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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
April 17, 2002 Trustee's Report EVERGREEN SECURITY, LTD CASE NO. 01-00533-6B1 TRUSTEE REPORT TO CREDITORS COMMITTEE APRIL 17, 2002 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. On August 5, 2001 I filed over $4.9 million in fraudulent transfer suits against five of the managers of Evergreen. Three of these managers have agreed to settle their suits for $453,000 and cooperation in other litigation. Additionally one other manager, who was not sued, agreed to settle for in excess of $1 million and cooperation in other litigation. Two additional managers have responded to the suit, but have not offered to settle. I also filed suit on August 5, 2001 against Surety Bank and Trust, Ltd. in the Bahamas. This bank is in liquidation. I have filed a claim with the bank’s liquidators in the amount of $5.1 million. The liquidators for the bank have estimated Evergreen may receive $4 million to $5 million, upon liquidation. The liquidation should be completed by September. I filed a turnover motion against Intrados S.A., of San Jose, Costa Rica on July 2, 2001 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 $90,000,000 in assets from investors. On March 27, 2002 the US Bankruptcy Court ordered Intrados to turn over documents to me within thirty days. I should be able to determine the disposition of investor funds with these documents. I filed a fraudulent transfer suit against Atlantic Portfolio Analytics & Management, Inc., its affiliate and owners on October 30, 2001 for the return of $8.5 million. The defendants have responded to the suit. The suit is in the discovery stage and this suit should be tried this fall in Orlando. On April 8, 2001 I amended my suit against William J. Zylka, James P. Conroy to include several additional defendants who received part of the $27.7 million of funds transferred from Evergreen to Zylka, companies he controlled and subsequently to third parties. The suit now has twenty-seven total defendants who received part of the funds. The defendants have thirty days to respond to the amended suit. On April 10, 2002, Paul I. Perez, US Attorney for the Middle District of Florida, announced that Thomas S. Spencer, Robert W. Boyd, Martin W. Boelens, Jr. and Anthony V. Micciche entered into plea agreements. The combined fifteen-count informations charge four persons with conspiracy to commit securities fraud, mail fraud and wire fraud, securities fraud, selling unregistered securities, mail fraud and wire fraud. The statutory maximum penalties for conspiracy, mail and wire fraud are five years’ incarceration, a $250,000 fine and three years’ supervised release. The statutory maximum penalties for selling unregistered securities are five years’ incarceration, a $10,000 fine and three years’ supervised release. The statutory maximum penalties for securities fraud are ten years’ incarceration, a $1,000,000 fine and five years’ supervised release. Martin W. Boelens, Jr. previously plead guilty to charges of conspiracy and grand larcency of more then $29.5 million. The plea was part of a deal to testify against other defendants the NY District Attorney has indicted. William Zylka and his attorney, James Conroy, are scheduled for trial in NY in May on similar charges. I have completed a list of all financial advisors (brokers) in this case to which over $16 million in commissions were paid. 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. You should continue to contact the Creditors’ Committee web site for information in this case. Also many newspapers have carried articles about this 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. |