Lifetime Receiver H. Thomas Moran II, Receiver of LifeTime Capital, Inc.


June 5, 2014

There have not been any major updates in the status of the Receivership in recent months. The majority of the Receiver's tasks have been completed, and the vast majority of the funds available for return to investors were distributed in earlier years.  The Receiver continues to work to resolve the last few outstanding legal issues, so that the Receivership may be brought to a close.  However, a time frame for when this can occur is not known.  Please be assured that when there is substantive news to report, it will be posted on the website.

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Court Order regarding Svete Bankruptcy

clerk order filed granting hold case in abeyance pending other litigation filed 06292012


Receiver Update

website update-lifetime 062111


Receivership Update


A number of you have called asking why there have been no updates in a long time. This is because very little is going on.The Receiver has been finalizing claims and recently there was a hearing regarding treatment of certain Jordan policy investors who refused to provide a release in exchange for settlement funds. There has been no decision on that issue. The Receiver did obtain a significant sum that had been transferred to Canada and is continuing efforts to locate additional secreted funds.

Andy Storar


Message from Examiner



The Court issued a number of decisions today that ultimately require winding up the vast majority of this estate in early 2012.

There are several hurdles but I do believe the end is in sight. I also do not expect any  really significant final distributions.

Andrew Storar


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A hearing has been scheduled for April 29, 2010. The hearing will address several Motions that have been recently filed, including the Receiver's Motion to Disallow Claims and the Receiver's Motion to Disallow Claims of Certain Jordan Investors. The Receiver has asked the Court to reallocate any funds that have previously been escrowed against the claims for which disallowance is sought to all other claimants. The Receiver anticipates that this hearing will allow completion of the claims process insofar as investors are concerned. These matters have been filed pursuant to the Court's prior Orders to determine the disposition of the remaining claims that are not Court-compliant. The Notice of Hearing and related Motions can be found under Court Orders and Filings.

Also, the Fourteenth Motion to Allow Claims has been filed. This Motion seeks confirmation and approval of the claims of about 70 investors.

Many of you have called the Receiver's office to inquire about the final distribution. The timing of the final distribution is primarily a matter for the Court. However, until all claims are resolved and/or determined, and pending litigation issues resolved or formal rulings issued, a final distribution is unlikely to occur.

The Receiver is pleased to report that the convictions of David Svete in U.S.A. v. Svete, Case No. 3:04 cr 0010MCR, U.S. District Court for the Northern District of Florida, are now final. Recently the U.S. Supreme Court, without comment, denied Mr. Svete's Petition for Certiorari. This was his final attempt to challenge the merits of his convictions and sentences. He will no doubt exercise his post-conviction challenges to his convictions, but the importance of the Supreme Court denial is that the findings of Mr. Svete's guilt are now final as a matter of law.

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Pursuant to the Court's Orders, Final Notices to File Claims have been sent to all claimants who may be adversely affected by the Court's Orders. The time is now running against those claimants. If any of the claimants fail or refuse to communicate in a timely manner with the Receiver's office and to comply with the Court's Orders, the Court has directed the Receiver to disallow any such claims. The Receiver will ask the Court to not only disallow any such claims, but to reallocate any funds that have previously been escrowed against those claims to all other claimants.

Based on currently available information, the Receiver expects that any motion(s) to disallow claims will be filed with the Court during the month of March and would expect them to be heard in late March or sometime in April. That hearing will likely be the last hearing required before the Court orders the Receiver to complete the claims process.

The Receiver continues to work diligently on concluding all other pending matters with respect to the Receivership, and, while the end is in sight, it is not yet here. The Receiver is still awaiting the outcome of an appeal pending before the Sixth Circuit Court of Appeals. The timing of a decision from the Court is unpredictable but is hoped for within the next several months. The Court's decision will determine whether the Receiver's action against Mr. Svete individually will proceed in the Ohio Court or must be relegated to the authority of an arbitrator.

As most of you know, Mr. Svete's convictions on all but the four mail fraud counts were previously affirmed by the 11th Circuit Court of Appeals. Subsequently, all four of the mail fraud counts were reinstated by the 11th Circuit, and Mr. Svete's convictions have accordingly been upheld, consistent with the jury's verdict. Mr. Svete attempted to challenge the 11th Circuit's affirmance of his convictions before the U.S. Supreme Court, but it is the Receiver's understanding that the time in which Mr. Svete might have pursued such a direct appeal has now expired. Copies of the various decisions of the 11th Circuit Court of Appeals regarding Mr. Svete's convictions are available on the Receiver's website.

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On July 9, 2009, the Order Granting Receiver's Fourth Motion for Approval of Partial Distribution was received by the Court. Checks for the fourth partial distribution should be in the mail within the next two weeks to all LifeTime investors with Court Approved claims. This is not the final distribution.

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On March 30, 2009, the Order Granting Receiver'­s Third Motion for Approval of Partial Distribution was issued. Checks for the third partial distribution should be mailed within the next two weeks to all LifeTime investors with Court Approved claims.

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On March 6, 2009, the Receiver filed a Third Motion for an Order Authorizing Partial Distribution to Investors, seeking authority from the United States District Court for the Southern District of Ohio to distribute an additional $2.5 million to investors of LifeTime. The Receiver's ability to seek this approval from the Court has been facilitated by several recent developments, as well as compromises that have previously been Court-approved disposing of some, but not all, of the pending litigation related to the receivership.

The Receiver hopes the Court will grant the Motion in the near future, and once the Order is entered, the Receiver and his staff will promptly proceed with disbursement of these additional funds as directed by the Court. Based upon current information, the Receiver anticipates that there will be at least one more distribution following the partial distribution which is the subject of the Third Motion.

Please click here for the court document regarding this motion.

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