Case filing & court posture: Navellier & Associates Inc., a Reno, Nevada-based registered investment advisor, filed Chapter 11 on September 5, 2025, in the U.S. Bankruptcy Court for the District of Nevada (Case No. 25-50820, Judge hlb). Dkt. 1 The petition followed a $31.3 million final judgment entered against the Debtor by the U.S. District Court for the District of Massachusetts in 2021 for Securities and Exchange Commission (SEC) enforcement action alleging securities law violations related to fraudulent marketing of the Vireo AlphaSector investment products between 2010 and 2013. Dkt. 76 The judgment comprises $22.7 million in disgorgement, $6.6 million in prejudgment interest, and $2 million in civil penalties.
Liquidity & financing path: The Debtor maintains approximately $895,000 in cash reserves and has not sought traditional DIP financing or cash collateral arrangements. Dkt. 83 Monthly operating reports filed since petition show minimal operating activity and cash burn. The Debtor's sole source of funds is prepetition reserves, with no ongoing business revenue or material assets generating cash flow.
Restructuring strategy & litigation posture: The SEC contests the bankruptcy filing and has filed an adversary complaint seeking a determination that the $31.3 million obligation is nondischargeable. Dkt. 64 The SEC has also moved to dismiss or convert the case to Chapter 7 for lack of good faith, arguing the petition was filed as part of a litigation strategy to collaterally attack the Massachusetts judgment and delay collection efforts. Dkt. 76 Hearing on the SEC's motion to dismiss/convert is scheduled for March 18, 2026.
Plan timeline & current status: No Chapter 11 plan has been filed. The Debtor sought and obtained an extension of the exclusivity period, which now extends beyond the March 2026 hearing date. Dkt. 70 The case remains in a pre-plan posture pending resolution of the SEC's motions and the nondischargeability adversary proceeding.
