New York Attorney General Criticized by Retirees Over Frozen Accounts
New York, December 9, 2024 – Retired investors are outraged at New York Attorney General Letisha James for freezing their accounts for over 6 years since December 2018 in ACP X, LP, a private equity partnership sponsored by NYPPEX Holdings, LLC.
Some of the partnership’s retired investors argue that the partnership did nothing wrong as alleged by the NY AG. That sentiment is supported by FINRA’s National Adjudicatory Council (NAC), which recently reversed several allegations as well as the SEC, which recently dismissed allegations against the independent auditor to ACP X, LP and NYPPEX.
In an affidavit to the NY Supreme Court, retired investor John W. Gay stated: “I have been financially disadvantaged because of the NY AG filing. I am a senior citizen with 8 grandchildren, several of whom are in university. Mrs. Gay and I have pledged to assist in the cost of their education. My holdings in this partnership represent an important part of means by which we intend to honor that pledge, Absent the liquidity we anticipated…we have suffered a significant and regrettable financial loss.
The degree to which the NY AG has pursued their “claims” in ways that seem unnecessarily provocative, deliberately replete with questionable undertakings and unprofessionally protracted, verges on government harassment of and about the American tradition of capitalism.
I have owned the partnership for several years. I’ve seen no evidence of mismanagement, self-dealing, inattention to protocols, failures to inform, etc.”[1]
Further, a NY Supreme Court harshly criticized the receiver to ACP X, LP regarding its management of the partnership. The Court’s comments included, since October 28, 2022, [this court directed] the receiver to marshal all the assets of ACP X, LP, monetize them and distribute them to the ACP X, LP partners…[yet] the marketable securities and cash position of [the limited] partnership appear to have decreased at more than 50% and perhaps as much as 70% for which there is no explanation whatsoever [from the receiver].
It’s quite apparent that [the receiver has] added absolutely no value to the administration of this estate. In fact, they’ve presided over the radical diminution of the value of the estate.”[2]
Wells Martin III, another retired investor in the partnership, stated, “I am concerned that the receiver continues to make errors in their attempts to accurately calculate investor’s capital accounts [in the partnership]. Most recently, the receiver’s Interest Notice miscalculated my Net Contributions [to the partnership]. As a result, I have been damaged as an investor by doing business in the State of New York. I believe this receiver has and will continue to charge unnecessary fees and expenses [to the partnership] which will further damage investors.” [3]
For further information, please contact info@nyppex.com.
About NYPPEX Holdings
NYPPEX Holdings is one of the world’s leading providers of risk management solutions for the private capital funds industry. NYPPEX serves private fund managers, financial institutions, endowments, foundations, institutional investors, family offices, private clients and their respective advisors worldwide.
Since 2004, the NYPPEX QMS™ has been formerly recognized by the U.S. Internal Revenue Service though a private letter ruling under Internal Revenue Code §1.7704. A NYPPEX QMS Opinion Letter can help private capital funds meet the requirements of a QMS safe-harbor exemption under IRS §1.7704. This facilitates regulatory compliance with the IRS and helps avoid an adverse taxable event when private funds seek to permit higher volumes of secondary interest transfers annually.
[1] Source: Affidavit to the NY Supreme Court by John W. Gay, a retired investor in the partnership.
[2] Source: Transcript from the Supreme Court of the State of New York hearing. December 20, 2023.
[3] Source: Letter to the Appellate Division, First Judicial Department, State of New York by Wells Martin III, retired investor in the partnership.
