Phillip S. Stenger, working closely with professionals in the Cayman Island, the Cayman Islands Monetary Authority, the Cayman Islands Attorney General, and the Cayman Islands Grand Court, has been appoint a Co-Liquidator of Cayman Islands companies in liquidation by the Cayman Islands Grand Court. The Cayman Islands Grand Court and the Cayman Islands government take a dim view of the use of the Cayman Islands' financial sector and banking system to launder money or evade the laws of other jurisdictions and have made a priority of protecting the rights and interests of investors and promoting transparency in the liquidation process. Mr. Stenger's appointment as liquidator is a clear reflection of these policies.
"Cash 4 Titles" / "C4T" Ponzi Scheme
Phillip Stenger serves as receiver for various defendants in S
EC V. Charles R. Homa et al.
, Case No. 99-CV-6895 (
U.S. District Court for the Northern District of Illionis
), the "Cash 4 Titles" or "C4T" Ponzi Scheme. A significant portion of the money raised in C4T was laundered in the Cayman Islands by Charles Richard Homa, a U.S. resident, who was subsequently convicted of money laundering. After learning of Homa's fraud, the Cayman Islands' government and the Grand Court, froze the proceeds of Homa's criminal activity to protect investors and the Grand Court, in an unprecedented act, also appointed Mr. Stenger, along with the partner in charge of the Cayman Islands' office of Ernst & Young, as Joint Official Liquidator (similar to receiver) of 57 Cayman companies involved in the Ponzi Scheme. Mr. Stenger also worked closely with Ernst & Young's London criminal investigation and forensic accounting group in order to trace assets hidden abroad and has been instrumental in efforts to develop a "Protocol" to permit a single filing, and equitable treatment, by claimants, whether asserting rights in the United States, the Caymans Islands or the Bahamas.
Beacon Hill Asset Management (the "Master Fund")
In connection with his appointment as U.S. Receiver, Phillip Stenger accepted appointment as Joint Official Co-Liquidator of Beacon Hill Master, Ltd. (the "Master Fund"), a Cayman Island's based hedge fund, along with the managing partner of KPMG Cayman Islands. In addition to managing the affairs of the Master Fund and developing a plan for administration of that Estate, the Co-Liquidators have instituted litigation against third parties to enhance recovery for the investors in the funds.
In addition to serving as Cayman Islands Co-Liquidator for both the C4T Cayman Islands entities and the Master Fun, Mr. Stenger has worked with courts, government offices (including the Cayman Islands Monetary Authority and the Cayman Islands Attorney General) and professionals throughout the Caribbean in tracing assets of the estates for which he serves as receiver or co-liquidator.
For more information on the status of Cash 4 Titles and the Master Fund, as well as other receivership and liquidation cases being administered by Phillip S. Stenger, please visit our
Receiverships and Liquidations