Author Topic: American Pension Services in Receivership  (Read 3934 times)

dagilbe

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American Pension Services in Receivership
« on: April 29, 2014, 04:47:50 AM »
The worst news you can hear as an IRA investor.  I provided Equity Institutional all the paperwork to transfer my IRA back in February.  Here is to hoping the transfer was made. :-\

Dear American Pension Services Customer:

 

We write to you with an important update regarding American Pension Services ("APS") and your account at APS.

 

On April 24, 2014, the United States Securities and Exchange Commission ("SEC") filed a lawsuit against APS and its principal, Curtis DeYoung. The case is called Securities and Exchange Commission v. American Pension Services and Curtis L. DeYoung, Dist. Utah Case No. 2:14-cv-00309. The SEC alleges that APS has violated U.S. securities laws through the misappropriation of customer funds, the placement of unauthorized investments, forged direction letters, and inflated asset values.

 

At the request of the SEC, the U.S. District Court in Salt Lake placed APS in receivership. The Court has appointed a Receiver with the full power and authority over all APS operations. The Receiver reports directly to the Court.

 

To assist in that process, the Court has ordered frozen all APS accounts. As the Receiver, we have been charged with the responsibility of gathering and preserving all of the assets of American Pension Services, which includes any accounts and assets you have with American Pension Services. Our intent at this time is to safely secure all assets and accounts. As a result, we are freezing all accounts. This means that for a short period of time, you will not be able to change investments within your account or withdraw money from your account. We will make an effort to lift this restriction as soon as possible under the circumstances. We ask that you please be patient as we undertake this process.

 

The next Court hearing will likely be scheduled for early May. At that time, the Court will consider whether the receivership should become permanent. We should be able to provide more guidance after the hearing.

 

We know that you have many questions and we appreciate your patience at this time. We will keep you advised of any action required on your part and will keep you up to date as frequently as possible. We have set up a receivership website at http://www.apsreceiver.com, which will be our primary way of communicating with you. It contains a detailed set of answers to Frequently Asked Questions ("FAQs") and has the Court documents from the SEC's case. A copy of the FAQs also is attached. Again, we appreciate your patience and will post updates as the case progresses.

 

If you are not the contact person for your account or plan, please forward to us the name and information for the current contact person by email to info@apsreceiver.com.

 

Very truly yours,

Diane Thompson

Receiver, American Pension Services
 
 
 
Frequently Asked Questions
Question:        Is APS still in business?

Answer:           Yes. But its operations are controlled by the Court through the Receiver, at least until the next scheduled court hearing. As a result, temporary limitations on APS and its operations have been put in place to protect account holders.

 

Question:         Is any money missing from APS accounts?

Answer:           Maybe. The SEC's papers filed with the Court indicate that the SEC has reason to conclude that over $20 million is missing out of $300 million under management. You can read more about this in the SEC's pleadings, which are posted to the receivership website. The defendants in the litigation have a right to contest the SEC's conclusions. Ultimately, the Court will determine what money, if any, is missing.

 

Question:         Could any new funds be lost?

Answer:           No, so long as they were located in APS bank accounts that have been frozen by the Court's Order. As part of the Court's appointment of a Receiver, such accounts are now protected against improper withdrawals. 

 

Question:         Can I make a new withdrawal from my account prior to the next Court hearing?

Answer:           No. The Court has determined that no new withdrawals can occur, at least until the next hearing. This is to protect the interests of all account holders.

 

Question:         I don't want to make a new withdrawal, but I am owed a scheduled automatic distribution. Will this still occur?

Answer:           Probably not. We will be assessing any scheduled automatic distributions. We can only authorize those if permitted by Court Order. We realize they are an important matter for many account-holders. They will be addressed as soon as possible, consistent the terms of the Court's Orders in this matter.

 

Question:         I want to sell an asset in my account (such as stock, gold, or property).   Can I do that prior to the next Court hearing?

Answer:           No. No sales of assets can occur at this time.

 

Question:         I want to purchase an asset with the money in my account (such as stock, gold, or property).   Can I do that prior to the next Court hearing?

Answer:           No. No new purchases can occur until the next Court hearing absent extraordinary circumstances.

 

Question:         Why is the APS website not working?

Answer:           The website may be unavailable at times over the course of the next week due to the ongoing investigation. We apologize for the inconvenience this will cause. We will strive to have the website operational as soon as possible

 

Question:         Why cannot I get through on the phones and/or get a response to my email?

Answer:           We are working hard to get the Court the information it needs. That is the first step in protecting APS account holders. Because this is our first task, we are unable at this time to respond to all of the inquiries we receive. Please be patient. We will be able to respond to inquiries more efficiently once we have completed the initial steps we need to take to protect account holders.

 

dagilbe

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Re: American Pension Services in Receivership
« Reply #1 on: April 29, 2014, 05:19:39 AM »
My Prosper IRA account is now frozen.  This can't end well.  Do you think my funds will be OK since Prosper is the one that actually has possession of my IRA funds?


core

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Re: American Pension Services in Receivership
« Reply #2 on: April 29, 2014, 05:52:06 AM »
I wonder if this is closely related to what was going on back in August with the bickering.  Now I see why APS wanted all their fees... they had their hands in the cookie jar the whole time and needed to cover things!  Funny, at the time I thought Prosper was the one with the problem.

If Prosper knew or should have known that something funny was going on 8 months ago and didn't do much more than the slow Equity Institutional bit, then perhaps they will have to answer to someone in the near future if Prosper folks have lost anything.  If such knowledge can be proven, that is.  For those of you with pet rabbits and other small animals that need bedding, I hear Prosper is offering a killer deal on bulk shredded paper tonight at their loading docks.


rawraw

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Re: American Pension Services in Receivership
« Reply #3 on: May 01, 2014, 02:30:30 PM »
Sorry :(