LifeTime Capital, Inc.



	NEWS 7/24/2008 On March 26, 2008, following oral argument conducted in late November 2007, the 11th Circuit Court of Appeals issued its opinion in USA v. Svete, et al., 521 F.3d 1302 (11th Cir. 2008). The Court of Appeals affirmed Mr. Svete's convictions on all counts for which he was tried and convicted by a jury of his peers, with the exception of the four mail fraud counts. The rationale of the Court of Appeals for reversing the mail fraud counts was the failure of the trial court to give a jury instruction on the definition of mail fraud that had been requested by Defendants. Specifically, the issue was whether the convictions for mail fraud required proof by the Government that the defrauded investors had exercised ordinary prudence in their dealings with LifeTime and Mr. Svete. The trial court had declined to give the requested instruction because it was contrary to the Appellate Court's pattern jury instruction on mail fraud. A copy of the Court of Appeal's opinion is attached. The Court of Appeals' decision was rendered by a panel of three judges, which is typically how these appeals are handled. Any party who takes issue with the Court of Appeals' opinion may seek a rehearing en banc or, in other words, before the judges within a particular Circuit Court of Appeals. In this case, both the Government and Mr. Svete filed Petitions for Rehearing. The Government sought clarification of the impact of the reversal of the mail fraud counts because, as stated above, the Court's decision was seemingly inconsistent with its prior rulings on this subject. Mr. Svete sought rehearing on the basis that the Court should have reversed as to all counts and not just the mail fraud counts. While the Petitions for Rehearing were pending, the United States Supreme Court, as the highest court in the land, issued an opinion in a case involving racketeering and influenced corruption organization (RICO) civil claims, which dealt with a number of issues including mail fraud. In Bridge v. Phoenix Bond & Indemnity Co., decided June 4, 2008, the Supreme Court, among other things, held that mail fraud as an element of a RICO claim need not include proof of reliance by a defrauded party with respect to any misrepresentation by the defendant. As a result, it is believed that this decision may be motivating the Court of Appeals to rethink the reversal of the mail fraud counts against Mr. Svete and Ron Girardot. Further, it is believed that the Court of Appeals desires further clarification of the scope of its decision in Svete in light of the latest expression of the U.S. Supreme Court on this subject. For your convenience, a copy of the recent U.S. Supreme Court decision is also attached. On July 1, 2008, the 11th Circuit Court of Appeals issued a summary order granting both parties' Petitions for Rehearing. This does not necessarily mean that the Court will change the results of the prior opinion—merely that the Court as a whole (i.e., twelve judges) wants to rehear at least some of the issues on appeal. A new briefing schedule has just been set by the 11th Circuit Court of Appeals regarding the Petitions for Rehearing and additional oral argument. The Government's brief is due September 17, 2008, and oral argument will be conducted during the week of October 20, 2008. The procedural effect of the granting of the Petitions for Rehearing by the Circuit Court is that the previous opinion is vacated. As a result, from a legal standpoint, while Mr. Svete and Mr. Girardot were convicted by a jury, their convictions are not yet final, as their appeals of the convictions are still considered pending. The problem or issue is believed to be the prior decision of the Circuit Court in U.S. v. Brown, 79 F.3d 1550 (11th Cir. 1996), a mail fraud case. There is apparently concern that the decision in U.S. v. Brown may be inconsistent with that of other Courts of Appeal, and now perhaps even the U.S. Supreme Court. As stated above, the primary legal question is whether conviction for mail fraud requires proof of certain elements. Specifically, whether the defrauded investors acted as persons of ordinary prudence when relying upon the fraudulent misrepresentations of the Defendants. The Government did not have to prove all of the elements of mail fraud, however, with respect to the counts for criminal conspiracy and money laundering. In other words, the criminal conspiracy and money laundering counts should not be impacted by the issues related to the mail fraud counts. These are the counts that support the most significant part of Mr. Svete's judicially imposed sentence of 16-2/3 years. For your information, a copy of the Brown decision is also attached. The 11th Circuit has now requested briefs on whether the trial court erred in giving the pattern instruction instead of the instruction requested by the Defendants, and whether, in light of the Bridge case, the Brown case should be overruled. The Receiver recognizes that this is both confusing and frustrating to investors who were defrauded by Mr. Svete. We hope this information has in some way been helpful to you in terms of understanding the current dynamic of Mr. Svete's appeal. The Receiver will update this posting as new developments warrant. 4/7/2008 By now you should have received a check for the second partial distribution. If you have not received your distribution payment, please contact our office. If you have questions about payments sent to the custodian of your IRA (for example, Sterling Trust), please call the custodian. There will be a final distribution, but the timing and the amount cannot be estimated or guaranteed by the Receiver at this time. 3/25/2008 The total amount of the second partial distribution will be $2,000,000 (in comparison, the inital partial distribution was $10,000,000). This will result in a check equal to a little over 2% of the amount you invested. For example: If you invested $10,000, your second partial distribution check will be approximately $200. If you invested $50,000, your second partial distribution check will be approximately $1,000. We are trying to get the checks in the mail as soon as possible, but with almost 3000 investors, it is a very time consuming process. Please be patient, and if possible, avoid phone calls to the Reciever's office to inquire about the amount of your check. If you have other questions or concerns, please leave a voice mail and your call will be returned as soon as possible. 3/20/2008 On March 17th, 2008, the Court issued an Order Granting Reciever's Second Motion for Approval of Partial Distribution (see Court Orders And Filings). The Receiver anticipates that checks should be in the mail by the end of next week to all investors with Court approved claims. After the remaining claims and outstanding issues are resolved, the Reciever will seek approval from the Court for a final distribution of sale proceeds. Additionally, the Court approved the 10th motion to allow claims. Checks to the 55 investors included in that motion have already been mailed. The 11th motion to allow claims, including the claims of 41 investors, is still pending Court approval. 02/13/2008 In November 2007 the Receiver filed a motion to ask the Court to allow an interim partial distribution to investors (see Court Orders and Filings). This motion is still pending Court approval. The Receiver is prepared to mail checks as soon as possible once an Order is issued by the Court. Also, the 10th (filed in November) and 11th (filed in January) motions to allow claims are still pending. 11/07/2007 The Receiver has filed a motion to ask the Court to allow an interim partial distribution to investors (see Court Orders and Filings). This would be the second distribution to all investors with Court approved claims. Once an Order is issued by the Court, it will be the Receiver’s intention to mail checks as soon as possible. After the remaining claims and outstanding issues are resolved, the Receiver will seek approval from the Court for a final distribution of sale proceeds. Also, the Court recently approved the 8th & 9th motions to allow claims. The 10th motion has now been filed, including the claims of about 55 investors. 11/06/2007 LITIGATION UPDATE - INTRODUCTION One of the Receiver’s duties is to pursue on behalf of LifeTime Capital and its investors claims against third parties. Consequently, over the course of the last two-and-a-half years, the Receiver has been engaged in litigation with a number of different people and entities. Pursuit of many of the claims has been difficult due in large part to the passage of time since LifeTime and its salespeople sold the viatical contracts investors purchased. Those sales were in the 1997 to early 2001 timeframe. The Receiver and his counsel have attempted to work efficiently given the amounts of potential recovery balanced against the potential costs of pursuing matters to trial. What follows are brief updates related to the different claims the Receiver has pursued. Though recoveries have not been substantial to this point, there has been some recovery and opportunities for further potential recoveries exist and are being pursued. LITIGATION AGAINST DAVID SVETE AND RELATED CANADIAN PROCEEDINGS As those people reading this likely know, David Svete was the instrumental figure in the LifeTime Capital business which lost so much money and led to the investor losses the Receiver has been and continues to work to mitigate. As a result of his conduct with LifeTime and its investors, Mr. Svete was indicted by a Federal Grand Jury in Florida, tried and ultimately convicted on a number of fraud-related criminal charges. Mr. Svete was sentenced to 16 2/3 years and is currently in Federal prison in Ohio. He has appealed his conviction. As part of Mr. Svete’s sentence, he has been ordered to make restitution in the amount of $100,000,000. Additionally, the Receiver instituted civil lawsuits to pursue any assets Mr. Svete might have. Given Mr. Svete’s incarceration and other matters, the civil action has moved and will continue to move slowly. One lawsuit related to recovering LifeTime Capital assets taken by Mr. Svete, however, has proceeded for some period of time with an expectation that there will be an important decision made in late 2008. Specifically, there is evidence that Mr. Svete attempted to take approximately $3,000,000 of LifeTime Capital money out of the country. This money, along with other funds unrelated to Mr. Svete or LifeTime Capital, was seized by Canadian authorities for reasons unrelated to LifeTime. The matter is now before a Canadian Court with a number of parties, including the Receiver, claiming portions of the approximately $20,000,000 in seized assets. The Receiver is hopeful that he will receive a substantial portion of the $3,000,000 that is believed to have belonged to LifeTime Capital, though it will take more time before that matter is resolved in the Canadian courts. Beyond the $3,000,000 in Canada, the extent of any other Svete assets is unknown but, as mentioned above, such assets, if identified, are subject to the Florida criminal Court’s restitution order. LITIGATION AGAINST ED PEARSON As many people reading this will know, another person extensively involved in the sale of LifeTime Capital viatical investments was Edmund (Ed) Pearson. In addition to being a salesperson, Mr. Pearson was President of the marketing entities that administered LifeTime Capital sales across the country. These entities were known at different times as A/C Financial, Alexander Chase or Wealth Strategies. In 2006, Mr. Pearson pled guilty to criminal conduct unrelated to LifeTime Capital, though a somewhat similar venture. Mr. Pearson also, in response to the lawsuit filed against him by the Receiver, filed bankruptcy. At the present, the indications are that Mr. Pearson is without substantial assets. However, the proceedings against him continue in Federal Bankruptcy Court in Dayton, Ohio. His criminal sentence was a four year sanction. LITIGATION AGAINST PEOPLE WHO SOLD LIFETIME VIATICAL CONTRACTS In addition to Mr. Pearson, the Receiver filed suit in the Federal District Court in Dayton, Ohio, against a number of other persons and entities who sold LifeTime viatical contracts. The claims against these people and entities were, in essence, that they sold unregistered securities and failed to review the appropriateness of the investments for those they were selling to. There were also fraud claims asserted against some of these defendants. As many people reading this will likely know, many people who sold LifeTime Capital investments also purchased them. In fact, many people sold only one or a few investments, all to their family members and/or themselves. Typically, upon proof that these people had not sold any extensive amounts of LifeTime Capital products to others, they were dismissed from the lawsuit. Another large number of the sales people and entities that were sued by the Receiver settled the claims against them, though mostly for relatively modest amounts. Still many others were either never found or were found and then simply defaulted because they never responded to the claims against them. Of the remaining others, many filed motions to dismiss or similar motions, and over the course of the last year or so, many of these motions to dismiss were granted by the Court. A number of other claims need yet to be addressed in the trial court and when that process is finished, the court’s dismissal of claims will likely be appealed. LITIGATION AGAINST DOCTORS WHO PROVIDED LIFE EXPECTANCY OPINIONS Typically, when investors purchased investments from LifeTime Capital, they would receive a copy of a life expectancy document, purportedly signed by a doctor and providing that doctor’s opinion concerning how long the insured person related to an investment would live. These life expectancies were a substantial factor in the investment decisions made by many investors but, as we now know, were substantially wrong. There were three Dayton, Ohio, area doctors who provided life expectancy opinions to LifeTime Capital through a related company, Medical Underwriting. Those doctors were sued by the Receiver with the claims against them being, in essence, that they were negligent or fraudulent in providing the opinions they did. The doctors responded to the claims against them by denying that they were negligent or fraudulent and also asserting that they were unaware that their opinions were being shared with LifeTime Capital investors or anyone outside of Medical Underwriting. They also argued that their opinions were manipulated and/or their signatures forged on a number of documents, a claim that appeared true based upon the evidence presented at the criminal trial of David Svete. In addition to the concerns about the doctor’s defenses, there were concerns about whether the claims against them were barred by statutes of limitations and questions concerning whether the doctors had the financial ability to pay a large amount of money if they were to lose at a trial. Additionally, it was clear that pursuing the litigation to trial against the doctors would cost a substantial amount of money. Given all of these considerations, the Receiver and his counsel decided it best to accept a modest settlement payment from the doctors ($20,000 each) in return for dismissing the claims against them. The Receiver and others received a number of calls from investors and others unhappy with the relatively small amount of the doctors’ settlements. Though the Receiver and his counsel appreciate those sentiments, they firmly concluded that the prospects for a more significant recovery were outweighed by the certainty of the substantial costs that would have been incurred pursuing the claims further. LITIGATION AGAINST U.S. BANK (pka FirsStar Bank and Star Bank) Typically, when investors purchased investments from LifeTime Capital, their money would go into certain accounts maintained by LifeTime Capital’s bank which is now known as US Bank. The money deposited would go into different accounts depending upon what the money was to be used for. For example, some money would go into what was known as a Policy Purchase Account which pooled investor money together for purposes of buying life insurance policies from third parties. Other money went into what was known as the Premium Payment Account which was meant to hold money needed to pay the premiums on the life insurance policies that investors had invested in. The Receiver believes that US Bank was negligent in its handling of LifeTime Capital investor money in that it allowed David Svete and others to take money from those accounts in violation of the purposes of the accounts. For example, in late 2001, Mr. Svete directed that approximately $1.9M be taken from the Premium Reserve Account and directed, ultimately, to him. The Receiver filed a lawsuit against US Bank in Federal Court in Dayton, Ohio. In response to the lawsuit, US Bank argued that the litigation was required to be arbitrated rather than handled in the Court. Ultimately, the Court agreed and has directed that the claims against US Bank be arbitrated. That arbitration is expected to occur in the Spring of 2008. 08/20/2007 The Receiver has filed his eighth motion to allow claims. This motion includes the claims of about eighty investors. The Receiver’s staff continues to make progress in winding down the claims process. There are now fewer than 100 investors that the Receiver is unable to locate. If you are an investor that has not submitted a claim form it is urgent that you do so immediately. Investors that have not submitted claims will soon be notified that their rights to distribution funds may be affected. It’s not too late to submit a claim. If you have not yet filed a claim, and have questions or concerns about how to complete the forms, or the forms seem confusing or complicated, please contact Patty at the Receiver’s office at 405-607-2722. She is happy to assist you in any way that she can. If you have filed a claim and have not received an initial partial distribution payment, contact our office immediately. 08/06/2007 A brief hearing was held before the Court on Tuesday, July 31, for the purpose of hearing any objections to the settlement of the lawsuit the Receiver filed against Howard F. Wunderlich, M.D., Isaac Corney, M.D., and Rani Whitfield, M.D., three doctors who had provided to Medical Underwriting a number of life expectancy estimates. The Receiver and these three Defendants had arrived at a tentative settlement which was approved by the Court preliminarily in April. Notices of the settlement and the hearing were sent to investors in June. At the July 31 hearing, the court heard the stipulations of the Receiver and the Defendants, and heard from one person who voiced an objection to the settlement. At the conclusion of the hearing, the Court took the settlement under advisement and will soon issue a decision on whether the settlement is approved. 06/26/2007 You recently were mailed a notification about a class action lawsuit because you are an investor in LifeTime Capital, Inc. Our office has received many calls from investors with questions about the notification and answers to those questions are provided below: If you have already filed a claim with the Receiver (many of you filed claims as early as 2005), AND you have received an initial partial distribution either in November 2006, or sometime in 2007, there is no need to file another claim. If you have filed a claim but did not receive a distribution, please contact our office immediately. There are still hundreds of investors that have NOT filed claims. If you never filed a claim, please contact our office for claim forms and submit the claim as soon as possible. It is likely that the settlement from this class action will be included in a future distribution. A separate distribution is not anticipated; however, these matters may be decided at the July 31, 2007 hearing. If you are a Jordan investor, you are included in the “Class” and have been notified as such. However, when you signed the Mutual & Reciprocal Release, and received your payment from the Receiver, you were considered “paid in full”. You will not be entitled to any of the funds recovered as a result of the class action. 06/07/2007 The Receiver recently received a favorable response to a mailing that went out to approximately 450 investors that had not submitted claims. There are about 200 investors that still have not responded by either filing a claim or requesting forms. The Receiver is currently trying to reach those investors. Additionally, his staff is working on processing a relatively small number of remaining pending claims. Periodically, the Receiver seeks approval from the Court to allow subsequent initial partial distributions to investors as additional claims continue to be confirmed. Currently the Receiver is waiting for the Court to approve a Motion that will allow distribution to about 130 investors. Checks will be issued as soon as possible after receiving such approval from the Court. If you still have not received a check, and have questions about the status of your claim, please contact us at (405) 607-2722 or you can send an email inquiry to lifetimereceiver@heritagegroup.us. Once all submitted claims have been approved, and remaining claims issues resolved, the Receiver will seek approval from the Court for a subsequent distribution of sale proceeds. The Receiver anticipates this distribution will occur sometime later in 2007, however the exact timing and the amount cannot be estimated or guaranteed at this time. 03/09/2007 On March 9, 2007 letters were mailed to approximately 450 investors that have not submitted Investment or Premium Claim forms. If you would like to download forms from this website, but prefer to overnight your Claim Forms, the physical address for our office is LifeTime Capital Receivership, 521 W. Wilshire Blvd, Suite 200, Oklahoma City, OK 73116. Or you can mail them to the PO Box listed at the top of the Claim Forms. 02/02/2007 The Receiver has mailed out an IRS form 1099-B to all LifeTime investors that received a payment from the Receiver in 2006. If you received a check for the initial partial distribution in November, or a Jordan policy payment, you will receive a 1099-B. Also, if you paid premiums billed by the Receiver, and were reimbursed at 110%, your 1099-B will include the 10% (but not the amount of the premiums paid). If your initial partial distribution check went to the custodian of your IRA (such as Sterling Trust Company) you will not receive a 1099-B. Neither the Receiver nor his staff can give you tax advice. We recommend that you seek the advice of a tax professional or attorney. 01/08/2007 Checks were mailed to LifeTime investors for the initial partial distribution on November 17, 2006. Only investors with Court Approved claims received checks, with funds escrowed for all other accounts. If your investment was made with tax-qualified funds, your distribution was sent to the custodian of your Individual Retirement Account (such as Sterling Trust Company, Equity Trust, etc.). Please contact the custodian with any questions regarding those funds. The Receiver and his staff are continuing to review the remaining Claims. As more claims are approved by the Court, we will make initial partial distributions to those investors in a timely manner. There are approximately 260 claims that the Receiver’s office is still processing. If you did not receive a check, and have already submitted a claim, you may have been contacted by the Receiver’s staff for additional information. Please return any requested information or documentation as soon as possible. If you have not been contacted, and you have questions about the status of your claim, please contact our office. You can call 405-607-2722, or you can send an email inquiry to lifetimereceiver@heritagegroup.us. Once all submitted claims have been approved, and remaining claims issues resolved, the Receiver will seek approval from the Court for a subsequent distribution of sale proceeds. The Receiver anticipates that this distribution will occur sometime in 2007, but the timing and the amount cannot by estimated or guaranteed at this time. 11/21/2006 On November 9, 2006, the Court issued an Order approving an initial partial distribution of $10,000,000. Checks were mailed to investors with court approved claims on November 17, 2006 (funds were escrowed for all other accounts). If your investment was made with tax-qualified funds, you will receive a letter that states the amount of funds sent to the custodian of your Individual Retirement Account (such as Sterling Trust Company, Equity Trust, etc.). Please contact the custodian with any questions regarding these funds. The Receiver and his staff are continuing to review the remaining Claims. As more claims are approved by the Court, we will make initial partial distributions to those investors in a timely manner. Please note that funds were released ONLY to those investors whose Investment and Premium Claims have been APPROVED by the Court. There are approximately 400 claims that the Receiver’s office is still processing. If you did not receive a check, and have already submitted a claim, you probably have been contacted by the Receiver’s staff for additional information. Please return any requested information or documentation as soon as possible. If you have not been contacted, and you have questions about the status of your claim, please contact our office. You can call 405-607-2722, or you can send an email inquiry to lifetimereceiver@heritagegroup.us. Once all submitted claims have been approved, and remaining claims issues resolved, the Receiver will seek approval from the Court for a subsequent distribution of sale proceeds. The Receiver anticipates that this distribution will occur sometime in 2007, but the timing and the amount cannot by estimated or guaranteed at this time. 11/2/2006 *Confirmation of Investors’ Claims Packets. We are still in the process of verifying the investors’ claims packets with the information contained in the LifeTime Capital, Inc.’s database and files. Many of you have called regarding the slow process involved. This is due to several factors, mainly the vast amount of documentation that must be reviewed and verified. Additionally, the Court requires the Claim forms to be accurately completed by the correct investor, beneficiary or estate representative. Unfortunately, many claims received have not been initially filled out correctly, resulting in the Receiver having to spend additional time assisting investors with their claims. As of this date, 2031 claims have been confirmed, and either approved by the Court or expected to be approved in the near future. It should also be noted that there are still approximately 430 investors who have not returned their claims packets. If you are an investor, or a family member of a deceased investor, please make every effort to submit your claim forms to the Receiver’s office so that we can submit your claims and supporting documentation to the Court as soon as possible and you can receive any distributions that may be made. The Receiver is currently in the process of requesting that the Court allow the Receiver to send an initial partial distribution by the end of the 2006 calendar year to all investors whose claims have been confirmed and approved by the Court. At this point, since the Receiver’s office still has over 400 claims to process, the exact amount that will be distributed to each investor is unknown. The Receiver will continue to process investor claims and, as claims are confirmed, will submit those claims to the court for approval so that partial distributions can be made periodically. The Receiver wants to assure all investors that we are working diligently to process all claims received. If you have questions regarding the distribution, PLEASE DO NOT CALL. This will greatly assist us in being able to process and confirm your claims as quickly as possible. Jordan Policy Investors Only. The Receiver has been in the process of disbursing funds to the Jordan Policy investors over the last few months. Although initially there was a database issue causing some problems, we have resolved those problems. Those of you who have returned your Mutual and Reciprocal Releases should have already had your checks processed or they will be processed as soon as possible. 07/26/2006 Premium Reimbursement Checks Mailed* The Court held a status hearing on Wednesday July 19th. Several topics were discussed including the timing of distributions. The Receiver would like to personally thank everyone who was able to pay premiums and he is fully aware of the hardship it may have created. For those of you who paid premiums, reimbursement checks will be mailed during the week of July 24th. If you do not receive your reimbursement by August 15, 2006, please contact our office. If you are part of the Jordan settlement (you would have been previously notified if you were) a motion is pending regarding when distributions will be made to the investors. The Receiver is working diligently to confirm all investor claims; it is his goal to make distributions before the end of the year. 06/20/2006 Premium Billing Discontinued The Receiver has discontinued the billing of premiums. If we received your check after June 19, 2006 it will be returned to you in a timely matter. 6/20/2006 Investors who have not completed claim forms. It is imperative that you return completed claim forms to the Receiver. All investors must submit a claim form prior to distribution of funds by the Receiver. 6/19/2006 Sale of Portfolio is finalized. The sale of LifeTime Capital’s insurance portfolio has been finalized, net sale proceeds of $21,012,570.43, have been received from SCPC Group, LLC (a/k/a Silverpoint). April 21, 2006 The judge has determined that the highest and best bid was that of Silverpoint Capital. It is an all cash bid of $19,375,000. (order) Please continue to check this website for updates. Updates will be posted as information becomes available. April 11, 2006 The following is the memo from the receiver regarding bids on the LTC Portfolio. Included in this memo is a summary of the bids. Receiver's Memo Regarding Bids on LTC Portfolio ORDER Amending previous order [409] order of the court declining to accpet any bids presented and reopening bidding under certain procedures. Schedule of Portfolio Sale Doc 430 April 13: Jordan settlement hearing at 9:30 Highest bid approval hearing immediately following Jordan hearing May 9th: The fairness hearing is continued and will occur on May 9th, 2006 at 9:30am in Courtroom #5, United States Federal Building, 200 West Second Street, Dayton, Ohio 45402. Please be sure to check this site daily for the latest updates. March 14, 2006 Receiver Solicists Bids for the LTC Portfolio Portfolio Sale FAQ (PDF) Potential Purchasers: For more information, please see: Purchaser Cover Letter Bidding Requirements Order regarding Bidding Process, Supplement to the Order, and the Lorenzo Tonti bid Information for Investors: Investor Cover Letter Letter to Investors, April 4, 2006 Order granting Motion to Shorten Time to File Objections to Receiver's Motion to Authorize the Sale of the LifeTime Portfolio Free and Clear of All Interests and Application to Set Motion for Expedited Hearing Motion to Shorten Time to File Objections to Receiver's Motion to Authorize the Sale of the LifeTime Portfolio Free and Clear of All Interests and Application to Set Motion for Expedited Hearing Order granting Motion to Approve Bidding and Portfolio Sale Procedures Motion to Approve Bidding and Portfolio Sale Procedures Motion to Authorize the Sale of the LifeTime Portfolio Free and Clear of All Interests Motion Receiver's motion to approve compromise and settlement pertaining to certain policy proceeds Order Granting Receiver's second motion to shorten time to file objections to receiver's motion to authorize the sale of the lifetime portfolio free and clear of all interests and application to approve manner of notice of expedited hearing. Order Granting motion to shorten time to file objections to receiver's motion to approve compromise and settlement and to approve manner of notice of expedited hearing. October 5, 2005 The following FAQ is to address some of Mr. Busto's allegations and criticisms of the Receiver and to help all interested investors with an undertanding of Mr. Bustos and the IP Fund. Bustos FAQ PDF Bustos Deposition PDF September 13, 2005 Svete's Renewed Emergency Motion for Release Pending Appeal is Denied. Please click here to see the attachment. August 18, 2005 The Honorable M. Casey Rodgers has recently entered an Amended Criminal Judgment against David W. Svete, Ron Girardot, and Charme Austin which includes restitution amounts in excess of $100,000,000.00. Mr. Svete reported to an Ohio prison on Monday, August 15, 2005, to begin serving his sentence of 200 months. Copies of the Amended Judgments and Sentences (including the restitution portion of the Judgments) are attached hereto. For further information, please contact the U.S. Department of Justice Victim Notification System at www.notify.usdoj.gov or by calling the Victim Notification System Call Center at 866-DOJ-4YOU (866-365-4968). David Svete Amended Judgements and Sentences Ron Girardot Amended Judgements and Sentences Charme Austin Amended Judgements and Sentences August 15, 2005 Today David Svete surrendered himself to authorities at a prison in Ohio for his prison term. August 11, 2005 The receiver will be moving his offices to a new location on Friday, August 12th and Monday, August 15th. The phone and computer systems will be down peridically, so you may have difficulty reaching us. We apologize for any inconvenience this may cause. Please feel free to contact the office after our move. August 2, 2005 Mr. Svete's motion to set bond pending appeal was denied. He has again been instructed to surrender on August 15, 2005. July 27, 2005 It has come to our attention that the letter that accompanied the premium invoices, and was posted on the website, specifies your premium payment should be received in my office by July 31, 2005. Please disregard this date. Unfortunately, the Premium billing did not go out as scheduled due to circumstances beyond our control. The due date on the invoices is August 15, 2005. If your premium payment is not received by August 15, 2005, as a result of the late mailing of this invoice, you will not be penalized; however payments should be made as promptly as possible. If you have not received your premium invoice by August 1st, please feel free to contact the Receiver’s office at 405-607-2722. Future invoices will be mailed earlier in the month. July 26, 2005 Message from the Receiver regarding Premium Invoicing July 15, 2005 Message from Andrew Storar, Examiner July 6, 2005 Svete Criminal Minutes (.pdf file) July 1, 2005 Sentencing Media Release (.pdf file) June 25, 2005 "Two men sentenced to prison for defrauding millions from investors" -- The Gainesville Sun June 23, 2005 RE: United States v. Svete, et all USDC Case Number: 3:04cr10/MCR David Svete and Ron Girardot were sentenced today, June 23, 2005. Svete was sentenced to 19½ years, consisting of 16½ in prison and 3 years supervised probation. His surrender date is August 15. In addition, an order of forfeiture was entered in the amount of 21 million dollars. Girardot was sentenced to 8 1/4 years, 5 1/4 in prison and 3 years supervised probation. Additionally, an order of restitution will be entered at a minimum of $100 million and maximum of $130 million as to each within the next 90 days. More details will be provided in a few days. June 17, 2005 Dear LifeTime Investor, Several of you have contacted my office recently with comments regarding the website. It has been and continues to be my goal that this website be updated frequently. New systems have been initiated and you should begin to see more frequent updates to the website. I hope this is helpful. RE: United States v. Svete, et all USDC Case Number: 3:04cr10/MCR The Sentencing Hearing for Mr. Svete and Mr. Girardot is scheduled to begin at 9 am on June 23, 2005. Of the Victim Impact Statements sent to each investor, my office received approximately 330 complete Statements. I have read and reread every single one of your statements. With the comments and information from these Statements, I will testify at the Sentencing hearing as to the pain, hardship and anxiety created by the defendant’s actions. In addition, I will share the many opinions you offered regarding the punishment these gentleman should receive. The examiner also received approximately 40 Statements. As soon as we learn of the sentence, we will post the information on the website and update the pre-recorded telephone message. Financing Of the many responsibilities of this Receivership the most crucial is continuing to pay the premiums on the policies. To date, funds to pay premiums and receivership expenses have come from loans and policy maturities. We continue to work diligently in our efforts to obtain long-term financing for the premiums and expenses of the Receivership. As soon as we have more information regarding this we will update you. Claims Process If you have not returned a Claims packet to this office, please do so as soon as possible. It is very important that you participate in this process. If you have questions regarding the completion of these forms, or need another packet, please call the Receiver’s office at 405-607-2722. Updated FAQ A new set of “frequently asked questions” is being drafted to post on the website. It should be posted in the next couple of weeks. The purpose of this website is to enable me to communicate with you as efficiently and cost effectively as possible. If you have a question for which you do not find an answer on this website, please feel free to send us your questions and/or suggestions via email to lifetimereceiver@coxinet.net. Thank you for continuing to check this website for information. With Best Regards, H. Thomas Moran II, Receiver June 4, 2005. RE: United States v. Svete, et all USDC Case Number: 3:04cr109/MCR The Court recently continued the sentencing hearing for Mr. Svete and Mr. Girardot from May 26 to June 23, 2005. Earlier in the case, after the jury rendered its verdict, Mr. Svete filed a Motion for New Trial. This Motion was denied by the Court. Mr. Svete has now filed a second Motion for New Trial. The Court has set arguments on the Motion for New Trial for 8:30 a.m. on June 23. The sentencing hearing is scheduled to begin at 9:00 a.m. on June 23. Motions for new trial in criminal cases are seldom granted. The Government has filed a Response Opposing Mr. Svete's latest Motion for New Trial 4/13/2005 Posted Order Setting Conditions of Release for David Svete and minutes from the April 8th, 2005 court hearing, see Court Orders & Filings. 4/11/2005 Posted Victim Impact Statement, see Court Orders & Filings or Forms. 3/11/2005 Posted Associated Press news article about the criminal trial convictions. Click here to view article. 3/11/2005 Posted Dayton Daily News article. Click here to view article. 3/10/2005 Posted Dayton Daily News press release concerning David Svete conviction. Click here to view release. 3/10/2005 Posted new message from Examiner, see Examiner Messages. 2/17/2005 The court approved Claims Process has been initiated. As a result, over the next couple of weeks each investor should receive a claims package from the Receiver’s office. Each package contains the following: Cover letter Investment Claim Form (yellow form) – to confirm your total investment Premium Claim Form (green form) – to confirm the total amount you paid to LifeTime for premium expenses Receivership Communications Survey Form (purple form)– to better enable the Receiver to determine an inexpensive yet efficient manner in which to communicate with each investor Pre-addressed envelope – to be used to return forms and documents to the Receiver Detailed instructions are included in each package. 1/26/2005 Message from Receiver: January 2005 The following information pertains to investors whose investment is held in a retirement account at Sterling Trust. Historically, the Individual Retirement Accounts of LifeTime investors showed a value equal to the amount of money invested. In January 2005, the Court agreed the account values were undeterminable. As a result all accounts being held at Sterling Trust have been valued at $0. This is beneficial to the investors for two reasons, 1) for many investors, it eliminates Required Mandatory Distributions from this investment; 2) it reduces the annual fee due to Sterling Trust. All accounts now show a current balance) of $0 (with respect to the LTC investment only); however the account does remain OPEN. All Sterling Trust Annual fees for custodial accounts with an LTC investment have been reduced to $55. If an investor received a statement in 2005 for more $55, they need only to send in $55. Please feel free to address the envelope to the attention of Jeff Thompson to ensure proper application of the fee. If an investor has paid more than $55 for this year, Sterling will refund the difference (2005 ONLY). If an investor has not paid account fees that are due, we recommend that they do so in order to preserve their options. We encourage all investors with questions regarding their Individual Retirement Account at Sterling Trust to contact a qualified tax advisor. H. Thomas Moran II, Receiver 1/26/2005 Posted new message from Examiner, see Examiner Messages. 1/25/2005 Posted new message from Examiner, see Examiner Messages. 1/21/2005 Posted new message from Examiner, see Examiner Messages. 11/30/2004 Posted Order Granting Motion to Pool Viaticals, see Court Orders & Filings. 11/18/2004 Posted new message from Examiner, see Examiner Messages. 11/17/2004 Posted report for premiums paid from 2/20/04 through 8/31/04, see Reports. 11/15/2004 Posted new message from Examiner, see Examiner Messages. 11/05/2004 Posted new message from Examiner. see Examiner Messages. 10/26/2004 Posted new message from Examiner, see Examiner Messages. 10/20/2004 Trial Rescheduled: Many investors have asked about the criminal trial that was scheduled to begin September 13, 2004, but was postponed due to hurricane damage to the Pensacola Florida area. The trial, in the case of the United States of America vs. David W. Svete, et al, Case No 3:04-CR-0010-MCR, has been rescheduled to begin on January 5, 2005, in the courtroom of the Honorable M. Casey Rodgers at 8:30 am. The U.S. Courthouse is located at One Palafox Street, Pensacola, FL 32501. Judge Rodgers has entered an Order directing that the criminal trial will be completed by February 25, 2005 due to the Judge’s trial schedule. 10/14/2004 Posted Order Granting Release of Medical Records, see Court Orders & Filings. 10/11/2004 Posted Motion to Establish Claims Procedures & Approve Claim Forms, see Court Orders & Filings. 10/04/2004 Posted Order to Show Cause, see Court Orders & Filings. 09/24/2004 Posted new message from Examiner, see Examiner Messages. 09/23/2004 Posted Receiver Motion to Clarify Status of Policy Proceeds 9-21-04, see Court Orders & Filings. 09/23/2004 Posted Notice of Motion and Hearing re Maturity Policy Proceeds 9-21-04, see Court Orders & Filings. 09/22/2004 Posted new message from Examiner, see Examiner Messages. 09/21/2004 Posted the new location for the hearing on the motion to pool assets, see Examiner Messages. 09/16/2004 Posted motion to show why Ernest Bustos should not be held in contempt, see Court Orders & Filings 09/10/2004 Posted new message and documents from Examiner, see Examiner Messages 09/05/2004 Posted new message from Examiner, see Examiner Messages. 08/10/2004 Posted new message from Examiner, see Examiner Messages. 08/06/2004 Posted New FAQ's. Appointment of Examiner, See Examiner Messages (Introduction) Andrew M. Storar has been appointed as an advocate and advisor to the Court on behalf of the investors. He will review and participate in all matters affecting the investors and advise on such. Please see the Order Appointing Examiner under Court Orders & Filings. 02/2004 Posted Message from Receiver 02/2004 Posted Press Release: Receiver Appointed for LifeTime Capital

	HOME \| NEWS \| COURT ORDER AND FILINGS \| EXAMINER MESSAGES FORMS \| REPORTS \| FAQ'S \| CONTACT INFORMATION © Copyright 2004, LifeTime Capital, Inc. All rights reserved.