I invested in a so called IRA at a mortgage lending organiztion (Gourley & Gourley) which went bust with the remaining assets now being administered by an investors’ committee or some sort of trustees. The bank which served as custodian for the IRAs stopped doing that business. Gourley has assigned a $ value to my share of its remaining assets. They will pay me 50% of this value, if I get my existing IRA holder, USAA, to send them transfer forms. They would consider this a buy out of the account, thus closing it with no future payments.

For me to receive future periodic distributions from earnings, they say I need to leave my share of the assets with them and open a new fee charging IRA custodian account which would hold distributions. Gourley (G&G) says it is not a registered or authorized IRA custodian and cannot simply pay earnings to my existing IRA account.

Can G & G really pay earnings to my existing USAA IRA and ultimately distribute my share of the assets as G & G closes down?

Advice would be much appreciated. Thank you.