SEC v. Champion-Cain, ANI Development, LLC, et. al

Case Summary:

On September 3, 2019, Krista Freitag was appointed as receiver of ANI DEVELOPMENT, LLC, AMERICAN NATIONAL INVESTMENTS, INC., and their subsidiaries and affiliates pursuant to an Order entered by the United States District Court for the Southern District of California in an action filed by the Securities and Exchange Commission.

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Dear Investors/Lenders,

  • Re: Protective Order Regarding Investor Contact Information in the matter of Securities and Exchange Commission, Plaintiffs, v. GINA CHAMPION-CAIN and ANI DEVELOPMENT, LLC, Defendants, and American National Investments, Inc., Relief Defendant, United States District Court, Southern District of California, Case No. 3:19-cv-01628-LAB-AHG

A request was made for the contact information of investors/lenders by certain investors/lenders and their lawyers. The parties then discussed the request and agreed that (a) all investor contact information should be kept confidential by those who receive it, and (b) investors should be allowed to “opt out” if they so choose (i.e. not have their contact information shared). This proposal was then made to and approved by the Court, the order on which is located below (02/05/2020 – Protective Order Regarding Investor Contact Information) for your reference.

 

Per the order, investors/lenders have 14-days (February 24, 2020) from the date of this posting/message, to notify the Receiver or the SEC that they do not want their contact information (name, telephone number and email address) to be shared. After the end of the 14-day period, per the order, the Receiver will share the contact information for those investors/lenders who have not opted out. The information will be provided only to those investors/lenders and/or their lawyers who have agreed to be bound by the confidentiality requirements in the order.

 

Accordingly, please send an email to ani@ethreeadvisors.com or 3129cv01628@sec.gov on or before February 24, 2020 if you do not want your contact information to be shared. If you are okay with your contact information being shared, you do not need to do anything (please do not send an email stating you are okay with your contact information being shared).

Sincerely,

Krista L. Freitag
Receiver

 

Frequently Asked Questions

  1. What if I invested through an IRA?
    A primary purpose of an IRA is their tax benefits. However, we cannot provide individual tax advice. Please seek the guidance of your qualified tax professional or financial advisor. We will reach out to known IRA administrators to advise them of the receivership.
  2. Am I on the list of investors?
    If you have signed up to the receivership website, then you can be sure we have your contact information and you will receive notices that go out to investors. If your email address or physical address changes during the receivership, be sure to notify us by email to ani@ethreeadvisors.com
  3. How do I file a claim? Where do I submit my documents?
    Claims do not need to be submitted at this time. At the appropriate time, we will seek approval of procedures for the administration of claims and a distribution plan. Once the procedures have been approved, you will receive notice and instructions regarding submitting claims.
  4. Why aren’t all the court documents on the receivership website?
    The receivership website is intended to provide relevant information for investors about the receivership, but it is not a duplicate of the District Court’s electronic docket system. If investors want to review pleadings and orders as they are filed with the District Court, they can obtain a PACER log in and password from the District Court.
  5. Why aren’t I receiving updates?
    If you have subscribed to the receivership website, then you can be sure we have your contact information and you will receive the monthly and quarterly notices that go out to investors.
  6. Who has possession of ANI’s records and is the Receiver researching those records?
    We have obtained forensic images of ANI computers and servers at takeover, have possession and control of ANI records and we are using them as we discharge our duties.
  7. Is Ovation Finance Holdings part of the receivership?
    Ovation Finance Holdings is not a party to or an entity in the receivership.
  8. Should I join the class action lawsuit against Chicago Title and other parties?
    We are aware that some investors have been contacted regarding a class action lawsuit. We cannot advise investors on their legal rights or whether to retain counsel. Please also see my comments above regarding the two lawsuits against Chicago Title and other parties.
  9. What is the timeframe for resolution? How much will I recover?
    It is too early in the receivership to be able to estimate when distributions to investors will be made or how much investors will recover. The Court-ordered accounting and the Court approval of a distribution plan and claims process must be completed first.
  10. Will promised returns on current promissory notes be addressed in the claims process?
    No decisions regarding investor claims have been made yet.

Please send all inquiries and correspondence to:

ani@ethreeadvisors.com
619-788-5602

 

The Receiver’s office will attempt to respond to individual inquiries as promptly as possible, but ask for your patience through this very early stage of the transition process.

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Court Filings:

 

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Email: ani@ethreeadvisors.com
Phone: 619-788-5602