H.Thomas Moran II, Receiver

Receiver of Lifetime Capital, Inc.

Welcome


Welcome to the website of H. Thomas Moran II, Receiver of LifeTime Capital, Inc. The primary purpose of this website is to keep the investors of LifeTime Capital, Inc. informed of the actions of the Receiver and informed of current events.

WEBSITE UPDATE

Although some issues continue to be litigated, my work as Receiver is largely finished. I wanted to make you aware that no further investor distributions are expected to be paid out of the LifeTime Capital Receivership due to the fact that the amount of unpaid expenses of the receivership are expected to meet or exceed the amount of assets available.

Please continue to check this site periodically for updates.

Appointment of Receiver

H. Thomas Moran, II was appointed Receiver of LifeTime Capital, Inc. February 20, 2004, by Order of the United States District Court for the Southern District of Ohio, Western Division, in Dayton, Ohio.

Receiver Defined

Simply described, a Receiver is a person legally appointed to receive and have charge of property or money involved in a lawsuit (Webster’s New Explorer Dictionary).


November 09, 2015

A previous phone number used by the Receiver’s office, 405-463-0660, is being discontinued after this week.  Please use the following phone number, email address, or mailing address for the Receiver’s office.  You can also view this information on the “Contact” page of this website.



June 03, 2015

Order Granting Receiver’s Motion to Approve Settlement and Payment of Investor Claims - 1471







June 05, 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.




June 17, 2013

Notice of Electronic Filing

The following transaction was entered on 6/17/2013 at 8:36 AM EDT and filed on 6/17/2013





November 12, 2012

The David W. Svete bankruptcy case is still pending. The next status report is due by January 7, 2013. For information regarding Svete’s status report filed on November 2, 2012, Click here.


















April 27, 2010

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.







February 10, 2010

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.




July 14, 2009

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.





April 16, 2009

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.


March 11, 2009

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.



February 18, 2009

The Receiver is pleased to inform the investors that as of December 24, 2008, $1,825,000.00 was repatriated from Vancouver, British Columbia, to the Clerk for the United States District Court for the Northern District of Florida. This represents the funds received as a result of a comprehensive settlement involving $20 million confiscated by Canadian officials. A number of people and entities claimed to own the $20 million, with the Receiver claiming an interest in $3 million. In total, the claims of all interested parties exceeded $100 million. After extensive, multi-party negotiations, the Receiver was able to secure a settlement much more favorable than most of the other interested parties. The Receiver’s settlement was previously approved by the United States District Court for the Southern District of Ohio, the United States District Court for the Northern District of Florida, and the Vancouver, British Columbia Supreme Court. Copies of the pleadings related to this settlement are attached.


February 18, 2009

As most of the investors are aware from previous court filings and website information, there has been pending before the 11th Circuit Court of Appeals an important issue relating to the disposition of David Svete’s wire and mail fraud convictions. You may recall that a three-judge panel of the 11th Circuit previously reversed the four mail and wire fraud convictions based upon the longstanding judicial decision of the 11th Circuit in United States v. Brown, 79 F.3d 1550 (11th Cir. 1996).


January 07, 2009

Many of you have contacted the Receiver’s office to inquire about the final distribution of sale proceeds. A final distribution cannot occur until the claim process is completely resolved, and currently there are matters pending with the Court that would greatly assist in the completion of the claim process. Therefore, a date for the final distribution cannot be anticipated at this time. Keep in mind that the final distribution will be nominal in comparison to other partial distributions.</p>









July 24, 2008

On March 26, 2008, following oral argument conducted in late November 2007, the 11th Circuit Court of Appeals issued its opinion in USA v. Svete, et al., 521 F.3d 1302 (11th Cir. 2008). The Court of Appeals affirmed Mr. Svete’s convictions on all counts for which he was tried and convicted by a jury of his peers, with the exception of the four mail fraud counts. The rationale of the Court of Appeals for reversing the mail fraud counts was the failure of the trial court to give a jury instruction on the definition of mail fraud that had been requested by Defendants. Specifically, the issue was whether the convictions for mail fraud required proof by the Government that the defrauded investors had exercised ordinary prudence in their dealings with LifeTime and Mr. Svete. The trial court had declined to give the requested instruction because it was contrary to the Appellate Court’s pattern jury instruction on mail fraud.


April 07, 2008

By now you should have received a check for the second partial distribution. If you have not received your distribution payment, please contact our office. If you have questions about payments sent to the custodian of your IRA (for example, Sterling Trust), please call the custodian.


March 25, 2008

The total amount of the second partial distribution will be $2,000,000 (in comparison, the inital partial distribution was $10,000,000). This will result in a check equal to a little over 2% of the amount you invested. For example:


March 20, 2008

On March 17th, 2008, the Court issued an Order Granting Reciever’s Second Motion for Approval of Partial Distribution (see Court Orders And Filings). The Receiver anticipates that checks should be in the mail by the end of next week to all investors with Court approved claims.



March 13, 2008

In November 2007 the Receiver filed a motion to ask the Court to allow an interim partial distribution to investors (see Court Orders and Filings). This motion is still pending Court approval. The Receiver is prepared to mail checks as soon as possible once an Order is issued by the Court.



November 07, 2007

The Receiver has filed a motion to ask the Court to allow an interim partial distribution to investors (see Court Orders and Filings). This would be the second distribution to all investors with Court approved claims. Once an Order is issued by the Court, it will be the Receiver’­s intention to mail checks as soon as possible.





August 20, 2007

The Receiver has filed his eighth motion to allow claims. This motion includes the claims of about eighty investors.


August 06, 2007

A brief hearing was held before the Court on Tuesday, July 31, for the purpose of hearing any objections to the settlement of the lawsuit the Receiver filed against Howard F. Wunderlich, M.D., Isaac Corney, M.D., and Rani Whitfield, M.D., three doctors who had provided to Medical Underwriting a number of life expectancy estimates. The Receiver and these three Defendants had arrived at a tentative settlement which was approved by the Court preliminarily in April. Notices of the settlement and the hearing were sent to investors in June. At the July 31 hearing, the court heard the stipulations of the Receiver and the Defendants, and heard from one person who voiced an objection to the settlement. At the conclusion of the hearing, the Court took the settlement under advisement and will soon issue a decision on whether the settlement is approved.


June 26, 2007

You recently were mailed a notification about a class action lawsuit because you are an investor in LifeTime Capital, Inc. Our office has received many calls from investors with questions about the notification and answers to those questions are provided below:


June 07, 2007

The Receiver recently received a favorable response to a mailing that went out to approximately 450 investors that had not submitted claims. There are about 200 investors that still have not responded by either filing a claim or requesting forms. The Receiver is currently trying to reach those investors. Additionally, his staff is working on processing a relatively small number of remaining pending claims.


March 09, 2007

On March 9, 2007 letters were mailed to approximately 450 investors that have not submitted Investment or Premium Claim forms. If you would like to download forms from this website, but prefer to overnight your Claim Forms, the physical address for our office is LifeTime Capital Receivership, 521 W. Wilshire Blvd, Suite 200, Oklahoma City, OK 73116. Or you can mail them to the PO Box listed at the top of the Claim Forms.


February 02, 2007

The Receiver has mailed out an IRS form 1099-B to all LifeTime investors that received a payment from the Receiver in 2006. If you received a check for the initial partial distribution in November, or a Jordan policy payment, you will receive a 1099-B. Also, if you paid premiums billed by the Receiver, and were reimbursed at 110%, your 1099-B will include the 10% (but not the amount of the premiums paid).


January 08, 2007

Checks were mailed to LifeTime investors for the initial partial distribution on November 17, 2006. Only investors with Court Approved claims received checks, with funds escrowed for all other accounts. If your investment was made with tax-qualified funds, your distribution was sent to the custodian of your Individual Retirement Account (such as Sterling Trust Company, Equity Trust, etc.). Please contact the custodian with any questions regarding those funds.


November 21, 2006

On November 9, 2006, the Court issued an Order approving an initial partial distribution of $10,000,000. Checks were mailed to investors with court approved claims on November 17, 2006 (funds were escrowed for all other accounts).


November 02, 2006

Confirmation of Investors’­ Claims Packets. We are still in the process of verifying the investors’ claims packets with the information contained in the LifeTime Capital, Inc.’­s database and files. Many of you have called regarding the slow process involved. This is due to several factors, mainly the vast amount of documentation that must be reviewed and verified. Additionally, the Court requires the Claim forms to be accurately completed by the correct investor, beneficiary or estate representative. Unfortunately, many claims received have not been initially filled out correctly, resulting in the Receiver having to spend additional time assisting investors with their claims.


July 26, 2006

The Court held a status hearing on Wednesday July 19th. Several topics were discussed including the timing of distributions.


July 19, 2006

Investors: The Court held a status hearing on Wednesday July 19.

Discussions concerned the timing of distributions.




June 20, 2006

The Receiver has discontinued the billing of premiums. If we received your check after June 19, 2006 it will be returned to you in a timely matter.


June 20, 2006

Investors: The sale of the portfolio has essentially closed. The purchase documents have been signed by the Receiver and Silverpoint and the money was wired to the Receiver’s account on Monday 6/19.


June 20, 2006

It is imperative that you return completed claim forms to the Receiver. All investors must submit a claim form prior to distribution of funds by the Receiver.


June 19, 2006

The sale of LifeTime Capital’s insurance portfolio has been finalized, net sale proceeds of $21,012,570.43, have been received from SCPC Group, LLC (a/k/a Silverpoint).


June 02, 2006

The Court has ordered that the Receiver sell the portfolio to Silverpoint pursuant to it’s last bid. More details will follow soon.

Andrew Storar, Examiner


May 23, 2006

Investors: You have probably received the latest from Ernest Bustos again asking for money for his IP fund. He suggests that you investors can avoid the proposed sale of the portfolio by simply taking it over.

He fails to recognize that this is precisely what the receiver attempted to do when he sought investor participation in premium payments.

Unfortunately, most of you either could not or would not make those payments. As a result, the receiver does not have the four million dollars it takes to pay premiums for one year and sale is the only option. Before you consider sending Bustos money I suggest you demand to see the books of the IP fund to determine what he has done with the funds some have already sent and see if the fund has the capital necessary to make the premium payments.


May 09, 2006

Investors: The Court held a hearing regarding several matters on 5/9.


May 02, 2006

Investors: By way of supplement and correction of recent messages, be advised that the Silverpoint bid was $19,375,000.00 cash not $19,500,000.00. Also the recent motion by Tonti included the guaranteed payment over seven years, or in the alternative a cash payment of $19,500,000.00.

Both Silverpoint and Tonti agreed to pay March and April premiums as well.


May 01, 2006

Investors: Today the Tonti Group filed a motion to restructure it’s bid.

The motion is posted on this website for you to read. In essence Tonti wishes to guarantee payments interim payments to occur between the initial down payment and the final payment of $6.5 million resulting in a guaranteed payout of $27.5 million over the seven year period plus premium payments for March and April.


April 25, 2006

Investors: As many of you are aware, the Court issued its order last Friday finding that the highest and best bid was that of Silverpoint Capital. This is a “cash only” bid in that the Receivership will receive a one time payment of $19,500,000.00 plus an amount equal to the premium payments for March and April. The result is approximately $20,000,000.00.


April 21, 2006

The judge has determined that the highest and best bid was that of Silverpoint Capital. It is an all cash bid of $19,375,000. (order)


April 14, 2006

Investors: The Court held two hearings on Thursday, April 13.


April 11, 2006

The following is the memo from the receiver regarding bids on the LTC Portfolio. Included in this memo is a summary of the bids.



March 28, 2006

Investors: A mediation was held regarding the Jordan policies on March 28, 2006 before Chief Magistrate Judge Michael Merz. Many investors related to the Jordan policies were in attendance along with some of their attorneys.



March 14, 2006

Jordan Investors: We had a status conference on March 8, 2006, and the Court has ordered this matter to mediation before Chief Magistrate Judge Michael Merz on March 28 at 9 a.m. Some of you have contacted me recently and agreed that settlement should at least be explored. Concern has also been expressed that those of you who are not represented are not being heard. Counsel for those represented should be in attendance. Those of you who are not represented may appear or I will be in attendance to convey and express your positions if you contact me by e-mail or letter. As I have indicated a number of times, I believe the loser in this matter will appeal; it will be lengthy and costly. If a resolution can be reached that avoids that process, everyone wins although perhaps not as much as they had hoped.


March 02, 2006

Investors ; Many of you have been calling and writing.



February 20, 2006

The Examiner has submitted an application for payment of fees in the

amount of $2,800.00. These fees concern the period of December, 2005.

During this period, the Examiner consulted with the Receiver and/or

counsel for the Receiver regarding various matters; had communications

with investors via telephone, letter and e-mail; reviewed

correspondence, documents and pleadings related to the subject case; and

consulted with the Court and attended a hearing in Dayton regarding

various matters.


February 20, 2006

The Examiner has submitted an application for payment of fees in the

amount of $4,668.75. These fees concern the period of November, 2005.

During this period, the Examiner consulted with the Receiver and/or

counsel for the Receiver on a number of occasions; had extensive

communications with investors via telephone, letter and e-mail; reviewed

correspondence, documents and pleadings related to the subject case; and

consulted with the Court and attended hearings in Dayton regarding

various matters.


February 17, 2006

The Examiner has submitted an application for payment of fees in the

amount of $3,597.50. These fees concern the period of January, 2006.

During this period, the Examiner consulted with the Receiver and/or

counsel for the Receiver on a number of occasions; communicated with

investors via telephone, letter and e-mail; reviewed correspondence,

documents and pleadings related to the subject case; and consulted with

the Court and attended hearings in Dayton regarding various matters.


February 09, 2006

The Examiner has submitted an application for payment of fees in the amount of $9,481.25 and costs in the amount of $785.69. These fees and costs concern the period of September, 2005. During this period, the Examiner consulted with counsel for the Receiver on a number of occasions; communicated with the Court regarding several issues; had extensive communications with investors via telephone, letter and e-mail; reviewed correspondence, documents and pleadings related to the subject case; prepared for and attended conference with Receiver; and attended hearings in Dayton regarding various matters. The costs are related to travel expenses incurred by the Examiner.








October 05, 2005

The following FAQ is to address some of Mr. Busto’s allegations and criticisms of the Receiver and to help all interested investors with an undertanding of Mr. Bustos and the IP Fund.








August 18, 2005

The Honorable M. Casey Rodgers has recently entered an Amended Criminal Judgment against David W. Svete, Ron Girardot, and Charme Austin which includes restitution amounts in excess of $100,000,000.00. Mr. Svete reported to an Ohio prison on Monday, August 15, 2005, to begin serving his sentence of 200 months. Copies of the Amended Judgments and Sentences (including the restitution portion of the Judgments) are attached hereto. For further information, please contact the U.S. Department of Justice Victim Notification System at www.notify.usdoj.gov or by calling the Victim Notification System Call Center at 866-DOJ-4YOU (866-365-4968).


August 15, 2005

Today David Svete surrendered himself to authorities at a prison in Ohio for his prison term.


August 12, 2005

At my request the receiver will soon post a list of the policies in the portfolio including age and sex of the viator, face amount and annual premium. This should provide the additional information many of you have requested.

Andrew Storar, Examiner


August 11, 2005

The receiver will be moving his offices to a new location on Friday, August 12th and Monday, August 15th. The phone and computer systems will be down periodically, so you may have difficulty reaching us.


August 05, 2005

Investors: Some potentially good news. I’ve been in discussions with a company that specializes in assisting victims of investment fraud obtain tax refunds. Our preliminary agreement is that they will do this on a contingent fee basis, that is, they only receive a fee if you get a refund. That fee will likely be 25% of the refund.


August 02, 2005

Mr. Svete’s motion to set bond pending appeal was denied. He has again been instructed to surrender on August 15, 2005.




July 27, 2005

It has come to our attention that the letter that accompanied the premium invoices, and was posted on the website, specifies your premium payment should be received in my office by July 31, 2005. Please disregard this date. Unfortunately, the Premium billing did not go out as scheduled due to circumstances beyond our control. The due date on the invoices is August 15, 2005. If your premium payment is not received by August 15, 2005, as a result of the late mailing of this invoice, you will not be penalized; however payments should be made as promptly as possible.



July 15, 2005

Investors: We had a telephone conference with the Court on Friday July 15. The main topic was the lack of maturities in the portfolio. As I indicated in a previous message, without maturities there is no source of funds to pay premiums to keep the policies from lapsing. Continued borrowing of funds is not a long term solution as the interest rates on this type of financing are exorbitant.






June 23, 2005

Investors, David Svete and Ron Girardot were sentenced on June 23. Mr. Moran and I appeared on your behalf. We read many letters and impact statements to the Court.


June 23, 2005

RE: United States v. Svete, et all

USDC Case Number: 3:04cr10/MCR



June 04, 2005

RE: United States v. Svete, et all

USDC Case Number: 3:04cr109/MCR




April 15, 2005

Investors: As you probably know David Svete and Ron Girardot have been found guilty on all counts in the criminal case in Florida. Since that time, the U.S. Attorney has sent Victim Impact Statements to many, if not all, of you. The Court will consider those statements at sentencing. You may forward your completed form to me and I’ll see that the Court has it or you can forward it to the Receiver.


April 08, 2005

The Examiner has submitted an application for payment of fees in the amount of $18,942.50 and costs in the amount of $2,930.48. These fees and costs concern the period of November, 2004 through February, 2005.






March 10, 2005

As many of you know, David Svete was convicted on all counts and ordered to forfeit up to $21 million last week. The U.S. Attorney will undertake forfeiture efforts along with the receiver’s counsel. Svete’s sentencing is set for May 26th. You will likely receive a letter from the U.S. Attorney advising you of your right to be heard.




February 17, 2005

The court approved Claims Process has been initiated. As a result, over the next couple of weeks each investor should receive a claims package from the Receiver’s office. Each package contains the following:



January 26, 2005

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.






January 21, 2005

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.





November 18, 2004

Investors: By agreement, the time to file objections to the Receiver’s motion regarding the matured Prudential policies is being extended to December 14th. This will give you extra time to formulate a response. Those of you who favor the motion can send me a letter or e-mail and I will see that it is filed as well.


November 15, 2004

Investors: We have a meeting set with Sterling Trust, the Receiver’s representatives and me on Nov. 23d. We’ll discuss the Sterling fee and minimum distribution issues as well as others that may come up.


November 05, 2004

Investors: Remember all materials in suppport of or opposition to the Receiver’s motion regarding the matured Prudential policies must be filed by Nov. 23rd. If you do not wish to retain counsel but desire to voice your position you can send it to me and I will see that it is filed and copy you on the filing.



October 26, 2004

Investors: A status conference was held with Magistrate Judge Ovington on Tuesday Oct. 26th. The Judge set a hearing for Dec. 2 at 10 a.m. at which time some pending motions will be heard. Most of the motions are technical to the mechanics of the receivership.


October 20, 2004

Trial Rescheduled:

Many investors have asked about the criminal trial that was scheduled to begin September 13, 2004, but was postponed due to hurricane damage to the Pensacola Florida area. The trial, in the case of the United States of America vs. David W. Svete, et al, Case No 3:04-CR-0010-MCR, has been rescheduled to begin on January 5, 2005, in the courtroom of the Honorable M. Casey Rodgers at 8:30 am. The U.S. Courthouse is located at One Palafox Street, Pensacola, FL 32501. Judge Rodgers has entered an Order directing that the criminal trial will be completed by February 25, 2005 due to the Judge’s trial schedule.