H.Thomas Moran II, Receiver

Receiver of Lifetime Capital, Inc.

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.

Based on currently available information, the Receiver expects that any motion(s) to disallow claims will be filed with the Court during the month of March and would expect them to be heard in late March or sometime in April. That hearing will likely be the last hearing required before the Court orders the Receiver to complete the claims process.

The Receiver continues to work diligently on concluding all other pending matters with respect to the Receivership, and, while the end is in sight, it is not yet here. The Receiver is still awaiting the outcome of an appeal pending before the Sixth Circuit Court of Appeals. The timing of a decision from the Court is unpredictable but is hoped for within the next several months. The Court’s decision will determine whether the Receiver’s action against Mr. Svete individually will proceed in the Ohio Court or must be relegated to the authority of an arbitrator.

As most of you know, Mr. Svete’s convictions on all but the four mail fraud counts were previously affirmed by the 11th Circuit Court of Appeals. Subsequently, all four of the mail fraud counts were reinstated by the 11th Circuit, and Mr. Svete’s convictions have accordingly been upheld, consistent with the jury’s verdict. Mr. Svete attempted to challenge the 11th Circuit’s affirmance of his convictions before the U.S. Supreme Court, but it is the Receiver’s understanding that the time in which Mr. Svete might have pursued such a direct appeal has now expired. Copies of the various decisions of the 11th Circuit Court of Appeals regarding Mr. Svete’s convictions are available on the Receiver’s website.