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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
October 3, 2005 Press Release For additional information contact R. W. (Bill) Cuthill, Jr. R. W. (Bill) Cuthill, Jr., President of Evergreen Security, Ltd., announces that Martin W. Boelens, Jr. of Orlando, Florida was sentenced today in Federal Court in Tampa, Florida to 46 months of imprisonment, followed by 3 years of supervised release. His restitution amount is in excess of $70 million. Mr. Boelens, who also pled guilty to crimes in the State of New York has not been sentenced in New York. Mr. Boelens was the president and a principal in BJM International Services, Inc. from the middle of 1998 until Evergreen filed for bankruptcy protection in 2001. BJM was the external manager of Evergreen during this period of time. Evergreen was formed primarily to operate as an offshore mutual fund. Like a mutual fund, investor dollars were pooled to purchase various investment vehicles denominated as certificates. Evergreen began selling certificates sometime in the early 1990's. Evergreen sold certificates through a variety of lawyers, brokers, and financial advisors. Although most of the marketing material indicated that the investments were in U.S. mortgage-backed securities, in fact, almost all funds were placed in mortgage-backed securities derivatives ("MBS Derivatives"). MBS Derivatives are highly risky, and, over time, Evergreen did not make enough profit on its investments to pay the interest on the certificates, much less other operating expenses. In addition to the financial problems of Evergreen caused by the poor return from the MBS Derivatives, additional serious problems were created by the direct withdrawal of investors' money by or for the benefit of the various managers and owners. By the end of 1995, the liability for investments within Evergreen totaled approximately $45,000,000. As of December 30, 2000, the liability for investments within Evergreen totaled approximately $214,000,000. By the end of 1995, the cash and investment assets in the Evergreen Trust totaled approximately $26,000,000. As of December 30, 2000, the cash and investment assets in the Evergreen Trust totaled less than $3,000,000. Eight of the owners, managers, investment advisors, brokers, and attorneys have pled guilty or been convicted to federal or New York State crimes for their part in the Evergreen fraud, which has been called, "The largest Ponzi scheme in Florida's history." Additional background information on Evergreen can be found at www.evergreencreditorscommittee.com. |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |