zhunrize-logoBack in September of 2014, the SEC had shut Zhunrize down for being a $105 million dollar Ponzi scheme.

The parties settled in December, with part of the settlement requiring the establishment of a Receivership.

Since thenĀ Michael Fuqua has been appointed Receiver in the Zhunrize case.

As part of his Receiver duties, Fuqua has been tasked with

  • recovering Zhunrize assets
  • identifying and verifying claims against Zhunrize assets
  • pursuing and defending any litigation deemed to be in the best interests of the Receivership and, most importantly
  • distributing recovered Zhunrize assets to the schemes victims and creditors

As mentioned earlier, Zhunrize was a $105 million dollar Ponzi scheme. Upon shutting it down, the SEC seized approximately $40 million held in various US-based accounts.

Since then the Receivership has gone on to recover an additional $30.7 million, with further recoveries expected pending co-operation from Chinese regulators.

Since the commencement of the Receivership, the Receiver has been actively seeking out and acquiring the financial records of Zhunrize as well as recovering the funds in the bank accounts and other assets of the Receivership.

In addition to the previously frozen US funds, Jeff Pan has assisted the Receiver in recovering approximately $12.4 million from foreign banks in Asia.

The Receiver is also in the process of working with the Chinese authorities to transfer another approximately $750,000 remaining in a Chinese bank account.

The Receiver continues to look for other accounts or funds to recover.

All up at this stage we’re looking at a recovery of around $70.7 million, or 67% of the total amount of funds invested.

The Receiver is in the process of reviewing the accounting records, banking records and other data to determine the total amount of funds put into Zhunrize, the use of all such funds, and the whereabouts of all funds.

Whether the remaining funds are still at large or were distributed as ROI payments to net-winners in the scheme has yet to be clarified.

The Receiver does not however that

at this time, it seems unlikely that there will be a full recovery of amounts invested in Zhunrize.

On the claims front, with the Receiver still busy recovering assets a claims process has yet to be established.

As per the Receivership’s website, those who invested in Zhunrize ‘will be notified how to participate in the claims process at a later date‘.

We’ll try to keep you abreast of any updates over at the Zhunrize Receivership website as they come to light.