This website was created to provide information to interested parties about the receivership established in the above-named case. You will find links to relevant documents and information. We will update the website as developments warrant.
On May 18, 2015, I, Gary Hansen, an attorney with the firm of Fox Rothschild LLP, was appointed by North Dakota federal court judge Daniel Hovland as Receiver for the following entities: North Dakota Developments, LLC, North Dakota Developments Property Management LLC, Great American Lodge LLC, NDD Holdings 1 LLC, NDD Holdings 2 LLC, NDD Modular LLC, Augusta Exploration, LLC, and Ames Engineering & Development Services LLC. This appointment was at the request of the Securities and Exchange Commission in the context of its lawsuit against North Dakota Developments, LLC, Robert Gavin, and Daniel Hogan.
As receiver, it is my responsibility to determine the financial status of the receivership entities, identify and take control of their assets, and preserve those assets. It is also my responsibility to identify those with claims against the receivership entities. I am to make an initial report of my findings to the Court within 30 days after my appointment, that is, shortly after the middle of June 2015. I am unlikely to have significant information to report or conclusions to share before that date.
The SEC has provided me with substantial information about those who invested in North Dakota Developments. At this point it is not necessary for any investor to provide me with additional information. If we need additional information in the future, we will indicate that on this website or contact you directly.
Funds provided by most investors were initially deposited in an escrow account. Funds totaling approximately $5 million remained in those accounts at the time of my appointment. Those escrowed funds are not subject to the receivership. That is, they are not under my control. Those funds are to be returned to the depositing investors by the escrow agents. This is not a process in which I am involved or in which I can assist investors.
Please note that my authority at present does not include the ability to return any funds to investors. Decisions related to the disposition of assets under my control must await the resolution of the suit filed by the SEC. That is unlikely to occur anytime soon. From time-to-time we will post on this website to provide updates on the case status.
There are many investors and creditors with claims against the receivership entities. It is important that we work as efficiently as possible to preserve available assets and that we not reduce those assets by spending an inordinate amount of time answering the same questions posed by many different people. You can help us in that effort by using this website as a primary source of information and by contacting us directly only as truly necessary.
Message to Investors from SEC Attorney Polly Atkinson - dated May 19, 2015
The funds currently held in the escrow accounts at Pearce & Durick or Russell Stookey, P.C. are exempted from the asset freeze for the sole purpose of the return of those funds to the depositor. What this means is that, if you are the depositor, you may ask the escrow agent to return the funds. The funds may not be returned to, or at the request of, anyone other than the depositor. The order allows, but does not require, the escrow agents to return the funds. The Commission does not know, and takes no position, as to whether there are impediments other than the asset freeze in this case to the return of the funds.
The Court has appointed a receiver to take control of the assets of NDD and the relief defendants. I would like to note several things concerning the receiver:
• Mr. Hansen is compensated from the assets of NDD and the relief defendants. The more funds that are expended in responding to investor inquiries, the less funds will be available to ultimately return to investors. Mr. Hansen will endeavor to keep investors informed as expeditiously as possible. Feel free to reach out to Mr. Hansen, but please do so judiciously and keep the cost of doing so in mind.
• Mr. Hansen is to report back to the court in 30 days concerning his assessment of the Receivership Estate and his plans for it. It is extremely unlikely that he will have any information concerning a timeline before that time. In addition, before any return can be made to investors, the SEC’s case must be reduced to judgment, which will take at least six months and could take several years.
Update from Receiver - dated February 5, 2016
The Receiver has posted a status update to investors. It is available under the Updates tab.
Update from Receiver – dated October 19, 2016
The Receiver has posted a status update to investors. It is available under the Updates tab.
On May 18, 2015, I, Gary Hansen, an attorney with the firm of Fox Rothschild LLP, was appointed by North Dakota federal court judge Daniel Hovland as Receiver for the following entities: North Dakota Developments, LLC, North Dakota Developments Property Management LLC, Great American Lodge LLC, NDD Holdings 1 LLC, NDD Holdings 2 LLC, NDD Modular LLC, Augusta Exploration, LLC, and Ames Engineering & Development Services LLC. This appointment was at the request of the Securities and Exchange Commission in the context of its lawsuit against North Dakota Developments, LLC, Robert Gavin, and Daniel Hogan.
As receiver, it is my responsibility to determine the financial status of the receivership entities, identify and take control of their assets, and preserve those assets. It is also my responsibility to identify those with claims against the receivership entities. I am to make an initial report of my findings to the Court within 30 days after my appointment, that is, shortly after the middle of June 2015. I am unlikely to have significant information to report or conclusions to share before that date.
The SEC has provided me with substantial information about those who invested in North Dakota Developments. At this point it is not necessary for any investor to provide me with additional information. If we need additional information in the future, we will indicate that on this website or contact you directly.
Funds provided by most investors were initially deposited in an escrow account. Funds totaling approximately $5 million remained in those accounts at the time of my appointment. Those escrowed funds are not subject to the receivership. That is, they are not under my control. Those funds are to be returned to the depositing investors by the escrow agents. This is not a process in which I am involved or in which I can assist investors.
Please note that my authority at present does not include the ability to return any funds to investors. Decisions related to the disposition of assets under my control must await the resolution of the suit filed by the SEC. That is unlikely to occur anytime soon. From time-to-time we will post on this website to provide updates on the case status.
There are many investors and creditors with claims against the receivership entities. It is important that we work as efficiently as possible to preserve available assets and that we not reduce those assets by spending an inordinate amount of time answering the same questions posed by many different people. You can help us in that effort by using this website as a primary source of information and by contacting us directly only as truly necessary.
Message to Investors from SEC Attorney Polly Atkinson - dated May 19, 2015
The funds currently held in the escrow accounts at Pearce & Durick or Russell Stookey, P.C. are exempted from the asset freeze for the sole purpose of the return of those funds to the depositor. What this means is that, if you are the depositor, you may ask the escrow agent to return the funds. The funds may not be returned to, or at the request of, anyone other than the depositor. The order allows, but does not require, the escrow agents to return the funds. The Commission does not know, and takes no position, as to whether there are impediments other than the asset freeze in this case to the return of the funds.
The Court has appointed a receiver to take control of the assets of NDD and the relief defendants. I would like to note several things concerning the receiver:
• Mr. Hansen is compensated from the assets of NDD and the relief defendants. The more funds that are expended in responding to investor inquiries, the less funds will be available to ultimately return to investors. Mr. Hansen will endeavor to keep investors informed as expeditiously as possible. Feel free to reach out to Mr. Hansen, but please do so judiciously and keep the cost of doing so in mind.
• Mr. Hansen is to report back to the court in 30 days concerning his assessment of the Receivership Estate and his plans for it. It is extremely unlikely that he will have any information concerning a timeline before that time. In addition, before any return can be made to investors, the SEC’s case must be reduced to judgment, which will take at least six months and could take several years.
Update from Receiver - dated February 5, 2016
The Receiver has posted a status update to investors. It is available under the Updates tab.
Update from Receiver – dated October 19, 2016
The Receiver has posted a status update to investors. It is available under the Updates tab.