The Ticket Reserve, Inc. Receivership
STATUS OF THE CASE
On May 24, 2016, the Securities and Exchange Commission filed suit against Ash Narayan, The Ticket Reserve, Inc. a/k/a Forward Market Media, Inc., Richard M. Harmon, and John A. Kaptrosky in the United States District Court for the Northern District of Texas, Dallas Division. The SEC alleges that the defendants violated the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940.
At that time, the Court entered a temporary restraining order. The restraining order enjoins the defendants, and anyone with them, from numerous acts related to the sale of securities, ordered all funds and assets frozen, and barred the destruction of documents. In July 2016, the parties agreed to the entry of a preliminary injunction that continues the prohibitions and asset freeze of the restraining order through the trial of the case.
The Court also appointed Michael Napoli as Receiver over The Ticket Reserve, Inc. (TTR) and its assets. At the request of the Receiver, the Court expanded the receivership to include Forward Market Media, Inc., a subsidiary of TTR. The Receivership will remain in place until further order of the Court.
The SEC recently announced that it has reached a tentative agreement with Ash Narayan to settle its claims against him. Under the proposed agreement, Narayan will pay the SEC $1,498,000, which represents the net amount paid to Narayan by TTR. The SEC has agreed to pay the proceeds of the settlement to the estate. The settlement must still be approved by Commissioners of the SEC; a process that will take several months.
RECEIVER FILES INITIAL REPORT
On June 23, 2016, the Receiver filed his Initial Report with the Court. Copies of the Report may be also obtained on the Court Documents and/or the Investor Communications pages. In the report, the Receiver describes his activities, the initial results of his investigation and a plan for administering the estate. The report, issued 30 days after the start of the receivership, was required by the Court. A copy of the Report may be found on the "Court Documents" and "Investor Communications" pages.
RECEIVER FILES PLAN OF LIQUIDATION AND REPORT ON ASSETS
On October 21, 2016, the Receiver filed his Plan of Liquidation and Report on Assets. The Receiver’s plan is proffered (i) as a vehicle to educate the Court, the parties and the creditors as to the estate’s assets; and (ii) to spur dialogue as to the best way to maximize the value of the assets for distribution to the creditors. A copy of the plan may be found on the “Court Documents” and “Investor Communications” pages.