IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION

Securities and Exchange Commission v. Titanium Blockchain Infrastructure Services, Inc.; EHI Internetwork and Systems Management, Inc. aka EHI-INSM, Inc.; and Michael Alan Stollery aka Michael Stollaire, Civil Action No. 18-cv-4315 DSF (JPRx)

NOTICE OF CLAIMS PROCESS AND CLAIMS BAR DATE

This notice may affect your legal rights. Please read it carefully. Among other things, failure to timely submit a claim pursuant to the DIRECTIONS below may result in your claim being barred from a distribution

STATUS UPDATE 4/5/22: The Receiver has filed a Motion for Approval of Receiver’s Distribution Plan. Click here to view the proposed plan submitted for the Court’s approval.

To Potential Claimant:

On May 30, 2018, the above-captioned Court entered an Order appointing Josias Dewey as Receiver for the estate of Titanium Blockchain Infrastructure Services (“TBIS Estate”). On August 21, 2020, the Court entered an Order authorizing the Claims Process and Bar Date, as modified December 15, 2020. Copies of these orders and other information regarding this case are available on the TBIS Receivership website at https://tbis.io/.

You are receiving this Notice because our records indicate you may hold a claim against the TBIS Estate. Receiving this Notice does not mean that you hold a claim or that your claim will be eligible for a distribution from the TBIS Estate.

The TBIS Fraud

As alleged by the United States Securities and Exchange Commission, Titanium President Michael Alan Stollery, a/k/a Michael Stollaire, lied about business relationships with the Federal Reserve and dozens of well-known firms for purposes of promoting an Initial Coin Offering (“ICO”).  Titanium’s website contained fabricated testimonials from these supposed corporate customers. These fraudulent statements were used to promote the ICO, which Stollaire advertised through videos and social media. The SEC's complaint charged Stollaire and Titanium with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder. The complaint charged another Stollaire company, EHI Internetwork and Systems Management Inc., with violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5(a) and 10b-5(c) thereunder.

Eligible Claimants and Claims Process

You may be eligible to submit a claim if you:

(i) are a creditor of Titanium;

(ii) directly purchased Titanium Bar (“BAR”) or TBAR from Titanium;

(iii) purchased BAR from a third party (other than Titanium) prior to February 22, 2018, held such BAR through February 22, 2018, received TBAR from Titanium by virtue of your BAR holdings, and held such TBAR through May 29, 2018; or

(iv) purchased TBAR from a third party (other than Titanium) prior to May 29, 2018 and held such TBAR through May 29, 2018.

How Do I Submit a Claim?

The deadline for submitting a claim to the TBIS Estate was 11:59 p.m. (Pacific Time) on August 11, 2021. The online claim filing system is now closed. Individuals or entities with further questions should direct their correspondence to the Receiver at tbis@hklaw.com.

Deadline for Submitting Claims

Notice is hereby given that all people with potential claims for recovery from the TBIS Estate should file their claim with the Receiver so that it is actually submitted on the Receiver’s online claim system, by 11:59 p.m. (Pacific Time) on August 11, 2021 (the “Bar Date”).  Claims should be filed electronically through this online claim system.

Individuals or entities that believe they have good cause to either extend the Bar Date or to submit their claim by other means should request this from the Receiver at tbis@hklaw.com no later than the Bar Date. Unless a claim is subject to a Receiver-granted exception, all claims against TBIS Estate assets that are not received by the Bar Date are barred.

Frequently Asked Questions

A link to FAQ’s with respect to the Claim Process can be found here.

A link to step-by-step instructions for setting up MetaMask for the token validation process can be found here.

TBIS Receivership Update – January 17, 2022

Notices of Determination

Except for a small number of claims, all validated claimants should have received a notice of determination. If you have not received a notice, we will be contacting you directly by email to obtain additional information about one or more transactions that affect the calculation of your claim. If you have not received a notice of determination and we do not contact you for additional information before the close of business on Friday, January 21, 2022, then please email tbis@hklaw.com. Please make sure to include “Notice of Determination Pending” and you claim number in the subject line of the e-mail.

Objections to Initial Determinations

If you already filed an objection to your initial notice of determination, we expect to provide an initial response to your objection on or before January 28, 2022. Please disregard the 60-day requirement to file an objection with the court set out in your notice of determination. We are extending that deadline to the date that is thirty (30) days after the date we notify you of our decision to accept or deny (in whole or in part) your objection.

Payment of Claims in ETH

A number of claimants have communicated to us a desire to receive their awards in the form of ETH, and as a result, we have incorporated a mechanism in our proposed plan of distribution to permit payment of claim awards to token purchasers in ETH. Please note that the plan of distribution must still be approved by the court (see below on status).

Plan of Distribution

We have completed a draft plan of distribution, which we will be transmitting to the SEC on Tuesday (as today is a U.S. holiday) for review and comment. Our goal is to incorporate any feedback from the SEC by the end of next week and file the plan with the court immediately thereafter. Once filed, we will upload a copy of the submitted plan of distribution to the tbis.io website. We expect that it will take the court at least a few weeks to consider and rule on the proposed plan of distribution. During this period of time, we expect to finish resolving any outstanding claims. For those who wish to receive their award in ETH, you do not need to do anything at this time. Prior to any distributions, we will set up a procedure for individual claimants to choose how they wish to receive their award; and for those who elect to receive ETH (again, assuming our plan of distribution is approved by the court), a secure means for those claimants to communicate a wallet address to receive their award.

 

Receiver Contact Information:

Josias “Joe” Dewey

 

E-mail: tbis@hklaw.com

  

Direct: (305) 789-7746

 

Court Documents:

 

You may access here a copy of the Order Appointing Receiver that was entered on May 30, 2018 by the United States District Court for the Central District of California.

A link to the SEC’s latest press release regarding Titanium Blockchain Infrastructure Services, Inc. can be found here.

An update can be found in the Receiver’s Initial Status Report, here.

Lastly, links to the Receivership Court Filings can be found, here.

 

PLEASE NOTE, NEITHER THE RECEIVER, NOR ANY AFFILIATE OF THE RECEIVER, WILL EVER ASK YOU TO TRANSFER POSSESSION OF ANY CRYPTOCURRENCY (WITH THE EXCEPTION OF THE “CONTROL TOKEN” REFERENCED IN THE ONLINE CLAIMS SYSTEM) OR DISCLOSE ANY PASSWORD(S) OR PRIVATE KEY(S) FOR ANY REASON WHATSOEVER. PLEASE CONTACT THE RECEIVER IMMEDIATELY IF YOU ARE PROMPTED FOR SUCH INFORMATION IN CONNECTION WITH YOUR POTENTIAL CLAIM.