H.Thomas Moran II, Receiver

Receiver of Lifetime Capital, Inc.

June 23 2005

398

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.

Svete was sentenced to 19 ½ years consisting of 16 ½ in prison and 3 years supervised probation. His surrender date is Aug. 15.

In addition an order of forfeiture was entered in the amount of 21 million dollars which Mr. Moran will be designated as collector.

Girardot received 8 1/4 years, 5 1/4 in prison and 3 years supervised probation.

Additionally an order of restitution will be entered at a minimum of $100 million and maximum of $130 million as to each within the next 90 days.

We have been attempting to obtain documents and testimony from Svete’s parents. We did have a partial deposition of William Svete at which time he produced six documents. We were told that he was invoking his Fifth Amendment privilege as to the balance. We asked the Court to intervene. An order was issued requiring a privilege log ( description of the documents) and set a briefing schedule.

I filed our brief and on Monday the Court ordered production of the documents and the Svete’s to testify. I am advised by their counsel that they are evaluating their response to the Order.

From the logs it appears that the documents are financial in nature relating to two Svete related partnerships including about 27 certificates of deposit.

When we receive the documents, if permitted by the Court, I’ll report as to their contents.

If you have questions, call or e-mail

Andrew Storar, Examiner