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.
The ultimate destination of these funds is anticipated to be the Receiver, for distribution to the investors of LifeTime. However, additional orders and the resolution of some attorney lien claims asserted by former attorneys for David Svete related to theses funds must be resolved, at least in part, before any of these funds can be released to the Receiver for distribution to investors. The Receiver has asked the Federal Court in Florida to consider releasing all but the funds that may be subject to attorneys’ lien claims, so that approximately $1,500,000 of the funds can be returned to investors as soon as possible.
Please be assured that the Receiver and the U.S. Government intend to challenge the claims of Mr. Svete’s former attorneys to any of these funds and expect to continue to do so until all issues are resolved.
Below are the attachments regarding this approval: