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SEC v. Qin et al. Receivership

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Introduction

Welcome to the website of Receiver, Robert Musiala, Jr. Mr. Musiala has been appointed Receiver in a civil enforcement action, styled Securities and Exchange Commission v. Stefan Qin et al., Case No. 20-cv-10849 in the United States District Court for the Southern District of New York.

This website is intended to provide convenient access to information about the Receivership, including important updates and select court documents. We will continually update and add information to this website, including information regarding a plan of distribution to creditors of any assets that are recovered and all forms required by the District Court for participation as a claimant in the distribution process. If you require further information not contained in this website, you may contact us.

Brief Summary of the Case

The Securities and Exchange Commission (“SEC”) filed a civil enforcement action in the United States District Court for the Southern District of New York against Stefan Qin, Virgil Technologies LLC, Montgomery Technologies LLC, Virgil Quantitative Research, LLC, Virgil Capital LLC, and VQR Partners LLC (collectively, “Defendants”). Defendant Stefan Qin is charged with engaging in a deceptive course of conduct, using materially false and misleading statements to investors and others, causing serious harm to two funds he controls, the Virgil Sigma Fund LP (the “Sigma Fund”) and the VQR Multistrategy Fund LP (the “VQR Fund”). The complaint alleges that, Qin, using his control and ownership of five entities, Virgil Technologies LLC, Montgomery Technologies LLC, Virgil Quantitative Research, LLC, Virgil Capital LLC, and VQR Partners LLC (collectively the “Entity Defendants”), perpetrated a scheme to lure investors into the two Funds, which are marketed as using algorithmic trading strategies involving cryptocurrencies, using false promises and assurances. As further alleged in the complaint, the funds, however, did not hold accounts on some of the cryptocurrency exchange platforms as stated by Defendants, and Qin used some of the investor funds for unauthorized and illegitimate purposes.

When the SEC seeks the return of funds to investors, as is the case here, the SEC frequently appoints a receiver to assist in marshaling assets on behalf of creditors and investors. You can learn more about receiverships generally here.

The District Court entered an order on January 21, 2021, appointing Robert Musiala, Jr.  as Receiver. The Court directed the Receiver to (i) administer and manage the business affairs, funds, assets, and any other property of the Entity Defendants; (ii) marshal and safeguard the assets of the Entity Defendants; (iii) investigate the manner in which the affairs of the Entity Defendants were conducted and institute legal proceedings for the benefit of the Entity Defendants and their investors and creditors as the Receiver deems necessary; and (iv) take whatever actions are necessary for the protection of the investors. A copy of the Receivership Order can be located here. The Receiver intends to fulfill his duties and responsibilities in an expeditious, fair, and efficient manner. The District Court will continue to oversee the Receivership.