IF YOU PURCHASED A MEMBERSHIP(S) IN DFRF FROM JUNE 1, 2014, THROUGH JUNE 30, 2015, INCLUSIVE, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION FROM THE DFRF DISTRIBUTION FUND.

Current Status

On March 24, 2025, the Court in the civil action identified above, issued an Order to Show Cause, directing individuals and entities who purchased memberships in DFRF Enterprises LLC and/or DFRF Enterprises, LLC during the period June 1, 2014 through June 30, 2015, inclusive, or other interested parties, to show cause, if there is any, why this Court should not approve the SEC’s proposed plan of distribution. Objections to the proposed plan must be made by correspondence received by the Distribution Agent no later than 11:59 p.m. on May 5, 2025, as further directed in Section II of the the Order to Show Cause. You can view the Order to Show Cause on the Resources page of this website and the SEC webpage for this matter.

Background

On June 30, 2015, the Securities and Exchange Commission (the “SEC”) filed a Complaint in federal court in Massachusetts against Daniel Fernandes Rojo Filho (“Filho”); Romildo Da Cunha; Wanderley M. Dalman; Gaspar C. Jesus; Eduardo N. Da Silva; DFRF Enterprises LLC (“DFRF Mass”); DFRF Enterprises, LLC (“DFRF Fl,” and collectively with DFRF Mass, “DFRF”); Jeffrey A. Feldman; Heriberto C. Perez Valdes (collectively, the “Defendants”). The SEC alleged that, beginning in the summer of 2014, Filho orchestrated, and his co-Defendants promoted, a fraudulent offering of memberships in DFRF, raising more than $15 million from more than 1,400 investors worldwide. The SEC alleged that the Defendants solicited investments with, among other things, stories about lucrative gold mines, remarkable investment returns, charitable work, registered securities, and access to a large credit line from a Swiss private bank; and claimed that investments were fully guaranteed by a worldwide insurance company. The SEC further alleged that virtually all the Defendants’ public statements about DFRF were materially false and misleading: there are no gold mines, there is no credit line, there is no charity work, the securities were unregistered, and there is no insurance. Rather, investments were used to pay other investors in a Ponzi-scheme fashion and for Filho’s personal benefit.

The litigation is complete, and final judgments have been entered against all the Defendants (the “Final Judgments”). The monetary relief imposed by the Final Judgments aggregates to approximately $31.5 million in disgorgement, prejudgment interest, and civil penalties.

The Final Judgments provide that the SEC may propose a plan to distribute collected funds (the “Distribution Fund”) subject to the Court’s approval. The Distribution Fund currently holds approximately $3 million and resides in an SEC-designated account with the U.S. Department of the Treasury. Accrued interest, additional collections, and amounts directed to the Distribution Fund by Court order or otherwise, will be added to, and become a part of, the Distribution Fund.

By Order entered August 2, 2023, the Court appointed Miller Kaplan Arase LLP as the tax administrator for the Distribution Fund and Guidehouse Inc., Baker & Hostetler LLP, and PACE Claims Services LLC (collectively “GBP”) as the distribution agent for the Distribution Fund.

You can see the Complaint and the August 2, 2023 Order in the Resources page of this website and the SEC webpage page for this matter.