Under Final Distribution Plan – On November
25, 2025, the Court approved an Amendment to the Final Distribution Plan
originally approved on October 8, 2025. Under the Final Distribution Plan, the
Receiver will be making payments totaling more than $339 million to over 14,000
claimant groups. On April 3, 2026, the Receiver issued payments to over 2,000
claimant groups under the Final Distribution Plan totaling approximately $47.5
million. The Receiver will post further updates on the progress of his
execution of the Final Distribution Plan as additional payments are
issued."
The Reality – No Claimant Has Confirmed Receiving
Payment
Twelve
days have passed since the alleged April 3 payment date. I have been
in direct contact with the COViSAL community, which includes hundreds of
victims. To date, not a
single claimant has reported receiving any payment – neither by
wire transfer nor by physical check.
If
payments were truly issued to over 2,000 claimant groups on April 3, some of
those claimants would have received their funds by now. Wire transfers
typically clear within 1-3 business days. Physical checks arrive by mail within
5-10 business days.
The
silence from the claimant community is concerning.
Gilardi & Co. Response – Method Confirmed,
Timeline Omitted
Several
COViSAL members contacted Gilardi & Co., the claims agent, to inquire about
the 12th Distribution. Gilardi responded confirming that the method of payment will
be the same as in Distribution #11 (wire transfer for those who received wire,
physical check for those who received check).
However,
Gilardi did not provide
any information about:
·
When individual payments will actually be sent
·
Whether the April 3 payments were actually issued
·
How claimants can verify the status of their payment
This
is unacceptable. After 17 years of waiting, victims deserve transparency and
clear, timely communication.
PART FOUR: SPECIFIC QUESTIONS – THIRD REQUEST
I
respectfully request written
answers to each of the following questions within 10 business days of
receipt of this letter.
Regarding the $8.1 Million Swiss Funds:
|
# |
Question |
|
1 |
Why have the $8.1
million Swiss funds not been included in any distribution to date? They have
been in the Receiver's possession for nearly four months. |
|
2 |
What is the
Receiver's specific plan for these funds? Will they be added to the remaining
balance of the 12th Distribution, or distributed separately as a "13th
Distribution"? |
|
3 |
If a separate distribution
is planned, what will be the administrative cost? Please provide an estimate.
As noted in my Second Request, a separate distribution could consume 30-50%
of the funds – costs that could have been avoided entirely. |
|
4 |
Can the Receiver
confirm, in writing, that these $8.1 million will be distributed to
Creditor-victims in full, as required by Section 8.4 of the 2013 Cross-Border
Protocol? |
|
5 |
Has any portion of
these funds been or will be allocated to administrative expenses, legal fees,
or any purpose other than distribution to Creditor-victims? If
so, please explain the legal basis. |
To the Examiner and OSIC:
|
# |
Question |
|
6 |
Mr. Little, in your
role as Examiner appointed by the Court, what specific actions have you taken
to investigate the omission of the $8.1 million from the Final Distribution? Have
you issued any report or raised any objection? |
|
7 |
To OSIC: As the
official representatives of the investors, what specific actions have you
taken regarding this matter? Have you communicated with the Receiver about
these funds? If so, what response did you receive? |
|
8 |
Why have both the
Examiner and OSIC remained silent while $8.1 million contractually designated
for victims remains undistributed? |
Regarding the 12th
Distribution:
|
# |
Question |
|
9 |
Did the Receiver
actually issue payments to over 2,000 claimant groups on April 3, 2026, as
stated in the April 6 announcement? If so, why has no COViSAL member or
affiliate reported receiving any payment? |
|
10 |
When will the
remaining claimants (over 12,000 groups) receive their payments? Please
provide a realistic, updated timeline. |
|
11 |
Why has Gilardi &
Co. not provided clear information about when individual payments will be
sent? Claimants
deserve transparency and regular updates. |
|
12 |
How can claimants
verify the status of their payment? Is there a dedicated portal, phone
number, or email address for this purpose? |
PART FIVE: CONCLUSION
The
victims have waited 17
years. The Final Distribution is finally underway – or so we
are told. But we have no confirmation from any actual claimant that a single
payment has been received.
At
the same time, $8.1
million in Swiss funds – contractually designated for victims
under the 2013 Cross-Border Protocol, confirmed by the Joint Liquidators, and
acknowledged by the Receiver himself – remains in limbo, with no explanation
and no plan.
My previous
letters have been ignored. My specific questions have gone unanswered. The
Examiner and OSIC have remained silent.
This
is unacceptable.
I
request a written response
to each of the questions above within 10
business days of receipt of this letter.
If no
response is received, I will have no choice but to escalate this matter to the
Court.
Sincerely,
/s/
Jaime R. Escalona
Jaime R. Escalona
On behalf of COViSAL for Restitution, since 2009.
Twitter: @COViSAL
jaenrodes@covisal.org
jaenrodes@gmail.com