Summit Wealth Management Receivership

Robert D. Terry, Receiver

Parker Macintyre

2987 Clairmont Road

Suite 200

Atlanta, GA 30327

Telephone: 404-490-4060

Email: Bterry@parkmac.com

On September 21, 2012, U.S. District Judge William S. Duffey Jr. appointed Robert D. Terry as Receiver over Summit Wealth Management, Inc. and related entities. Through this website, the Receiver will keep interested persons apprised of his progress toward the goals of the receivership, including gathering assets, receiving and verifying claims, and, if possible, proposing a plan to distribute assets to approved claimants.

Mr. Terry will use this website to post updates on his progress and to upload copies of the Interim Reports he will be filing with the Court.

Please read the Receiver's answers to frequently asked questions (FAQs).

UPDATE FROM RECEIVER- July 24, 2015

On July 24, 2015, Receiver Robert D. Terry mailed a Notice of Receiver's Motion for Approval of Settlement of Disputed Claims and Settlement Agreement, and for Entry of a Bar Order to former employees of Summit and other interested parties. The Notice, and the Motion for Approval of Settlement of Disputed Claims, and for Entry of Bar Order referred to in the Notice, are available for download below.

Notice_of_Receivers_Motion_for_Approval_of_Settlement_of_Disputed_Claim.pdf
632.6 KB


1_Receivers_Motion_to_Approve_Settlement_051615_Clean.pdf
68.8 KB


2_Exhibits_A-C_to_the_Motion_for_Approval.pdf
2.1 MB



UPDATE FROM RECEIVER- May 21, 2015

On May 21, 2015, Receiver Robert D. Terry (“Receiver”) filed a Motion for Approval of Settlement of Disputed Claims and Settlement Agreement, and for Entry of Bar Order (the “Motion”), seeking Court approval of a proposed settlement (the “Settlement”) with Federal Insurance Company (“Federal”).  If the Court grants the Motion, certain claims or potential claims belonging to Summit Wealth Management (“Summit”) and former employees of Summit (collectively, “Insureds”), namely claims Insureds have or may have under an errors and omissions policy issued by Federal and insuring Summit and its employees, will be barred.

          Under the terms of the Settlement Agreement, the Receivership Estate would receive a significant recovery that would allow the Receiver to file a proposed plan for interim distribution to claimants against the estate. The Receiver believes the proposed Settlement is in the best interests of the Estate and provides a favorable recovery without the burden and large expense of protracted litigation against Federal.  The Settlement would also maximize the amount of coverage to be used to pay claims and, significantly, would avoid the wasting of insurance dollars potentially available to claimants to be used instead for payment of defense costs.

          The principal features of the Settlement Agreement are: (1) payment by Federal of the total sum of $1,487,500.00 (“Settlement Consideration”) to the Receivership Estate, and (2) the entry of a Bar Order foreclosing future claims under the Policy (“Bar Order”). The settlement is expressly contingent on the development of a bar order mechanism in a form acceptable to Federal (and Court approval of that mechanism) to protect Federal from further claims by those claiming rights under the Policy.  The Bar Order is necessary to give effect to the Settlement Agreement, since Federal contends that in the absence of a settlement it could obtain a declaratory judgment of no coverage or limited coverage in an amount less than the Settlement Consideration.

          As stated in the Motion and a Memorandum of Law also filed today by the Receiver, the Receiver believes that the Settlement, including the entry of a claims Bar Order, is fair, equitable and reasonable, and in the best interest of the Receivership Estate and its claimants. The Settlement Consideration is an amount representing approximately 49% of the full limits of liability of the insurance policies at issue.  The Receiver believes this amount fairly resolves the Estate’s claims.

          Please review the documents set forth below -- the Motion and the Exhibits to the Motion, which include the proposed Settlement Agreement, Notice of Bar Order, and Proposed Order, and the Memorandum of Law and all of its exhibits.

      Please direct all questions to either the Receiver (bterry@parkmac.com) or his counsel (jsparker@parkmac.com). 


1_Receivers_Motion_to_Approve_Settlement_051615_Clean.pdf
68.8 KB


2_Exhibits_A-C_to_the_Motion_for_Approval.pdf
2.1 MB

UPDATE FROM RECEIVER- September 30, 2014

On September 30, 2014, the Receiver filed his Sixth Interim Report with the Federal District Court.  Click below to read the report.

Sixth_Report.pdf
98.4 KB



UPDATE FROM RECEIVER - June 13, 2014

On May 6, 2014 a class action lawsuit was filed by several Summit claimants acting as named plaintiffs against TD Ameritrade and Charles Schwab. This suit relates to the roles of TD Ameritrade and Schwab as custodians of Summit-related fund investments. A copy of the complaint is available here. 

1-main.pdf
267.6 KB

Questions about the lawsuit should be directed to:

Badge Humphries, Esq.

MOTLEY RICE LLC

28 Bridgeside Boulevard

Mt. Pleasant, South Carolina 29464

843-216-9000



UPDATE FROM RECEIVER- March 14, 2014


On March 14, 2014, the Receiver filed his Fifth Interim Report with the Federal District Court.  Click below to read the report.

Fifth_Report_Final.pdf
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UPDATE FROM RECEIVER- January 31, 2014


On November 22, 2013, The Court entered an order appointing a receiver in the Detroit Memorial Partners case. Click below to read the order.

Order_Appointing_Receiver.pdf
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UPDATE FROM RECEIVER - November 12, 2013

On November 12, 2013, the Receiver filed his Fourth Interim Report with the Federal District Court.  Click below to read the report.

Receiver_s_Fourth_Interim_Report.pdf
1.3 MB


Receivership_Costs_Response_1730.pdf
172.3 KB

UPDATE FROM RECEIVER - July 29, 2013

On July 26, 2013, the Receiver filed his Third Interim Report with the Federal District Court. Click the link below to read the report.

-70__Receiver_s_Third_Interim_Report__7-26-13.pdf
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UPDATE FROM RECEIVER - March 28, 2013

On March 28, 2013, the Receiver filed his Second Interim Report with the Federal District Court. Click the link below to read the report.

Receiver_s_Second_Interim_Report__3-28-13.pdf
1.8 MB

UPDATE FROM RECEIVER - January 29, 2013

Claims packages are being sent out to former clients of Summit Wealth Management to submit to the Receiver for any claims they might have  against Summit and the other Receivership defendants. Claim forms will be sent to known trade creditors and other potential claimants shortly. The claim forms may also be accessed by clicking the link below. Please note that the forms must be submitted to the Receiver by April 30, 2013. There is also a link to a document containing answers to questions that potential claimants may have.

In addition, accessible by the file below is the modified Receivership Order entered by Judge Duffey on November 21, 2012.

The Receiver has substantially completed shutting down the business operations of Summit, and continues to seek information about the use and disposition of investor funds. An interim report providing additional information will be filed with the Court and posted here shortly.

Claim_Forms.pdf
715.2 KB


Questions_and_Answers.pdf
41.4 KB


Modified_Order.pdf
1.5 MB


UPDATE FROM RECEIVER - October 23, 2012

On October 22, 2012, the Receiver filed his First Interim Report with the Federal District Court. Click the link below to read the report.

  Receiver's First Interim Report.pdf
123.7 KB
UPDATE FROM RECEIVER - October 5, 2012

You have heard or read about important developments involving Summit Wealth Management.  The Securities and Exchange Commission recently filed a civil lawsuit against Summit Wealth Management, Inc., its former President Angelo Alleca, and certain private funds with which Mr. Alleca was associated. As part of the lawsuit, the Court ordered that Mr. Alleca could no longer have any control over Summit's business and appointed me as Receiver to operate that business.

The allegations in that lawsuit do not relate to other investments such as exchange-listed securities, mutual funds, bonds, or ETFs, all of which remain secure subject only to market conditions. However, we have received information that certain other investments sold by Summit, notes issued in the name of Detroit Memorial Partners, LLC, are either in default or have an uncertain status. We are investigating the facts and circumstances surrounding these investments.

My first priority as Receiver is to restore your confidence in Summit and your Financial Adviser. That is why I immediately took steps to re-establish relationships with one of our brokerage partners so that your Financial Adviser can continue to service your account via TD Ameritrade's brokerage platform.

I have reviewed Summit's business and have spoken with most of the Financial Advisers who service your accounts. In most instances these Advisers have worked hard to get to know you as clients and have performed excellent service for you in meeting your needs. In some cases your relationship with your current Summit Adviser goes back several years. I am confident that your Financial Adviser will continue to serve your accounts as effectively as before.

Please stay tuned for further updates.

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