Concorde Absolute Health Fund

FAQ's

1. What is Concorde Fraud Period?
The “Concorde Fraud Period” is July 23, 2004 through August 11, 2004 inclusive. 

2. Who are the Concorde Potentially Eligible Claimants?
Concorde “Eligible Claimants” include all persons or entities that, during the Concorde Fraud Period from July 23, 2004 through August 11, 2004 (inclusive), purchased or otherwise acquired Concorde America, Inc. common stock, and held these shares or a portion thereof at the end of the Concorde Fraud Period and incurred an aggregate net loss from your combined purchases of all Concorde Stock.

3. What is Absolute Health Fraud Period?
The “Absolute Health Fraud Period” is June 8, 2004 through December 14, 2004 inclusive.

4. Who are the Absolute Health Potentially Eligible Claimants?|
Absolute Health “Eligible Claimants” include all persons or entities that, during the Absolute Health Fraud Period from June 8, 2004 through December 14, 2004 (inclusive), purchased or otherwise acquired Absolute Health common stock, and held these shares or a portion thereof at the end of the Absolute Health Fraud Period and incurred an aggregate net loss from your combined purchases of all Absolute Health Stock.

5. Who are the Defendants?
The Defendants are Concorde America, Inc. (“Concorde”), Absolute Health, Inc. (“Absolute Health”), Donald E. Oehmke (“Oehmke”) and Bryan Kos (“Kos”) Hartley Lord (“Lord”), Thomas M. Heysek (“Heysek”), Andrew Kline (“Kline”) and Paul Spreadbury (“Spreadbury”). The Relief Defendants are DaSilva, SA (“DaSilva”), Vanderlip Holdings, NV (“Vanderlip”), Chiang Ze Capital, AVV (“Chiang Ze”), Ryzcek Investments, GMBH (“Ryzcek”) and Barranquilla Holdings, SA (“Barranquilla”).

6. Who is the Plaintiff?
The Plaintiff is the Securities and Exchange Commission (also referred to as the “Commission”). The Plaintiff is the entity that brought the lawsuit against Concorde, Absolute Health, Oehmke, Kos, Lord, Heysek, Kline, Spreadbury and the Relief Defendants. 

7. Am I being sued?
No.  You are not a party to this lawsuit.  If you are an Eligible Claimant, you may be entitled to receive a prorata portion of the funds recovered by the Securities and Exchange Commission.

8. What claims does the lawsuit make against the Defendant and the Relief Defendants?
The Securities and Exchange Commission alleged that the Defendants willfully used schemes to defraud investors by promoting the two stocks (Concorde and Absolute Health) by making untrue statements of operations and profitability and engaging in practices that artificially created demand for the respective stocks that would knowingly be fraud upon purchasers of the respective securities. The Defendants and Relief Defendants profited from these schemes by selling Concorde shares during the period July 23, 2004 through August 11, 2004 and Absolute Health shares during the period June 8, 2004 through December 14, 2004 in violation of certain securities laws. 

9. Where was the lawsuit filed?
The Plaintiff filed the lawsuit in the United States District Court for the Southern District of Florida (Federal Court) in Fort Lauderdale, Florida.

10. When do I have to mail in my Proof of Claim form?
The Proof of Claim must be postmarked and delivered no later than April 6, 2008 to the Claims Administrator.  However if you have not filed a Proof of Claim and wish to do so, we encourage you to submit your claim as soon as possible.  All Proofs of Claim received after April 6, 2008 are subject to Distribution Agent and Court approval.

11. I just received / opened the Proof of Claim and the response deadline has passed. What can I do?

You may still submit a Request for Reconsideration, but we can provide no assurance that your request will be granted. The Distribution Plan provides that a failure to timely request reconsideration of the Proof of Claim constitutes a waiver of the claimant’s right to object to or contest the Notice.

12. How will the Distribution Agent determine my recovery?

The information you were asked to provide in the Proof of Claim Form enables the Distribution Agent to determine whether you meet the eligibility criteria for a recovery from the Concorde Absolute Health Fund, and if so, what amount you are entitled to receive.  Using the methodology set forth in the Distribution Plan, the Distribution Agent will determine the portion of the losses you may recover with regard to any Concorde and/or Absolute Health stock purchased during the respective Concorde and Absolute Health Fraud Periods.
The amount of your recovery for each transaction in Concorde and Absolute Health Stock will depend on (1) the price you paid for the Concorde and/or Absolute Health stock, and (2) the date on which you purchased the Concorde and/or Absolute Health stock, and (3) whether and at what date and price you sold the Concorde and/or Absolute Health stock.

The amount of your recovery will also depend on the total value of claims approved by the Distribution Agent for recovery from the Concorde Absolute Health Fund.

The Distribution Agent will not be able to determine individual recoveries prior to processing all Proof of Claim Forms.

13. Why are some or all of my transactions designated as “deficient”, when I sent in all the appropriate brokerage documentation?

If you supplied the necessary brokerage documentation indicating account owners name and account number printed by the brokerage house but you did not provide your Social Security Number, or the Death Certificate of deceased Eligible Claimant (if applicable) or Claimant Signature, all your transactions will be deficient. Claimants have the opportunity to send in a Request for Reconsideration and provide the missing information to make transactions eligible.

14. My Brokerage is out of business (or other reason for not having documentation). How can I get documentation?                                             

If you have enough information to complete the claim form, you may provide a notarized statement or affidavit indicating that the information provided on the Proof of Claim is true and correct, and that you are unable to get your account statements or confirmations.  If you do not have enough information to fill in the Proof of Claim (e.g., date of purchases/sales, amounts paid, etc.), we will be unable to help you until you get such information from your records, tax forms, etc. 

15. Will Eligible Claimants receive updates on the status of their claims?  

No, please call us if you wish to confirm receipt of your claim and determination of your claim’s validity.  If you wish a receipt of your claim, you may mail it certified, return receipt requested.  Prior to distribution of the Concorde Absolute Health Fund, we will only advise you of deficient or inconsistent conditions within your claim. 

16. What constitutes a valid proof of claim?                                                        

In order for a Proof of Claim to be considered valid, you must complete:                                                           

1. Claimant Information on page 2 - name, address, tax id and telephone numbers;

2. Table A on page 3 - purchases acquisitions and/or sales of the securities;                                 

3. Certification and Release on page 4 -;                                                                                               

4. You must also provide supporting documentation to support all holdings, purchases, acquisitions and/or sales that you list on your Proof of Claim;                                                                           

5. The claim form must be signed on page 4 by all beneficial owners; and                                           

6. You must have mailed the claim form, postmarked and delivered to the Claims Administrator no later than April 6, 2008.

17. If securities are held by more than one person, do the other parties have to sign?
Yes, all owners must sign.  If the securities are held by more than one individual, such as jointly, then all owners must sign the Proof of Claim.

18. My Spouse and I owned the securities jointly (Joint Tenants, Joint-with-rights-of survivorship, Tenants-in-common) but my spouse has since passed away. Can I File? 

You may sign and file the claim yourself.  Please include a copy of the death certificate. 

19. What date do I use for the date of purchase or sale (Trade date or Settlement date)?              

You must use the Trade date, not the Settlement date.  The Settlement date is the date on which your account was settled (paid).  The Trade date is the date on which you actually made the purchase or sale.

20. Some of my securities were held in an IRA or 401K account, but they are not indicated as such.          

If any or all of the transactions listed in Page 3 are from a tax deferred account(s) such as an IRA, and the transactions are not indicated as such on Page 3, clearly mark those transactions on Page 3 and return Page 3 with a copy of your brokerage statement indicating the securities were held in a tax deferred account after the respective fraud periods of Concorde and/or Absolute Health, in the envelope and cover page included with your Notice to the Concorde Absolute Health Fund C/O Global Risk Solutions, PO Box 310130 Miami, FL 33231-130.

21. How was the Concorde Absolute Health Fund created?

The Concorde Absolute Health Fund was created as a result of the Securities and Exchange Commission’s successful enforcement action against the Defendants and Relief Defendants. The Commission obtained a recovery from certain of the Relief Defendants.  Additional Funds may be recovered.  The Court appointed Melanie E. Damian as Distribution Agent for the Concorde Absolute Health Fund.  The Concorde Absolute Health Fund proceeds will be distributed to eligible holders of Concorde and/or Absolute Health securities pursuant to the Distribution Plan approved by the United States District Court for the Southern District of Florida on September 24, 2007.  

22. Who is potentially eligible for a recovery from the Concorde Absolute Health Fund?

Concorde America Shareholders

You must have been a holder of Concorde Stock (CNDD.PK) as listed in the Distribution Plan and the Distribution Plan Notice. 

AND · You must have purchased Concorde Stock between July 23, 2004 and August 11, 2004 and held Concorde shares at the end of the Concorde Fraud Period on August 11, 2004.  You are not entitled to a recovery from the Fund with respect to any Concorde Stock that you acquired prior to July 23, 2004.   

AND · You must have incurred an aggregate net loss from your combined purchases of all Concorde Stock from July 23, 2004 to August 11, 2004 and related subsequent sales.

Absolute Health Shareholders

You must have been a holder of Absolute Health Stock (AHFI.PK) as listed in the Distribution Plan and the Distribution Plan Notice. 

AND · You must have purchased Absolute Health Stock between June 8, 2004 and December 14, 2004 and held Absolute Health shares at the end of the Absolute Health Fraud Period on December 14, 2004.  You are not entitled to a recovery from the Fund with respect to any Absolute Health Stock that you acquired prior to June 8, 2004.   

AND · You must have incurred an aggregate net loss from your combined purchases of all Absolute Health Stock from June 8, 2004 to December 14, 2004 and related subsequent sales.

23. What securities/transactions are eligible for a recovery?

You must have been a holder of either Concorde Stock (CNDD.PK) as listed in the Distribution Plan at the end of the Concorde Fraud Period on August 11, 2004 and/or a Holder of Absolute Health Stock (AHFI.PK) as listed in the Distribution Plan at the end of the Absolute Health Fraud Period on December 14, 2004.

AND ·you must have incurred an aggregate net loss from your combined purchases of all Concorde from July 23, 2004 to August 11, 2004 and related subsequent sales and/or incurred an aggregate net loss from your combined purchases of all Absolute Health from June 8, 2004 to December 14, 2004 and related subsequent sales.

24. Do I need to submit supporting documentation?                                 

Yes.  You must attach to the Proof of Claim (for each transaction) legible copies (not originals) of either:

• Broker confirmation slips;

• Monthly brokerage statements;

• 2004 quarterly or year-end brokerage statements;  

• If you sold your securities, your Schedule D of the tax return for the year in which you sold;

• A letter from your broker on the firm's letterhead; or

• Other satisfactory proof confirming the particulars of each purchase, acquisition, and sale of the securities.

25. What type of transactions should I list in the Proof of Claim Form?

Please include every transaction of Concorde and/or Absolute Health Stock in which either the purchase or sale side of the transaction occurred during the Concorde Fraud Period for the Concorde stock or the Absolute Health Fraud Period for the Absolute Health stock as well as sales which took place after the respective Fraud Period related to shares held at the end of the applicable Fraud Period.

26. What sales price should I enter in the Proof of Claim Form for an Eligible Security that I never sold?

For the Concorde and/or Absolute Health Stock that you purchased during the respective Fraud Periods and that you never sold, you should list “None” as the Sale Date and provided a recent brokerage statement indicating that you still hold the stock.

27. Why do I need to list the brokerage accounts where I held Concorde and/or Absolute Health Stock?

The brokerage account information you provide in the Proof of Claim Form is required for claim verification purposes.

28. If I apply for a recovery from the Fund, am I waiving any rights to pursue separate litigation against Concorde and/or Absolute Health or its former officers and directors? May I participate in other litigation (i.e. class action lawsuits) and recover from those lawsuits as well?

You will not waive any rights to pursue litigation against Concorde and/or Absolute Health or its former officers and directors if you file a Proof of Claim Form. And yes, you may participate in other litigation and potentially obtain a recovery through settlements or judgments in other lawsuits. However, your claim may be reduced by the recovery you receive; you should discuss the effect of your receipt of funds with your own attorney.  If you receive full compensation for your loss you may not be permitted to recover again in another lawsuit.

The Concorde Absolute Health Fund relates only to the Security and Exchange Commissions enforcement action against Concorde and Absolute Health.

29. Why do I need to provide copies of my brokerage statements or trade confirmations? What if I did not retain copies of my trading records?
The Distribution Plan requires that claimants provide copies of documents that substantiate the transactions listed in the Proof of Claim Form. You must provide genuine and sufficient supporting documentation to verify your holdings in Concorde and /or Absolute Health Stock during the respective Fraud Periods.

If such documents are not in your possession, please obtain copies or equivalent contemporaneous documents from your broker or tax advisor. Failure to supply this information could result in a rejection of your claim.

DO NOT submit originals of your supporting documentation. Copies will suffice. Supporting materials will not be returned to you, so you should retain the originals for your records. Do not send original stock certificates.

30. How much will I recover from the Concorde Absolute Health Fund? When will I find out how much I recover?

It is impossible to estimate the amount any claimant will recover from the Concorde Absolute Health Fund prior to the receipt and processing of all Proof of Claims Forms from all claimants.

The amount of your recovery for each transaction of Concorde and /or Absolute Health Stock will depend, among other things, on the price you paid for the Concorde and /or Absolute Health Stock, and the date on which you purchased the Concorde and /or Absolute Health Stock, and whether, the date, and at what price you sold the stock.

After the submission of all Proof of Claims Forms by the Claims Bar Date (April 6, 2008), the Distribution Agent will review and analyze each claim and determine the aggregate amount of approved claims from all Eligible Claimants.

By the end of June 2008, you will receive a Determination Notice from the Distribution Agent which will detail the transactions you submitted and the eligible loss that has been determined and approved.

31. After receiving a Proof of Claim Form, what do I do if I think the Distribution Agent has made a mistake calculating my recovery?
You may submit a Request for Reconsideration if you are dissatisfied with the preliminary determination of your eligible recovery. You must submit a Request for Reconsideration to the Concorde Absolute Health Fund by post marking it NO LATER than 21 days from the postmark date of the letter (claimants with mailing addresses outside the U.S. have 45 days after the postmark date of the letter). The request must clearly explain the basis of your disagreement with the Notice.

The Distribution Agent will review your issues and send you a Final Determination Notice. If you still disagree with the Distribution Agent’s findings, you will have the option to appeal the decision to the U.S. District Court.

32. How do I obtain more information about the Concorde Absolute Health Fund?  You will find additional information about the Concorde Absolute Health Fund in the Distribution Plan and Distribution Plan Notice, both of which are available in the downloads section of this website www.ConcordeAbsoluteHealthFund.com.

You may also obtain information regarding the claim process from the Concorde Absolute Health Fund’s hotline at
877-523-6365 or you may submit questions by mail to Concorde Absolute Health Fund C/O Global Risk Solutions, Inc. P.O. Box 310130 Miami, FL 33231-0130 or to the Distribution Agent, Melanie Damian, Damian & Valori LLP, 1000 Brickell Avenue, Suite 1020, Miami, FL 33131.