SEC v. Hope Advisors, LLC
Hope Advisors Fair Fund
1:16-CV-01752-LMM

Frequently Asked Questions

 

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  • On August 30, 2017, the SEC filed an Amended Complaint against Hope Advisors, LLC (“Hope”); its principal, Karen Bruton (“Bruton”), and two Hope employees, Todd Wortman (“Wortman”), and Dawn Roberts (“Roberts”) (collectively, “Defendants”) alleging that Hope and Bruton perpetrated a scheme to charge unearned fees to Hope Investments LLC (the “HI Fund”), a fund they managed.  The Amended Complaint further alleged that Roberts and Wortman aided and abetted this fraud. 

    On September 13, 2018, the Court entered the Final Judgments against Hope and Bruton.  On September 18, 2018, the Court entered the Consent Final Judgment against Wortman and Roberts.  The Court imposed, jointly and severally, disgorgement and civil penalties against Hope and Bruton of $1,237,235.00 and $250,000.00, respectively.  The Court imposed civil penalties against Wortman and Roberts of $100,000.00 and $75,000.00, respectively.  The Defendants paid a total of $1,660,370.65.

  • Section 21F(g)(3) of the Exchange Act, 15 U.S.C. § 78u-6(g)(3), provides, in relevant part, that any monetary sanction of $200 million or less collected by the Commission in any judicial action brought by the Commission under the securities laws that is not added to a disgorgement fund or Distribution Fund or otherwise distributed to victims, plus investment income, shall be deposited or credited into the SEC Investor Protection Fund.

  • On July 16, 2019, Miller Kaplan Arase, LLP was appointed as Tax Administrator (the “Tax Administrator”) to handle the tax obligations of the Fair Fund.  On November 25, 2019, JND Legal Administration (“JND”) was appointed as the Distribution Agent (the “Distribution Agent”) to assist in overseeing the administration of the Fair Fund in consultation with Commission staff, pursuant to the terms of this Distribution Plan (the “Plan”).

    You can review and download a copy of these Orders, the Plan and other documents from the "Important Documents" tab on this website dedicated to this matter.

  • On March 1, 2021, the United States District Court for the Northern District of Georgia approved a plan for the distribution of the Fair Fund (the “Plan”).  The Plan, available on the "Important Documents" tab of this website, sets forth the criteria and methodology by which eligibility will be determined and Distribution Payments calculated, as well as the procedures for distributing the assets of the Fair Fund to investors harmed by the conduct alleged in the Amended Complaint.

  • If you invested in Hope Advisors, LLC (“Hope Advisors” or “Hope”) between December 1, 2012 and March 31, 2016, and paid excess Incentive Allocation Fees, you may be eligible for a Distribution Payment from the Hope Advisors Fair Fund.

  • You do not need to submit a claim form; eligible investors will be identified, and distribution payments calculated, based on the records obtained by the Securities and Exchange Commission (the “Commission” or “SEC”) staff during the investigation of this matter. However, you must timely submit a properly completed Certification Form in response to this Notice in order to be considered for eligibility under the Court-approved distribution plan.

  • If you invested in the HI Fund during the period from December 1, 2012 through March 31, 2016, inclusive, are not an Excluded Party as defined in the Plan, and suffered a loss according to the Plan, you may be eligible for a Distribution Payment from the Hope Advisors Fair Fund.

    Potentially Eligible Investors have been identified by the Commission staff during its investigation. As the Commission staff has reasonably concluded that it has all records necessary to calculate harm described in the Plan of Allocation, the Fair Fund is not being distributed according to a claims-made process.

  • Defendants, affiliates, or controlled entities who served in such capacity during the Relevant Period, and their assigns, creditors, heirs, distributes; any Person who assigned their right to obtain a recovery in the Commission’s action against Defendants; and the Distribution Agent, its employees, and those persons assisting the Distribution Agent in its role as the Distribution Agent.

  • On March 1, 2021, the United States District Court for the Northern District of Georgia approved a plan for the distribution of the Fair Fund (the “Plan”).  The Plan, available on the "Important Documents" tab of this website, sets forth the criteria and methodology by which eligibility will be determined and Distribution Payments calculated, as well as the procedures for distributing the assets of the Fair Fund to investors harmed by the conduct alleged in the Amended Complaint.

  • Additional information can be found by visiting the “Important Documents” tab visible at the top of this webpage and by contacting the Distribution Agent toll-free at 1-877-313-0224; by emailing info@HopeAdvisorsFairFund.com; or by mailing a letter to:

    Hope Advisors Fair Fund
    c/o JND Legal Administration
    PO Box 91379
    Seattle, WA 98111

  • All Potentially Eligible Investors will be sent a separate email, with instructions on how to upload and/or securely send the requested information, contemporaneously with the Plan Notice.

For More Information

Visit this website often to get the most up-to-date information.

Mail
Hope Advisors Fair Fund
c/o JND Legal Administration
PO Box 91379
Seattle, WA 98111