China Energy Fair Fund

Frequently Asked Questions

  1. Who is eligible to participate in the distribution of the China Energy Fair Fund?
  2. Who is not eligible to participate in the distribution of the China Energy Fair Fund?
  3. How will the Fair Fund be allocated among Eligible Claimants?
  4. Is it necessary to have suffered a loss to receive payment from the Fair Fund?
  5. How do I file a Proof of Claim Form?
  6. When is the deadline to submit a Proof of Claim Form?
  7. What documents do I need to submit in addition to the Proof of Claim Form?
  8. What is the proper date to use when listing my purchase and sale transactions?
  9. Do I need to provide all transaction and documentation requested by the Proof of Claim Form?
  10. My broker held my securities in China Energy. Do I still need to submit a Proof of Claim Form?
  11. What happens after I submit my Proof of Claim Form?
  12. How much will my distribution be?
  13. When will I receive my distribution?
  14. Do I lose any rights if I submit a Proof of Claim Form?
  1. Who is eligible to participate in the distribution of the China Energy Fair Fund?

    Persons who purchased shares of China Energy Savings Technology, Inc. common stock on the open market in the United States between July 1, 2004 and February 15, 2006, inclusive.  

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  2. Who is not eligible to participate in the distribution of the China Energy Fair Fund?

    Excluded Persons include:

    a. Any director or officer, promoter, or nominee, past or present, of the Defendants or Relief Defendants who served in such a capacity during the Recovery Period and were directly or indirectly involved in the conduct detailed in the Complaint;

    b. Any defendant or relief defendant in any action brought by the Commission or any class action lawsuit related to the conduct described in the Commission’s Complaint in this action or any related Commission action unless and until such defendant or relief defendant is found not liable in all such civil suits prior to the Claims Bar Date, and proof of the finding(s) is included in such defendant’s or relief defendant’s timely filed Proof of Claim Form;

    c. Any Person who, as of the Claims Bar Date, has been the subject of criminal charges related to the violations alleged in the Commission’s Complaint in this action or any related Commission action unless and until such defendant is found not guilty in all such criminal actions prior to the Claims Bar Date, and proof of the finding(s) is included in such defendant’s timely filled Proof of Claim Form

    d. Any Affiliates, current or former employees, consultants, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities of any of the foregoing persons or entities described in paragraph 18 (a)-(c) above;

    e. Any Person who received China Energy common stock at no or nominal cost;

    f. Any Person who purchased or otherwise received China Energy common stock in connection with or as the result of any agreement, understanding, arrangement, or contract, oral or written, with Defendant Jason Genet, China Energy, or any other Defendant or Relief Defendant or any persons or entities distributing shares on behalf of any of them;

    g. Any Person who received China Energy restricted common stock or common shares pursuant to S-8 issued directly from the transfer agent for China Energy;

    h. Any Person who purchased shares through KGIAsia from November 24, 2004 through December 8, 2004 and/or sold shares through KGIAsia from November 24, 2004 through December 31, 2004, in connection with Defendants’ first pump of China Energy’s trading volume and share price, referenced in Paragraphs 29-31 of the Complaint ;

    i. Any Person who purchased or received China Energy common stock as a participant in or based upon communications regarding the “NASDAQ stock giveaway” program, referenced in Paragraph 24 of the Complaint;/p>

    j. Any Person who “purchased or received China Energy common stock based upon communications regarding the “One for One” program, referenced in Paragraphs 32–34 of the Complaint;

    k. Anyone who did not purchase China Energy common stock on the open market in the United States during the Recovery Period;

    l. Any Person who assigned their right to obtain a recovery in the Commission’s action against the Defendants or Relief Defendants;

    m. The Distribution Agent, its employees, and those Persons assisting the Distribution Agent in its role as the Distribution Agent.

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  3. How will the Fair Fund be allocated among Eligible Claimants?

    The Net Available Funds shall be distributed to pay Eligible Claimants as provided under the terms of the Distribution Plan. If the Net Available Fund is greater than or equal to the aggregate Distribution Payments due Eligible Claimants, the Distribution Agent shall distribute to each Eligible Claimant his, her or its Recognized Loss. At no time shall an Eligible Claimant receive more than his, her or its Recognized Loss. If the aggregate Distribution Payments to all Eligible Claimants exceeds the Net Available Fund, the Net Available Fund shall be distributed on a pro-rata basis provided that an Eligible Claimant’s pro rata share based on their Recognized Loss entitles them to an amount equal to or greater than $10.00.

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  4. Is it necessary to have suffered a loss to receive payment from the Fair Fund?

    Yes. Distributions from the Fair Fund will occur based upon your Recognized Loss as calculated by the Court-approved Plan of Allocation. The Plan of Allocation Recognized Loss is different from any market or out-of-pocket losses you may have incurred as a result of your transactions. Please review the Distribution Plan, by clicking the Case Documents tab above, in its entirety. The Plan of Allocation is Exhibit A to the Distribution Plan. A final determination of whether you will receive a Distribution payment, and the amount, is made by the Court-appointed Distribution Agent. 

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  5. How do I file a Proof of Claim Form?

    You may have received a Distribution Plan Notice and Proof of Claim Form in the mail. If so, complete and sign the Proof of Claim Form you received and mail it, along with required supporting documentation, to the Distribution Agent.

    If you did not receive a copy of the Proof of Claim Form or you require another copy, you may request that a Proof of Claim Form packet be mailed to you by calling the Distribution Agent at (866) 666-7977, you can download a pdf by clicking on the Case Documents tab above and selecting the Proof of Claim Form or complete the online form by clicking File A Claim above. Fill out the Proof of Claim Form completely, sign it, include copies of all required supporting documentation.

    Submissions received via email will not be accepted.

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  6. When is the deadline to submit a Proof of Claim Form?

    Your Proof of Claim Form submission must be postmarked, or submitted online, by June 4, 2019.

    Please keep a copy of your completed Proof of Claim Form submission and supporting documentation for your records. Confirmations of receipt of Proof of Claim Form submissions may not be available until after the submission deadline; therefore, if you require acknowledgment, please send your submission Certified Mail, Return Receipt. 

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  7. What documents do I need to submit in addition to the Proof of Claim Form?

    You should include any documentation that will support your claim. Such documents may include, but are not limited to, brokerage or investment monthly statements; trade confirmation slips; or a signed letter from your brokerage indicating you engaged in such trades. Please identify each document with your name and account number.

    Stock certificates are generally not considered an acceptable form of proof, as they do not provide the trade date and price information necessary to calculate a Recognized Loss.

    Please send photocopies as originals will not be returned. 

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  8. What is the proper date to use when listing my purchase and sale transactions?

    You should use the trade date, as opposed to the settlement date, when listing your purchase and sale transactions. If the trade date is not available, please use the date reflected in your documentation. 

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  9. Do I need to provide all transaction and documentation requested by the Proof of Claim Form?

    Yes, you must provide information all purchase and sale transactions which occurred during the requested period, as well as copies of all documents to verify and support your Proof of Claim Form. Failure to provide all requested information and/or documentation may result in the disallowance and rejection of your claim. 

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  10. My broker held my securities in China Energy. Do I still need to submit a Proof of Claim Form?

    Yes. If you are the underlying beneficial owner of the security, you should file a claim. If you purchased the security, but they were registered in your broker’s name, you are the underlying beneficial owner. If you are not certain of your status, please contact your broker. 

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  11. What happens after I submit my Proof of Claim Form?

    Once you submit your Proof of Claim Form, it will be processed in accordance with the Court-approved Distribution Plan. In the event that your Proof of Claim Form is found to be deficient, you will be notified with a Claims Deficiency Notice. The Notice will advise of the reason for deficiency and explain the procedure to cure such deficiency.

    Once all claims have been processed in accordance with the Distribution Plan, all timely claim submissions will receive a Determination Notice stating the Distribution Agent’s determination of the validity of the Potentially Eligible Claimant’s claim.

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  12. How much will my distribution be?

    Distribution Payments cannot be determined until processing of all claims is completed.

    However, the amount of money in the Fair Fund is not expected to be sufficient to cover the total Recognized Loss for all valid claims. Once approved, the individual Distribution Payments for valid claims will likely be pro-rated based on an individual’s, or an entity’s, Recognized Loss.

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  13. When will I receive my distribution?

    Distribution of the Fair Fund will occur once claims processing and analysis is completed and approved by the Court. 

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  14. Do I lose any rights if I submit a Proof of Claim Form?

    Participation in the distribution of the China Energy Fair Fund will not result in the release of any rights or potential claims a claimant may have against any party (other than with respect to the Distribution Agent), including, but not limited to, any party’s past and present directors, officers, promoters, advisers, agents, Affiliates, nominees, assigns, creditors, or controlled entities. 

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