Frequently Asked Questions

Background

1. What is this matter about?

On August 28, 2023, the SEC instituted and simultaneously settled cease-and-desist proceedings (the "Order") against Legacy Hospitality II, LLC ("Legacy"), Legendary Capital REIT III, LLC ("Legendary"), And Corey R. Maple ("Maple") (collectively, "Respondents"). In the Order, the SEC found that from 2014 to 2020, Respondents improperly directed two Real Estate Investment Trusts to reimburse Legacy and Legendary for approximately $5 million in overhead expenses in a manner that was inconsistent with disclosures made to investors. The Order further found that Maple exercised decision-making authority over the allocation of expenses.

The SEC ordered Legacy to pay disgorgement of $2,283,000.00, prejudgment interest of $459,012.67, and civil money penalty of $1,150,000.00, for a total of $3,892,012.67, pursuant to a payment plan detailed in the Order. The SEC further ordered Legendary to pay disgorgement of $463,900.00, prejudgment interest of $85,431.50, and a civil money penalty of $225,000.00 for a total of $774,331.50, also pursuant to a payment plan detailed in the Order. The SEC also ordered Maple to pay a civil money penalty of $100,000.00. Collectively, Respondents were ordered by the SEC to pay a total of $4,766,344.17, to the SEC. The SEC also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected, along with the disgorgement and interest collected, can be distributed to harmed investors (the "Fair Fund")

On January 6, 2025, the SEC issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund.

On April 25, 2025, the SEC issued an order appointing Simpluris, Inc. as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator's bond amount.

On October 27, 2025, the SEC issued an order extending time to enter an order approving or disapproving plan of distribution until July 3, 2026.

On July 6, 2026, the SEC issued an order approving the plan of distribution and published the approved plan of distribution ("Plan").

2. Why did I receive a Plan Notice?

If you received notice, then you have been identified by the Fund administrator as a preliminary claimant who suffered a loss due to improperly allocated expenses charged to the Lodging Opportunity Fund Real Estate Investment Trust ("Fund 2") from June 1, 2014, through May 31, 2020 (the "Fund 2 Relevant Period") and Lodging Fund REIT III, Inc. ("Fund 3", together with Fund 2, the "Funds") from September 30, 2018, through December 31, 2018 (the "Fund 3 Relevant Period") due to the misconduct of the respondents.

3. What is the Relevant Period?

The Relevant Period for Fund 2 is from June 1, 2014, through May 31, 2020 (the "Fund 2 Relevant Period") and the Relevant Period for Fund 3 is from September 30, 2018, through December 31, 2018 (the "Fund 3 Relevant Period"), inclusive.

4. How much is in the Legacy Hospitality Fair Fund?

The Fair Fund consists of the $4,766,344.17 paid by the Respondents plus accrued interest.

Eligibility

5. Who may be eligible for a payment from the Legacy Hospitality Fair Fund?

You may be eligible for a payment from the Legacy Hospitality Fair Fund if:

1. You must have suffered a loss due to improperly allocated expenses charged to Fund 2 during the Fund 2 Relevant Period or to Fund 3 during the Fund 3 Relevant Period due to the misconduct of the Respondents,


2. Your Recognized Loss calculates to a distribution amount equal to or greater than the Minimum Distribution Amount of $20.00, as calculated under the Plan; and,


3. You are not an Excluded Party; and


4. You submit a signed, valid Certification Form by the Certification Deadline on October 19, 2026.

6. Who is excluded from payment from the Legacy Hospitality Fair Fund?

You are excluded from participation in the Legacy Hospitality Fair Fund if you are an Excluded Party as defined in the Plan, including:

1. The Respondents, and Respondents' advisers, agents, directors, founders, employees, nominees, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities;


2. The Fund Administrator, its employees, and those Persons assisting the Fund Administrator in its role as the Fund Administrator;


3. Any purchaser or assignee of another Person's right to obtain recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance or devise.

Plan of Allocation

7. What is the Plan of Allocation?

The Plan of Allocation, available for review as Exhibit A of the Plan, states how the Recognized Losses and Distribution Payments will be calculated.

The Plan of Allocation is designed to compensate investors based on improperly allocated expenses charged to Fund 2 during the Fund 2 Relevant Period and Fund 3 during the Fund 3 Relevant Period due to the misconduct of the Respondents.

Based upon records obtained by the SEC during its investigation, the SEC has determined the amount of overhead expenses charged to the Funds that should have been paid by the advisors of the Funds ("Improper Expenses") and has identified those investors, or their lawful successors, who may have suffered harm from paying the Improper Expenses. Investors who did not hold shares of Fund 2 or Fund 3 during their respective Relevant Periods, or who are an Excluded Party, are ineligible to recover under the Plan.

An Eligible Claimant is a Person who suffered a Recognized Loss as calculated by the Plan of Allocation; who submits a valid Certification Form by the Certification Form Deadline; and who is not an Excluded Party under paragraphs 14(a)-(c) of the Plan. An Eligible Claimant will be deemed a Payee and will receive a distribution payment if their Recognized Loss calculates to a distribution amount equal to or greater than $20.00.

The Certification Process

8. What is the deadline to submit a Certification Form?

The deadline to submit a Certification Form, also referred to as the "Certification Form Deadline" or the "Certification Date," is October 19, 2026.

Certification Forms completed online must be submitted on or before 11:59 p.m. Eastern Standard Time on October 19, 2026.

Certification Forms submitted by mail must be sent to the address provided on the Certification Form and postmarked (or if not sent by U.S. Mail, received) by October 19, 2026.

9. How do I submit a Certification Form online?

Online submissions are encouraged.

To submit a Certification Form online, go to the Submit a Certification Form page, login with the LoginID and PIN provided on your paper Certification Form, and follow the instructions.

Certification Forms completed online must be submitted on or before 11:59 p.m. Eastern Standard Time on October 19, 2026.

10. How do I submit a Certification Form via mail?

If you are unable to submit a Certification Form online, you may request a copy of the paper Certification Form from the Fund Administrator via email at info@LegacyHospitalityFairFund.com or by calling (866) 675-3042.

Certification Forms submitted by mail must be sent to the address provided on the Certification Form and postmarked (or if not sent by U.S. Mail, received) by October 19, 2026.

11. I think I might be eligible, but I did not receive a Plan Notice. What can I do?

Anyone who did not receive a Plan Notice but believes they should have, should contact the Fund Administrator by October 19, 2026, and should submit documentation to support their claim and their contact information. If the Fund Administrator, in consultation with the SEC, determines that the claimant should have received a Plan Notice, a Plan Notice will be sent to the claimant within 15 days of receipt of their documentation. The Fund Administrator can be reached by email at info@LegacyHospitalityFairFund.com, or by calling (866) 675-3042.

12. Where do I find my Recognized Loss?

Your Recognized Loss is provided on the first page of your Certification Form. You can also view your Recognized Loss by logging in here using the LoginID and PIN provided on your Certification Form. For further assistance locating your Recognized Loss, contact the Fund Administrator by email at info@LegacyHospitalityFairFund.com, or by calling (866) 675-3042.

13. How do I dispute my Recognized Loss calculation?

If you wish to dispute your Recognized Loss amount, you must provide a written statement along with supporting documentation to the Fund Administrator by email at info@LegacyHospitalityFairFund.com or by mail to:

Legacy Hospitality Fair Fund
Fund Administrator
P.O. Box 25203
Santa Ana, CA 92799

The deadline to submit a dispute of your Recognized Loss amount is October 19, 2026.

14. How will I find out about the outcome of my Claim?

Within 120 days of the Certification Form Deadline, the Fund Administrator will send a Final Determination Notice to any Preliminary Claimant who timely submitted a written dispute, notifying the Preliminary Claimant of the Fund Administrator's resolution of the dispute; and those Preliminary Claimants who have not responded to the Plan Notice, notifying the Preliminary Claimant that they have been deemed an Unresponsive Preliminary Claimant.

Distribution

15. When will Distribution Payments be disbursed?

There is no current estimate for when Distribution Payments will commence. Please visit this website often to get the most up-to-date information.

Additional Information

16. Who is the Tax Administrator?

On January 6, 2025, the SEC issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the SEC's Order: Release No. 34-102128.

17. Who is the Fund Administrator?

On April 25, 2025, the SEC issued an order appointing Simpluris, Inc. as the Fund Administrator to oversee the administration and distribution of the Fair Fund and set the administrator's bond amount. See the SEC's Order: Release No. 34-102936.

18. Where can I get additional information?

Copies of the Plan, the Notice, and other relevant documents are available for download on the Important Documents page of this website and through the SEC's website for this matter.

If you would like to request a copy of the Plan, the Plan Notice, and/or the Certification Form, or if you have any other questions, you may contact the Fund Administrator at:

Legacy Hospitality Fair Fund
Fund Administrator
P.O. Box 25203
Santa Ana, CA 92799
info@LegacyHospitalityFairFund.com
(866) 675-3042