General Information and Documents for ABC Viaticals, Inc.

中文 - Chinese

Information for Investors

IMPORTANT NOTICE (Updated 09-08-2009): The SEC filed its Unopposed Motion to Dismiss Monetary Claims Against Defendants C. Keith LaMonda and Jesse W. LaMonda, Jr. on August 31, 2009. On September 3, 2009, the Court entered Final Judgment in this case against them. That final judgment permanently prohibits them from engaging in certain conduct governed by United States securities laws. To date, both Keith LaMonda and Jesse LaMonda remain in federal prison for crimes committed in selling viatical investments.

IMPORTANT NOTICE (Updated 11-10-2008): On September 23-24, 2008, the Court held an evidentiary hearing on the Receiver's Motion to Sell All Insurance Policies (Exhibit 1 - Exhibit 2). Investors can view a copy of the transcript, which is available here: Part 1 | Part 2. In attendance at that hearing were the Receiver, the Examiner, the SEC, four representatives for the Taiwanese investors, one representative for the Puerto Rican investors, and bidders interested in purchasing the portfolio of insurance policies.

On the first day of the hearing, the Receiver conducted an auction for the portfolio of insurance policies under the Court's supervision. The starting bid was $27.1 million and the final bid was $33.5 million from Settlement Group, Inc. As the winning bidder, Settlement Group, Inc. will also reimburse the Receiver for all premiums paid on the policies since July 1, 2008, which through October 2008 is an additional $2.6 million.

Following the auction, the parties presented arguments and evidence to help the Court determine whether it would approve the sale of policies for $33.5 million. Each party--including the investors from Taiwan and Puerto Rico--was allowed to state its position, present evidence, and ask questions of the Receiver.

The primary issue at the hearing was whether the Court should delay approval of the sale for three weeks and allow an actuary to prepare life expectancy reports for the insurance policies and a valuation of the portfolio. While the Receiver, the SEC, and the Examiner did not oppose the delay, the Court had the final decision about whether it was in the investors' best interests.

On October 6, 2008, the Court entered an Order (Exhibit 1) approving the sale of insurance policies for $33.5 million and denying the request for a three-week delay. That order has extensive findings of fact and conclusions of law explaining the decision. Among other things, the Court noted that (1) the bidders had already done something "very similar" to what the actuary was proposing, (2) the value of a delay was "uncertain" to bring more bidders or a higher bid price for the insurance policies, and (3) selling the policies for $33.5 million "is the only viable option and is in the best interests of the investors at this time."

On October 13, 2008, the Puerto Rican investors filed a Motion for Reconsideration. On October 21, 2008, the Puerto Rican investors also filed an Emergency Motion for Stay of the Magistrate's Order. The Court entered its Order denying those motions on October 29, 2008.

On November 5, 2008, the Puerto Rican investors filed an Emergency Motion to Stay and Reconsider the Court's Decision followed by an Amended Emergency Motion to Stay and Reconsider the Court's Decision (Exhibit A - Exhibit B - Exhibit C - Exhibit D). The Court entered its Order on November 6, 2008, granting that motion in part and staying the sale of ABC's insurance policies through November 13, 2008. In particular, the Court authorized the Receiver to evaluate other prospective offers to purchase the portfolio of insurance policies and determine if they are superior to the sale for $33.5 million.

On November 11, 2008, the only interested party notified the Receiver that it was not going to submit a bid to purchase the portfolio of inusrance policies. The Court then entered an Agreed Order Terminating Stay, which permitted the Receiver to close the sale for $33.5 million.

IMPORTANT NOTICE (04-01-2008): The Examiner has posted an investor update on his website that answers various questions recently submitted by investors.

IMPORTANT NOTICE (01-02-2008): The Examiner has posted an investor update on his website that answers various questions recently submitted by investors.

IMPORTANT NOTICE (09-24-2007): In order to file a claim in this case, investors must fill out the court-approved claim form and return it to the Receiver with the requested supporting documents. Upon receiving your claim, the Receiver will send you a notecard with your assigned claim ID number. Should the personal information on your claim form change for any reason, please notify the Receiver at secreceiver@qsclpc.com.

If you wish to transfer your claim to another claimant, you may do so by using the Notice of Claim Transfer that the Examiner published on his website in July 2007.

IMPORTANT NOTICE (09-17-2007): The Receiver has prepared an investor update that briefly describes the progress made in both collecting investor information and recovering investor funds.

IMPORTANT NOTICE (07-18-2007): On July 12, 2007, the Receiver reached a comprehensive settlement with the LaMonda family members, including Keith and Jesse LaMonda. The Receiver has prepared an investor update summarizing the most important terms of that settlement.

IMPORTANT NOTICE (06-14-2007): A number of investors have contacted the Receiver and the Examiner asking about the work done to date and the fees and expenses charged. In response, the Receiver and Examiner prepared an investor update summarizing the most significant accomplishments as of June 14, 2007. This summary is posted for the benefit of all investors, but the most current and specific information is still provided on www.secreceiver.com/abc/ and www.abcexaminer.com.

IMPORTANT NOTICE (11-30-2006): Due to the large number of investors in this case, the Court has appointed Steven A. Harr of Munsch, Hardt, Kopf & Harr, P.C. to act as Examiner on their behalf. According to the Order Appointing Examiner, Mr. Harr is to monitor the Receiver's activities, communicate with investors, and to voice their collective interests on matters before the Court.

Investors are encouraged to view the Examiner's website at www.abcexaminer.com for more specific information relating to investors.

Lawsuit by the SEC and Appointment of Receiver

On November 17, 2006, the United States Securities and Exchange Commission ("SEC") filed a Complaint against ABC Viaticals, Inc., C. Keith LaMonda, and Jesse W. LaMonda, Jr., Defendants, and LaMonda Management Family Limited Partnership, Structured Life Settlements, Inc., Blue Water Trust, and Destiny Trust, Relief Defendants, alleging violation of the federal securities laws. On that same day, and by agreement of the parties, the court issued an Agreed Preliminary Injunction, Order Freezing Assets, Order Requiring an Accounting and Order Requiring Preservation of Documents and an Order Appointing Receiver. As a result of those Orders, all of the assets of the Defendants and Relief Defendants were frozen. In addition, Michael J. Quilling was appointed Receiver for ABC Viaticals, Inc. and the Relief Defendants.

On November 29, 2006, the Receiver filed his Unopposed Motion to Appoint Examiner. On November 30, 2006, the Court granted issued its Order Appointing Examiner.

On December 1, 2006, the Receiver filed his Unopposed Motion to Use Policy Proceeds and Premium Escrow Reserves (Pool Assets). That same day the Court issed its Order Pooling Receivership Assets.

On December 1, 2006, the Receiver also filed his Unopposed Motion to Modify Order Appointing Receiver. On December 4, 2006 the Court issued its Order Clarifying and Modifying Order Appointing Receiver.

On February 1, 2007, Defendants C. Keith LaMonda and Jesse W. LaMonda, Jr. filed their Unopposed Joint Motion to Extend Time to Move, Answer or Otherwise Respond to Plaintiff's Complaint. The Court issued its Order granting Defendants' motion on February 5, 2007. On March 28, 2007, Defendants C. Keith LaMonda and Jesse W. LaMonda, Jr. filed their Unopposed Joint Motion to Extend Time to Move, Answer or Otherwise Respond to Plaintiff's Complaint. On March 29, 2007, the Court entered its Order granting Defendants' motion. The Court entered an Amended Order on March 30, 2007, that extended Defendants' time to respond until May 31, 2007. On May 29, 2007, Defendants C. Keith LaMonda and Jesse W. LaMonda, Jr. filed their Unopposed Joint Motion to Extend Time to Answer Plaintiff's Complaint. On June 7, 2007, the Court entered its Order granting Defendants' motion. On July 20, 2007, Defendants filed Keith LaMonda's Original Answer and Jesse W. LaMonda Jr.'s Original Answer.

On July 6, 2007, the SEC filed its Unopposed Motion to Enter Agreed Interlocutory Judgment of Permanent Injunction. On July 13, 2007, the Court entered an Agreed Interlocutory Judgment of Permanent Injunction.

The SEC filed its Unopposed Motion to Dismiss Monetary Claims Against Defendants C. Keith LaMonda and Jesse W. LaMonda, Jr. on August 31, 2009. On September 3, 2009, the Court entered Final Judgment in this case against them. That final judgment permanently prohibits them from engaging in certain conduct governed by United States securities laws. To date, both Keith LaMonda and Jesse LaMonda remain in federal prison for crimes committed in selling viatical investments.

Activities of the Receiver

On December 18, 2006, the Receiver filed a Preliminary Report describing the activities and known assets of the Defendants and Relief Defendants.

On January 16, 2007, the Reciever filed his Motion to Establish Claim Procedure Plan and to Approve Claim Form and Supporting Exhibits (Exhibit A - Exhibit B - Exhibit C - Exhibit D). On January 18, 2007, the Court issued an Order approving the Receiver's plan.

On December 1, 2006, the Receiver filed his Unopposed Motion for Authority to Enter into an Agreement for Bank Financing. On December 4, 2006, the Court entered its Order Authorizing Receiver to Obtain Bank Financing. On March 8, 2007, the Receiver filed his Unopposed Motion to Approve Bank Financing and Request for Expedited Consideration. On March 16, 2007, the Court entered its Order granting the Receiver's motion. On June 25, 2007, the Receiver filed his Unopposed Motion to Increase Bank Financing Facility and Request for Expedited Consideration. That day, the Court entered its Order Authorizing Receiver to Increase Bank Financing. On February 6, 2008, the Receiver filed his Second Unopposed Motion to Increase Bank Financing. That day, the Court entered its Order Authorizing Receiver to Increase Bank Financing. On February 27, 2008, the Receiver filed his Third Unopposed Motion to Increase Bank Financing. The Court entered its Order Authorizing Receiver to Increase Bank Financing on February 29, 2008. On June 27, 2008, the Receiver filed his Fourth Unopposed Motion to Increase Bank Financing. The Court entered its Order Authorizing Receiver to Increase Bank Financing on June 30, 2008.

On December 21, 2006, the Receiver filed his Unopposed Motion for Authority to Employ National Viatical, Inc. The Court issued its Order Authorizing Employment of National Viatical, Inc. Nunc Pro Tunc on December 29, 2006.

On March 16, 2007, the Receiver filed his Unopposed Motion for Authority to Pay Taxes and Brief in Support. On March 20, 2007, the Court entered its Order granting the Receiver's motion.

On April 4, 2007, the Receiver filed his Unopposed Motion to Return Unmatched Funds. On April 18, 2007 the Court entered its Order Authorizing Return of Unmatched Funds.

On February 1, 2008, the Receiver filed his Unopposed Motion to Solicit Bids for Purchase of Policies and to Set Sale Procedures (Exhibit 1 - Exhibit 2 - Exhibit 3 - Exhibit 4 - Exhibit 5 - Exhibit 6). On February 4, 2008, the Court entered its Order granting the motion.

On June 30, 2008, the Receiver filed his Motion to Sell All Insurance Policies (Exhibit 1 - Exhibit 2). In it, the Receiver asks the Court (1) to set a hearing date to oversee the second round of bidding by auction and (2) to approve the final sale price at the conclusion of that auction.

On July 9, 2008, the Court entered an Order of Reference referring any hearing on the Receiver's motion to U.S. Magistrate Judge Ramirez.

On October 6, 2008, the Court entered an Order (Exhibit 1) approving the sale of insurance policies for $33.5 million, which was the highest sales price after the second round of bidding.

Approval and Distribution of Investor Claims

On May 1, 2008, the Receiver filed his First Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on June 3, 2008.

On June 4, 2008, the Receiver filed his Second Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on June 9, 2008.

On July 1, 2008, the Receiver filed his Third Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on July 3, 2008.

On August 4, 2008, the Receiver filed his Fourth Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on September 12, 2008.

On September 2, 2008, the Receiver filed his Fifth Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on October 3, 2008.

On October 6, 2008, the Receiver filed his Sixth Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on November 6, 2008.

On November 3, 2008, the Receiver filed his Seventh Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on December 3, 2008.

On December 1, 2008, the Receiver filed his Eighth Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on January 5, 2009.

On February 8, 2010, the Receiver filed his Motion to Disallow/Adjust "A" Claims (Exhibit 1) asking the Court to revise 14 claims to more accurately reflect amounts the claimants actually invested or amounts they already received. The Court entered an Order approving those claims on May 27, 2009.

On February 8, 2010, the Receiver filed his Ninth Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on February 11, 2010.

On March 10, 2010, the Receiver filed his Motion to Vacate in Part Orders Allowing "A" Claims and to Allow Corrected "A" Claims (Exhibit A) to correct clerical mistakes in 13 allowed claims. The Court entered an Order approving those claims on May 27, 2010.

On May 27, 2010, the Receiver filed his Tenth Motion to Allow "A" Claims (Exhibit 1). The Court entered an Order approving those claims on May 28, 2010.

The Receiver is still in the process of receiving, verifying, and approving other claims submitted in this case. Those claims will be addressed in future motions submitted to the Court for allowance or disallowance.

Activities Related to Keith LaMonda and Jesse LaMonda

On July 12, 2007, the Receiver filed his Agreed Motion to Approve Compromise and Settlement Agreement and Request for Expedited Consideration (Exhibit A). The Court entered its Order approving that agreement on July 17, 2007.

On February 8, 2010, C. Keith LaMonda filed a Dual Motion to Appear Pro Se and Reconfirm the Compromise and Settlement. The Receiver filed his Response arguing that the Court has resolved all claims against LaMonda and he has no standing to continue participating in this case from prison. LaMonda filed his Reply.

LaMonda then filed a Notice terminating his counsel of record.

On March 29, 2010, LaMonda filed a Motion Requiring Receiver to Provide an Accounting. The Receiver filed his Response stating that LaMonda is no longer a party and has no standing to participate in the lawsuit and LaMonda filed his Reply.

Activities Related to Donald S. Kaplan

On April 6, 2007, the Receiver filed his Motion for Show Cause Hearing Regarding Commissions Paid to Donald S. Kaplan and Supporting Exhibits. On May 1, 2007, the Court entered its Order directing Kaplan to respond to the Receiver's Motion.

On May 10, 2007, the Receiver filed a Motion Approve Stipulation Extending Donald S. Kaplan's Time to Respond. On May 14, 2007, the Court entered an Order extending Donald S. Kaplan's time to respond. On June 1, 2007, the Receiver filed a Motion to Approve Second Stipulation Extending Donald S. Kaplan's Time to Respond. On June 7, 2007, the Court entered an Order extending Donald S. Kaplan's time to respond.

On June 14, 2007, Kaplan filed his Response Brief and Motion to Dismiss. On June 27, 2007, the Receiver filed his Response to Donald S. Kaplan's Motion to Dismiss and Combined Reply Brief Supporting the Receiver's Motion for Show Cause Hearing and Expedited Consideration. On July 11, 2007, Kaplan filed his Reply Brief. On August 10, 2007, the Court entered its Order granting the Receiver's Motion for Show Cause Hearing and denying Kaplan's Motion to Dismiss.

On August 29, 2007, the Court entered its Order Requiring Attorney Conference, which directed the parties to file a Joint Proposal for Discovery and Hearing Dates by September 28, 2007. After the parties submitted their joint proposal, the Court entered its Scheduling Order on October 22, 2007. On December 14, 2007, the parties filed a Motion for Agreed Order Permitting a Supplemental Expert Report, which was granted in an Agreed Order entered on December 19, 2007.

On January 18, 2008, the parties filed a Motion to Approve an Agreed Order that would protect the ABC investors' personal and financial information from unnecessary disclosure in these proceedings. The Court entered the Agreed Order on January 24, 2008.

On February 7, 2008, the Receiver filed a Motion for Agreed Order Extending Discovery Deadlines that gave the Receiver and Donald Kaplan until March 12, 2008, to explore a settlement agreement or else complete discovery. The Court entered the Agreed Amended Scheduling Order on February 8, 2008.

On March 12, 2008, the Receiver filed a Second Motion for Agreed Order Extending Discovery Deadlines to further explore the possibility of settlement. The Court granted the motion by entering its Second Agreed Amended Scheduling Order on March 14, 2008.

On March 25, 2008, Donald Kaplan filed his Motion for Agreed Order for Protection of Private Financial Records to protect from disclosure the personal financial information that he agred to provide the Reciever in connection with their settlement negotiations. The Court entered that Agreed Order on March 31, 2008.

On April 8, 2008, the Receiver filed a Third Motion for Agreed Order Extending Discovery Deadlines to continue settlement negotiations. The Court entered a Third Agreed Amended Scheduling Order on April 10, 2008.

On May 29, 2008, the Receiver filed a Fourth Motion for Agreed Order Extending Discovery Deadlines to continue settlement negotiations. The Court entered a Fourth Agreed Amended Scheduling Order on June 3, 2008.

On August 27, 2008, the Receiver filed a Fifth Motion for Agreed Order Extending Discovery Deadlines to continue settlement negotiations. The Court entered a Fifth Agreed Amended Scheduling Order on August 28, 2008.

On October 17, 2008, the Receiver filed Sixth Motion for Agreed Order Extending Discovery Deadlines to continue settlement negotiations. The Court entered a Sixth Agreed Amended Scheduling Order on October 20, 2008.

On December 3, 2008, the Receiver filed Seventh Motion for Agreed Order Extending Discovery Deadlines to continue settlement negotiations. The Court entered a Seventh Agreed Amended Scheduling Order on December 8, 2008.

After viewing Donald Kaplan's financial condition and records of his assets, the Receiver filed a Motion for Agreed Order Approving Settlement Agreement with Donald Kaplan (Exhibit 1) on January 30, 2009. As part of that settlement, Donald Kaplan agreed to pay the Receiver $160,000. The Receiver believes that settlement amount is the best and highest recovery that can be achieved without incurring significant litigation expenses. It would also result in a net recovery for the receivership estate. The Court, therefore, entered an Agreed Order approving that settlement agreement on February 2, 2009. The Receiver then filed his Notice Withdrawing Motion for Show Cause Hearing on March 25, 2009, in accordance with the parties' settlement agreement.

Activities Related to Jason Sun

On April 16, 2009, the Receiver filed his Motion for Show Cause Hearing Regarding Commissions Paid to Jason Sun (Exhibit A - Exhibit B - Exhibit C). Through that motion, the Receiver asks the Court to disgorge up to $6,669,429.72 in commissions paid to or for the benefit of a sales agent named Jason Sun. The Receiver alleges that Jason Sun was primarily responsible for recruiting Taiwanese investors into the ABC investment scheme.

The Court entered an Order directing Jason Sun to respond by May 17, 2009. With the Receiver's agreement, the Court entered additional Orders (1 - 2 - 3 - 4 - 5 - 6 - 7) extending Jason Sun's response date while the parties discuss potential settlement agreements. Given the extended settlement discussions, the Court entered an Order dismissing the motion while the parties continued negotiating. Should those negotiations prove unsuccessful, the Receiver may re-file the motion at any time.

Activities Related to Receivership Estate Assets

On August 8, 2007, the Receiver filed his Unopposed Motion to Sell 2003 Lincoln Aviator. On August 9, 2007, the Court entered its Order Approving Sale.

On August 8, 2007, the Receiver filed his Unopposed Motion to Sell 2006 Mercedes Benz CLS500. On August 9, 2007, the Court entered its Order Approving Sale.

On August 15, 2007, the Receiver filed his Unopposed Motion to Sell 2006 Cadillac SRX. On August 16, 2007, the Court entered its Order Approving Sale.

On August 16, 2007, the Receiver filed his Unopposed Motion to Sell Real Property at Private Sale (3923 Muscadine Trail in Gainesville, Georgia). That day, the Court entered its Order Approving Sale. On January 24, 2008, the Receiver filed his Motion to Sell Real Property Free and Clear of All Liens, Claims, and Encumbrances (Exhibit A). On January 25, 2008, the Court entered its Order approving the sale.

On August 22, 2007, the Receiver filed his Unopposed Motion to Sell 2006 Jeep Grand Cherokee Laredo. On August 29, 2007, the Court entered its Order Approving Sale.

On September 17, 2007, the Receiver filed his Unopposed Motion to Sell 2005 Chrysler Town & Country. On September 18, 2007, the Court entered its Order Approving Sale.

On October 12, 2007, the Receiver filed his Motion to Retain Appraisers (1730 Parkwood in Moberly, Missouri). That day, the Court entered its Order granting the motion. On January 24, 2008, the Receiver filed his Motion to Sell Real Property Free and Clear of All Liens, Claims, and Encumbrances (Exhibit A). On January 25, 2008, the Court entered its Order approving the sale.

On October 12, 2007, the Receiver filed his Unopposed Motion to Sell 2004 Panther Airboat and Aluminum Trailer. That day, the Court entered its Order Approving Sale.

On October 12, 2007, the Receiver filed his Motion to Sell 2006 Jeep Grand Cherokee Overland. That day, the Court entered its Order Approving Sale.

On November 21, 2007, the Receiver filed his Motion to Sell 2003 Mercedes Benz S55. On November 26, 2007, the Court entered its Order Approving Sale.

On December 10, 2007, the Receiver filed his Motion to Sell 2004 Jeep Liberty. On December 14, 2007, the Court entered its Order Approving Sale.

On February 1, 2008, the Receiver filed his Unopposed Motion to Solicit Bids for Purchase of Policies and to Set Sale Procedures (Exhibit 1 - Exhibit 2 - Exhibit 3 - Exhibit 4 - Exhibit 5 - Exhibit 6). On February 4, 2008, the Court entered its Order granting the motion.

On June 30, 2008, the Receiver filed his Motion to Sell All Insurance Policies (Exhibit 1 - Exhibit 2). In it, the Receiver asks the Court (1) to set a hearing date to oversee the second round of bidding by auction and (2) to approve the final sale price at the conclusion of that auction.

On July 9, 2008, the Court entered an Order of Reference referring any hearing on the Receiver's motion to U.S. Magistrate Judge Ramirez.

On July 30, 2008, the Court entered an Order setting the Receiver's motion to sell policies for an evidentiary hearing on September 23-24, 2008, at 9:00 a.m. in Courtroom 1566 before U.S. Magistrate Judge Ramirez.

On August 8, 2008, the Receiver filed his Certificate of Service (Exhibit 1 - Exhibit 2 - Exhibit 3 - Exhibit 4 - Exhibit 5 - Exhibit 6) relating to his motion to sell the insurance policies.

On September 15, 2008, the Examiner filed a Report Regarding the Motion to Sell Policies. In that report, the Examiner thoroughly analyses the Receiver's position and the positions stated by some of the investors. He concludes that selling the policies at this time is in the investors' best interest.

On September 16, 2008, the SEC filed its Response to the Receiver's motion, which also stated that the sale was in the investors' best interests.

On September 17, 2008, Angelo Diaz Gonzales filed a Motion to Continue Hearing and an Objection to the Receiver's motion to sell the insurance policies. The Court entered an Order denying the motion for continuance.

On October 6, 2008, the Court entered an Order (Exhibit 1) approving the sale of insurance policies for $33.5 million, which was the highest sales price after the second round of bidding.

Angelo Diaz Gonzales filed a Motion for Reconsideration on October 13, 2008. On October 21, 2008, he also filed an Emergency Motion for Stay of the Magistrate's Order. On October 23, 2008, Receiver filed his Response and the Examiner filed his Response. Mr. Gonzalez filed his Reply to the Receiver on October 23, 2008, and his Reply to the Examiner on October 24, 2008. The Court entered its Order denying those motions on October 29, 2008.

On November 5, 2008, Gonzalez filed an Emergency Motion to Stay and Reconsider the Court's Decision followed by an Amended Emergency Motion to Stay and Reconsider the Court's Decision (Exhibit A - Exhibit B - Exhibit C - Exhibit D). The Court entered its Order on November 6, 2008, granting that motion in part and staying the sale of ABC's insurance policies through November 13, 2008. In particular, the Court authorized the Receiver to evaluate other prospective offers to purchase the portfolio of insurance policies and determine if they are superior to the sale for $33.5 million.

On November 10, 2008, Settlement Group, Inc. filed an Emergency Motion to Reconsider the Stay and to Approve Sale of the Policies for $33.5 million. On November 11, 2008, the only interested party notified the Receiver that it was not going to submit a bid to purchase the portfolio of inusrance policies. The Court then entered an Agreed Order Terminating Stay, which permitted the Receiver to close the sale for $33.5 million. It also entered an Order denying as moot Settlement Group, Inc.'s motion to reconsider.

Costs of Administration

On May 10, 2007, the Receiver filed his First Interim Application to Allow and Pay (1) Receiver's Fees and Expenses and (2) Attorneys' Fees and Expenses and Brief in Support. On March 31, 2008, the Court entered its Order approving those fees.

On May 15, 2007, the Examiner filed his First Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support. On March 31, 2008, the Court entered its Order approving those fees.

On August 8, 2007, the Receiver filed his Second Interim Application to Allow and Pay (1) Receiver's Fees and Expenses and (2) Attorneys' Fees and Expenses and Brief in Support. On August 24, 2007, the Court entered its Order approving those fees.

On September 5, 2007, the Examiner filed his Second Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support. On March 31, 2008, the Court entered its Order approving those fees.

On March 14, 2008, the Receiver filed his Third Interim Application to Allow and Pay (1) Receiver's Fees and Expenses and (2) Attorneys' Fees and Expenses and Brief in Support. On April 4, 2008, Erwin & Johnson--the law firm being sued for mishandling investor funds--intervened in this lawsuit and filed a Response to the Receiver's fee application. On April 10, 2008, the Receiver filed a Motion to Strike Erwin & Johnson's response for lack of standing and for attempting to intervene in an SEC lawsuit without its approval. On May 13, 2008, the Receiver filed a Notice withdrawing his Motion to Strike. That same day, Erwin & Johnson filed an Agreed Motion to Withdraw their Response to the Receiver's Third Interim Fee Application. The Court entered an Order granting Erwin & Johnson's motion on May 19, 2008. On January 7, 2009, the Court entered an Order approving those fees.

On September 9, 2008, the Examiner filed his Third Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support and Fourth Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support. On October 14, 2008, the Court entered an Order approving the Examiner's third fee application and another Order granting the Examiner's fourth fee application.

On November 26, 2008, the Examiner filed his Fifth Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support. On January 7, 2009, the Court entered an Order approving those fees.

On January 8, 2009, the Receiver filed his Fourth Interim Application to Allow and Pay (1) Receiver's Fees and Expenses and (2) Attorneys' Fees and Expenses and Brief in Support. On February 17, 2009, the Court entered an Order approving those fees.

On January 9, 2009, the Receiver filed his First Interim Application to Allow and Pay Fees and Expenses of Translator and Brief in Support. On February 17, 2009, the Court entered an Order approving those fees.

On January 12, 2009, the Receiver filed his First Interim Application to Allow and Pay Fees and Expenses of Special Counsel and Brief in Support. On February 17, 2009, the Court entered an Order approving those fees.

On September 21, 2009, the Examiner filed his Sixth Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support. On October 2, 2009, the Court entered an Order approving those fees.

On March 8, 2010, the Examiner filed his Seventh Interim Application to Allow and Pay (1) Examiner's Fees and Expenses, and (2) Attorney's Fees and Expenses and Brief in Support. On May 10, 2009, the Court entered an Order approving those fees.

The following documents require Adobe Reader (click here to download).