1.23.07 To Success Trust Investors

On January 3, 2007, Judge Story appointed Pat Huddleston to serve as the Receiver for Success Trust and its related entities. Mr. Huddleston is currently gathering documents and reviewing the information received so far with a view of maximizing the recovery of those who lost money.

If you are an investor or an Independent Representative in Success Trust, please leave your contact information on this form. Also, please be sure to save all of your documents relating to Success Trust as the Receiver will need them in order to formulate a plan of distribution.

2.09.07 Receiver Secures Investor Information

The Receiver has secured many hundred of packets containing investor records - copies of drivers licenses, social security cards, and other personal information. The Receiver is organizing these documents, and pulling from them information necessary to preparing a plan of distribution.

The Receiver will file his First Interim Report, detailing what he has done so far, as well as short range and long range projects necessary to recovering as much for investors as possible, by February 19. We will put that report on the website, so that all investors can review it.

Investors, please continue to give us your personal information by filling out the form on our website.

Thank you,

Pat Huddleston, Receiver

2.19.07 Receiver's Preliminary Report Forthcoming

To Investors:

Our Preliminary Report will be filed on February 20, 2007. (Today was a federal holiday). We will post it to the website as soon as possible. Please continue to e-mail us your contact information.

Pat Huddleston, Receiver

4.25.07 Receiver to Take Deposition of Debbie Cher

The Receiver's investigation continues. On April 26, 2007 we will take the deposition of Debbie Cher. We continue to follow leads that may add funds to the Receivership Estate.

We are preparing a claim form which we expect to mail out to all known investors in the next two weeks. The Court will set a bar date after which no claims will be accepted. As the claims come in, we will examine each one along with the supporting documents to verify the validity of the claim. We will then draft a plan of distribution which we will submit to Judge Story.

In March, the Receiver asked the Court to stop the $5,000 personal allowance payments that Reynolds has been receiving since the asset freeze. We expect the Court to rule on that motion soon.

5.30.07 Court Halts Support Payments to Reynolds

On May 2, 2007, Judge Story held a hearing on the Receiver's Motion to Halt Support Payments to Defendant Reynolds and on the SEC's Motion to Hold Reynolds in Contempt for selling a Mercedes automobile that was subject to the Court's asset freeze. The parties conferred before the hearing and were able to reach agreement on an Order resolving those issues. Judge Story approved the Order, halting support payments to Reynolds, requiring him to turn over a Toyota SUV which the Receiver traced to investor funds, and turn over additional items of personal property. The cessation of the $5,000 monthly support payments is a direct benefit to investors, as those payments had been coming from the frozen bank accounts. The Receiver stopped making those payments in March 2007, when he filed his motion to stop the payments. Reynolds also consented to a finding of contempt arising from his sale of the Mercedes.

6.04.07 Claim Form Now Available Online

We have posted the Success Trust Claim Form to the website. If you know of people who were investors but did not receive a form in the mail, please direct them to the website for the form.

7.25.07 Claim Forms Under Review

As of the bar date set by the Court (July 6, 2007) the Receiver had received 675 claims. Any claims posted after the bar date may be denied as untimely filed.

Many of the claims included supporting documentation which matched the records the Receiver obtained from Success Trust and Bank of America. Other claims included less documentation, but have been verified through the records in the Receiver's possession. Other claims were for amounts that do not match the Receiver's records. The Receiver and his staff are presently working to verify each claim, so that every verified claim participates in the distribution. This claim-by-claim review is necessary to ensure that no illegitimate claim reduces the amount available to verified claimaints.

The Receiver is taking steps to commence litigation against third parties who wrongfully received Success Trust funds. Those actions should help the Receiver bring more funds into the Receivership Estate for distribution to verified claimants.

The Receiver also continues to follow leads suggesting a transfer of funds to overseas accounts.

While all claimants are anxious to receive a distribution, the Receiver cannot yet estimate when such a distribution may be possible, nor can the Receiver estimate the size of any such distribution. Rest assured though, that a distribution to innocent investors as soon as possible in as large an amount as possible is the Receiver's goal.

9.13.07 Receiver Sues Amy Emiliana Allen and WF USA, LLC

The Receiver is in the process of preparing letters to each claimaint notifying them of their claim numbers, and outlining how the Receiver expects the case to proceed from here.

On August 28, 2007 the Receiver sued Amy Emiliana Allen, and her company, WF USA LLC, alleging that they received money from the Success Trust entities by fraud. The Receiver will aggressively pursue those claims with an eye toward bringing more than $1 million back into the Receivership for ultimate distribution to investors.

The Receiver is currently working on a plan of interim distribution and will post that plan to the website as soon as it has been filed with the Court. The Receiver expects to file that plan within the next thirty days.

Once the plan is filed, the Court will set a deadline for the filing of any objections to the plan, and the Receiver will post that information to the website. The Court will also set a date for a hearing in open court to take evidence and hear arguments regarding the plan proposed by the Receiver.

11.2.07 Plan of Distribution

The Receiver has posted his latest Interim Report, his proposed Plan of Distribution, and a spreadsheet that will allow each claimant to see how the Receiver calculated his or her "Allowed Claim."

Every claimant will receive in the next few days a hard copy of the proposed Plan of Distribution along with a letter assigning a Claim Number. By referring to the line of the spreadsheet that corresponds to his or her Claim Number, the claimant will be able to see how the Receiver calculated the amount of his or her "Allowed Claim."

Please note that the "Allowed Claim" is not what the claimant can expect to receive in this initial distribution. It is simply the amount from which the claimant's pro rata portion of the distribution will be calculated. The Receiver's Plan of Distribution provides for a recovery (in this distribution) of 36% of each Allowed Claim.

The Receiver is pursuing third party actions which he expects to result in additional amounts returned to the Receivership Estate. He may, therefore, be able to make additional distributions when those matters resolve.

You may object to the Receiver's proposed Plan of Distribution by following the instructions included in the Motion to Approve the Plan. The Receiver has asked the Court to set a date and time to hear arguments regarding any properly submitted objections. As soon as the Receiver knows that date, he will update the Blog to let claimants know and will send out a letter with that information.

12.11.07 Receiver Wins Back $160,000 for the Receivership

The Receiver has brought $160,000+ back into the Receivership through a third party action against Lloyd Chapman, who received investor money from Success Trust. We continue to pursue aggressively other third party actions with a view to pulling as much money as possible back into the Receivership for ultimate distribution to investors.

We do not yet have a date for the hearing to consider the Receiver's Motion to Approve Plan of Distribution. As soon as we learn that date, we will update the Blog to announce it. The Receiver is anxious to distribute the bulk of Receivership assets to approved claimants as soon as possible. Please continue to check the blog periodically.

1.11.08 Hearing Date Set on Motion to Approve Receiver's Plan

Judge Story has set the hearing on the Receiver's Plan to Approve a Plan of Distribution for January 23, 2008 at 10:30am. The hearing will take place in Judge Story's courtroom in the Richard B. Russell Federal Building in Atlanta.

Investors who have filed objections and wish to pursue them must appear and argue those objections to the Court.

Please call the Receiver's office with any questions about the hearing.

1.23.08 Approval of Receiver's Plan

This morning Judge Story approved the Receiver's Proposed Plan of Distribution, overruling the four objections to the Plan. The Receiver will now transfer $1,000,000 from the money market account, where it has been earning interest, to a checking account, and will begin cutting checks to the approved claimants.

Judge Story's Order provides for issuance of the checks within 60 days. The Receiver expects to have all checks issued and sent out in the next three weeks. Please be patient with that delay. With so many claimants, it will be important for us to take our time and ensure 100% accuracy in this process.

If you are at all worried that we do not have your correct address, please send us an email updating your address. Better safe than sorry.

Judge Story commented from the bench that this recovery is the best he has seen in any of his receivership cases and was encouraged that there is a good possibility of another distribution once the Receiver has concluded the lawsuits he has filed and will file to recover more money for the Receivership.

Thank you for your patience and cooperation to date. Please rest assured the we are working hard and working smart to recover more for you.

2.18.08 Motion for Reconsideration Delays Check Distribution

Investor and IR Scott Wnuck, whose objection to the Plan of Distribution was denied at the hearing to consider the Plan, has filed a motion to have Judge Story reconsider his ruling. The attorney for the Receiver has filed a response, and we should get a ruling from the Court soon. It is unlikely that Judge Story will reverse his initial decision. But until we get a ruling on that motion we cannot begin issuing checks, because if Mr. Wnuck's motion is granted, the amounts of the distribution would change.

We regret the delay, but must be prudent with investor funds. Stand by, please.

3.27.08 Distribution Checks

The Receiver mailed all distribution checks last week. Many of you have already received them. If you have not yet received yours, please allow another week for delivery. If you have not received your check by April 3, 2008, please call the Receiver's office.

We have had a few questions about how the amounts of the checks were calculated. The Receiver's Plan of Distribution sets forth that information. You can review it in the documents section of this website.

The Receiver continues to pursue third parties with a view toward pulling more money into the Receivership. We hope to be able to make another distribution at the conclusion of the case.

We will post updates on any significant developments in our pursuit of those additional funds.

10.21.08 Receiver Recovers an Additional $125,000

Good news. Our efforts to track additional receivership funds have resulted in recovery of another $125,000. We continue to seek out additional avenues of recovery. The Receiver will be filing his next interim report by the end of November. By the time of that report, he will know whether he can make another distribution of the additional amounts recovered.

12.11.08 Fourth Interim Report Available Online; Proposed Second Interim Distribution Under Review by Court

Today the Receiver filed his Fourth Interim Report in the Success Trust case. It has been posted to the Success Trust Documents page here for your review. We have also filed and posted a motion asking Judge Story to allow the Receiver to make a second Interim Distribution in the amount of $300,000. If approved, that distribution will bring the recovery for approved claimants from 35.73 percent to 46.44 percent. The Receiver’s team is prepared to begin sending out checks as soon as the Court approves the distribution.

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.

02.02.10 Receiver to Pursue Litigation Against Third Parties

The Receiver has been pursuing links to, and gathering evidence against, third parties who facilitated the underlying scam. He expects to pursue litigation against those third parties. In addition, the Receiver continues to pursue collection of a $1.5 million judgment he has already obtained. The Receiver expects to make the final distribution in this case when these actions bear fruit.

05.12.10 Receiver Seeking Additional Cash for Claimant Distribution

The Receiver and his team are running down two possible sources of additional cash, including collecting on the $1.5 million judgment the Receiver obtained against Amy Allen. The Receiver expects that there will be sufficient funds for a third distribution to Approved Claimants. The size of that distribution depends on the Receiver's success in pursuing these two potential sources of cash. The timing of that distribution should come into focus in the next 60 days. The Receiver expects to issue another Interim Report in this case no later than July 1.

07.07.10 Fifth Interim Report Posted Online

Today the Receiver filed his Fifth Interim Report in the Success Trust case. It has been posted to the Success Trust Documents page here for your review.

12.20.10 Receiver's Final Report Posted Online

After receiving the signed order from Judge Story approving the Receiver's Final Report, the Receiver's team is diligently working to finalize the distribution checks and will have them in the mail before the end of the year. The Receiver's Final Report has been posted to the Success Trust Documents page here for your review.