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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
October 30, 2001 Trustee's Report EVERGREEN SECURITY, LTD CASE NO. 01-00533-6B1 TRUSTEE REPORT TO CREDITORS COMMITTEE October 30, 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. This report will not repeat my prior reports, which can be found at www.evergreencreditorscommittee.com. I have recovered in excess of $3,500,000 through September 30, 2001. These funds came from cash held by the debtor, recovery of retainers from council the debtor hired and council BJM International Services, Inc., the funds manager, hired. Additionally I sold the shares in ABS-SOS Partners, Ltd. (a hedge fund investment traded on the Bermuda stock exchange) during September 2001 for in excess of $1,800,000. 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 have or will file against the owners, managers and other parties who benefited from the Evergreen ponzi scheme. On August 5, 2001 I filed over $70,000,000 in fraudulent transfer suits against the owners, managers and others parties who received funds from Evergreen. Additionally on that day I filed suit against Surety Bank and Trust, Ltd. in the Bahamas. Since the recovery from litigation is very speculative, I cannot estimate the amount of recovery at this time. I filed a turnover motion against Intrados S.A., of San Jose, Costa Rica during the quarter for an accounting of investor funds and return of any investor funds Intrados is holding. Evergreen's records indicate that Intrados was the trustee for over $85,000,000 in assets from investors. Intrados is contesting this action. I have retained council in Costa Rica and will continue this action in San Jose as well as the US Bankruptcy Court in Orlando, Fl. I have met with many of the defendants in these suits and have negotiated settlements with some and am in the process of negotiating settlements with other defendants. Some of these cases will be tried, but no trial dates have been set. Status conferences for the suits I have filed will be held in US Bankruptcy Court in Orlando, Fl on November 5, 2001. I filed an amended Schedule F (list of unsecured creditors filed with the Court) for Evergreen during the quarter. The original schedule filed with the Court included nine trustees as creditors holding certificates of approximately $150m. My amendment listed the holder of the certificate as indicated on the certificate, whether this is an individual, trust, corporation or other entity. A mailing was sent to this amended list of creditors and the bar date was extended to allow any creditors who had not filed a Proof of Claim to do so. 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 am continuing to work on a complete 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. Many investors have already sent me this information. Thank you. It will greatly help my recovery of assets. 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 e-mail: rcuthill@cuthilleddy.com |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |