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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
Evergreen Security, Ltd. R.W. (Bill) Cuthill, Jr. President 341 N MAITLAND AVE, STE 210 MAITLAND, FL 32751 Telephone: 407-644-3781-235 Facsimile: 407-644-3943 RCuthill@msn.com www.trusteeandexaminercuthill.com October 5, 2007 Evergreen Steering Committee Via: e-mail RE: Status of litigation Dear Committee members: I have enclosed a Summary of Litigation from the inception of Evergreen's bankruptcy filing in January 2001 through September 30, 2007. There were one hundred fifty-seven cases filed in the U. S. Bankruptcy Court, and courts in Canada, The Bahamas, and Costa Rica. One hundred twelve of these cases were tried or settled with judgments and settlement proceeds of over $75 million. Over $23 million of this has been collected. The largest judgments not collected are from Intrados S. A. of over $35 million and Mataeka/Huggins/Knight/APAM of over $9 million. INTRADOS S. A.
I filed a fraudulent transfer suit in U. S. Bankruptcy Court against Intrados in July 2001 for over $35 million. Initially Intrados defended itself, but subsequently its counsel resigned and it ceased defending itself. I ultimately obtained a default judgment for the $35 million in January 2003. Additionally, I filed a criminal complaint against Hernan Castro and Ramon Castro, the stockholders of Intrados, in Costa Rica in September 2002. I also filed a civil suit against Intrados in Costa Rica to recover the judgment. Mr. Boyd and Mr. Boelens have testified in the criminal suit. The suit is still pending and is awaiting a court date for completion of the trial. MATAEKA/HUGGINS/KNIGHT/APAM
I filed a fraudulent transfer suit in U. S. Bankruptcy Court against Mataeka Ltd., Jon M. Knight, J. Anthony Huggins, and Atlantic Portfolio Analytics & Management, Inc. in October 2001. After intense litigation, a trial was held and judgments against Mr. Huggins and Mr. Knight were ordered for over $7.9 million and against APAM for $2.5 million. Approximately $1.1 million was recovered by a garnishment action from Mr. Huggins' counsel, Gray Robinson P.A., who had been holding it in trust. Additionally Gray Robinson P.A. settled two additional actions filed against them. Finding that Mr. Huggins and Mr. Knight had no assets in their names, I filed involuntary bankruptcy actions against them and APAM in U. S. Bankruptcy Court in June 2006. The Court ordered relief in these three bankruptcies in March 2007. Leigh Meininger was appointed the bankruptcy trustee for each of these cases. Mr. Meininger and Mr. Huggins settled for $1 million, which has been paid to the bankruptcy estate of Mr. Huggins. Mr. Meininger and Mr. Knight settled for two houses in Florida, a house and a farm in Georgia and a boat. These were auctioned during August and September 2007 for over $2.3 million. After closing and deducting auction commissions and expenses over $2 million will be paid over to the estate of Mr. Knight. Mr. Meininger indicated he would complete the bankruptcies of Mr. Knight and Mr. Huggins and distribute the funds to Evergreen sometime in December or January. I filed an action against Mr. Knight's counsel, Peter R. Ginsberg P.C., which was tried during August 2007. Evergreen is seeking $671,000 less the amount paid by Gray Robinson P.A. in settlement. The Court has not ruled on this action. Mr. Meininger has indicated he will file a fraudulent transfer suit in the APAM bankruptcy against Weil Gottshal. The amount of the suit is in excess of $400,000 and is to recover legal fees paid by APAM to Weil Gottshal for defense of Mr. Knight and Mr. Huggins in their first criminal trial in New York during 2003. SUMMARY
In summary, there are three actions outstanding: The Intrados trial, the Court's ruling for my action against Peter R. Ginsberg P.C., and APAM's fraudulent transfer action against Weil Gottshal. I cannot estimate the timing of the Intrados trial, but have been inquiring of the Court on a weekly basis. I expect the ruling in the matter against Peter R. Ginsberg P.C. during October or November. The action against Weil Gottshal will go into the summer of 2008 if it goes to trial. Upon receipt of the funds from the Knight and Huggins bankruptcies, I plan to make the next distribution. Based on Mr. Meininger's time estimate, this should be in December or January. Very truly yours, R.W. (Bill) Cuthill, Jr., President Enclosure CC: Hans C. Beyer, Esq. R. Scott Shuker, Esq.
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |