Jubilee Ace/ Jenco/ GTR Newsletter No. 143
Dear Clients,
To continue our explanation from the last weeks newsletter; The process of asset liquidation to compensate victims from assets seized from defendants, typically occurs through several key legal and administrative steps. Here’s a breakdown:
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- Distribution of Proceeds to Victims
- Creation of a Victim Compensation Fund: In cases where victims are entitled to compensation, a court or government agency may establish a victim compensation fund. The proceeds from the liquidation of the assets are placed into this fund.
- Claims Process: Victims may need to file claims to receive compensation. The court or a special master will review claims, assess damages, and determine the appropriate compensation.
- Prioritization: Depending on the case, there may be prioritization of certain victims, such as individuals who suffered the most significant losses. Creditors, including the government, may also have priority in receiving proceeds from the sale of assets. This however is highly unlikely in the cases of investment fraud perpetrated against small investors.
- Payment to Victims
- Distribution Plan: A plan for distributing the proceeds is often proposed by the court or overseeing agency. This plan takes into account the total amount available after the liquidation process and the number of victims or creditors involved.
- Payment of Legal and Administrative Fees: Before victims receive payments, legal fees, administrative costs, and other expenses associated with the liquidation process are typically deducted.
- Final Payout: Once the liquidation process is complete, victims receive their portion of the remaining funds, either in one lump sum or over time, depending on the case.
The entire process can take considerable time, especially in complex cases involving multiple victims, types of assets, or legal challenges. The goal is to recover as much as possible to fairly compensate those affected.
Zoran Miljakovic
Attorney at Law