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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
April 2, 2007 Press Release For additional information contact R. W. (Bill) Cuthill, Jr. R. W. (Bill) Cuthill, Jr. (Cuthill), president of Evergreen Security, Ltd. (Evergreen), announced that the U. S. Bankruptcy Court approved the involuntary bankruptcy petitions R. W. Cuthill, Jr. filed on behalf of Evergreen against J. Anthony Huggins (Huggins), Jon M. Knight (Knight) and Atlantic Portfolio Analytics Management, Inc. (APAM). Cuthill filed the petitions to collect judgments Evergreen holds against Huggins, Knight and APAM. Cuthill stated that Leigh R. Meininger, Esq. of Meininger & Meininger, P.A., Orlando, FL, had previously been appointed Interim Trustee in these involuntary cases. Mr. Meininger will hold the first meeting of creditors on April 26, 2007 at 11:00 A.M. in the U. S. Trustees’ offices at 135 W. Central Blvd., Orlando, FL. 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. Huggins, Knight and APAM appealed Judge Briskman’s decision, but it was upheld in a ruling by Judge John Antoon II on March 30, 2007. Dr. Knight and Dr. Huggins had been indicted in New York with the felony crime of grand larceny in the first degree. The criminal proceeding stemmed from the Huggins’ and Knight’s alleged theft of approximately $6,500,000 from Evergreen on or about December 17, 1997, the 1997 Mataeka loan. After two trials in 2003 and 2004, Dr. Huggins pled guilty to criminal possession of stolen property in the fifth degree and Dr. Knight pled guilty to attempted grand larceny in the first degree regarding the 1997 Mataeka loan. 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. Additional background information on Mr. Cuthill can be found at www.trusteeandexaminercuthill.com. |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |