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


Investors: The Court held a hearing on Jan. 25. The subjects covered the Receiver's motion regarding a change in the credit facility (recall until policies mature the portfolio can only be maintained with borrowed funds) and a motion to approve the employment of an attorney in Vancouver, British Columbia, Canada to pursue funds that previously belonged to LifeTime and appear to have been moved there.

I raised the question of the review of the viators' medical situation to determine if it is cost effective to maintain the entire portfolio. By agreement between the Judge and me, the Receiver is to submit a report in about 60 days indicating the status of the viators, based upon available information.

Also, we discussed the question of costs in general and communication. The Receiver has agreed to look into the possibility of periodic live "call ins" whereby you could dial a number and get a report as to the
status of things and perhaps pose questions to the Receiver and his staff. Information on cost is as yet unknown but will be determined and evaluated. Also, the Judge is looking into videoconferencing some hearings to reduce time and travel costs.

Andrew Storar, Examiner


Message from Receiver:

January 2005

The following information pertains to investors whose investment is held in a retirement account at Sterling Trust.

1. Historically, the Individual Retirement Accounts of LifeTime investors showed a value equal to the amount of money invested. In January 2005, the Court agreed the account values were undeterminable. As a result all accounts being held at Sterling Trust have been valued at $0. This is beneficial to the investors for two reasons, 1) for many investors, it eliminates Required Mandatory Distributions from this investment; 2) it reduces the annual fee due to Sterling Trust.
2. All accounts now show a current balance) of $0 (with respect to the LTC investment only); however the account does remain OPEN.
3. All Sterling Trust Annual fees for custodial accounts with an LTC investment have been reduced to $55.
1. If an investor received a statement in 2005 for more $55, they need only to send in $55. Please feel free to address the envelope to the attention of Jeff Thompson to ensure proper application of the fee.
2. If an investor has paid more than $55 for this year, Sterling will refund the difference (2005 ONLY).
3. If an investor has not paid account fees that are due, we recommend that they do so in order to preserve their options.

We encourage all investors with questions regarding their Individual Retirement Account at Sterling Trust to contact a qualified tax adviser.

H. Thomas Moran II, Receiver

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Regarding the January 24, 2005 Hearing:

The Court held a hearing on Jan. 24 regarding the receiver's motion to clarify the status of the two policies that matured in the weeks before his appointment. Many investors appeared and those who wished to speak were heard.

At the conclusion, each side was given two weeks to file any post hearing memoranda that they wish. Thereafter the Court will decide the matter. When that occurs I will post a notice on this website. I'll also send a letter to those who were matched to those policies.

Regarding Sterling Trust:

We have had meetings with Sterling, done research and presented the issue to the Court. As a result, the Court has found that the value of the IRA's is presently undeterminable as opposed to the full value stated by LifeTime in December '03.

This should result in a substantial reduction in your annual fees and may eliminate the required minimum distributions in the coming year. As always, consult a tax professional before taking any action.

Andrew Storar, Examiner


Order Granting Receiver's Motion to Establish Claims Procedures & Approve Claim Forms


Motion to Compel Viators to Provide Authorization for Medical Information


Investors: This is a reminder that the Court will hold a hearing
regarding the two matured Prudential policies on Monday January 24. The result is important to all of you. As of now the hearing will be on the ninth floor of the Federal Bldg. at 2nd and Wilkinson. You are invited to attend and I believe the Court will hear your comments/concerns.

Andrew Storar, Examiner


Premiums for January 2005

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