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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
March 23, 2006 Press Release For additional information contact R. W. (Bill) Cuthill, Jr. Judge Arthur B. Briskman, US Bankruptcy Judge for the Middle District of Florida, entered a judgment against Mataeka, Ltd., Jon M. Knight and J. Anthony Huggins in the amount of $4,889,053.90 plus pre-judgment interest of $3,052,467.69 and post-judgment interest of 4.76% on March 22, 2006. Additionally a judgment was entered against Atlantic Portfolio Analytics and Management, Inc.(APAM) in the amount of $2,500,000. The judgments were a result of a suit brought by R. W. Cuthill, Jr., Chapter 11 Trustee of Evergreen Security, Ltd. on October 30, 2001 to recover funds sent from Evergreen to APAM and Mataeka. Dr. Knight and Dr. Huggins were the owners of APAM and Mataeka. 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. |