Frequently Asked Questions
- What is this case about?
- Why did I receive a Notice?
- What is the amount of the Luca Fair Fund?
- Who is eligible to participate in the Luca Fair Fund?
- Who is excluded from participating in the Luca Fair Fund?
- Which are the eligible Securities?
- Which is the Relevant Period?
- What do I need to do to participate in the Luca Fair Fund?
- Who is the Distribution Agent for the Fair Fund?
- How do I get more information or contact the Distribution Agent?
- Can I dispute my Recognized Loss amount if I believe it to be incorrect?
- Is my Recognized Loss the amount I will receive as my Distribution Payment?
- Am I required to provide a tax form W9 with my claim?
- Am I required to provide documentation to confirm my investments?
- I received a Notice but it states my Recognize Loss is zero, does that me I have no loss?
- What is this case about?
On July 6, 2015, the SEC filed a complaint (“Complaint”) against Luca International Group, LLC; Luca Resources Group, LLC; Luca Energy Fund, LLC; Entholpy EMC, Inc.; Bingqing Yang; Lei (Lily) Lei; Anthony V. Pollace; and Yong (Michael) Chen (collectively, the “Defendants”) and against Luca Operation, LLC; Luca Barnett Shale Joint Venture; Luca To-Kalon Energy, LLC; Luca Oil, LLC; Luca I, Limited Partnership; Luca Oil II Joint Venture; J&Q Int'l Trading, Inc.; Skyline Trading, LLC; and Xiang Long Zhou (collectively, the “Relief Defendants”). The SEC alleged that, from 2007 through at least 2014, Defendant Yang through her wholly-owned management companies orchestrated a $68 million affinity fraud which targeted the Chinese American community as well as investors in Asia to invest in unregistered offerings of a series of investment funds. Defendants Yang and Lei represented to investors that their money would be invested in oil and gas drilling operations yielding annual rates of return of 20-30% and guaranteeing 12-15% returns to some investors. Defendant Yang comingled investor funds and used new investor money to make sham profit payments to earlier investors while diverting millions of dollars for her personal use
In a related administrative proceeding, Wisteria Global, Inc. and Hiroshi Fujigami (the “Respondents”) were ordered to pay disgorgement of $1,138,985 (the “Related Action”). The Commission created a fair fund (the “Wisteria Fair Fund”) and ordered that the Wisteria Fair Fund could be combined with any other fair fund created in a related civil injunctive action or proceeding.
On July 13, 2023, the Court established a fair fund to hold all funds collected from the Defendants (the “Luca Fair Fund” or “Fair Fund”) and appointed KCC Class Action Services, LLC (“KCC”) as distribution agent (“Distribution Agent”) for the Fair Fund. The Wisteria Fair Fund has been combined with the Luca Fair Fund in this matter. The Luca Fair Fund has been deposited in an SEC-designated account at the United States Treasury, and any accrued interest will be added to the Fair Fund.
The Distribution Plan (the “Plan”) was developed by the Securities and Exchange Commission (the “Commission”) in accordance with practices and procedures customary in Fair Fund administrations. The Plan seeks to compensate U.S. investors who were harmed by the Defendants’ conduct alleged in the Complaint, in connection with investments in unregistered offerings. As calculated using the methodology detailed in the Plan of Allocation (attached as Exhibit A to the Distribution Plan), U.S. investors will be compensated for their losses arising from investments in unregistered offerings in Luca Barnett Shale Joint Venture, Luca Oil LLC, Luca To-Kalon Energy LLC, Luca I Limited Partnership, and Luca Oil II Joint Venture (the “Securities”) that were purchased between January 1, 2007 and December 31, 2014 (the “Relevant Period”). Based on information obtained by the Commission during its investigation and the review and analysis of applicable records, the Commission has reasonably concluded that it has all records necessary to identify U.S. investors. As a result, the Fair Fund is not being distributed according to a claims-made process.
Top - Why did I receive a Notice?
You have received a Notice because you have been identified as a Preliminary Claimant. Based upon records obtained by the Commission during its investigation, you may have suffered a loss arising from investments in the Securities between January 1, 2007 and December 31, 2014 (the “Relevant Period”).
Top - What is the amount of the Luca Fair Fund?
As of June 21, 2024, the Fair Fund balance is $1,990,496.29.
Top - Who is eligible to participate in the Luca Fair Fund?
You are eligible to participate if you are a Preliminary Claimant, have been determined by the Commission as having suffered a Recognized Loss pursuant to the Plan of Allocation, and you are not an Excluded Party or an Unresponsive Preliminary Claimant.
Top - Who is excluded from participating in the Luca Fair Fund?
Excluded from the Fair Fund are:
(a) the Defendants or Respondents, and Defendants’ or Respondents’, advisers, agents, nominees, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities;
(b) the Distribution Agent, its employees, and those Persons assisting the Distribution Agent in its role as the Distribution Agent; and
(c) any purchaser or assignee of another Person’s right to obtain a recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance, or devise; and
(d) foreign investors in the Securities.
Top - Which are the eligible Securities?
The “Securities” refers to shares of unregistered offerings in Luca Barnett Shale Joint Venture, Luca Oil LLC, Luca To-Kalon Energy LLC, Luca I Limited Partnership, and Luca Oil II Joint Venture, purchased by U.S. Investors during the Relevant Period.
Top - Which is the Relevant Period?
The relevant period is between January 1, 2007 and December 31, 2014.
Top - What do I need to do to participate in the Luca Fair Fund?
To be considered for eligibility to receive a Distribution Payment under the Plan, you must complete the online Preliminary Claimant Certification Form found on this website, logging in with the Claim Number and PIN supplied at the top of your Notice. In addition, you are required to submit sufficient documentation reflecting your purchases of the Securities including signed private placement or private offering memoranda and any evidence of payments or compensation received as a result of your investments in the Securities. All submissions must be received by December 1, 2024. If you are unable to access the online Preliminary Claimant Certification Form or would prefer to submit a paper copy of the Preliminary Claimant Certification Form , please contact the Distribution Agent by phone at 1-866-575-0322 or by email to [email protected]. A paper copy of the Preliminary Claimant Certification Form will be provided upon request.
You must certify and submit your Preliminary Claimant Certification Form on or before December 1, 2024 in order to participate.
Please note, if you submit documents or information that contain personal information by email, please use encryption to maintain your privacy. If you have any concerns regarding your ability to encrypt what you are sending, please send the documents or information by (physical) post.
Top - Who is the Distribution Agent for the Fair Fund?
The Court appointed KCC Class Action Services, LLC, (“KCC”) as the Distribution Agent for the Luca Fair Fund on July 13, 2023. The Distribution Agent is responsible for administering the Fair Fund in accordance with the Plan.
Top - How do I get more information or contact the Distribution Agent?
Additional information regarding the Luca Fair Fund may be found on this website. You may also call the toll-free number 1-866-575-0322 to ask questions or to update your address, or you may email the Distribution Agent at [email protected]. If you would like to get copies of the relevant documents, including the Distribution Plan, please visit the Case Documents tab on this website.
Top - Can I dispute my Recognized Loss amount if I believe it to be incorrect?
Yes, you can dispute your Recognized Loss. When submitting your Preliminary Claimant Certification Form on the online portal, check the box to indicate you wish to dispute the calculation of your Recognized Loss. You must explain the reason for disputing the Recognized Loss, the amount you believe the Loss to be and how that amount was calculated. You will also be required to submit documentation of your investments in the Securities to support your dispute.
Top - Is my Recognized Loss the amount I will receive as my Distribution Payment?
No, the Recognized Loss amount is not necessarily the amount you will receive. If the Net Available Fair Fund is less than the sum of the Recognized Losses of all Eligible Claimants, each Eligible Claimant’s Distribution Payment will equal his, her or its Pro Rata Share of the Net Available Fair Fund.
Top - Am I required to provide a tax form W9 with my claim?
The interest portion of your ultimate payout may be considered taxable income and, under certain circumstances, could be subject to withholding. Therefore, we require the submission of a W-9 or substitute W-9 tax form to supplement your filing. Upon submission of your filing, please navigate to the W9 Kiosk on this website, login using the Claim Number and PIN at the top of your Notice and complete the requested information.
Top - Am I required to provide documentation to confirm my investments?
Yes, you are required to submit sufficient documentation to confirm your Recognized Loss – i.e, documentation reflecting any purchases of the Securities, including signed private placement or private offering memoranda, and evidence of payments or compensation received as a result of your investments in the Securities.
Your final Recognized Loss calculation will be based on the sum of the investments in the Securities during the Relevant Period net of any payments received in connection with these investments that are confirmed with documentation provided by you.
Top - I received a Notice but it states my Recognize Loss is zero, does that me I have no loss?
If your Recognize Loss is Zero it does not mean you have no loss, but our records are insufficient to determine a Recognized Loss. When completing your Preliminary Claimant Certification Form, please check the box to “Dispute” your Recognized Loss. In the text box provided, please provide the amount you believe the Recognized Loss to be and how that amount was calculated. Please additionally provide supporting documentation of your purchases of the Securities including signed private placement or private offering memoranda and any evidence of payments or compensation received as a result of your investments in the Securities. Your Recognized Loss will be calculated based on the sum of investment in the Securities during the Relevant Period net of any payments received in connection with these investments.
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