Forfeited Assets - Restricted for Qualifying Victims

3 Months Ended

Sep. 30, 2025

Forfeited Assets - Restricted for Qualifying Victims [Abstract]

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 consist of the former holders of allowed Class 3 and 5 claims as of the Plan Effective Date and their permitted assigns but does 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 September 30, 2025, the Trust has completed its activities related to the liquidation of the Forfeited Assets.

On December 17, 2024, a distribution of net sales proceeds of Forfeited Assets 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. 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, approximately $20,000 was withheld by the Company pending receipt of further beneficiary information. As of September 30, 2025 and June 30, 2025, approximately $12,000 is payable to Qualifying Victims. See Note 14 for additional information.

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


		September 30, 2025 (unaudited)			June 30, 2025

Restricted cash (Note 3)	$	12		$	12
Distributions payable		(12	)		(12	)
Net assets in liquidation - restricted for Qualifying Victims	$	-		$	-