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Form ABS-15G Cartiga, LLC For: May 20

May 20, 2022 4:22 PM EDT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM ABS-15G

 

 

ASSET-BACKED SECURITIZER

REPORT PURSUANT TO SECTION 15G OF

THE SECURITIES EXCHANGE ACT OF 1934

Check the appropriate box to indicate the filing obligation to which this form is intended to satisfy:

Rule 15Ga-1 under the Exchange Act (17 CFR 240.15Ga-1) for the reporting period                  to                 

Date of Report (Date of earliest event reported):

Commission File Number of securitizer:

Central Index Key Number of securitizer:

Name and telephone number, including area code, of the person

to contact in connection with this filing.

 

 

Indicate by check mark whether the securitizer has no activity to report for the initial period pursuant to Rule 15Ga-1(c)(1)  ☐

Indicate by check mark whether the securitizer has no activity to report for the quarterly period pursuant to Rule 15Ga-1(c)(2)(i)  ☐

Indicate by check mark whether the securitizer has no activity to report for the annual period pursuant to Rule 15Ga-1(c)(2)(ii)  ☐

 

Rule 15Ga-2 under the Exchange Act (17 CFR 240.15Ga-2)

Central Index Key Number of depositor: 0001830716

 

 

Cartiga Asset Finance Trust 2022-1 LLC

(Exact name of issuing entity as specified in its charter)

 

 

Central Index Key Number of issuing entity (if applicable):

Central Index Key Number of underwriter (if applicable):

James P. Murray | 800-687-1500

Name and telephone number, including area code, of the person to

contact in connection with this filing.

 

 

 


INFORMATION TO BE INCLUDED IN THE REPORT

PART II: FINDINGS AND CONCLUSIONS OF THIRD-PARTY DUE DILIGENCE REPORTS

Item 2.01 Findings and Conclusions of a Third Party Due Diligence Report Obtained by the Issuer

Attached as Exhibit 99.1 hereto is an agreed-upon procedures report, dated May 19, 2022, of BDO USA, LLP (“BDO”), which report sets forth the findings and conclusions, as applicable, of BDO with respect to certain agreed-upon procedures performed by BDO.

Exhibits

 

No.

  

Description

99.1    Agreed-upon procedures report, dated May 19, 2022, of BDO


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the reporting entity has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: May 20, 2022   Cartiga, LLC (Securitizer)
    By:  

/s/ James P. Murray

    Name: James P. Murray
    Title: Chief Financial Officer


EXHIBIT INDEX

 

No.

  

Description

99.1    Agreed-upon procedures report, dated May 19, 2022, of BDO

Exhibit 99.1

 

LOGO   

Tel:

   212-885-8000   

100 Park Avenue

  

Fax:

   212-697-1299   

New York, NY 10017

  

www.bdo.com

Independent Accountant’s Report

Cartiga, LLC

400 Park Avenue

New York, NY 10022

We have performed the procedures enumerated below to certain information relating to the planned securitization offering for Cartiga Asset Finance Trust 2022-1, LLC (“CAFT 2022-1”) as of March 31, 2022 (the “Transaction”). Cartiga, LLC f/k/a Legal Business Services, LLC (the “Company”) is responsible for the Transaction.

The Company, CAFT 2022-1 and the Initial Purchaser (collectively “Specified Users”) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating certain information with respect to attributes of the consumer litigation funding assets pool (the “Data Tapes”) originated by Momentum Funding, LLC (“Momentum”) and Plaintiff Funding Holdings, LLC (“PFH”) in connection with offering documents (the “Offering Documents”), relating to the transaction. This report may not be suitable for any other purpose.

The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. We make no representation regarding the sufficiency of the procedures described below, either for the purpose for which the report has been requested or for any other purpose.

For the purposes of this report, we obtained the following from the Company:

 

  (i)

the Data Tapes originated by Momentum and PFH as of March 31, 2022;

 

  (ii)

Offering Document with tables listed in Annex A and C.

 

  (iii)

Access to the Company’s Sales Force Software System

The procedures and the associated findings are as follows:

 

  1)

As instructed by the Company, we randomly selected 295 consumer litigation funding assets originated by PFH, and randomly select 80 consumer litigation funding assets originated by Momentum. We performed the following procedures with respect to each selection:

 

  a)

Agreed plaintiff name and funding amount in the Data Tapes to the plaintiff name and funding amount in the Sales Force system for Momentum and PFC system for PFH.

 

  b)

Agreed funded date reported in the Data Tapes to an electronic or physical contract signed by the plaintiff or a copy of the check image.

 

  c)

Agreed funding amount listed in the Data Tapes to an electronic or physical contract signed by the plaintiff.

 

  d)

Agreed funding name and number listed in the Data Tapes to an electronic or physical contract signed by the plaintiff.

We found no exceptions as a result of these procedures.

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.


LOGO

 

  2)

Using the Data Tapes we agreed the Litigation Funding Asset Count total and the Outstanding Receivable Principal Balance to the schedules included in the Offering Document.

We found no exceptions as a result of these procedures.

 

  3)

Using the Data Tapes we recalculated the information in the Offering Document tables listed below and identify any differences noted:

 

  i.

Composition of the Receivable Pool

 

  ii.

Distribution of Outstanding Receivable Principal Balance by Advance Type

 

  iii.

Distribution of Outstanding Receivable Principal Balance per Unique Case

 

  iv.

Distribution of Outstanding Receivable Principal Balance by Injury/Case Type

 

  v.

Distribution of Outstanding Receivable Principal Balance by Payment Source

 

  vi.

Distribution of Outstanding Receivable Principal Balance by Payment Source NAIC Rating

 

  vii.

Distribution of Outstanding Receivable Principal Balance by Law Firm

 

  viii.

Distribution of Outstanding Receivable Principal Balance by Months Outstanding from the Earliest Advance Date

 

  ix.

Distribution of Outstanding Receivable Principal Balance by Months Outstanding from the Most Recent Advance Date

 

  x.

Distribution of Outstanding Receivable Principal Balance by Expected Case Worth Ratio

 

  xi.

Distribution of Outstanding Receivable Principal Balance by Claimant State.

We found no exceptions as a result of these procedures.

The procedures outlined above were limited to comparing or recalculating certain information that is further described in the procedures above. The Company is responsible for the provided Data Tapes, Offering Document with tables and other source documents. We were not requested to perform and we have not performed any procedures other than those outlined above. We have not verified, and we make no representation as to, the accuracy, completeness or reasonableness of Data Tapes, Offering Document with tables and other source documents, upon which we relied in forming our findings. Accordingly, we make no representation and express no opinion or conclusion as to (a) the existence of the Outstanding Receivable Principal Balance, (b) questions of legal or tax interpretation and (c) the accuracy, completeness or reasonableness of any instructions, assumptions and methodologies provided to us by the Company, that are described in this report. We undertake no responsibility to update this report for events and circumstances occurring after the date hereof.

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the certain information relating to the Transaction. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.


LOGO

 

The agreed-upon procedures described in this report were not performed for the purpose of:

 

  a.

Satisfying any criteria for due diligence published by a nationally recognized statistical rating organization (a “rating agency”) or

 

  b.

Making any findings with respect to:

 

  i.

Whether the origination of the Outstanding Receivable Principal Balance conformed to, or deviated from, stated underwriting or credit extension guidelines, standards, criteria, or other requirements,

 

  ii.

Whether the originator(s) of the Outstanding Receivable Principal Balance complied with federal, state or local laws or regulations or

 

  iii.

Any other factor or characteristic of the Outstanding Receivable Principal Balance that would be material to the likelihood that the issuer of the Notes will pay interest and principal in accordance with applicable terms and conditions.

We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the Specified Users, and is not intended to be, and should not be, used by anyone other than these Specified Users. It is not intended to be and should not be used by any other person or entity, including investors and rating agencies, who are not identified in the report as Specified Users but who may have access to this report as required by law or regulation.

/s/ BDO USA, LLP

May 19, 2022



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