McGeehan Law
McGeehan Pascale, PLC
Attorneys & Councellors at Law​
11211 Waples Mill Rd #210
Fairfax, VA 22030
​703.273.5303
  • Home
  • BLACKACRE 1031 RECEIVERSHIP
    • Current Developments
    • Court Orders
    • Claim Submission
  • Practice Areas
    • Business Bankruptcy
    • Business Entity Termination
    • Business Litigation & Alternative Dispute Resolution
    • Compliance & Risk Management
    • Creditor's Rights & Commercial Asset Recovery
    • Employment
    • Estates, Trusts & Probate
    • General Business Representation
    • Intellectual Property
    • Real Estate
  • Priority Business Client Program
  • Our People
    • Attorneys >
      • John P. McGeehan
      • Dennis P. Chapman
      • Nicholas Pascale
    • Staff >
      • Daria McGeehan
      • Robin Naseem
  • Contact Us
  • Biz Buzz
McGeehan Law

Current Developments In the BLACKACRE 1031 RECEIVERSHIP


Picture

Author

John P. McGeehan is the managing member of McGeehan Pascale, PLC. His practice focuses on business structures, especially new, emerging, small businesses and not for profit organizations, all business transactions, employment law, real estate, commercial leasing, estate planning and litigation before administrative agencies and all courts.​ 


DISTRIBUTIONS

12/15/2020

 
I have had a few calls as to when I will distribute money.  I will do that in accordance with the Court’s order.  I assumed active operation of the Receivership on December 18, 2019.  I will not rush a final accounting.  My target date is end of the month of December, but there are potentially more than 90 accounts, to verify all necessary information is time consuming and a final report to the Court is in January.  My office and CST Group, CPAs are working on calculation of the distribution.  I ask for further patience to insure accuracy.

SENDING THE DISTRIBUTION:  I will need everyone’s current information to wire or mail funds.  I may wire it directly to you or to your attorney.  If the wire is to be to you, provide your current address and wire instructions- your name and address, the receiving bank’s name and address, the ABA (routing) number, your account number.  If it is to wired to your attorney, provide their current address and wire instructions- their name or their firm’s name and address, the receiving bank’s name and address, their ABA (routing) number and their account number.  Be careful how you send the information to avoid fraud in the transfer.  I will require a receipt.

DISTRIBUTIONS:  The court has approved priorities in the order of payment.

ADMINISTRATIVE COSTS.  These may be spread across all customers of Blackacre 1031 Exchange Services, LLC, pro rata.  This far, I have been able to pay these from fees, interest, marketing fees and Blackacre 1031 Exchange Services, LLC’s own bank accounts and not to take anything from the customer’s accounts.  When I take anything from customer’s accounts, the formula for net distribution is a fraction.  The denominator is the total of all known claims from all banks (AXOS and Capital One) and the numerator is the amount of the individual claim.  My staff is reconciling administrative costs to be certain all of them have been paid.

PREFERRED CLAIMS.  The CPA is checking whether I must file a fiduciary tax return, if it is an informational return or if taxes must be paid.  Blackacre 1031 Exchange Services, LLC is a disregarded entity and I have operated on the advice that it does not pay taxes at the enterprise level.

SECURED CREDITORS.  I anticipate there are none, but I published two notices in The Fairfax Times and I received no claims, in particular no secured claims.

CUSTOMERS OF BLACKACRE 1031 EXCHANGE SERVICES, LLC.  This is more complicated.

AXOS ACCOUNT CUSTOMERS.  If the balance in the AXOS account is insufficient to pay in full, a fraction is used.  The denominator is the total of the balance in the AXOS account and the numerator is each AXOS account individual’s claim.  Anyone who has received funds before the receivership, will have its payments adjusted on the “rising tide” formula.

CAPITAL ONE ACCOUNT CUSTOMERS.  There will be a deficiency as to funds that were deposited into Capital One Bank “escrow account”.  This also will include the Boyar plaintiffs’ claims and the Tsuchindas’ claims. A fraction will be used.  The denominator is the total of the balance in the Capital One “escrow” account and the numerator is each Capital One account individual’s claim. No Capital One claim will be paid in full.  Anyone who has received funds before the receivership, will have its payments adjusted on the “rising tide” formula.

Finally, UNCLAIMED FUNDS will be paid to the state’s lost property fund.
​
The Court order provides if all claims are paid in full, Robert Levenson may be paid for his services during the receivership, I do not expect all claims will be paid in full.

Comments are closed.

we COVID 19 VIRUS PROCEDURES

mCgeehan pascale, plc IS TAKING PRECAUTIONS IN LIGHT OF THE CDC ADVICE  FOR THE CORONAVIRUS.  WE ARE WORKING EVERY DAY TO ANSWER QUESTIONS, DRAFT DOCUMENTS AND OTHERWISE TO SERVE OUR CLIENTS' LEGAL NEEDS.   ALL OF OUR STAFF ARE IN GOOD HEALTH AND OUR WISH FOR OUR CLIENTS IS THAT THEY ALSO REMAIN IN GOOD HEALTH.   IF THE NEED ARISES, OUR EMPLOYEES HAVE PAID SICK LEAVE AVAILABLE TO THEM.  IF THAT OCCURS, WE MAY TAKE A BIT LONGER FOR SOME THINGS, FOR WHICH WE ASK YOUR UNDERSTANDING.   IF POSSIBLE, WE ASK THAT OUR CLIENTS AND ATTORNEYS WITH WHOM WE DEAL DO SO BY TELEPHONE OR EMAIL TO AVOID PERSON TO PERSON CONTACT.  IF YOU SUSPECT YOU HAVE BEEN EXPOSED TO THIS VIRUS AND WE HAVE HAD PERSON TO PERSON CONTACT IN THE PRIOR 14 DAYS, ,PLEASE LET US KNOW THAT.

WE DISINFECT, THROUGHOUT THE DAY,  ALL AREAS IN OUR OFFICE THAT MAY BE TOUCHED BY PEOPLE.  THE NEW ENGLAND JOURNAL OF MEDICINE PUBLISHED AN ARTICLE SAYING THAT SOME SURFACES MAY HOLD THE CORONAVIRUS  VIRUS FOR UP TO 72 HOURS and UNVERIFIED SOURCES REPORT IT CAN BE LONGER.   OUR BUILDING ALSO HAS ESTABLISHED PROCEDURES DESIGNED TO PROTECT PERSONS COMING INTO THE BUILDING.   ALL COURTS IN WHICH WE REGULARLY PRACTICE HAVE ESTABLISHED PROCEDURES THAT RESCHEDULE OR POSTPONE HEARINGS,  GENERALLY, UNTIL AFTER MID-APRIL OR MID-MAY AND LEGAL TIMELINES HAVE BEEN ADJUSTED. 

we concluded that we are exempt from the mandates announced for virginal on March 23, 2020, provided we continue the sanitation procedures outlined above and do not have more than 10 people congregated  at the same time.  however, we prefer contacts by phone or email.  if you must meet in person, please call first so we can determine if some or all of the matters can be handled by phone or email.

Location


​11211 Waples Mill Rd #210
Fairfax, VA 22030

Contact


Email Us
Telephone :
(703) 273-5303
Picture
Copyright (c) 2019 | mcgeehanlaw.com | All rights reserved. | Powered by MMESinc
​Material presented on the McGeehan Pascale, PLC website is intended for information purposes only. It is not intended as professional advice and should not be construed as such.   Disclaimer