Forfeited Assets - Restricted for Qualifying Victims

6 Months Ended

Dec. 31, 2023

Forfeited Assets - Restricted for Qualifying Victims [Abstract]

Forfeited Assets - Restricted for Qualifying Victims

6) Forfeited Assets - Restricted for Qualifying Victims

The Trust entered into a resolution agreement with the DOJ which provided that the Trust would receive the assets forfeited (“Forfeited Assets”) by Robert and Jeri Shapiro. The agreement provided for the release of specified Forfeited Assets by the DOJ to the Trust and for the Trust to liquidate those assets and distribute the net sale proceeds to Qualifying Victims. Qualifying Victims include the vast majority of Trust beneficiaries (specifically, all former holders of allowed Class 3 and 5 claims and their permitted assigns), but do not include former holders of Class 4 claims. Distributions to Qualifying Victims are to be allocated pro-rata based on their net allowed claims without considering the (i) 5% enhancement for contributing their causes of action and (ii) 72.5% Class 5 coefficient.

In March 2021, the Trust received certain Forfeited Assets from the DOJ, including cash, wine, jewelry, handbags, clothing, shoes, art, gold and other assets. The Company recorded the total estimated net realizable value of the Forfeited Assets of approximately $3,459,000. During the three and six months ended December 31, 2023, the Company sold the handbags and some of the jewelry and art. During the three and six months ended December 31, 2022, the Company sold the automobile, and some of the jewelry, handbags, clothing, shoes and art. The Forfeited Assets included in the Company’s December 31, 2023 (unaudited) and June 30, 2023 consolidated financial statements are as follows ($ in thousands):

	December 31, 2023			June 30, 2023
Restricted cash (Note 3)	$	3,296		$	3,190
Other assets (Note 4)		364			435
Accounts payable and accrued liabilities		(6	)		(6	)
Accrued liquidation costs - primarily legal and professional fees		(113	)		(128	)
Net assets in liquidation - restricted for Qualifying Victims	$	3,541		$	3,491

On February 7, 2023, the Trust was informed that the DOJ had received additional Forfeited Assets from a co-defendant of Robert Shapiro and that the DOJ proposes to transfer these Forfeited Assets to the Trust. On December 12, 2023, the DOJ granted the Trust’s petition for remittance of the additional Forfeited Assets. At this time, the Trust is unable to estimate the precise amount or timing of the transfer of any such Forfeited Assets and, therefore, the above table excludes such future proceeds. The proceeds from any additional Forfeited Assets would be distributed to Qualifying Victims.