Forfeited Assets - Restricted for Qualifying Victims

9 Months Ended

Mar. 31, 2025

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 (the “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 consisted of the former holders of allowed Class 3 and 5 claims as of the Plan Effective Date and their permitted assigns but did not include former holders of Class 4 claims.

In March 2021, the Trust received certain Forfeited Assets from the DOJ, including cash and other assets and the Company recorded the total estimated net realizable value of the Forfeited Assets of approximately $3,459,000. On February 23, 2024, the Trust received and recorded approximately $560,000 in cash from the DOJ that was forfeited by a co-defendant of Robert Shapiro. As of June 30, 2024, the Company had sold a majority of the non-cash assets. The Company sold the last non-cash asset in October 2024 for approximately $1,000.

Distributions to Qualifying Victims were allocated pro-rata based on their net allowed Class 3 and Class 5 claims (the “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 December 17, 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”).

On December 17, 2024, a distribution of net sales proceeds of approximately $4,153,000 was paid to Qualifying Victims, which represented a distribution of approximately $4.71 per $1,000 of Total Net Qualifying Victim Claims. Approximately $20,000 was withheld by the Company pending receipt of further beneficiary information.

The Forfeited Assets included in the Company’s March 31, 2025 (unaudited) and June 30, 2024 consolidated financial statements are as follows ($ in thousands):

	March 31, 2025			June 30, 2024
Restricted cash (Note 3)	$	26		$	4,125
Other assets (Note 4)		-			58
Account payable and accrued liabilities		(6	)		-
Distributions payable		(20	)		-
Accrued liquidation costs - primarily legal and professional fees		-			(73	)
Net assets in liquidation - restricted for Qualifying Victims	$	-		$	4,110

Because of the requirement to distribute the net sale proceeds of the Forfeited Assets to Qualifying Victims only, the Forfeited Assets are presented in the consolidated statement of net assets in liquidation as Restricted for Qualifying Victims.

As of March 31, 2025, the Trust has completed its activities related to the liquidation of the Forfeited Assets.