Zhunrize victims claim portal approved and opened
Good news for Zhunrize victims, with news that a claims process has been approved.
This means that those who lost funds in Zhunrize can now file claims for processing.
As per an amended Liquidation Plan filed on July 9th,
the Receiver would use store owner data and other Zhunrize records to build a database of investor transactions and their net investment at the time of the Receivership, and then would use the data to develop an online claims form that will capture self-reported information from the investors that can be matched to the recovered data.
Basically Zhunrize victims would file a claim, which would then be checked against a database of verified transactions.
Unfortunately, this leaves those who gave money directly to Zhunrize affiliates without a means to file a claim.
The reconciliation process has proven difficult because many investors did not invest directly in Zhunrize.
Instead, investors would pool their money and the investment would be made by one person (the “Investor”), whose name would appear on all of the Zhunrize stores purchased.
Those who pooled their funds with the Investor are not reflected at all in the Zhunrize deposit records (the “Downstream Investor”).
Upon information and belief, often the Downstream Investor gave the Investor cash to deposit, which will not lead to any document or banking trails that can be verified.
For purposes of the claims process and for verification purposes, the Receiver proposes allowing only the Investors to make the claim.
This provides the Receiver the only way to verify deposits, additional investments and payments, and the return of any funds.
The Receiver proposes that the Downstream Investor not be permitted to make a claim because the Receiver does not have the contact information or any ability to verify the amount of funds put in by a Downstream Investor.
Downstream investor claims are verifiable on an case-by-case basis, however the Receiver it ‘would lead to a sub-claims process that would be extensive and costly‘.
Instead, the Receiver proposes that investors themselves be required to distribute claimed losses to those who invested with them.
Therefore, the Receiver proposes that only those persons that directly put funds into Zhunrize as an investment be permitted to participate in the claims process.
If funds go back to those Investors who had Downstream Investors, it will be their responsibility to make a pro-rata return of funds to their Downstream Investors.
The proposed claims process was approved on the 30th of September, with the Zhunrize claims portal going live on or around October 1st.
Zhunrize victims who lost money in the scheme are now able to file a claim as per the Zhunrize Receivership website.
As per a Status Report filed on July 30th;
The Receivership currently has $45,735,097.23 of cash on deposit in a Receivership account with Wells Fargo Bank.
Note that only invested funds are able to be claimed, which excludes any additional affiliate fees charged (including replicated store hosting fees).
The cutoff for Zhunrize victim claims is January 17th, 2016.