February 6, 2017 Update
Dee Randall was sentenced to prison on February 6, 2017. Details can be found here:
Dee Randall Sentencing Hearing
The sentencing Hearing for Dee Randall will be held on Monday, February 6, 2017, at 3:00 pm before Judge Mark Kouris in courtroom W48 at the Matheson Court Complex, 450 South State Street, Salt Lake City, Utah.
July 11, 2016 Update
On July 11, 2016, Dee Allen Randall pleaded guilty to four counts of securities fraud and one count of pattern of unlawful activity.
Salt Lake Tribune Article on Dee Randall Guilty Plea . Read this article.
|Dee Randall Statement of Defendant in Support of Guilty Plea, Certificate of Counsel and Plea Agreement|
August 11, 2015 Update
On August 11, 2015, the Trustee mailed the first distribution checks to investors that qualified for a distribution under the confirmed Plan, which totaled $1,250,000. A listing of distribution checks can be found below or under the heading “Court Documents.” In addition, the Trustee mailed the first distribution checks to beneficiaries of the Private Action Trust, which totaled $900,000. The Trustee anticipates that that at least one more distribution will be made from the Estate and the Private Actions Trust. The amount and time of any additional distribution(s) are uncertain at this time.
June 22, 2015 Update
On Friday, June 19, 2015, the Trustee of the Consolidated Estate and the Private Actions Trust filed the Motion to Approve the Trustee’s First Interim Distribution and Reserved for Disputed Claims Under (A) the Confirmed Plan, and (B) the Private Actions Trust (the “Motion”).
Pursuant to the Motion, the Trustee has asked the Bankruptcy Court for an Order authorizing the Trustee to (a) distribute the sum of $1,250,000 under the Confirmed Plan to certain Unsecured Class 17 Victims (as well as distribution to the United States Small Business Administration (the “SBA”) on account of its Allowed Class 16(B) Claim) pursuant to the “Rising Tide Distribution Method” which was established by the Plan and the Confirmation Order, (b) distribute the additional sum of $900,000 to PAT Beneficiaries pursuant to the terms, and according to the distribution formula, of the Private Actions Trust, and (c) to approve certain reserves proposed by the Trustee for other funds of the Consolidated Estate which will not be distributed at this time.
Below are reports which set forth (1) the specific and particular amounts the Trustee is planning to distribute to the SBA and to each Class 17 Victims who are entitled to distributions under the Plan and Confirmation Order (the “Plan Distribution List”), and (2) the specific and particular amounts the Trustee is planning to distribute the PAT beneficiaries pursuant to the terms of the Private Actions Trust (the “Private Actions Trust Distribution List”).
|Plan Distribution List|
|Private Action Trust Distribution List|
March 30, 2015 Update
Order Granting In Part and Denying In Part Trustee’s Motion for Partial Summary Judgment (Court’s Ruling on Ponzi Scheme and Insolvency).
|Order Granting In Part and Denying In Part Trustee’s Motion for Partial Summary Judgment|
March 30, 2015 Update
Salt Lake Tribune Article on Court’s Ruling on Ponzi Scheme. Read this article.
February 9, 2015 Update
The preliminary hearing in the Dee Randall criminal matter is set for June 30th, July 1st and July 2nd, starting at 8:30 am each day. The hearing will be held at the Matheson Courthouse before Judge Blanch. This information will be updated as we receive notifications of any changes.
August 8, 2014 Update
The Trustee of the Randall Victims Private Actions Trust has filed a complaint against Union Central Life Insurance Company and related parties. The Complaint is found here. A Salt Lake Tribune article was recently published on the lawsuit and can be found here.
June 18, 2014 Update
The State of Utah has filed criminal charges against Dee Allen Randall. Please open the attached Criminal Information for more information on the charges.
April 30, 2014 Update
Some of the Dee Randall Investors made their investments through self-directed IRAs administered by American Pension Services, Inc. (“APS”). The Trustee has learned that on April 24, 2014, the United States District Court for the District of Utah, at the request of the Securities & Exchange Commission (“SEC”), placed APS under the control of a Receiver (the “APS Receiver”) in order to protect the assets of retirement accounts held by APS as custodian. The APS Receiver is Diane Thompson of the law firm of Ballard Spahr, LLP. The case number for the APS Receivership Action is Case No. 2:14-cv-00309 (Judge Robert J. Shelby) (U.S. District Court, D. Utah). The APS Receiver has opened a website at http://www.apsreceiver.com with current information on the APS Receivership. Dee Randall Investors with concerns about the APS Receivership should review the APS Receiver’s website, and if they have any additional questions, the APS Receiver has requested that such questions be forwarded to the APS Receiver at firstname.lastname@example.org. The Trustee is not involved in the APS Receivership, and he has no information about APS other than what is available to the public on the APS Receiver’s website.
November 20, 2013 Update
On October 28, 2013, the Bankruptcy Court confirmed the Trustee’s Liquidating Plan of Reorganization Dated September 9, 2013 (the “Plan”). The Effective Date (the “Effective Date”) of the Plan will be November 27, 2013. The Bankruptcy Court’s Confirmation Order can be accessed electronically by clicking here. The creditors/investors who are Class 17 Victims under the Plan voted overwhelmingly to approve the Plan. The Trustee received 352 Class 17 Victim ballots prior to the Court’s balloting deadline. Of that amount, 348 of the ballots voted in favor of the Plan, and only 4 of the ballots voted against the Plan. The dollar amount of Class 17 Victim Claims voting in favor of the Plan was $40,117,722.87, and the dollar amount voting against the Plan was $407,185.57. In addition, Class 17 Victims holding Claims in the total amount of $39,186,623.50 formally assigned their Victim Causes of Action to the Private Actions Trust (see the September 18, 2013 Update below for a description of the Victim Causes of Action and the Private Actions Trust). (The dollar amounts for the Class 17 Victim Claims outlined above are subject to adjustment by the Trustee to the respective Victim Net Claim Amount for each Class 17 Victim Claim as stated in the Plan.) The Trustee is still soliciting the assignment of additional Victim Causes of Action to the Private Actions Trust. If you hold a Class 17 Victim Claim under the Plan, and you have not previously assigned your Victim Causes of Action to the Private Actions Trust, but you would like to do so at this time, you may send a written request for an Assignment Form to Tricia Pahl (a) by mail, to Tricia Pahl, c/o Ray Quinney & Nebeker P.C., 36 South State Street, Suite 1400, Salt Lake City, Utah 84111, (b) by email, to email@example.com, or (c) by facsimile, to Tricia Pahl at (801) 532-7543.
September 18, 2013 Update
On September 12, 2013, the Bankruptcy Court entered a Disclosure Statement Order which determined that the Disclosure Statement for Chapter 11 Trustee’s Liquidating Plan of Reorganization Dated September 9, 2013 (the “Disclosure Statement”) filed by Gil A. Miller, Chapter 11 Trustee of the substantively consolidated Chapter 11 estates of Dee Allen Randall, Horizon Auto Funding, LLC, Independent Commercial Lending, LLC, Horizon Financial Center I, LLC, Horizon Mortgage and Investment Inc. and Horizon Financial & Insurance Group Inc. contained adequate information within the meaning of the Bankruptcy Code. The Disclosure Statement Order also established voting procedures, a voting deadline and the deadline to object to confirmation of the Chapter 11 Trustee’s Liquidating Plan of Reorganization Dated September 9, 2013 (the “Plan”) proposed by the Trustee, and scheduled a hearing to consider confirmation of the Plan.
The Disclosure Statement Order,the Disclosure Statement, the Plan and all other documents relevant to the Disclosure Statement and Plan can be accessed electronically by clicking here. Further, copies thereof and/or forms of Ballot may be obtained by sending a written request to Tricia Pahl, Ballot Tabulator (a) by mail, c/o Ray Quinney & Nebeker P.C., 36 South State Street, Suite 1400, Salt Lake City, UT 84111, (b) by email, to firstname.lastname@example.org, or (c) by facsimile, to (801) 532-7543.
As explained in the Executive Summary of the Disclosure Statement (Pages 4-11 of the Disclosure Statement) as well as in the rest of Disclosure Statement, the Class 17 “Victims” of the Randall Enterprise Scheme may have litigation claims (the “Victim Causes of Action”) against the facilitators (the “Facilitators”) of the Randall Enterprise Scheme for losses they incurred as a result of the Scheme. The Trustee has retained the Reid Collins Law Firm (and the Ray Quinney Law Firm as local counsel) on a contingency fee basis to investigate and, if deemed appropriate, pursue the Victim Causes of Action against Facilitators of the Scheme. The Victim Causes of Action will be pursued on a collective basis on behalf of the Class 17 Victims through the “Private Actions Trust” that will be established upon confirmation of the Plan. If you are a Class 17 Victim, you will be able to participate in the “Private Actions Trust” by voting for the Plan on your Class 17 Ballot. Your Class 17 Ballot also has a box for you to check to assign your Victim Causes of Action to the Private Actions Trust.
If you are a Class 17 Victim, you are invited to one of the meetings to be held on Saturday, October 19, 2013, at 11:30 a.m. or 2:30 p.m., at the Main Salt Lake City Library, Auditorium, 210 East 400 South, Salt Lake City, Utah, 84111, where a representative of the Reid Collins Law Firm will be present to explain the Private Actions Trust and answer your questions about the investigation and pursuit of the Victim Causes of Action against the Facilitators of the Scheme.
THE TRUSTEE STRONGLY URGES ALL CREDITORS IN CLASSES 16(A), 16(B) AND 17 TO VOTE TO ACCEPT THE PLAN. If you hold a Claim in Classes 16(A) or 16(B) or Class 17, please follow the instructions on your Ballot and forward your completed Ballot to the address shown on your Ballot before the deadline stated in your Ballot. The Trustee also urges all Class 17 Victims to not only vote for the Plan on their Ballots, but also to check the box on your Ballot to assign your Victim Causes of Action to the Private Actions Trust.
July 22, 2013 (Update)
The Trustee recently filed with the Bankruptcy Court his Motion for an Order (I) Approving Disclosure Statement with Respect to the Chapter 11 Trustee’s Plan of Reorganization dated April 3, 2013, (II) Establishing Voting Record Holder Date, (III) Approving Solicitation Procedures, Form of Ballots, and Manner of Notice, and (IV) Fixing the Deadline for Filing Objections to the Confirmation of the Plan (the “Motion”). The Trustee has also recently filed his Disclosure Statement for Chapter 11 Trustee’s Liquidating Plan of Reorganization Dated April 3, 2013 (the “Disclosure Statement”). In the Motion, the Trustee has requested entry of an order from the Bankruptcy Court approving the Disclosure Statement, and authorizing him to solicit votes from investors and other creditors in favor of his Chapter 11 Trustee’s Liquidating Plan of Reorganization Dated April 3, 2013 (the “Plan”). Copies of the Disclosure Statement and Plan, which have been filed with the Bankruptcy Court and which are matters of public record, are attached below.
The Trustee cannot solicit acceptances of the Plan from investors and other creditors until such time as the Disclosure Statement is approved. The Trustee also cannot discuss the Disclosure Statement and Plan with investors and other creditors until the Disclosure Statement is approved. The Trustee anticipates that the Disclosure Statement will be approved sometime around September 9, 2013, as that is the date that the Bankruptcy Court has set to consider approval of the Disclosure Statement. When that happens, the Trustee, through his attorneys, will then send out copies of the Disclosure Statement and Plan and other documents to all investors for their review and consideration. Investors should anticipate receiving copies of the Disclosure Statement and Plan, along with a ballot and other documents, sometime during the month of September. The Bankruptcy Court has tentatively set a hearing on October 28, 2013, at 2:00 p.m., to consider whether the Plan should be confirmed.
February 6, 2013 (Update)
On December 18, 2012, the Utah Division of Securities filed an Order to Show Cause, alleging that, among other things, “The Horizon entities operated as a Ponzi scheme run by Randall in which investor monies were routinely and freely commingled and transferred among the various Horizon entities. New investor monies were used to pay interest to prior investors, or for personal use, including the payment of sales compensation to agents.” The documents also ordered Dee Randall to appear at a formal hearing before the Utah Division of Securities. The Order to Show Cause is attached below:
|Randall Order to Show Cause|
On January 29, 2013, the Utah Division of Securities entered an Order on Motion to Stay Proceedings, which stayed the administrative proceeding against Mr. Randall and the Horizon entities pending a filing of a criminal case or entry of a plea. If a criminal case is not filed within four months of the date of the order, the matter shall come under further review by the presiding officers. The order is attached below:
|Order on Motion to Stay Proceedings|
January 9, 2013 (Update)
The Trustee has liquidated the real property and personal property assets of the estate. The Trustee received and accepted various offers for the purchase of the Debtors’ real property and with court approval liquidated the properties. During the liquidation process, he collected rents, maintained and preserved assets, and paid ongoing expenses. The Trustee is now pursuing recovery actions and avoidable transfers. The Trustee has also employed counsel on a contingency basis to pursue certain potential recovery actions on behalf of the estate, in order to minimize expenses of the estate.
The net proceeds from certain real property sales are being held in segregated accounts pending the determination of amounts, if any, to be paid to parties alleging liens or other interests on the proceeds.
The Trustee sent demand letters to investors that received excess distributions. The Trustee has settled with some and filed lawsuits to recover excess distributions. In addition, the Trustee has commenced other recovery actions for the benefit of creditors. The Trustee continues to resolve these actions in the most efficient way possible.
The Trustee and his counsel are working on a plan of reorganization whereby the Trustee will make distributions to creditors, depending on their claim status and priority.