Apr. 18, 2020
Re: SEC File No. 3-18527 - Comments in Response Proposed Plan of Distribution To Whom It May Concern, Thank you for the opportunity to comment on the proposed plan of distribution. I urge you to consider amending Section 3, Paragraph 28 of the proposed plan and extending the ‘Relevant Period’ by 61 days, from March 30th 2016 to May 30th 2016. By extending the Relevant Period to May 30th 2016, the proposed plan will more effectively accomplish its stated purpose to “compensate investors harmed by the conduct that served as the basis for its findings of securities law violations in the Commission’s Order against DeVere USA, Inc.” (DVU). On June 4, 2018, the Commission’s Order that serves as the basis for the proposed plan, found that, “Until at least March 30, 2016, DVU did not make…required disclosures with respect to the compensation arrangements...” The proposed plan adopted the Commission’s most conservative estimate of when DVU’s violations occurred when defining “Relevant Period” as ending on March 30, 2016. This definition also presumes that the investors found to be subject to DVU’s conduct had transferred funds into a QROP pension by March 30th. This does not reflect the experiences of all such investors. Below, please find a timeline demonstrating the process a DVU client underwent to establish and deposit funds into a QROPs pension after being advised by DVU: 17th Feb 2016: DVU provided client with advice to transfer their UK defined benefits pension to QROPs that failed to make full and fair disclosures per the Commission’s findings (see attached article 1). Client reads and approves DVU’s advice and proposal, giving DVU authority to proceed in managing execution of the steps outlined below. 21st Feb 2016: Client receives and signs contract with STM Malta to setup QROPs pension based on DVU’s advice of 17th Feb. (see attached article 2). 2nd March: STM Malta establish QROPs pension as per DVU proposal of 17th Feb. (see attached article 2). 4th April 2016: DVU and STM Malta complete the pension funds transfer in line with DVUs advice issued and accepted by the client on Feb 17th. Thus the funds transfer occurred 46 days after DVU’s initial advice report was issued and accepted by the client, initiating all the steps that followed. (see attached article 3). This client was subject to the conduct that the Commission’s Order identified and intended to remedy with the Fair Fund. Currently, the proposed plan does not consider him and those similarly situated to be Eligible Investors. Extending the Relevant Period by 61 days would account for these individuals, provide a fairer means for determining who qualifies as an Eligible Investor, and further fulfill the plan's purpose of compensating investors harmed by DVU's conduct. Attachments to this email: Article 1: Subset of a 27 page QROPs advice document issued by DVU to Client. Article 2: QROPs contract. Article 3: Schedule of key steps establishing QROPS, including the date of funds transfer. Yours faithfully, John Wheadon (4/18/2020)