Forfeited Assets - Restricted for Qualifying Victims

12 Months Ended

Jun. 30, 2024

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 consist of the former holders of allowed Class 3 and 5 claims as of the Plan Effective Date 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 Class 3 and Class 5 claims (“Net Allowed Class 3 and Class 5 Claims”) plus unresolved Class 3 and Class 5 claims without considering the (i) 5% enhancement for contributing their Causes of Action and (ii) 72.5% Class 5 coefficient. As of June 30, 2024, the Net Allowed Class 3 and Class 5 Claims were approximately $881,540,000 and net unresolved Class 3 and Class 5 claims were approximately $50,000 (together referred to as the “Total Net Qualifying Victim Claims”). See Note 13.

In March 2021, the Trust received certain Forfeited Assets from the DOJ, including cash, wine, jewelry, handbags, clothing, shoes, art, gold, an automobile and other assets. The Company recorded the total estimated net realizable value of the Forfeited Assets of approximately $3,459,000. During the year ended June 30, 2024, the Company sold the remaining handbags and art and most of the jewelry. During the year ended June 30, 2023, the Company sold the automobile, some of the jewelry, handbags, clothing, shoes and art.

On February 23, 2024, the Trust received approximately $560,000 in cash from the DOJ that was forfeited by a co-defendant of Robert Shapiro. These additional Forfeited Assets are also to be distributed to Qualifying Victims.

The Forfeited Assets included in the Company’s June 30, 2024 and 2023 consolidated financial statements are as follows ($ in thousands):

	June 30, 2024			June 30, 2023
Restricted cash (Note 3)	$	4,125		$	3,190
Other assets (Note 4)		58			435
Accrued liquidation costs - primarily legal and professional fees		(73	)		(134	)
Net assets in liquidation - restricted for Qualifying Victims	$	4,110		$	3,491

The Company presently expects to distribute the proceeds of the Forfeited Assets to Qualifying Victims as soon as practicable following the sale of the last Forfeited Asset, which is expected to occur by December 31, 2024.