Direct Lending Investments Had Over 950 Investors
Documents filed in a New York Supreme Court case by the receiver managing Direct Lending Investments (DLI), revealed that DLI had more than 950 investors worldwide with collective investments on the books totaling over $780 million.
For those wondering what’s happened since word of the hedge fund’s shocking demise, Bradley D. Sharp of Development Specialists, Inc. has been appointed to serve as permanent receiver for the fund’s estate. In the New York Supreme Court case, which coincidentally involves VOIP Guardian Partners, Sharp explained that they are currently dealing with a number of “urgent matters arising during the first two weeks of the SEC Action, including but not limited to: securing the business assets and cash of the receivership estate; taking custody of records of the Receivership Entity, including records held by third parties; filing notices of the receivership in approximately 50 district courts across the country; addressing insurance and loan portfolio matters; providing notice to and responding to inquiries from investors; and other similar pressing matters.”
Regarding the $192 million owed to DLI by VOIP, “the Receiver is evaluating enforcement and collection of the VOIP Guardian Loans as against VOIP Guardian Partners I LLC in light of its pending bankruptcy proceeding, and the underlying loans comprising the collateral for the VOIP Guardian Loans.”
Recovering the $192 million in bankruptcy from VOIP may prove difficult. deBanked determined that $159 million of it was actually loaned by VOIP to other companies internationally, including Telacme Ltd in Hong Kong and Najd Technologies Ltd in United Arab Emirates. At the time of its reporting, the websites for both companies had been taken down from the web. The website for Telacme has since been restored.
A class action lawsuit was filed against DLI, its former chief executive Brendan Ross, and others on April 1st.
Additional documents filed in the case on 4/12/19 can be viewed here:
DLI-41219-15.pdf
DLI-41219-16.pdf
