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Full title: Notice of Hearing on Joint Motion for an Order Approving Settlement Procedures with Respect to Investor Clawback Claims (RE: related document(s)829 Joint Motion for an Order Approving Settlement Procedures with Respect to Investor Clawback Claims Filed by Debtor Professional Financial Investors, Inc. (Attachments: # 1 Declaration of Michael I. Goldberg) (Marum, J.)). Hearing scheduled for 9/9/2021 at 10:00 AM via Tele/Videoconference - www.canb.uscourts.gov/calendars. Filed by Debtor Professional Financial Investors, Inc. (Marum, J.) (Entered: 08/18/2021)

Document posted on Aug 17, 2021 in the bankruptcy, 3 pages and 0 tables.

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PT (the “Hearing”), befor24 the Honorable Hannah L. Blumenstiel, United States Bankruptcy Judge, to consider the 25 Motion for an Order Approving Settlement Procedures with Respect to Investor Clawback26 Investors, Inc. (“PFI”) and its affiliate debtors (collectively with PFI, the “Debtors”): 1 PLEASE TAKE FURTHER NOTICE THAT following a judicial determinatio2 by this Court that the Debtors operated a Ponzi scheme (the “Ponzi Finding”) and t3 equalize the treatment of Investors in the However, for the subset of Investors whose claims were netted to zer7 the Debtors also hold claims for the avoidance of payments to such Investors that exceede8 the return of their principal investment (“Net Winnings”). 24 PLEASE TAKE FURTHER NOTICE that pursuant to Bankruptcy Local Rule 25 9014-1(c)(2), any opposition to the relief requested in the Motion must be filed with the 26 Clerk of the Court and be served on the moving party no later than September 2, 2021. 27 1As applicable, references herein to the Debtors shall include the PFI Trust, which will be the Debtors’ successor f28 purposes of bringing claims, including avoidance actions, held by the Debtors.

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Document Contents

1 Ori Katz (CA Bar No. 209561) J. Barrett Marum (CA Bar No. 228628) 2 Matt Klinger (CA Bar No. 307362) SHEPPARD, MULLIN, RICHTER & 3 HAMPTON LLP Four Embarcadero Center, 17th Floor 4 San Francisco, CA 94111-4019 Telephone: (415) 434-9100 5 Facsimile: (415) 434-3947 Email: okatz@sheppardmullin.com 6 bmarum@sheppardmullin.com mklinger@sheppardmullin.com 7 Counsel to Debtors and Debtors in Possession 8 9 UNITED STATES BANKRUPTCY COURT 10 NORTHERN DISTRICT OF CALIFORNIA 11 SAN FRANCISCO DIVISION 12 In re: Case No. 20-30604 13 PROFESSIONAL FINANCIAL INVESTORS, (Jointly Administered) INC., et al., 14 Chapter 11 Debtors. 15 NOTICE OF HEARING ON JOINT MOTION FOR AN ORDER APPROVING 16 SETTLEMENT PROCEDURES WITH RESPECT TO INVESTOR CLAWBACK 17 CLAIMS 18 Date: September 9, 2021 Time: 10:00 a.m. 19 Judge: Hannah L. Blumenstiel Place: Telephonic/Video Appearances On 20 450 Golden Gate Ave., 16th Fl., Ctm. San Francisco, CA 94102 21 22 PLEASE TAKE NOTICE THAT a hearing to be conducted via telephone or 23 video has been scheduled for September 9, 2021 at 10:00 a.m. PT (the “Hearing”), befor24 the Honorable Hannah L. Blumenstiel, United States Bankruptcy Judge, to consider the 25 Motion for an Order Approving Settlement Procedures with Respect to Investor Clawback26 Claims (the “Motion”) filed concurrently with this notice in the above-captioned, jointly-27 administered bankruptcy cases (the “Bankruptcy Cases”) of Professional Financial 28 Investors, Inc. (“PFI”) and its affiliate debtors (collectively with PFI, the “Debtors”):

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1 PLEASE TAKE FURTHER NOTICE THAT following a judicial determinatio2 by this Court that the Debtors operated a Ponzi scheme (the “Ponzi Finding”) and t3 equalize the treatment of Investors in the Debtors to the greatest extent possible, th4 Debtor’s approved plan of reorganization incorporated a “netting mechanism” to reduc5 Investor’s claims by the distributions that they received from the Debtors following th6 Ponzi Start Date.1 However, for the subset of Investors whose claims were netted to zer7 the Debtors also hold claims for the avoidance of payments to such Investors that exceede8 the return of their principal investment (“Net Winnings”). As of August 5, 2021, FTI’9 analysis reflects that approximately 566 Investors are Net Winners, with aggregate N10 Winnings of $41.2 million. By way of the Motion the Debtors, with the consultation an11 input of the Committee and members of the Board of Advisors (which will advise the PF12 Trust once it is created), seek authority to pursue collection of the Net Winnings from th13 Net Winners and to fix procedures that will streamline the process, save costs and ensur14 that all Net Winners are provided with the same settlement options (the “Settleme15 Procedures”). 16 PLEASE TAKE FURTHER NOTICE THAT the hearing will not be conducted 17 in the presiding judge’s courtroom but instead will be conducted by telephone or video. 18 All interested parties should consult the Bankruptcy Court’s website at 19 www.canb.uscourts.gov for information about court operations during the COVID-19 20 pandemic. The Bankruptcy Court’s website provides information regarding how to arrang21 a telephonic or video appearance. If you have any questions regarding how to appear at a 22 court hearing, you may contact the Bankruptcy Court by calling 888-821-7606 or by using23 the Live Chat feature on the Bankruptcy Court’s website. 24 PLEASE TAKE FURTHER NOTICE that pursuant to Bankruptcy Local Rule 25 9014-1(c)(2), any opposition to the relief requested in the Motion must be filed with the 26 Clerk of the Court and be served on the moving party no later than September 2, 2021. 27 1 As applicable, references herein to the Debtors shall include the PFI Trust, which will be the Debtors’ successor f28 purposes of bringing claims, including avoidance actions, held by the Debtors.

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1 PLEASE TAKE FURTHER NOTICE that the Court may deem the failure of an2 party in interest to file a timely objection to the Motion to constitute consent to the relief 3 requested in the Motion. 4 PLEASE TAKE FURTHER NOTICE that if you did not receive a copy of the 5 Motion and would like to obtain one, please go to the website for these Bankruptcy Cases 6 maintained by Donlin Recano & Company, Inc., the claims agent for the cases, which 7 website is located at: https://www.donlinrecano.com/Clients/pfi/Index or contact the 8 counsel for the Debtors at (415) 434-9100. 9 10 Dated: August 18, 2021 11 SHEPPARD, MULLIN, RICHTER & HAMPTON LLP 12 13 By /s/ J. Barrett Marum 14 ORI KATZ J. BARRETT MARUM 15 JEANNIE KIM MATT KLINGER 16 GIANNA SEGRETTI 17 Counsel for the Debtors 18 19 20 21 22 23 24 25 26 27 28

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