Frequently Asked Questions

  1. What is this lawsuit about?

    On August 13, 2009, the Commission filed a civil action against Defendants. The Complaint alleged that between 2002 and 2005, Defendants substantially overstated the value of equity and debt investments in two failing companies that represented over one-half of Brantley’s investment portfolio to generate higher investment advisory fees, made material misrepresentations and failed to make required disclosures regarding the two companies to Brantley’s board of directors, independent auditors, and to investors. Among other things, the Complaint charges Defendants with violating the antifraud statutes contained in the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940.

    Pursuant to the final judgment entered against Defendant Robert Pinkas dated September 28, 2010 (the “Judgment”), a total of $957,729 was paid to the Clerk of the Court. The Fair Fund is currently held with the Court Registry Investment System (“CRIS”) in interest-bearing Government Account Series securities. The Fair Fund will be distributed to certain shareholders and owners of Brantley Capital Corp. common stock in accordance with the Court-approved Distribution Plan.

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  2. Why Did I Receive a Notice?

    You or someone in your family may have purchased or otherwise acquired the common stock of Brantley Capital Corp. from March 31, 2003, through and including October 24, 2005 (the “SEC Recovery Period”). If you fit this criteria and suffered a loss according to the Distribution Plan, you may be eligible for a payment from the Fair Fund. The Notice explains the steps you must take to file a Proof of Claim Form in order to participate.

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  3. How do I participate? What do I need to do?

    If you did not receive a letter (also known as the Notice of Eligibility) informing you that you do not need to file a claim, and if you purchased Brantley Securities during the SEC Recovery Period, you may establish your potential eligibility to share in the Fair Fund by submitting a valid Proof of Claim Form and supporting documentation postmarked no later than December 11, 2013 to:

    SEC v. Brantley Fair Fund
    Distribution Agent
    PO Box 4234
    Portland, OR 97208-4234

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  4. I received a letter stating that I filed a claim in the Class Action and am therefore eligible for the SEC matter. Is this true?

    Yes. If you received such a letter (also known as the Notice of Eligibility), the claim we have on file for you from the Class Action has been automatically entered as a claim in the SEC matter, and you do not need to do anything unless you wish to make changes to your claim.

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  5. I filed a claim in the Class Action. Do I need to file a claim in this one?

    No. If you filed a claim in the Class Action and received a Notice of Eligibility in the SEC matter, that claim has been automatically entered as a claim in the SEC matter, and you do not need to do anything unless you wish to make changes to your claim.

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  6. I wish to make changes to the claim I filed in the Class Action. How do I do that?

    You can modify your claim by submitting a Proof of Claim Form and supporting documentation to the Distribution Agent no later than December 11, 2013.

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  7. The letter I received listed my Net Recognized Loss under the Distribution Plan. Does this mean I will get a check?

    Not necessarily. Please note that your Net Recognized Loss listed on the letter you received is not your final award amount. Each Eligible Claimant will receive a pro rata amount of the Fair Fund based on their Net Recognized Loss amount, subject to the minimum payment threshold of $10.00. The Distribution Agent cannot determine whether or not you will receive a payment until the time of distribution.

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  8. What is the CUSIP and ticker for Brantley Capital Corp. common stock?

    The CUSIP is 105494108, and the ticker is BBDC.

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  9. What is the SEC Recovery Period?

    The SEC Recovery Period is March 31, 2003, through and including October 24, 2005. This is shorter than the Class Action recovery period, which was August 1, 2002 through and including October 24, 2005.

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  10. What is Your Relationship to the Defendants/SEC/Case?

    We are Epiq Systems, the Distribution Agent appointed by the Court to fulfill certain responsibilities in this case such as mailings, review and approval of claims, distribution of the Fair Fund and other administration tasks.

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  11. How will my information be protected?

    As a long-established legal services firm, our electronic systems, software applications, employee and operational protocols are all designed to afford utmost protection and security for the case information provided to us. Further, we are obligated to fulfill the security requirements mandated by the various Court Jurisdictions and Governmental Entities that oversee the various types of cases we administer.

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  12. Who is eligible to participate in the Fair Fund?

    You are eligible if you purchased or acquired Brantley Capital Corp. common stock from March 31, 2003, through and including October 24, 2005, and suffered a loss according to the Calculation of Net Recognized Losses as provided in the Distribution Plan which can also be found in the Distribution Plan Notice.

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  13. Who is excluded from participation in the Fair Fund?

    You are excluded from participation in the Fair Fund if you are:

    • Any director or officer, or former director or officer, of Brantley Capital Management or any of its past or present Affiliates (or any of his or her assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities) who served in such capacity during the SEC Recovery Period;
    • Any employee of Brantley Capital who has been terminated for cause in connection with the violations alleged in the Commission’s Complaint in this action or any related Commission action, or who was otherwise terminated or has resigned in connection with the violations alleged in the Commission’s Complaint in this action;
    • Any defendant in any action brought by the Commission or any class action lawsuit related to the conduct described in the Commission’s Complaint in this action, unless and until such defendant is found not liable in all such civil suits and proof of the finding(s) is provided to the Distribution Agent prior to the Claims Bar Date;
    • Any Person who has been the subject of criminal charges related to the violations alleged in the Commission’s Complaint in this action, unless and until such defendant is found not guilty in all such criminal cases and proof of the finding(s) is provided to the Distribution Agent prior to the Claims Bar Date;
    • Any Person who assigned their right to obtain a recovery in the Commission’s action against Brantley Capital Management;
    • Any assignee of another Person’s right to obtain a recovery in the Commission’s action against Brantley Capital Management, provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by inheritance or devise; or
    • The Distribution Agent, its employees, and those persons assisting the Distribution Agent in its respective role as the Distribution Agent.

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  14. Who should I contact to get the required supporting documentation to send in with my claim?

    Depending on how you acquired the shares of Brantley Capital Corp. common stock, you will either need to contact your broker or tax advisor to retain the necessary documentation to file a claim form. Essentially, you will need to contact the person/party from whom you purchased the stock. Acceptable supporting documentation must be included with your completed claim form, or your claim may be rejected.

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  15. What is considered acceptable/sufficient documentation to support my transactions on my Proof of Claim Form?

    Acceptable documentation must include the name of the owner or owners of the account for which you are filing a claim, the name of the broker through whom the security was traded, trade date, number of shares purchased, acquired and/or sold, and price paid (excluding brokers’ commissions, taxes and fees).

    Acceptable documentation includes contract notes, brokers’ confirmation slips, account activity pages from brokers’ computer printouts (including the front page), or account activity pages from brokers’ monthly statements (including the front page), if those statements contain the required information. Letters from your broker are acceptable only if they are on the brokers’ letterhead and contain the required information listed above. Your own records or certificates DO NOT constitute acceptable documentation. We cannot pre-approve any documentation as acceptable without seeing it first.

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  16. I inherited (or received as a gift) Brantley Securities. Am I eligible to file a claim?

    Your eligibility is dependent upon when the securities were originally purchased. If the original owner purchased the securities during the SEC Recovery Period, then you may file a claim for those inherited or gifted securities. You must include copies of broker statements or other documentation of the original purchase with your claim. In addition, you must include documentation of the transfer of the securities to you, such as the broker statements for the period in which the transfer occurred. In the case of an inheritance, you should attach copies (please do not send originals) of any legal documentation showing you are the legal recipient of these securities. If the original owner purchased the securities prior to or after the SEC Recovery Period, the securities are not eligible. If you received a gift, you and the original owner may not both submit a claim with regard to the same securities. If both of you make a claim, only the claim filed by you (the donee) will be honored.

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  17. How do I get information about my claim in the Fair Fund?

    You may contact the Distribution Agent by calling 877-868-8230 or by sending an email to info@secvbrantleyfairfund.com for more information.

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