U.S. Capital Receivership

In October 2001, Carl F. Schoeppl, Esq., was appointed by the United States District Court for the Southern District of Florida, upon the recommendation of the United States Securities and Exchange Commission, as the Permanent Receiver for Defendant U.S. Capital Funding, Inc. in an enforcement action styled SEC v. First Capital Services, Inc., U.S. Capital Funding, Inc., Larry Schwartz, and Raphael "Ray" Levy, Case No. 00-8445-CIV-MIDDLEBROOKS (S.D. Fla.). In U.S. Capital, the Defendants raised an estimated $48 million by allegedly fraudulently offering and selling unregistered securities in the form of promissory notes to over 600 individual investors in violation of the federal securities laws.

The bulk of potentially recoverable assets for the U.S. Capital Receivership Estate are the subject of bankruptcy litigation in In re First Capital Services, Inc., Case No. 00-32103-BKC-PGH (Bankr. S.D. Fla.). Through the efforts of the Receiver, First Capital has agreed that it owes U.S. Capital at least $33 million in connection with the corporate notes it issued to U.S. Capital in 1998 and 1999, and that U.S. Capital will receive the majority of the assets held by First Capital in the First Capital Bankruptcy Case. The proposed plan of initial distribution was recently approved by the Bankruptcy Court, and the Receiver expects to announce news of the recovery of a substantial amount of funds for the U.S. Capital Receivership Estate in the near future.

For historical information regarding the U.S. Capital Receivership, please see the following reports:

Receiver Report, January 5, 2007
Receiver Report, February 6, 2006
Receiver Report, August 27, 2004
Receiver Report, October 15, 2003
Receiver Report, February 18, 2003
Receiver Report, October 18, 2002
Receiver Report, May 2, 2002
Receiver Report, February 19, 2002
Receiver Report, October 31, 2001