1.17.08 Preliminary Hearing Rescheduled

By agreement of all parties, the Court moved the hearing scheduled for January 17 to February 15, 2008. The terms of the Order of January 3, 2008, remain in effect until further order of the Court. The Receiver will update this site to keep investors apprised of significant developments in the case.

1.25.08 Court Issues Order of Permanent Injunction

The Court has issued an Order of Permanent Injunction against defendants Coadum, Mansell, Jeffery, Repke, Coadum I, Coadum II, Coadum III, and MAC, as well as other relief.

Read the Order of Permanent Injunction against James Jeffery, Thomas Repke, and others. (PDF 459 KB)

1.29.08 Defendants Consent to Permanent Injunctions

The defendants have dropped their defense of the SEC’s action and consented to entry of a permanent injunction against future violations of the anti-fraud provisions of the federal securities laws. You can view the Court’s order to that effect by clicking on the links below. The defendants’ settlement with the SEC leaves open the issues of disgorgement and civil penalties which will be determined at a later date. Because of the settlement, there will be no hearing on February 15, 2008.

The settlement makes the Receiver’s job a bit easier, as the defendants are no longer contesting the allegations in the SEC’s complaint. No one holding Receivership assets will be able to delay return of those assets on the grounds that the defendants might prevail. The Receiver continues to identify assets purchased with investor funds.

View the Signed Stipulation and Consent of Defendants to the Order of Permanent Injunction. (PDF 238 KB)

2.03.08 Exodus Platinum Ltd and Soleil Immobilier Ltd Pledge Cooperation

The Malta Independent on Sunday featured a story on the SEC vs. Coadum Advisors case today, reporting that "representatives of two Malta-based companies, Exodus Platinum Ltd and Soleil Immobilier Ltd, have vowed that the $30 million held in financial instruments belonging to the companies, which are the subject of an ongoing case of fraud in the US courts, is to be returned to investors as soon as possible."

The story goes on to add that "the American law firm tasked with recovering the funds [The Huddleston Law Firm], however, says that so far it has only been promised cooperation and that tangible action has not yet been forthcoming." Read the full story below.

Exodus vows "every cent" will be returned (PDF 1.41 MB)

(To view PDF files, download the free Adobe Acrobat Reader.)

2.08.08 Accounting Analysis Continues

There is no new information about the status of the funds overseas. Last week we posted an article that appeared in The Malta Independent on Sunday, in which representatives of Exodus and Soleil pledge their cooperation in returning that money to the Receivership. Read the full story below.

The Receiver has had several questions about K-1’s. The most common questions have been: (1) whether last year’s K-1's were correct or incorrect and; (2) whether investors will receive K-1’s for 2007. Your tax preparers are no doubt pressing you for that information. Unfortunately, we will not be able to give you those answers until we have completed our accounting, which involves analyzing thousands of transactions from more than one dozen bank accounts. As frustrating as this is, we must make sure that the answers we give you are correct, as you will be making representations to the IRS based on our answer. Please rest assured that we are working as quickly and efficiently as possible to complete all the tasks assigned by the Court, and that our goal is to return as much as possible to the investors.

We will update this Web site no less frequently than once a week, even it is just to say that we have no new information.

2.20.08 Receiver Working with SEC Office of International Affairs to Retrieve Funds; First Interim Report to Judge Evans on Status of Receivership Pending

The status of our big target — the $16+ million transferred to Malta and Switzerland — is still uncertain. The Receiver is working closely with the SEC’s Office of International Affairs to determine the amount still in overseas bank accounts and to get that money returned. While the lack of information is frustrating, rest assured that we are doing everything we can within the law to secure return of those funds.

On the domestic front, the balance of the Receivership account is just shy of $2.2 million at present, with more bank deposits on the way, and we are working to secure return of funds ‘invested’ in a number of places. The Receiver will file his First Interim Report with Judge Evans no later than Friday, February 29, 2008, and will post that report to the Web site. It will contain a detailed description of where investor money went based on the investigation we have been able to do so far.

Regarding a claims process, the Receiver’s staff is creating a claim form and claim procedures to submit for Judge Evans’s approval. We expect to file the motion to approve that form and those procedures shortly after filing the First Interim Report. Once the Judge has given her approval, we will send claim forms to all investors and creditors we have been able to identify to date. If you know of investors who have not yet sent us their contact information via the Web site, please have them do so. We recovered files for many investors in Coadum’s electronic records, many of which purport to give a list of investors. We do not know whether those lists are complete. As part of our investigation we also recover bank records, including records of deposit, which should help us round out the list of potential claimants.

Many have asked about the cost of the Receivership. The Receiver and his staff, as well as any professionals the Receiver retains to assist, are paid from Receivership funds. The Receiver and everyone he hires drastically reduce their normal hourly rates to be able to return as much as possible to investors. In addition, we pay close attention to ensuring that we have no duplication of effort and that we make smart decisions about where to spend our time. For example, if a Receivership asset is worth a certain amount, but we would have to spend more than that amount to secure return of the asset, we will not pursue it.

Receiverships always last longer than anyone likes. This one is large and will take many months to complete. Rest assured, though, that it will not take one day longer than is absolutely necessary. The Receiver is in the investor protection business and works daily to protect investors against reckless or intentional misconduct, and to secure maximum recovery for those who fall victim to such misconduct.

2.27.08 Receiver's First Interim Report to Judge Evans Available Friday 02/29

We expect to have the Receiver’s First Interim Report finished and filed on Friday. That report will detail what our investigation has revealed thus far, including the details of transfers overseas as well as how the defendants used investor funds that remained in the United States. Please stay tuned and check the Web site Friday evening.

2.29.08 Read the Receiver's First Interim Report

Pat Huddleston II, the court-appointed Receiver in the above referenced Civil Action File No. 1:08-CV-0011-ODE, has filed his First Interim Report with Judge Evans to describe his investigation thus far and to detail his progress toward completing the tasks assigned by the Court. Read the report and view the exhibits below.

Receiver's First Interim Report (PDF 875 KB)

Exhibits

Exhibit 1A - Receiver's First Interim Report (PDF 4.6 MB)
Exhibit 1B - Receiver's First Interim Report (PDF 4.0 MB)
Exhibit 1C - Receiver's First Interim Report (PDF 4.8 MB)
Exhibit 1D - Receiver's First Interim Report (PDF 4.4 MB)
Exhibit 1E - Receiver's First Interim Report (PDF 4.4 MB)
Exhibit 1F - Receiver's First Interim Report (PDF 3.7 MB)
Exhibit 1G - Receiver's First Interim Report (PDF 1.6 MB)

Exhibit 2 - Receiver's First Interim Report (PDF 6.2 MB)
Exhibit 2A - Receiver's First Interim Report (PDF 3.7 MB)
Exhibit 2B - Receiver's First Interim Report (PDF 2.5 MB)

Exhibit 3- Receiver's First Interim Report (PDF 7.4 MB)
Exhibit 3A - Receiver's First Interim Report (PDF 3.6 MB)
Exhibit 3B - Receiver's First Interim Report (PDF 3.8 MB)

Exhibit 4 - Receiver's First Interim Report (PDF 410 KB)

Exhibit 5 - Receiver's First Interim Report (PDF 1.2 MB)

3.07.08 Counsel for EPG and Soleil Responds to Receiver's First Interim Report

In response to the Receiver's First Interim Report, Pat Huddleston has received a letter from counsel representing EPG and Soleil expressing their intent to repay the Coadum money invested with them. The Receiver has asked again that those companies consent to Credit Suisse’s release of bank account records. Thus far, though, they have not agreed to give that consent. EPG and Soleil represent that they have engaged an accountant to do a thorough accounting of the Coadum money invested in those companies. The Receiver hopes to have more information to pass along on that front next week.

There is no new information about the freeze in Switzerland. We are working toward a telephone conference with the Swiss officials.

On the domestic front, we have recovered $58,000 in investor funds improperly used as escrow money on the purchase of a tract of land in Idaho. There is another $90,000 still in escrow in connection with another Idaho parcel. While we hope that litigation will not be necessary to recover those funds, we are prepared to launch it on short notice should it appear that the seller of that property intends to keep the money taken from Coadum investors.

We also recovered $8,800 from the surrender of an insurance policy covering the Coadum office space.

The Receiver’s team continues to uncover leads to other assets and to follow up with a view to securing return of the investor money used to purchase those assets. We hope to be able to report next week that our efforts have brought more money back into the Receivership.

3.14.08 Receiver Working Toward a Conference Call with Swiss Officials

Nothing new on the Swiss front this week. We continue to work toward a conference call with Swiss officials to unlock the $3 million that Exodus Platinum Genesis has agreed to return immediately, while pursuing the remaining $16 million. We continue to pursue domestic investments and to explore how best to get you accurate information about the losses from your investments. If anyone needs to refer their tax accountant or attorney to the Receiver, please feel free to do so. We hope to be able to report next week that we have more definitive information about the Swiss money.

3.25.08 Next Interim Report In Development

We continue to pursue Coadum money in Credit Suisse accounts in Geneva. On the domestic front, we continue to make progress toward pulling more money into the Receivership. The Receiver expects to file his next interim report during the week of April 21st. It will include a more detailed discussion of progress on all fronts. We will keep you posted on all significant developments between now and then. Thank your for your cooperation and patience in this lengthy progress. We know that all of you are facing hardship because of this situation. We are working to alleviate that hardship as soon as possible.

4.04.08 Receiver Travels to Houston for Court-Ordered Mediation Related to Coadum

We continue to make progress tracking money overseas. We expect to be able to give you more details in the Receiver’s next Interim Report, which we will file before the end of the month.

We continue to explore all avenues of potential recovery, including actions against third parties who may have liability coverage. We will give more details about those efforts in the next Interim Report.

The Receiver was in Houston earlier this week for court-ordered mediation in a lawsuit that Coadum commenced before Judge Evans appointed The Huddleston Firm. The lawsuit is against several parties who lured Coadum Captial Fund 1 into a $1 million investment in what we believe to be a prime bank scam. You can learn more about prime bank scams at the SEC’s Web site. We did not settle the case in mediation and will continue to pursue those responsible in court. We will include a more detailed description of that lawsuit in the next Interim Report.

As always, if you have questions feel free to use the contact information above to call or email the Receiver.

4.19.08 Second Interim Report To Be Filed April 25

Work continues on the Receiver’s Second Interim Report. We expect to file it on Friday, April 25. We want to make the Report as complete as possible so that the Court and the investors have as much up-to-the-minute information as possible, since the next Report will not be filed until late June. Work also continues on recovering the assets identified so far and identifying additional assets.

There is still very little news coming from Switzerland. The Receiver’s ability to compel production of information does not extend to Europe. We must therefore work according to Swiss rules and be patient with the pace of the investigation being done by Swiss officials. Rest assured that the Swiss officials in charge of the investigation are fully aware of the Receiver and his claims on behalf of investors.

Early next week we will file a Motion to Approve Claim Form and Set a Bar Date. The Bar Date is the deadline for submitting a claim. Claims received after the Bar Date may be denied as untimely. Both the Claim Form and the Bar Date are important to our ability to formulate a Plan of Distribution.

Many have asked about our investigation into possible claims against third parties, including professionals who may have provided services to Coadum or Mansell. Rest assured that we are investigating those claims aggressively and fully intend to file lawsuits against those parties if necessary if the investigations reveal valid claims. Getting the claims process finished will assist in our investigation of those claims.

The Receiver is mindful of the pain that this situation has brought to every investor. He and his team are working quickly and efficiently to secure the best outcome possible as soon as possible. But the case is large and far flung and will require many months of additional work. We will bring it to final resolution not one day later than necessary.

4.25.08 Read the Receiver's Second Interim Report Filed Today

The Receiver has filed his Second Interim Report and posted it online. You can download the report via the link below. He has also filed a Motion to Approve Claim and Establish a Bar Date for Claims and posted it online for investors to read. The Claims Process is important not only to the Receiver’s investigation and the accounting he must produce to the Court, but also to the eventual crafting of a Plan of Distribution. By starting the Claims Process now, the Receiver is reducing the time it will take to make a distribution later.

One investor has asked for detailed information on the Receiver’s fees. That information is available through the PACER system which provides access to all filings in federal court. Access PACER here.

Receiver's Second Interim Report (PDF 55 KB)

Coadum Motion for Bar Date and Approve Claim Form (PDF 34 KB)

5.16.08 Receiver in Discussions with Swiss Authorities

The Receiver continues to focus on recovery of funds frozen in Credit Suisse accounts in Switzerland and on recovery of investments made in domestic companies. We do not yet know the balances of those accounts. The Receiver has asked Swiss authorities, through official channels, to produce documents and other information that will help in the pursuit of that money. We do not yet have a ruling from the Court on the Receiver's Motion to Approve Claim Form, but we have received no opposition to that motion and expect it to be approved shortly. We will post Judge Evans' Order as soon as we receive it.

6.06.08 Investor Claim Form Approved by Federal Court

Judge Evans has granted our Motion to Approve Claim Form and Establish a Bar Date for Claims. The Receiver’s Team will be sending out claim forms next week.

6.11.08 Claim Form Mailed to Investors

Today, the Receiver mailed the claim form approved by Judge Evans to all known investors. The deadline for submitting claims is July 11, 2008. Investors who do not receive the claim form package by Monday, June 16, 2008 should call the Receiver’s office.

6.19.08 Coadum and Mansell Investors

We have been working steadily since our last update. All claim forms have been mailed out and investors have begun to return their completed forms. The Receiver's team will verify each claim toward the goal of crafting a proposed plan of distribution. Remember that the Bar Date is July 11, 2008.

We continue to make progress daily on our efforts to repatriate money from Switzerland. Unfortunately, we do not yet have an exact balance for what Credit Suisse is holding. There is some evidence that a sizable portion of the Credit Suisse balances was transferred away before the asset freeze. We are working to confirm the destination of any such transfer.

Early in the case, the Soleil and Exodus entities agreed to immediately return $3 million. We are pressing for return of that money right away while continuing to pursue return of whatever balance above $3 million that Credit Suisse is holding. We hope to have good news for you soon regarding the $3 million. The effort to repatriate the remainder will likely take more time. If we are successful in repatriating the $3 million soon, we expect to ask the Court to allow an interim distribution and will submit a plan of distribution that will control not only that distribution, but also any subsequent distributions.

In the meantime, please be careful to follow the instructions included with your claim form. Each of the instructions is designed to shorten the time it takes us to verify claims, which in turn will shorten the time it takes us to formulate a plan of distribution.

The Receiver expects to file his next interim report after all claims have been verified. That report will include details about the number and amount of claims filed, as well as our progress toward recovering assets with which to fund a distribution.

7.24.08 New Motions Filed, New Order Issued

Our effort to recover money transferred overseas continues. Posted below is the recent motion we filed seeking an order from Judge Evans that would help us recover what remains of those funds. We are pleased to report that Judge Evans signed the proposed order, and it is posted below as well. We sent the new order to the Swiss magistrate handling the case, and we are working with the U.S. State Department Office in Switzerland to pursue that money from every possible avenue.

In addition, we have filed a motion against Wells Fargo, which is refusing to turn over $750,000 that Coadum pledged as security for a commercial lease on a building occupied by Associated Bottling. That motion is also posted below for your review.

We have also filed a motion asking Judge Evans to order Mr. Jeffery to cooperate with the Receiver as required by the initial Order. Thus far he has refused to turn over several categories of documents and has refused to order his Canadian Banks to respond to our document requests.

We are busy verifying the claim forms sent in by the deadline, and we expect to file our next Interim Report no later than the third week in August.

Motion to Pursue Assets Overseas (PDF 30 KB)

Order Approving Motion to Pursue Assets Overseas (PDF 118 KB)

2008-7-10_Motion for Order to Transfer Funds (PDF 45 KB)

8.15.08 Receiver's Third Interim Report Posted Online

The Receiver has filed his Third Interim Report and posted it online. You can download the report via the link below.

Receiver's Third Interim Report (PDF 55 KB)

9.03.08 Receiver Takes Action Against Wells Fargo, Kip and Jeffery

Last week the Receiver was deposed in connection with Huddleston Law Firm's efforts to force Wells Fargo to turn over $750,000 that Coadum pledged after Judge Evans' order freezing Coadum’s assets. The money was pledged as security for a commercial lease for one of Coadum’s ill-advised domestic investments. Earlier this week, the Receiver's attorney deposed the Wells Fargo employees who received notice of the freeze on the day Judge Evans issued it. It should be a few more weeks before we make our arguments to Judge Evans about this sizeable asset.

Regarding the money in Switzerland, we have been working non-stop to get the Swiss magistrate complete background information on Kip. What we have found thus far paints a very different portrait than the one Kip sold to Coadum.

Kip and his cohorts have been pressuring the Swiss magistrate to release the $4.5 million in frozen funds at Credit Suisse. The Receiver is countering those efforts. Please be patient as we discern the best time to release those details. Those who want to take that $4.5 million from you read the updates posted on this site, and the Receiver does not want to give them advance warning of his actions. The smarter course is to wait to update you until the disclosure of the details cannot give the opponents of justice an advantage.

The same goes for third party actions. Discussing the Receiver's targeted parties and entities can only help our opponents. Once we have actions filed, as in our action against Wells Fargo, the Receiver will update you.

Huddleston Law Firm fully appreciates how frustrating the lack of information is. It may cause you to worry that the lack of information means a lack of effort and a lack of progress. Neither is true. For the reasons set forth above, it is in the interest of all defrauded investors that the Receiver keep much of what he is doing under wraps for the time being.

We have submitted a proposed order to Judge Evans requiring James Jeffery to cooperate with our search for Canadian assets. As soon as Judge Evans signs the order, we will post it on this site.

Some investors have asked why we do not intend to file another Interim Report until November. While the Receiver has a duty to keep Judge Evans apprised of our progress, preparing an Interim Report is an expensive undertaking and good stewardship of reclaimed investor funds dictates that we not file more reports than necessary.

We will do our best to give you updates as circumstances allow.

9.16.08 Judge Issues Order for James Jeffery to Cooperate with the Receiver and Turn Over Documents

On September 10, Judge Evans granted the Receiver’s motion for an order requiring James Jeffery to cooperate with the Receiver and to instruct, in writing (with copies to the Receiver), the various Canadian banks and any other Canadian entities identified by the Receiver, to release any and all information and documents requested by the Receiver. The order was necessary because Jeffery has repeatedly ignored the Receiver's requests to produce relevant documents and Jeffery has also instructed various Canadian banks to refuse to cooperate with the Receiver's request for documentation. We have posted that Order for your review below.

Order Compelling Defendant Jeffery's Cooperation with the Receiver (PDF 73 KB)

9.23.08 Receiver and SEC Will Take Depositions of Jeffery and Repke This Week

Our motion to enforce Mr. Jeffery’s obligation to cooperate has born fruit. On Wednesday, September 24, 2008, the Receiver and an SEC trial attorney will travel to take the depositions of Mr. Jeffery and Mr. Repke. The Receiver will report back next week on what is learned. We expect their testimony will help us pursue assets overseas and third-party actions here in the United States.

Some have asked for more detailed descriptions of the costs of administering the Receivership. I do not want to give summary information, as no summary could encapsulate all the work that goes into investigating and seeking the return of assets spread over two continents. As reported before, investors have access to the Receiver's detailed billing reports through the PACER web site. Every 60-90 days, we submit our detailed invoices to the SEC for their review. This is a substantive review, not a rubber stamp. Once the SEC has reviewed the invoice and determined that it has no objection, the invoices go to Judge Evans along with a motion to allow us to pay ourselves out of the Receivership bank accounts. The Judge does her own review of the invoices. Only then will she issue an order allowing us to receive payment.

The bank account figures reported in the Interim Reports are net numbers after deduction of the costs of administering the Receivership. Every Receiver wants to be able to say, first, that he has recovered enough to pay for his work – which we have – and, second, that he has recovered enough to make a good distribution to claimants – which we work toward every day and have good prospects of doing.

Both the motions for payment and the detailed invoices attached to them as exhibits are best accessed through PACER, which is a web site through which the public can access filings from all federal courts. It is a user friendly site. Follow this link to the PACER web site. Once logged in, you can select the Court you want to search (our case is in the Northern District of Georgia). If you type Coadum in the Party Name field, it will bring up our case. Go to “docket report,” which will give you a list of all filings in the case. You can then select the Fee Applications or any other filings.

The PACER site is helpful as it allows access to everything filed in the case, not just the Receiver’s filings. From that site you will be able to track not only the Receiver’s filings, but also those filed by the opposition. This will be a helpful tool in tracking the progress of the third-party actions we will be filing shortly.

In addition to the upcoming depositions, we have made progress toward resolution of the matter concerning TRAC Indemnity, the investment in the Pittsburgh condominiums, corrected K1s, and toward getting the Swiss authorities more information about the individuals and entities behind the funds transferred to Switzerland and Malta.

Look for an update regarding the depositions next week.

10.03.08 Depositions of Jeffery and Repke Reveal Information about Third Parties

The depositions in Boston went well. Both Mr. Repke and Mr. Jeffery appeared to be forthcoming. Mr. Jeffery has instructed his Canadian banks to cooperate and we have renewed our requests to those banks for the records necessary to our investigation.

The depositions were helpful in filling in the blanks regarding the representations made by Exodus and Soleil which led to the transfer of investor funds overseas. We expect to send a transcript of the depositions to the Swiss magistrate for her consideration.

The depositions also provided information that should help in our efforts to recover additional amounts from culpable third parties.

The investigation continues in Switzerland. Our investigation of the background of Keith Roberts-Sampson Bristol and Peter Czwalina continues to bear fruit, and we are sending that information to the Swiss magistrate as we uncover it.

We expect to receive a return of the investment in the Pittsburgh Condominiums shortly, and have made substantial progress in our effort to recover investor money transferred to the Cayman Islands.

The Receiver asked Mr. Jeffery whether he had promised any investors that he would make everyone whole. He testified that he has told no one that and that he suspects a salesman is making those representations without Mr. Jeffery’s consent.

During the Receiver's time at the SEC, he investigated dozens of cases like this one. It is not at all uncommon for salesmen to misrepresent that all investors will be made whole. It is also — and this is very important — common for salesmen to quickly shift gears from the scam that has been shut down to a completely different scam and to solicit the very investors who were taken in connection with the first scam. Oftentimes the sales pitch involves a promise that the new scam is the vehicle by which all investors will be able to make their money back from the first scam. Please do not fall for this. If you are the least bit inclined to invest any of your money in an unregistered offering, please have a professional check it out first.

The Receiver expects to file his next interim report in approximately thirty days.

11.05.08 $74,400 Recovered from Pittsburgh Condo Investments

Good news. As you know from the Receiver’s Interim Reports, the defendants invested Coadum funds in condominiums under construction in Pittsburgh. Last week, the Receiver’s team recovered all of the $74,400 invested in those condominiums. We are also in negotiations for recovery of funds invested in another of the defendants’ ventures and will know shortly to what extent those negotiations will bear fruit.

The Receiver is preparing his next Interim Report and will be able to report the filing of a third-party action against parties who participated in the conduct described in the SEC’s complaint. The Receiver will post a copy of that complaint as soon as he files it. The Receiver expects to file his next Interim Report on November 21, 2008.

We have forwarded additional information to the Swiss magistrate investigating the European parties involved in this scheme. The Receiver will post the information he has forwarded to Switzerland as soon as it proves harmless to the pursuit of the assets in Switzerland.

11.21.08 Suit Filed Against Stephan Lovett and Melanie Mayer

Today the Receiver filed suit against Stephan Lovett, Hartsfield Capital Group, Inc., Melanie Mayer, Melanie Mayer, P.C., and Mayer & Associates, P.C., seeking return of ill-gotten gains as well as damages in an amount equal to investor losses. The complaint and exhibits have been posted to the Web site on the Coadum Documents page here. (Be sure to bookmark the Coadum Documents page for future reference.)

The Receiver is also working to finalize a Motion to Approve Settlement of a Disputed Claim regarding one of the unauthorized investments the defendants made with investor funds. The Receiver expects to file that Motion with the Court next week and to ask for expedited consideration. If granted, that motion will result in a return of more than $100,000 to the Receivership.

This month, the Receiver’s team was able to secure return of the entire $74,400 invested in condominiums under construction in Pittsburgh.

The Receiver expects to file his next Interim Report early next week. The work required to finalize the above matters has required setting that Interim Report aside for a few days, but we will put the finishing touches on that report over the next couple of days. Please stay tuned.

12.02.08 Good News from Switzerland — Swiss Court Upholds Seizure of Investor Funds

Just a quick update about some good news from Switzerland. Kip and his cohorts contested the Swiss magistrate’s seizure of investor funds in the Credit Swiss accounts. In response, we forwarded to the Swiss Court all of the evidence we have been working hard to compile about Kip, and we continue to send along new facts as we learn them. We received word today that the Swiss Court has upheld the magistrate’s seizure of the funds. (Huddleston Law Firm had the U.S. Justice Department officials in Switzerland ready to freeze the accounts via another mechanism in case the decision went against us).

We are putting the finishing touches on the next Interim Report — we have had some good developments on the domestic front and want to include them — and we expect to file that report by the end of this week.

As soon as we know what the next step in the Swiss proceeding will be, we will post that information to this page.

12.05.08 Fourth Interim Report Posted Online

The Receiver has filed his Fourth Interim Report with the Court and posted it to the Coadum Documents page on this site. We are pleased to report that the Receiver achieved a significant direct recovery (between $719,000 and $1,678,000) for investors through the filing of amended tax returns and issuance of amended K-1s, and that the Receiver’s team has recovered and negotiated for recovery of another $240,000 by pursuing the defendants’ unauthorized "investments." The report also details the Receiver’s action against Stephan Lovett, Melanie Mayer and their companies.

Perhaps the biggest news in the report is the news we shared with you last week — that the Swiss Court has accepted the Swiss magistrate’s recommendation and defeated Kip’s attempt to gain access to the $4.5 million in investor funds frozen at Credit Suisse in Geneva. We hope to have more information for you soon about what comes next in our pursuit of that money. Please stay tuned to this site for updates.

01.24.09 SEC Files Case Against Ross Haugen

The U.S. Securities and Exchange Commission has filed a civil enforcement case against Ross Haugen. We have posted the complaint to the Coadum Documents page on this site.

We continue to explore avenues for repatriation of the $4.5 million in Switzerland, in light of the recent good developments in the Swiss case. In addition, we are preparing a proposed plan of distribution to govern how that money will be distributed when received. We hope to file that proposed plan within 30 days. The Court will allow time for filing objections to the plan, and will then either approve the Receiver’s plan or approve a revised plan. Having a plan in place will allow us to make a distribution sooner upon receiving the Swiss funds.

The time for Mayer and Lovett to answer the lawsuit against them is approaching, and we will post an update when we receive their answers (the delay results from the difficulty serving them at their home in a gated subdivision). We ultimately succeeded in serving the complaint, and we are ready to pursue the case aggressively.

We expect that 2009 will see the first distribution to approved claimants, and we expect success in our efforts to pull more funds into the receivership.

03.02.09 Hearing on $750,000 Set for March 23, 2009

Judge Evans has scheduled a hearing on the Receiver’s Motion to Require Wells Fargo to Surrender $750,000 in investor funds transferred away after it received notice of the asset freeze. The hearing will take place March 23, 2009, in Judge Evans’ courtroom at the Richard B. Russell Federal Building.

The Receiver is finalizing a proposed Plan of Distribution, which he will post to this Web site when he files it. Having that plan in place will allow the Receiver to expedite the first distribution of funds. Judge Evans will set a deadline for filing objections to the plan and will schedule a hearing for any objections.

Regarding the funds in Switzerland, we have contacted the Swiss attorney representing Kip and have heard back that Kip is retaining an American attorney to communicate with us about release of the Swiss funds. We have yet to hear from that attorney, but we will keep you posted on developments.

03.19.09 IRS Issues New Rulings for Theft Loss Deductions

Thanks to Bernie Madoff the IRS has issued some new rulings regarding theft losses that will give substantial relief to the victims in many Receivership cases. It is now possible to use the "theft loss" deduction without waiting for the case to be settled.

Investors who have suffered a loss due to a Ponzi scheme need to print Rev. Rul. 2009-9 and Rev. Proc. 2009-20, available on the Documents page of the Huddleston Law Firm site here, and take them or send them to your tax preparer right away.

Theses new rulings discuss in detail how to treat losses when filing your tax returns. If you have not previously used a tax preparer, the Receiver recommends that you do so this year, as application of these rulings may help you recoup a substantial amount of your losses. Both documents need to be taken as a whole.

04.08.09 Judge Martin Orders Wells Fargo to Surrender $750,000

Good news. Judge Martin has granted the Receiver’s Motion to Require Wells Fargo to Surrender $750,000 to the receivership, finding that Wells Fargo improperly allowed the money to be pledged as security for a loan after the bank had notice of the January 3, 2008 asset freeze order. If Wells Fargo does not appeal Judge Evans’s order, the Receiver intends to propose an initial distribution to investors while we await return of the money frozen in Switzerland and resolution of the Receiver’s other efforts to recover money.

04.28.09 Wells Fargo Decides Not to Fight Return of $750,000

More good news. Wells Fargo has decided not to appeal the Order granting the Receiver’s motion to require the bank to return $750,000. We should receive that money soon. We will file our proposed plan of distribution shortly. We are working toward making an interim distribution as soon as possible.

05.12.09 Claim Acknowledgment Letters Mailed

Claims processing update. All Claimants should have received Claim Acknowledgment letters in the mail confirming the receipt of their Claim Form and the assignment of a Claim Number. A list of Claim Numbers and Allowed Claim amounts is posted in the Documents section of the Huddleston Law Firm site here. If you have not received a Claim Acknowledgment letter by May 13, 2009, please contact the Receiver at CoadumClaims@huddlestonfirm.com with your current mailing address. If you received a Claim Acknowledgment letter, and you have documentation which you feel would support a different Allowed Claim amount (and which has not already been submitted to the Receiver), please submit your additional documentation to the Receiver’s office by May 15, 2009, so that any discrepancies may be resolved promptly.

06.08.09 Receiver to File Proposed Plan of Distribution

The Receiver’s team is working hard to have a Proposed Plan of Distribution filed with the Court by the end of this month. After the victory in our action to recover $750,000 from Wells Fargo, this proposed interim distribution, if approved, will return at least $2 million to investors. We hope to be able to report good news on the Swiss front shortly. If so, we may be able to increase the distribution substantially. The Receiver will file his next Interim Report at the same time as the Proposed Plan of Distribution. That Report will detail not only the progress on the Swiss front, but also substantial progress in our efforts to recover from salesmen and investors who received a return of more than 50 percent of their principal pre-Receivership.

Thank you to all who responded to the Claim Acknowledgment Letters with questions for clarification. It is important to the Receiver that his data is absolutely accurate before making any distribution. If there are lingering questions about the amounts included in those letters, please call us.

06.08.09 Receiver to File Proposed Plan of Distribution

The Receiver’s team is working hard to have a Proposed Plan of Distribution filed with the Court by the end of this month. After the victory in our action to recover $750,000 from Wells Fargo, this proposed interim distribution, if approved, will return at least $2 million to investors. We hope to be able to report good news on the Swiss front shortly. If so, we may be able to increase the distribution substantially. The Receiver will file his next Interim Report at the same time as the Proposed Plan of Distribution. That Report will detail not only the progress on the Swiss front, but also substantial progress in our efforts to recover from salesmen and investors who received a return of more than 50 percent of their principal pre-Receivership.

Thank you to all who responded to the Claim Acknowledgment Letters with questions for clarification. It is important to the Receiver that his data is absolutely accurate before making any distribution. If there are lingering questions about the amounts included in those letters, please call us.

07.01.09 Fifth Interim Report Posted Online

The Receiver has filed his Fifth Interim Report with the Court and posted it to the Coadum Documents page on this site.

In addition, an updated version of the Distribution Claim Numbers and Amounts document was posted online today.

08.24.09 Hearing on Receiver's Proposed Plan of Distribution Set for Sept. 18

Judge Evans has set a hearing for September 18, 2009, at 11 AM to hear all objections to the Receiver’s Proposed Plan of Distribution in the Coadum case. Please review her Order setting the hearing. The Order has been posted to the Coadum Documents page on this site. It gives details about how to object, what information to include, and the deadline for submitting objections (September 4, 2009).

09.18.09 No Ruling Yet After Hearing on Receiver's Proposed Plan of Distribution

Judge Evans held a hearing on the Receiver’s Plan of Distribution on Friday, September 18, 2009. Three of the seven objectors appeared at the hearing through hired counsel. Judge Evans heard arguments from two attorneys against the Receiver’s proposed Plan of Distribution. The Receiver testified about the fairness of the proposed Plan. A forensic accountant for the Receiver also testified regarding calculations of the objector’s deposits and withdrawals.

Judge Evans did not issue a ruling on the Plan of Distribution at the hearing. The Receiver expects to receive a ruling on the Plan shortly and will post it on this website.

09.29.09 Judge Evans Approves Receiver's Plan of Distribution

On Friday, September 25, 2009, Judge Evans issued an Order approving the Receiver's Plan of Distribution. Judge Evans agreed with the Receiver that the proposed Rising Tide distribution method is the most equitable method for distributing the receivership funds. Judge Evans directed the Receiver to distribute receivership funds in accordance with the Plan. Following the Plan, the Receiver intends to make the first interim distribution to investors within 60 days of this Order.

The Order has been posted to the Coadum Documents page on this site.

11.09.09 Distribution Checks Mailed

The checks for the first distribution have been mailed. The checks for U.S. residents were mailed via USPS Priority Mail on November 7th and will take between two to five business days to arrive. A signature will be required upon delivery. The checks for Canadian residents were sent via Federal Express and will arrive on November 9th. The spreadsheet detailing the distribution calculations (10.26.09 UPDATE - Distribution Claim Numbers and Amounts) has been posted to the Coadum Documents page on this site. If you have not received your check by November 16th, please contact us.

11.11.09 Receiver's Sixth Interim Report Posted

The Receiver has filed his Sixth Interim Report with the Court and posted it to the Coadum Documents page on this site.

01.11.10 Receiver Files Multiple Lawsuits on Behalf of Investors

The Receiver has filed multiple lawsuits in an attempt to marshal all assets and claims of the receivership for the benefit of defrauded investors. The following are lawsuits that have been filed in the U.S. District Court:

1. Gersten Savage LLP, David E Danovitch, Eric R. Roper, and International Strategic Application for Emergencies, Inc. on October 14, 2009 (Huddleston v. Gersten Savage LLP, et al., Civil Action File No.: 1:09-CV-2850-ODE);

2. Nathan Lapkin and Puritan Securities, Inc. on October 23, 2009 (Huddleston v. Lapkin, et al., Civil Action File No.: 1:09-CV-2960-ODE); and

3. Twenty-three (23) salesmen defendants on October 26, 2009 (Huddleston v. Cala Group International, Inc., et al., Civil Action File No.: 1:09-CV-2976)

The Receiver has filed additional suits and will have an update on those in his next interim report. The Receiver’s team won a jury verdict totaling $677,194 against a Houston attorney responsible for more than $500,000 in investor losses through a prime bank fraud in which Coadum 1 invested. Now that litigation in that case has concluded, the Receiver has filed a Motion to Vacate Repke and Jeffery’s Personal Expense Allowance.

04.30.10 Receiver Collects More Than $140,000 in Additional Assets

Since the last interim report, the Receiver has collected an additional $140,041.14 and is just a few days from recovery of at least $50,000 more in receivership assets. While the Receiver had intended to file his next report today, he believes that another two weeks will allow him to report additional progress on a number of fronts. In the interest of issuing a more comprehensive report, therefore, the Receiver now anticipates filing his next Interim Report on May 14, 2010.

05.18.10 Receiver Files Seventh Interim Report

The Receiver has filed his Seventh Interim Report with the Court and posted it to the Coadum Documents page on this site.

09.20.10 New Complaint Filed in Malta

Pursuant to the Receiver's ongoing efforts to collect additional assets in the Coadum case, a complaint by Dr. Joseph A Schembri has been filed in Malta against Keith Roberts-Sampson Bristol companies Soleil Group Holdings Limited, Exodus Equities Limited, and Exodus Capital Limited. The Receiver has posted the Maltese Complaint to the Coadum Documents page on this site.

10.07.10 Receiver's Eighth Interim Report Posted Online

The Receiver has filed his Eighth Interim Report and posted it online. You can download the report via the link below.

Receiver's Eighth Interim Report (PDF 80 KB)

12.28.10 Jeffery and Repke Indicted

Last week, a federal grand jury in Atlanta indicted Mr. Repke and Mr. Jeffery on one count of conspiracy, 16 counts of wire fraud, and five counts of mail fraud. The indictment is available at the Coadum Documents page on this site.

01.25.11 Receiver's Ninth Interim Report Posted Online

The Receiver has filed his Ninth Interim Report and posted it online. You can download the report via the link below.

Receiver's Ninth Interim Report (PDF 84 KB)

02.16.11 Latest Fee Application and Order of Approval Posted Online

Dear Coadum Investors:

We've had some requests for periodic information about the fees charged in the course of securing the assets the receivership has recovered. We have, therefore, posted our latest approved fee application along with the Order approving that application. You can find both documents on the Coadum Documents page here.

We will continue to post our applications for your review. The actual invoices which detail each task and the time spent on it are too voluminous to include. But you can download those invoices from pacer.gov if you would like to review them. Both the SEC and Judge Evans review each application before it is approved.

We expect to make another distribution within 90 days.

Best regards,

Pat

04.26.11 Updated Distribution Allocation Posted Online

The Receiver has posted the Coadum Distribution Allocation As of April 21, 2011 document online. You can view and download the document via the link below.

Coadum Distribution Allocation As of April 21, 2011 (PDF 600 KB)

05.13.11 Receiver's 13th Interim Application for Compensation Approved

The Receiver's 13th Interim Application for Compensation has been reviewed by counsel for the U.S. Securities and Exchange Commission and approved by Judge Evans.

The Receiver's fee application and the order approving compensation have been posted to the Coadum Documents page here.

07.04.11 Receiver's Tenth Interim Report Posted Online

The Receiver has filed his Tenth Interim Report and posted it online. You can download the report via the link below.

Receiver's Tenth Interim Report (PDF 807 KB)

02.03.12 Repke Pleads Guilty to Conspiracy to Commit Mail Fraud

On December 21, 2011, Thomas Repke pled guilty to one count of conspiracy to commit mail fraud. He will be sentenced at 3 p.m. on February 29, 2012, in Courtroom 1908 of the U.S. Courthouse, 75 Spring Street, SW, Atlanta, Georgia 30303. The Receiver expects to issue his next interim report no later than March 15, 2012.