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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
January 21, 2002 Trustee's Report
January 31, 2002 Ladies and Gentlemen: My name is Robert W. Cuthill, Jr. and I am the Trustee for Evergreen Security, Ltd. (Evergreen). The Court approved my appointment on March 14, 2001. I will be making reports to the Creditors Committee throughout this case. This report will not repeat my prior reports, which can be found at www.evergreencreditorscommittee.com. I have recovered in excess of $3,500,000 through December 31, 2001. These funds came from cash held by the debtor, recovery of retainers from council the debtor hired and council BJM International Services, Inc., the funds manager, hired. Additionally I sold the shares in ABS-SOS Partners, Ltd. (a hedge fund investment traded on the Bermuda stock exchange) during September 2001 for in excess of $1,800,000. On August 5, 2001 I filed over $70,000,000 in fraudulent transfer suits against the owners, managers and others parties who received funds from Evergreen. These suits are in the discovery stage and the next status conferences in these cases will be held February 11 in Orlando. I also filed suit on August 5, 2001 against Surety Bank and Trust, Ltd. in the Bahamas. This bank is in liquidation. I have retained council in the Bahamas and met with the liquidators. The shareholders and directors of the bank have agreed to turn over any interest they have to the estate. The liquidator for the bank estimates the estate may receive $4 million to $5 million, upon liquidation. I filed a turnover motion against Intrados S.A., of San Jose, Costa Rica on July 2, 2001 for an accounting of investor funds and return of any investor funds Intrados is holding. Evergreen's records indicate that Intrados was the trustee for over $90,000,000 in assets from investors. Intrados is contesting this action. I have retained council in Costa Rica, met with officials of Intrados, but no settlement has been reached. The next status conference in this case is scheduled for March 11, 2002 in Orlando. I filed a fraudulent transfer suit against Atlantic Portfolio Analytics & Management, Inc., its affiliate and owners on October 30, 2001 for the return of $8.5 million. The suit is in the discovery stage and a status conference in this suit is scheduled for February 11, 2002 in Orlando. I have met with many of the defendants in these suits and have negotiated settlements with some and am in the process of negotiating settlements with other defendants. Some of these cases will be tried, but no trial dates have been set. Martin Boelens, president of Evergreen's management company, plead guilty to charges of conspiracy and grand larceny of more than $29.5 million. The plea was part of a deal to testify against other defendants the NY District Attorney has indicted. William Zylka and his attorney, James Conroy, are scheduled for trial in NY in April on similar charges. I have completed a list of all financial advisors (brokers) in this case to which over $16 million in commissions were paid. It will help me if investors will send me their financial advisor’s name, address, telephone number, fax number and e-mail address. I will cross check this information with my list of financial advisors. Many investors have already sent me this information. Thank you. It will greatly help my recovery of assets. If you would like to provide me with any information in this case, please mail, fax or e-mail it to me. I have listed my numbers below. Please only provide me factual information. Rumors will not help me. This will help me concentrate on my job. You should continue to contact the Creditors' Committee web site for information in this case. Also many newspapers have carried articles about this case. The largest collection of articles can be found at www.orlandosentinel.com. R. W. (Bill) Cuthill, Jr., CPA, CFE Chapter 11 Trustee Cuthill & Eddy LLP 1031 W. Morse Blvd., Suite 200 Winter Park, Fl 32789-3750 Phone 407-644-7455 Fax 407-628-5277 e-mail: rcuthill@cuthilleddy.com |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |