Claims Process Information

Welcome to all PFI investors. These pages are designed to help you understand the claims process. We have a few resources available to you. First, you can watch our video tutorial to support you in better understanding the components of your claims package. Watch the tutorial to get key questions answered and more fully understand your financial statements with a column by column tutorial for Schedules A, B1, and B2. Below are FAQ's written by our counsel that you can read. They include how you can submit questions or ask to speak to a committee member one-on-one.

PFI Claims Process FAQ's

1. Where can I find information to help me understand my netted claim?

Read your entire claim package carefully. The accompanying documents in the package contain most, if not all, of the information you need to understand the schedules provided and what actions you have to take. Specifically, if you DO NOT DISPUTE the “Total Restitution Claim” identified in the Red Box on your Schedule A, THEN YOU DO NOT NEED TO TAKE ANY FURTHER ACTION. Your claim will be set at that amount. If you dispute that amount, then you will need to complete and return the Customized Investor Proof of Claim Form included in your claim package, and attach all supporting documentation proving your disputed claim amounts. Below is the red box where you will see your Total Restitution Claim is shown.

2. What is a unit of account or UOA number?

Your investments, including all investments in notes, LLC’s and Deeds of Trust, have been aggregated into a single claim based on your social security number or federal tax identification number. These aggregated investment accounts are referred to as a “Unit of Account” (UOA) and have been assigned a unique Unit of Account Claim Number (UOA Claim No.). The UOA Claim No. is found on top of each page of Schedules A and B a shown in this sample.

2A If you have multiple investments under different social security or tax identification numbers, you may receive multiple, but different packages, each with a unique UOA Claim No. Each unique UOA Claim No. is treated as a separate and distinct netted Restitution Claim in the bankruptcy case.


2B All personal investments and IRA related investments under the same tax payer identification number are aggregated into a single Unit of Account (UOA) claim package. Please read the other FAQs for additional information regarding the treatment of IRA related investments in the netting analysis.


Unit of Account Numbers appear on the top of Schedules A and B as shown below.

3. The UOA Claim No., Investor ID and/or Rollover ID on Schedules A and B do not show up in any of my original investment documents.

The UOA Claim No., Investor ID and/or Rollover ID are all internal reference numbers utilized by FTI and do not relate to any account numbers or other identifying references in your personal investment files.

4. I do not materially dispute the “Total Restitution Claim” amount in the red box, although I am confused by the detailed financial analysis provided by the Debtors in Schedules A and/or B.

The Total Restitution Claim is the dispositive number for establishing your claim and making distributions you. IF YOU DO NOT WISH TO DISPUTE THAT AMOUNT, THEN THERE IS NO FURTHER ACTION THAT YOU NEED TO TAKE. YOUR CLAIM WILL BE SCHEDULED IN THAT AMOUNT WITHOUT ANY FURTHER ACTION ON YOUR PART.

Please be conscientious that every Customized Investor Proof of Claim Form submitted will need to undergo a review and potential claims reconciliation process by the PFI Trust and its retained professionals. Each such review/reconciliation may cost hundreds—if not thousands—in administrative fees, which will reduce recoveries to investors. Thus, investors are encouraged to not file proofs of claims unless there is a material dispute with the Total Restitution Amount or other material changes need to be made. Reducing the number of claim reconciliations will help to reduce administrative costs, and thus increase amounts available to distribute to investors.

5. I do not dispute the “Total Restitution Claim” amount but there is information that is incorrect on my Schedule A or in the claim package, such as my address is wrong or I want my distributions sent to me in a specific name or at a different address. What do I do?


If there is a change you need made to the information in the claim package that you received, but you do not otherwise dispute the Total Restitution Claim amount, you need to complete and return the Customized Investor Proof of Claim Form provided in the claim package, but you only need to complete Part 1, sections 2 and 8, and Part 2.

Please be conscientious that every Customized Investor Proof of Claim Form submitted will need to undergo a review and potential claims reconciliation process by the PFI Trust and its retained professionals. Each such review/reconciliation may cost hundreds—if not thousands—in administrative fees, which will reduce recoveries to investors. Thus, investors are encouraged not to file proofs of claims unless there is a material dispute with the Total Restitution Amount or other material changes need to be made. Reducing the number of claim reconciliations will help to reduce administrative costs, and thus increase amounts available to distribute to investors.

6. The amount invested in a particular investment seems really high, although all of the other information, including the Total Restitution Claim, appears accurate.

PFI often times moved funds among investments inconsistent with your understanding of what you invested in. For example, many LLC investors invested in an LLC investment, but PFI first put the funds received into a note investment, and then later transferred (rolled over) those funds to the LLC investment. If that was the case, on Schedule A and in the details on Schedule B1, you may see multiple types of investments listed and extra cash that rolls in and rolls out of those accounts. Regardless, IF YOU DO NOT DISPUTE THE TOTAL RESTITUTION CLAIM AMOUNT PROVIDED TO YOU IN THE RED BOX, THEN YOU DO NOT NEED TO TAKE ANY FURTHER ACTION.

7. I have reviewed my Schedules A and B1 in detail, and I am missing whole investments.

If, after reviewing the information in Schedules A and B1 and any other claim packages with different UOA identifiers, you still believe that you are missing information on certain investments, please contact Cia Mackle at cmackle@pszjlaw.com to ensure you received all relevant claims documentation.

8. What if the red box in Schedule A shows that I received payments in excess of what I invested (a “Net Winner”), and what does the “Potential Clawback Liability” mean?

The Total Net Claim amount identified in the red box on Schedule A cannot be less than $0.00. If your Total Net Claim is listed as $0.00, then that means that you received back in distributions at least as much, if not more, than what you contributed. The PFI Trust may bring an avoidance action against you at a later time to “clawback” fictitious profits that you received in excess of the amount that you invested. If your Total Net Claim is listed as $0.00, the amount that the PFI Trust may be able to clawback from you, if any, will be identified in the red box on Schedule A under “Potential Clawback Liability.” If the Potential Clawback Liability column is $0.00, then you will not be the subject of a clawback action in these cases on account of your claim.


In this example, the investor will not be entitled to any distributions in the bankruptcy case, and may be subject to a “claw-back” lawsuit in an amount not to exceed $10,000. There will be a different process for addressing clawback amounts. Michael Goldberg and the professionals will speak about that process at a later time.

9. If I disagree with the details provided in Schedule B1 and it affects the clawback amount, what do I need to do?

If you agree that your Total Net Claim amount is $0.00 – even if you disagree with how the clawback amount shown is calculated – YOU DO NOT HAVE TO DO ANYTHING FURTHER. You do not have to complete a proof of claim form.


If you think that your Total Net Claim is greater than $0.00 - meaning that you can prove that you invested more than you received in distributions, then you should complete and return the Customized Investor Proof of Claim Form included in your claim package, and attach all supporting documentation proving the disputed claim amounts.


There will be a different process for addressing clawback amounts. Michael Goldberg and the professionals will speak about that process at a later time.

10. Why doesn’t the Debtor’s netting analysis include a calculation of my Subordinated Claim?

At this time, investors are not expected to receive any distributions on account of their Subordinated Claims. In order to reduce administrative costs and maximize distributions made on account of investor Restitution Claims, Subordinated Claims are not being calculated at this time. If and when the PFI Trust calculates investor Subordinated Claims, the Trustee of the PFI Trust will determine a method to notify investors of the amount of those claims.

11. Why Aren’t My Accrued Interest Payments Being Treated as Cash-In?

Accrued interest or other accruing distributions are not entitled to be treated as part of the “Cash-In” calculations under applicable law after the start of the Ponzi scheme (on or after January 1, 2007). Any interest owed in connection with such investments between January 1, 2007 and the start of the bankruptcy cases (July 26, 2020) will be calculated at a later time as part of your Subordinated Claim.

12. I am confused by the use of the term “rollover” in the Schedules.

The use of the term “Rollover” or “Rolled Over” in the Schedules generally refers to the transfer of monies from one PFI-related investment to another PFI-related investment, either as between the same investor or different investors (such as from an individual to a family trust or another family member). Some investors may have had personal, non-PFI related investments (such as IRAs), where they took money from their personal investment vehicles and transferred it to a PFI-related investment. Although you may consider these type of transactions (i.e., from a personal investment account to a PFI-related investment) as a “rollover,” such transactions are not treated as “rollovers” for purposes of the Schedules A and B you received, but rather are treated as “Cash In” or “Cash Out” transactions, as applicable.

13. I don’t understand how the Debtor accounted for the “Rollover” amounts in Schedule B1.

Shifting through the detail on Schedule B1 can be time consuming and tedious. However, all of the detail supporting the netting analysis is included in that detailed report, including any cash or non-cash rollovers made between different investments.

Schedule B1 includes a Rollover ID number for each rollover amount. Below is a picture of where you can find that column on your Schedule B1 (highlighted in yellow below). You can identify rolled over amounts transferred out of an investment, and where those amounts were transferred into another investment, by referencing and tracing the Rollover ID. If you received multiple claim packages with different Unit of Account (UOA) numbers, then you may need to look at all of the Rollover IDs in all of your UOA claim packages to determine where funds were rolled over to or from.

14. My investment shows a split “Rollover Cash In” contribution that is calculated as part of the netting, and a “Rolled Over Investment (In)” that is excluded from the netting calculation on the same row. Why am I not receiving full credit for the aggregate of those two rollover amounts?

The portion of the “Rolled Over Investment (In)” reflects a portion of funds rolled over from another investment that included a non-cash component, such as accrued interest, a finders’ or referral fee that was credited to your account, or some other credit or adjustment that did not result in actual cash paid by you into that investment. Any such credit or adjustment that is subsequently rolled into another investment is treated as non-cash, and thus excluded from the netting calculation.

15. I did not receive a Schedule B2 in my claim package. Why?

Schedule B2 provides details of any referral / finders’ fees or other payments not related to a specific investment paid to you. If you did not receive any payments for referral / finders’ fees or other non-investment related payments, then you will not receive a Schedule B2.

16. I received a Schedule B2 in my claim package. Are the amounts set forth in Schedule B2 included in the netting calculations?

Yes. Schedule A deducts these payments as part of the netting analysis. They are easily identified in Schedule A because there is no Investment ID associated with such payments.

17. I had both personal and IRA related investments with PFI, but I only received one claim package.

All personal investments and IRA related investments under the same tax payer identification number are aggregated into a single Unit of Account (UOA) claim package. Therefore, review Schedule A and Schedule B1 carefully, and the IRA investment information should be included in the package you receive. The IRA accounts are typically identified as having the custodian holding the investment included in the “Name” column on Schedule A, such as Pensco Trust Company, IRA Services Trust Company (now Forge) (“IRA Services”), Trust Company of America (“TCA”), Equity Trust Company (“ETC”), Millennium Trust Company, The Entrust Group, etc.

The detail of such investment can then be cross referenced on Schedule B1 by referring to the “Investment ID” associated with that name.

Portion of Applicable Heading from Schedule A

Portion of Applicable Heading from Schedule B1

If, after reviewing the information in Schedules A and B1 and any other claim packages with different UOA identifiers, you still believe that you are missing information on certain investments, please contact Cia Mackle at cmackle@pszjlaw.com to ensure you received all relevant claims documentation.

19. Why am I receiving multiple Notices and Investor Claim Packages?

You may receive multiple copies of your claim package because either there are multiple addresses associated with your accounts or you have different Units of Account for different investments that you made.

If you receive multiple copies of the same Unit of Account (with the same UOC Claim No.), these are duplicate copies and you can throw away the duplicates. If you decide to challenge the Debtors’ netting analysis and file a Customized Investor Proof of Claim Form, you only need to file ONE Customized Investor Proof of Claim Form for each unique UOA Claim Number.

If you have multiple investments under different tax identification numbers, you may receive multiple, but different claim packages. If you receive multiple claim packages with different UOA Claim Nos., each unique Unit of Account identifier is treated as a separate and distinct netted claim in the bankruptcy case. If you decide to challenge the Debtors’ netting analysis, you must file a separate Customized Investor Proof of Claim Form for each unique UOA Claim Number that you dispute.

20. I received two different types of claim packages – one for current investors and one for former investors. What do I do?

There is a chance that you may receive a claim package for current investors (meaning that you were an investor as of July 26, 2020 in the investments that are included in your Unit of Account aggregation), as well as a claim package for former investors (meaning that you were an investor in investments NOT included in any Unit of Account aggregation and that you were cashed out of before July 26, 2020). YOU MUST TREAT THE FORMER INVESTOR CLAIM PACKAGE AND THE CURRENT INVESTOR CLAIM PACKAGE AS TWO DIFFERENT, DISTINCT CLAIMS IN THE BANKRUPTCY CASE.

For example, some of your investments that you cashed out of prior to July 26, 2020 may have been under a personal social security number. The Debtors may consider you a “former investor” with respect to those particular investments and assert that you hold a $0.00 claim in the bankruptcy cases with respect to those investments. There is no netting analysis provided with respect to claims held by any former investor. IF YOU AGREE THAT YOUR CLAIM IS $0.00 WITH RESPECT TO THESE INVESTMENTS ONLY, YOU DO NOT HAVE TO DO ANYTHING FURTHER. If you DISPUTE that your claim is $0.00 with respect to these investments only, then you MUST complete and submit the Former Investor Proof of Claim Form provided in your former investor claim package, together with all supporting documentation evidencing your claim amount, by the August 20, 2021 deadline.

At the same time, you also may hold other investments that you were invested in as of July 26, 2020 that are under a different tax identification number than your other investments, which explains why you also received a current investor claim package. The current investor claim package includes an analysis of your netted claim (Schedules A and B) for those investments identified as part of the aggregated Unit of Account. If you DO NOT DISPUTE the Total Netted Claim amount for those investments identified in the Schedules, then no further action is needed. If you DISPUTE the Total Netted Claim amount for such investments, then you MUST complete and submit the Customized Investors Proof of Claim Form provided in your current investor claim package, together with all supporting documentation evidencing your claim amount, by the August 20, 2021 deadline.

21. I was able to submit my ballot via an electronic portal on Donlin Recano’s website. Can I submit my Customized Proof of Claim Form the same way?

No. You only have the option of mailing in your completed Customized Proof of Claim Form or uploading a pdf version of the completed form (together with all supporting documentation) onto Donlin Recano’s website by the August 20, 2021 deadline. Specific instructions for doing both can be found in your claim package.

22. I contributed my Contributed Claims under the Plan when I voted on the Plan. Why am I receiving another Contributed Claim Election Form in my claim package?

If you agreed to contribute litigation claims to the PFI Trust under the Plan (defined as “Contributed Claims” in the Plan), your Total Net Claim will be increased by 5%. Schedule A identifies whether the Debtors’ records show that you contributed your Contributed Claims, and the Total Restitution Claim amount on Schedule A will reflect the 5% increase, if applicable. If there were any discrepancies in the contribution election that the Debtors previously received from you, you will be designated on Schedule A as having not contributed your claims.

If you wish to change your election choice as identified on Schedule A, YOU MUST complete and submit the Contributed Claim Election Form included in your claim package by the August 20, 2021 deadline. A copy of the Contributed Claim Election Form can also be found on the Claims Agent website at www.donlinrecano.com/pfi. If you do not submit a new Contributed Claims Election Form, the election indicated on Schedule A of your claim package will control.

In the example below, this investor will be deemed to have NOT contributed his or her Contributed Claims (and will NOT receive a 5% increase in his or her Total Net Claim) unless such investor completes and submits the Contributed Claim Election Form marking “I HEREBY CONTRIBUTE.”

In this example below, this investor will be deemed to have contributed his or her Contributed Claims (and will receive a 5% increase in his or her Total Net Claim) unless such investor completes and submits the Contributed Claim Election Form marking “REVOKE.”

23. I already filed a proof of claim for my investments earlier in the bankruptcy case. Do I need to file another proof of claim?

If you dispute the “Total Restitution Claim” identified in the Red Box on your Schedule A, you will need to complete and return the Customized Investor Proof of Claim Form included in your claim package, and attach all supporting documentation proving your disputed claim amounts, even if you previously filed a proof of claim in these cases.

24. I’ve watched the tutorial video and I’ve read all of these FAQs, and I still have questions. What do I do now?


If after you've reviewed the video and these FAQs and you still cannot find the answer to your question, please send your question to questionspfi@gmail.com, along with the best way to contact you, and an investor volunteer will get in touch with you.