On April, 27, 2010, C. Randel Lewis was appointed Receiver for Mueller Capital Management, LLC, Mueller Over Under Fund, LP, as well as any related businesses, including Mueller Partners, LP, MCM, LLC and Mueller Fund, LP, (collectively, "the Estate"). On November 1, 2010, Sean Michael Mueller, who managed the Estate prior to the appointment of the Receiver, pled guilty in Denver District Court to violating the Colorado Organized Crime Control Act, C.R.S. § 18-17-104(3), a class two felony, and Securities Fraud and Theft, both class three felonies. As part of the Arrest Warrant issued for Sean Michael Mueller, the Colorado Division of Securities stated “Mueller engaged in a classic ‘Ponzi’ strategy of using new investments by new investors to pay off old investors.”
The Receiver’s tax accountants have filed final tax returns for Mueller Partners, LP and Mueller Over Under Fund, LP, and have issued final (2010) K-1s to investors. At this time, no reasonable estimate can be made as to future recoveries; however, future recoveries, if any, will be made through Mueller Capital Management, LLC.
IRS Revenue Ruling 2009-9 and IRS Revenue Procedure 2009-20 may provide guidance as to the treatment of the amount reported on Line 11 of the 2010 K-1 as well as any future recoveries. However, you should consult your tax advisor as to the proper tax treatment of both prior K-1s you received and any future distributions based on your individual tax situation.