H.Thomas Moran II, Receiver

Receiver of Lifetime Capital, Inc.

June 23 2005

158

RE: United States v. Svete, et all

USDC Case Number: 3:04cr10/MCR

David Svete and Ron Girardot were sentenced today, June 23, 2005.

Svete was sentenced to 19½ years, consisting of 16½ in prison and 3 years supervised probation. His surrender date is August 15. In addition, an order of forfeiture was entered in the amount of 21 million dollars.

Girardot was sentenced to 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.

More details will be provided in a few days.