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.
If you have not returned your claim forms to the Receiver please do so. Current information is essential when a distribution is made. If you have not received the claim forms please let me know asap.
There have been very few maturities and consequently little cash has been generated but there have been no policy lapses. The only options for the Receiver are maturities or sale of certain policies. This will probably need to be addressed in the future.
Many of you have been asking about the status of the matured Prudential (Jordan) policies. There is no decision as yet. This is not an unusual delay on a complex issue. I have been encouraging both sides to sit down and try to resolve the matter. When the Court renders a decision the loser will surely appeal. I’m involved in the Liberte Capital case in the Northern District of Ohio. In that case a small group of investors appealed from a decision on the method of distribution. The issue has some similarities to the Jordan matter. That appeal has been going on for two and one half years. When the decision is rendered that may not end it. There are the possibilities of further appeal or remand to the Trial Court for more proceedings, which would then be subject to appeal.
I will continue efforts at negotiation up until the decision is issued. When that happens, I believe it will be too late to settle this issue anytime soon.
Andrew Storar, Examiner