On March 20, 2014, the United States District Court for the District of Utah entered an order approving the Securities and Exchange Commission's proposed plan of distribution. The Court ordered the Receiver to "disburse funds to the claimants whose claims were timely filed as proposed in the Motion." This means the Receiver will distribute $7,000,000 to claimants whose claims were filed on or before the claims bar date of December 31, 2008, which represents a 22.82% return for those investors receiving a distribution from the estate. The Court directed the Receiver to refrain from disbursing up to $2.5 million of pending funds, which the Receiver anticipates will be collected by the receivership, to be available while the Court resolves outstanding issues including late-filed claims. Although the Receiver believes the Court will afford late-filed claimants the opportunity to present their claims for consideration in a subsequent distribution, the Court has not entered an order to that effect. Claims that were filed after the bar date are not included in the current distribution. The Receiver will begin the process of sending checks to those investors and creditors who qualify for a distribution in the very near term.

Hearing Held on February 21, 2014 to Determine SEC's Motion to Distribute Funds

The United States District Court for the District of Utah held a hearing Friday, February 21, 2014 to determine whether to distribute $7 million to investors of VesCor who filed claims in the receivership. The Court is reviewing the Commission's motion and objections filed by William J. Hammons, Bernard C. Buchanan and J. Marvin Lange. The Court took the matter under advisement. This means the Court has not yet made a final ruling, but will issue a decision in the future. The Receiver will post an update once the decision has been made.


The Securities and Exchange Commission filed a motion with the federal district court asking the court to approve a distribution of $7 million to investors of VesCor. Five objections to the proposed plan were filed, which delayed the distribution. One of the objections has been resolved without further litigation or cost to the receivership. The remaining objections were filed by William J. Hammons, Bernard C. Buchanan and J. Marvin Lange. Copies of the objections and the responses to the objections filed by the SEC can be found below. The federal district court set a hearing for the motion on February 21, 2014.