Subject: Administrative Proceeding File No. 3-17300
From: Joseph Axelrod
Affiliation: Irwin Naturals

May 30, 2018

To Whom it may Concern,

I am writing this comment on behalf of Irwin Naturals, one of the victims of EquityStar, Mr. Zoernack (together to be referred to as “EquityStar”) and in turn, Apex Fund Services.  The comment below explains our disagreement with the disbursement plan, in particular the equation used to calculate Net Loss Amount, which is being used to value the restitution rewarded to each victim.

Please feel free to reach if any clarifications are needed.

        Joey Axelrod



The proposed disbursement plan is designed to repay investors for what they were due to receive after Apex Fund Services (“Apex”) finally distributed accurate account statements and ignores the amounts taken from their accounts before 3/31/14. The information related to EquityStar’s unauthorized withdrawals led to investors requesting the various funds involved to release their money.  However, it is well documented in the SEC’s case findings against Apex, attached, that Apex did not follow proper protocols while EquityStar was perpetrating its fraud against the funds and the investors.  Therefore, the investors’ restitution should be used to compensate Equitystar’s victims for money lost during the period that EquityStar was withdrawing money out of the funds for personal use under the cover of negligent accounting practices by Apex.  Following, Irwin Naturals proposes the SEC use the following standard to calculate losses for Apex’s Victims:

Withdrawals per investor = Restitution per Victim

Withdrawals per investor = amount due from the improperly classified withdrawal amounts disclosed on the Funds’ balance sheets as of March 31, 2014 to each individual investor.



Joseph Axelrod, Esq.
Regulatory Counsel
5310 Beethoven Street
Los Angeles, CA 90066

317300-3758793-162647.pdf, 317300-3758794-162647.pdf