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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
August 2, 2001 Trustee's Report EVERGREEN SECURITY, LTD CASE NO. 01-00533-6B1 TRUSTEE REPORT TO CREDITORS COMMITTEE August 2, 2001 Ladies and Gentlemen: My name is Robert W. Cuthill, Jr. and I am the Trustee for Evergreen Security, Ltd. (Evergreen). The Court approved my appointment on March 14, 2001. I will be making reports to the Creditors Committee throughout this case. My role in the case is summarized as follows: 1. Locate assets, 2. Recover assets and 3. make distributions to creditors. I provided the committee on May 7, 2001 a press release outlining where the funds came from and how they were spent. I have now started to recover assets. I have obtained cash deposits of approximately $1.3m. I have recovered retainers from council the debtor hired of approximately $220k. I will auction 190,654 shares of ABS-SOS Partners, Ltd. (a hedge fund investment traded on the Bermuda stock exchange) during August and September with a closing September 10, 2001. I have a preliminary bid of approximately $1.8m. I anticipate recovery of $4-5m from the liquidation of Surety Bank and Trust, Ltd. in the Bahamas this fall. Other recoveries will come through litigation I will file against the owners, managers and other parties who benefited from the Evergreen ponzi scheme. I will file this litigation during the coming months. Since the recovery from litigation is very speculative, I cannot estimate the amount of recovery at this time. I have cooperated with the law enforcement agencies and the Securities and Exchange Commission working on this case. I have provided grand jury testimony in New York, where Mr. Zylka, Conroy and Boelens were arrested for their part in Evergreen. Although my role in the case does not include criminal prosecution, I will continue to work with law enforcement agencies and regulatory bodies working on the case. I believe this cooperation will enhance my ability to recover assets for Evergreen. I have filed a motion to amend Evergreen’s Schedule F (list of unsecured creditors filed with the Court before my appointment) to list all investors. The original schedule filed with the Court included nine trustees as creditors holding certificates of approximately $150m. My amendment will list the holder of the certificate, whether this is an individual, trust, corporation or other entity. The Court approved my motion on July 10, 2001. Ansbacher Bank has requested a rehearing on my motion, which should be heard in the next few weeks. The purpose of my motion is to properly notify all certificate holders so they can file a Proof of Claim and I will be able to evaluate their claims once filed. Certificate holders who filed a Proof of Claim with the Court in their name do not need to file another form. They will receive notices from the Court about the case, but their original form should be sufficient. Should a claim be objected to by the Trustee or another party, the filer of the claim will be notified and have an opportunity to address the objection. I have been working on a list of all financial advisors (brokers) in this case. It will help me if investors will send me their financial advisor’s name, address, telephone number, fax number and e-mail address. I will cross check this information with my list of financial advisors. If you would like to provide me with any information in this case, please mail, fax or e-mail it to me. I have listed my numbers below. Please only provide me factual information. Rumors will not help me. This will help me concentrate on my job. You should continue to contact the Creditors’ Committee web site for information in this case. Also many newspapers have carried articles about the case. The largest collection of articles can be found at www.orlandosentinel.com. R. W. (Bill) Cuthill, Jr., CPA, CFE Chapter 11 Trustee Cuthill & Eddy LLP 1031 W. Morse Blvd., Suite 200 Winter Park, Fl 32789-3750 Phone 407-644-7455 Fax 407-628-5277 rcuthill@cuthilleddy.com |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |