|
INVESTORS: PLEASE KEEP YOUR
CONTACT INFORMATION UPDATED |
If
you have moved, changed your phone number, or changed
your e-mail address since filing your claim, please
complete this online
form. |
INVESTORS: PLEASE KEEP INFORMATION REGARDING YOUR
|
If your NLS account contained retirement account funds and you’ve changed the custodian of your retirement account, please complete this online form. |
HOWARD JUDAH AND GREGORY JABLONSKI
SENTENCED TO TEN YEARS IN THE PENITENIARY
On February 20, 2013, State District Judge Brock Thomas sentenced
Howard Judah and Gregory Jablonski to ten years in the penitentiary.
Both men pled guilty to securities fraud and sale of an
unregistered security in connection with their operation of National
Life Settlements.
Following the hearing, Mr. Judah and Mr. Jablonski were taken into
custody immediately.
Harris County Assistant District Attorneys Valerie Turner and Tricia
Mason worked on this complex case for several years with the
assistance of the Texas State Securities Board’s Enforcement
Division.
JUDAH'S CRIMINAL TRIAL RESCHEDULED FOR JANUARY 22, 2013
The court has rescheduled Howard Judah's criminal trial for January 22, 2013. The Receiver has no information concerning whether Gregory Jablonski's criminal trial will be rescheduled as well.
COURT APPROVES
RECEIVER’S REQUEST FOR AUTHORITY
TO MAKE DISTRIBUTIONS
On July 6, 2012, the court entered an
order approving the
Receiver’s proposed distributions as described in the posting below
dated June 21, 2012. The
Receiver will mail checks to investors whose NLS accounts did not
contain retirement funds on or about July 12, 2012.
Investors whose NLS accounts held retirement funds should notify the
Receiver immediately if their account custodian has changed.
Click here to complete an online form to change the
account custodian, or you may email the Receiver at
claims@nlsreceivership.com
or call the claims office at (214) 914-4274.
Checks to retirement account custodians will be mailed on or
about July 23, 2012.
Each investor with an account custodian will receive a copy of the
check the Receiver sends to the custodian.
RECEIVER TO SEEK COURT’S APPROVAL TO MAKE
DISTRIBUTIONS TO INVESTORS
Following the last distribution to investors, the Receiver has recovered and liquidated assets including vehicles, a house, and bank accounts. Additionally, the State Securities Board entered agreed orders with NLS agents Jimmy Freeman, Richard Elizondo, and Kris Rhoden under which Freeman, Elizondo, and Rhoden made payments to the Receiver for the benefit of those agents’ NLS customers. Freeman paid the Receiver $453,185.88, Elizondo has paid $20,000 to date, and Rhoden has paid $10,000.
Accordingly, the Receiver will ask the court to authorize her to make the following distributions:
1. To the Freeman investors. The Receiver will ask the court to authorize her to distribute the $453,185.88 she received from Freeman to the NLS investors to whom Freeman sold their NLS investments. When they receive this payment, Freeman’s customers will have received 100% of their allowed claims. Freeman’s customers will not share in any further distributions the Receiver makes to investors except in the unlikely event that all investors have received 100% of their allowed claims and there are additional funds available for distribution.
2. To all investors other than the Freeman investors. The Receiver will ask the court for authority to make a distribution equal to 2% of the allowed claim of each investor other than the Freeman investors. Once this distribution is completed, investors will have received a total of 71% of their allowed claims.
3. To the Rhoden investors. The Receiver will ask the court for authority to distribute to Rhoden’s customers the $10,000 Rhoden has paid to the Receiver to date under his agreed order with the State Securities Board. This amount will equal 0.49% of each Rhoden investor’s allowed claim and will be in addition to the 2% distribution made to all investors. Once this distribution is completed, the Rhoden investors will have received a total of 71.49% of their allowed claims. Rhoden’s agreement with the State Securities Board requires him to pay an additional $15,000 to the Receiver for the benefit of his customers. The Receiver will address the distribution of those funds after she receives them.
4. To the Elizondo investors. The Receiver will ask the court for authority to distribute to Elizondo’s customers the $20,000 Elizondo has paid to the Receiver to date under his agreed order with the State Securities Board. This amount will equal 3.76% of each Elizondo investor’s allowed claim and will be in addition to the 2% distribution made to all investors. Once this distribution is completed, the Elizondo investors will have received a total of 74.76% of their allowed claims. Elizondo’s agreement with the State Securities Board requires him to pay an additional $10,000 to the Receiver for the benefit of his customers. The Receiver will address the distribution of those funds after she receives them.
The Receiver will post information on this site as soon as the court
rules on the proposed distributions.
HOWARD JUDAH INDICTED ON NEW OFFENSE
CURRENT TRIAL DATES FOR JUDAH AND JABLONSKI
The trial date on Howard Judah’s indictments
related to the NLS case has been reset to August 20, 2012.
Gregory Jablonski’s trial is still scheduled for
September 10, 2012.
As is often the case with trial settings, these dates are
subject to change.
RECEIVER’S LAWSUIT AGAINST SEVERAL NLS AGENTS CONTINUES
On February 22, 2011, the Receiver filed a lawsuit against several NLS agents alleging, among other things, that they committed securities fraud on NLS’s investors. The Receiver’s lawsuit asks the Court to enter judgments against the defendants and require them to pay damages. Click here to see a copy of the Receiver’s lawsuit. The defendants in the lawsuit are: Ramiro Amaya; Byron Justice and Associates; 1st Jack Financial LLC; Future Income Link; Humberto “Bert” Garza, Jr.; David J. Herzog; IAM Financial, Inc.; IAM Financial Services, Inc.; Income For Life LLC; Aaron Johnson; Byron Justice; Willie Otis Mills; Pathfinder Financial, LLC; PT Local Corporation; Anthony Ross; and Ronald Spomer. This case has not yet gone to trial, and at this time the Receiver cannot predict the amounts of money that may be recovered if the lawsuit is successful.
GREGORY JABLONSKI’S CRIMINAL TRIAL CURRENTLY SCHEDULED FOR SEPTEMBER 10, 2012
As previously reported, Howard Judah and Gregory Jablonski are under indictment in Harris County for multiple counts of securities fraud and sales of an unregistered security. Click here to see copies of Mr. Judah’s indictments and here for copies of Mr. Jablonski’s indictments. Mr. Judah’s trial is currently scheduled for June 25, 2012 August 20, 2012, and Mr. Jablonski’s trial is scheduled for September 10, 2012. These dates have already been rescheduled several times and may be rescheduled again.
To keep track of the trial dates, you may visit the Harris
County District Attorney’s website at
http://app.dao.hctx.net.
Under the “Helping Victims” tab, select “Find Your Case.”
Enter the cause number for Mr. Judah (1291009 or 1291010) and
or Mr. Jablonski (1291011 or 1291012). Once you click the
defendant’s name, the court settings will pop up and list the trial
date.
TEXAS STATE SECURITIES
COMMISSIONER ENTERS ORDER AGAINST
JIMMY
FREEMAN
On February 23, 2012, Securities Commissioner John Morgan entered a Disciplinary Order and Undertaking involving Jimmy Wayne Freeman, Jr., a former agent for National Life Settlements. Click here to see a copy of the order.
Under the terms of the order, Mr. Freeman is required to send the Receiver a total of $453,185.88 by May 23, 2012 for the benefit of Mr. Freeman’s NLS clients. An initial payment of $50,000 was required by March 4, 2012. The Receiver has received that payment. Once she receives full payment of the $453,185.88, the Receiver will request the Court’s approval to distribute these funds to Mr. Freeman’s clients. If approved, this distribution will make Mr. Freeman’s clients 100% whole. The Securities Commissioner’s order also suspends Mr. Freeman’s registration as an investment adviser representative for a period of one year.
If you have any questions about the order, please contact the State Securities Board’s Inspections and Compliance Division at (512) 305-8300.
TEXAS STATE SECURITIES
COMMISSIONER ENTERS ORDER AGAINST
KRIS
BRADFORD RHODEN
On February 23, 2012, Securities Commissioner John Morgan entered a Disciplinary Order and Undertaking involving Kris Bradford Rhoden, a former agent for National Life Settlements. Click here to see a copy of the order.
Under the terms of the order, Mr. Rhoden is required to send the Receiver a total of $25,000 by May 23, 2012 for the benefit of Mr. Rhoden’s NLS clients. The $25,000 represents a portion of the commissions Mr. Rhoden received from NLS. An initial payment of $10,000 was required by March 4, 2012. The Receiver has received that payment. Once she receives full payment of the $25,000, the Receiver will request the Court’s approval to distribute these funds to Mr. Rhoden’s clients. The Securities Commissioner’s order also suspends Mr. Rhoden’s registration as an investment adviser representative for a period of five years.
If you have any questions about the order, please contact the State Securities Board’s Inspections and Compliance Division at (512) 305-8300.TEXAS STATE SECURITIES COMMISSIONER ENTERS ORDER AGAINST
On November 14, 2011, Securities Commissioner Benette Zivley entered a Disciplinary Order and Undertaking involving Richard Henry Elizondo, a former agent for National Life Settlements. Click here to see a copy of the order.
Under the terms of the order, Mr. Elizondo is required to send the Receiver a total of $30,000 for the benefit of Mr. Elizondo’s NLS clients. The $30,000 represents a portion of the commissions Mr. Elizondo received from NLS. An initial payment of $10,000 was required on the date the order was entered, and Mr. Elizondo is required to pay the Receiver $5,000 every ninety days until the entire $30,000 is paid. As of March 8, 2012, the Receiver has received a total of $18,000 from Mr. Elizondo. Once she receives full payment of the $30,000, the Receiver will request the Court’s approval to distribute these funds to Mr. Elizondo’s clients. The Securities Commissioner’s order also suspends Mr. Elizondo’s registration as an investment adviser representative for a period of five years.
If you have any questions about the order, please contact the State Securities Board’s Inspections and Compliance Division at (512) 305-8300.
Houston Chronicle:
Judah and Jablonski Indicted
The Houston Chronicle is
reporting in its January 10, 2011 online edition that Howard Judah
and Gregory Jablonski have been indicted in connection with their
sales of investments in National Life Settlements. Click
here to see a copy of the news report.
According to the Chronicle, Judah has been arrested and his bond is currently set at
$1 million, while Jablonski is expected to turn himself in to
authorities soon. The
Receiver will post copies of the indictments as soon as they are
available.
RECEIVERSHIP UPDATE AND
LETTER TO INVESTORS CONCERNING
UPCOMING INVESTOR
MEETINGS IN
HOUSTON, CORPUS CHRISTI, AND MCALLEN
May 14, 2010
Dear National Life Settlements Investor:
I’m writing to update you on the current status of the
National Life Settlements (“NLS”) receivership, as well as to inform
you that I will be holding meetings with investors in Houston,
Corpus Christi, and McAllen in the coming weeks.
I’m also writing to notify you that the receivership’s
mailing address has changed to P.O. Box 66490, Houston, TX
77266-6490.
Many investors have asked whether any criminal prosecutions
have occurred in this case.
I have responded to requests for information from the Harris
County District Attorney’s Office, but I am not aware of any
indictments that have been returned in connection with the NLS case.
All decisions concerning whether to pursue criminal charges
against persons involved with NLS are controlled by state or federal
prosecutors’ offices and not by me, the Attorney General’s Office,
or the State Securities Board.
I will, of course, continue to cooperate with any law
enforcement officials who request information from me.
As you know, because of the quick action of the State
Securities Board and the Texas Attorney General’s Office, I was able
to recover over $20 million shortly after being appointed as
receiver of NLS. The
recovery of those funds allowed me to make a 69% distribution to you
in December, 2009. I am
now attempting to determine if there are other sources from which to
recover funds that will allow me to make additional distributions to
NLS investors. I will
keep you updated on any developments regarding my efforts to obtain
additional potential recovery.
Some NLS investors sustained losses in addition to the amount
of their NLS investment, as a result of NLS’s fraud.
For example, some investors incurred substantial early
termination fees to liquidate existing investments in order to raise
funds to invest with NLS. I
do not have the authority to recover damages on your behalf other
than the actual money you deposited with NLS.
If you have individual injuries beyond the loss of your
investment with NLS, you will need your own counsel to recover for
those injuries.
An Austin attorney, Jim George with the law firm of George
and Brothers, L.L.P., is representing some NLS investors in efforts
to recover individual damages they have sustained.
I have been authorized by Judge Yelenosky, the judge who
oversees the receivership, to work with
Mr. George and his law firm
to determine whether there are any claims that should be pursued
jointly by the Receiver and by counsel for individual investors.
Among other potential claims, Mr. George and I are
investigating claims against the individuals who sold NLS’s
securities to investors.
I will be holding meetings in three Texas cities where a
large number of investors live.
The purpose of these meetings is to talk with investors
about the representations that agents made to them in order to
convince them to invest with NLS.
Nan Hazel, an attorney with George and Brothers, will also
attend these meetings so that she can answer any questions you may
have about pursuing individual claims, aside from the claims I can
bring for your benefit.
Any decisions concerning whether you should engage your own counsel
to pursue your individual claims are entirely up to you.
On Friday May 21, at 6:00 p.m., I will be meeting with NLS
investors at the Czech Center Houston, which is located in the
Museum District. On
Saturday, May 22, at 1:00 p.m., I will be meeting with NLS investors
at the Omni Bayfront Tower Hotel in Corpus Christi.
On Thursday, June 3, at 6:00 p.m., I will be meeting with NLS
investors at the Casa De Palmas Renaissance hotel in McAllen.
Addresses and websites for each of these locations are at the
end of this letter.
I hope that you can attend one of these meetings, but your
presence is not required.
I will continue to post updates on the website (www.nlsreceivership.com)
as they occur. I look
forward to meeting and talking with investors who attend the
meetings.
Sincerely,
Janet Mortenson
INFORMATION ABOUT MEETING SITES
Houston Meeting
Czech Center Houston
Website:
www.czechcenter.org
Address : 4920 San Jacinto, Houston, TX 77004
Phone number: (713) 528-2060
Date : May 21, 2010
Time : 6:00 p.m.
Parking: There is free parking at the Czech Center.
You may also park for free at the two businesses located on
either side of the Czech Center.
They are: D&D Drapery, 5000 San Jacinto, or Midtown Doggy
Daycare & Spa, 4902 San Jacinto.
Corpus Christi Meeting
Omni Bayfront Tower Hotel
Website:
www.omnihotels.com/FindAHotel/CorpusChristiBayfront/MapAndDirections.aspx
Address: 900 North Shoreline Blvd., Corpus Christi, TX 78401
Phone number: (361) 887-1600
Date : May 22, 2010
Time: 1:00 p.m.
Parking: Pay parking is
available at the hotel.
Free parking is available along Shoreline Blvd.
McAllen Meeting
Casa de Palmas Renaissance Hotel
Website:
www.marriott.com/hotels/travel/mfebr-casa-de-palmas-renaissance-mcallen-hotel
Address: 101 North Main Street, McAllen, TX 78501
Phone number: (956) 631-1101
Date: June 3, 2010
Time: 6:00 p.m.
Parking: There is free
parking at the hotel
COURT APPROVES 69%
DISTRIBUTION
RECEIVER PRAISES QUICK ACTION BY STATE SECURITIES BOARD AND ATTORNEY GENERAL’S OFFICE
During a hearing on December 15, 2009, State District Judge
Stephen Yelonosky approved the Receiver’s request for authority
to distribute over $19,000,000 to National Life Settlements
investors. The
distribution will mean that investors will receive back 69% of
their original investments with National Life Settlements.
Please click
here to see a copy of the Court’s
order.
In her testimony to the Court and in remarks following the
hearing, the Receiver praised the quick action of the State
Securities Board and the Attorney General’s Office in stopping
National Life Settlements’ fraud.
“If the State Securities Board and the Attorney General’s
Office hadn’t acted so quickly to stop National Life
Settlements, it’s possible that investors would have lost the
entire amount of their investments,” the Receiver said.
She added, “In my thirty years of practicing law, I’ve
never seen a distribution of this amount of money so soon after
a company was ordered to stop doing business.”
The Receiver’s office will mail checks to investors by Thursday,
December 17.
Investors whose checks are being sent to a trustee or custodian
will receive a copy of the check in the mail.
RECEIVER RECOMMENDS INITIAL DISTRIBUTION OF RECOVERED ASSETS
On December 1, 2009 the Receiver filed a motion
requesting the Court’s authority to make an initial distribution of
recovered assets. (Click
here to see a copy of the Receiver’s motion). Under the
Receiver’s proposed distribution plan, claimants will receive a
total of 69% of their deposits with National Life Settlements
(“NLS”), counting any funds each claimant received back from NLS
prior to the beginning of the receivership
and the distribution the
Receiver proposes to make. For
example, a claimant who had already received 10% of her total
deposits back from NLS prior to the receivership (regardless of
whether NLS characterized this return as a withdrawal of principal
or as profits) would receive an additional 59% of her total deposits
when the Receiver makes the distribution.
On the other hand, a claimant who had received no money from
NLS prior to the initiation of the receivership would receive a
distribution equal to 69% of her total NLS deposits.
One
claimant had already received more than 69% of his deposits back
from NLS prior to the beginning of the receivership. Under the
Receiver’s proposed distribution plan, this claimant will not share
in the initial distribution of assets.
The
Receiver objected to claims filed by six individuals who received
commissions for selling NLS’s investments or who received a salary
from NLS or payment for serving on NLS’s advisory board.
The Receiver asked the Court to instruct her not to pay these
individuals’ claims until the Court has determined whether the
claims should be reduced or disallowed.
If
the Court approves the distribution plan, the Receiver will mail
checks to claimants or their designated trustee or custodian within
forty-eight hours.
COURT
SCHEDULES A HEARING FOR DECEMBER 15, 2009
ON RECEIVER’S RECOMMENDATIONS FOR AN INITIAL DISTRIBUTION
OF ASSETS RECOVERED
Judge Stephen Yelonosky, who presides over the National Life
Settlements receivership, has scheduled a hearing for 9:00 a.m. on
December 15, 2009 on the Receiver’s recommendations for an initial
distribution of assets.
The hearing will occur in the courtroom of the 345th
District Court on the 4th floor of the Travis County
Courthouse, which is located at 1000 Guadalupe,
The Receiver will post her recommendations on this web site by December 1, 2009. If the Court instructs the Receiver to make an initial distribution, checks will be mailed within forty-eight hours.
REMINDER:
CLAIM FILING DEADLINE IS SEPTEMBER 30, 2009
The court-ordered deadline for filing claims is September 30, 2009. The Receiver does not have the authority to extend this deadline. If you need help with your claim, the claims administrator will assist you. The claims administrator’s phone number is (214) 914-4274, and her e-mail address is claims@nlsreceivership.com.
COURT APPROVES STATE’S SETTLEMENT WITH HOWARD JUDAH AND GREGORY
JABLONSKI
RECEIVER’S CLAIMS PROCESS WILL GO FORWARD
The State of Texas has reached a settlement with Howard Judah and Gregory Jablonski under which Judah and Jablonski will relinquish all claims to the more than $20,000,000 in assets the Receiver has seized, will no longer oppose the receivership, and will no longer object to the Receiver’s claims process. This is a major development because it means that the Receiver’s distribution of the assets she has seized will not be delayed by months or years of litigation.
Under the settlement, Judah and Jablonski were required to submit sworn statements containing information about their assets, liabilities, transfers they have made to relatives, trusts, and others, as well as other financial information. These sworn statements indicate Judah and Jablonski have no assets that the State and the Receiver could recover if they continued to pursue litigation. Therefore, in exchange for Judah and Jablonski agreeing that they will not contest the receivership, the State agreed that it will not seek civil fines and penalties against Judah and Jablonski. The Receiver agreed that she will not file lawsuits against Judah and Jablonski to attempt to collect judgments against them, unless the sworn financial statements that Judah and Jablonski supplied contain materially false information.
After conducting a hearing on September 3, 2009, Judge Yelonosky, who presides over the receivership case, authorized the Receiver to enter the settlement with the State, Judah, and Jablonski. The terms of the settlement appear in a document called Agreed Permanent Injunction Order, Order Appointing Permanent Receiver, and Final Judgment as to Defendants Howard Glenn Judah, Jr. and Gregory F. Jablonski. To see a copy of this document, please click here.
During the September 3 hearing the Receiver reported to the Court that after the claims filing deadline occurs on September 30, she will complete her analysis of all claims and return to the Court in November with a proposal to make the first distribution of assets. If the Court approves the Receiver’s proposed plan in November, the Receiver will make a distribution in December 2009. The Receiver will not be able to estimate the amount that each investor will receive until all claims have been received and analyzed.
To view an Austin American-Statesman story about the September 3 hearing, please click here. To view a Houston Chronicle story, please click here.
The 2009 Mercedes Benz S550 that the Receiver seized from Howard Judah will be auctioned on September 13, 2009. To see details of the auction, please click here.
Claim Forms Have Been Mailed to Investors
The Receiver has mailed a personalized Proof of Claim to all known NLS investors. Each investor’s Proof of Claim states all deposits and all withdrawals from the investor’s NLS account. This information was derived from to NLS’s bank records. If you have not received a Proof of Claim by July 30, 2009, please e-mail the claims administrator at claims@nlsreceivership.com or call her at (214) 914-4274. Please click here to see a blank Proof of Claim and here to see the Instructions for Filing Proof of Claim.
The Court has ordered that completed Proofs of Claim must be received by 5:00 p.m. on September 30, 2009. Please see the Instructions for Filing Proof of Claim for more information.
Claims Process
The July 3, 2009 issue of the
Houston Chronicle featured
a story concerning the NLS receivership.
Please click
here for a link to the story.
Here is some additional information concerning the claim
filing deadline mentioned in the story.
During the status conference on June 29, 2009, Judge Yelonosky approved the Receiver’s proposed claims process. Under this process, the Receiver will send a claim form to all investors by July 24, 2009. The deadline for investors to return completed claim forms to the Receiver will be September 30, 2009. If you need help in completing the claim form, the Receiver’s staff will assist you. The Receiver will post a notice on this website on the day that she mails claim forms to investors.
Results of June 29 Hearing
During a hearing held on June 29, 2009, Judge Stephen Yelonosky conducted a status conference on the receivership. Several investors and a number of financial examiners and attorneys from the State Securities Board’s Enforcement Division attended the hearing. Assistant Attorney General Kara Kennedy represented Attorney General Greg Abbott and Securities Commissioner Denise Voigt Crawford. The Defendants, Howard Judah and Gregory Jablonski, attended the hearing with three lawyers representing them.
For a link to a story in the Austin American-Statesman concerning the hearing, please click here.
During the hearing, the Court granted each of the Receiver’s motions, which concerned the receivership’s ownership of and ability to sell certain assets and the Receiver’s recommendations concerning the initiation of a claims process. The Receiver presented an oral report to the Court concerning her actions to date.
The Receiver reported to the Court that since her appointment on February 13, 2009, she has:
· Seized NLS’s bank accounts and an escrow account. The total amount of seized funds is over $20.7 million.
· Deposited seized funds in U.S. Treasury bills held in the name of the receivership.
· Seized over $300,000 in investor checks sent to NLS after the receivership order, voided the checks, and notified the senders that the Court has placed NLS in receivership.
· Taken control of NLS’s office, closed the office, terminated the lease, and sold the office furniture and equipment at a public auction.
· Taken control of a house owned by NLS, sold the furniture at a public auction, listed the property with a real estate agent for sale, and entered contract with a prospective buyer. The Court entered an order confirming the Receiver’s ownership of this property and authorizing her to sell it.
·
Taken possession of a 2008 Cadillac
Escalade from Mr. Jablonski and sold this vehicle at a public
auction in
·
Taken possession of a 2009 Mercedes
Benz from Mr.
· Examined legal documents to determine whether NLS actually owned the three life insurance policies that it claimed to own. With the advice of counsel, the Receiver concluded that NLS did not own these policies. At best, NLS owned assignments of beneficial interests in the three policies, which means that the Receiver would not have been able to file and collect on claims under the policies if one of the insured individuals had died. With the approval of the Court, the Receiver rescinded NLS’s purchase of these interests in exchange for a payment to the receivership of $580,000.
· Cooperated with the State Securities Board in its investigation of NLS, as required by the Court’s orders. The Receiver noted that a certified public accountant with the State Securities Board has analyzed over 5000 checks and deposits in bank accounts held in the name of NLS and other entities that received investors’ funds. This analysis indicates that approximately 300 investors, many of whom are teachers and retired teachers, invested a net total of over $27,000,000 with NLS.
· Devised a claims process and proposed this process to the Court. Under this process, investors will receive pre-printed claim forms showing the amount that each investor deposited with NLS and the amounts, if any, that the investor withdrew prior to the receivership. If an investor disagrees with the pre-printed claim form, the Receiver will work with the investor to attempt resolve any discrepancies. The Court indicated that it will approve the Receiver’s proposed claims process, but a written court order has not yet been entered. More information on the claims process will be posted as it becomes available. Please note that the Court has not ordered a distribution of assets. The purpose of the claims process is to collect information to enable the Receiver to make a distribution if the Court orders a distribution in the future.
· Begun investigating the insurance agents and agencies that sold NLS’s investment program. One of these insurance agencies received over $1,000,000 in commissions and others received over $500,000. The Receiver plans to take appropriate legal action against these individuals and firms.
· Begun investigating the loans that Mr. Judah and Mr. Jablonski testified that they or entities related to them took from NLS. Again, the Receiver plans to take appropriate legal action involving collection of these loans.
Hearing Scheduled For
June 29, 2009 in Austin
As the Court instructed, the Receiver has seized the bank accounts
and other assets of National Life Settlements (NLS).
The Receiver has already sold
most of these assets.
The total amount of money that the Receiver has recovered from bank
accounts, escrow accounts, and sales of assets is $20,768,496.01. In
compliance with the Court’s orders, the Receiver has proposed a
claims process under which she would send a claim form to each known
investor of NLS. The
purpose of the claims process is to provide information to the
Receiver about each investor so that the Receiver can recommend an
asset distribution plan to the Court.
The Defendants, Howard Judah and Gregory Jablonski, filed
papers opposing the Receiver’s request to immediately begin a claims
process. Mr. Judah and Mr.
Jablonski asked the Court to order the Receiver to work with them
“in maintaining N.L.S. and its related entities as going concerns.”
The Receiver believes that
the Court should continue to order Mr. Judah and Mr. Jablonski to
have nothing to do with NLS or its investors.
The Receiver will urge the Court to preserve the Receiver’s
control of NLS so that the Receiver can get money back into the
investors’ hands as soon as possible.
The Court is scheduled to
conduct a status hearing regarding the receivership on June 29, 2009
at 9:00 a.m. at the following location:
The 345th District Court
The Honorable Judge Stephen Yelenosky presiding
1000 Guadalupe, 4th Floor
Investors and other interested people are encouraged to attend the
hearing, but investors’ attendance is not required. If you plan to
travel from outside of
The
Receiver will post an update concerning the results of the hearing.
Attorney General News Release
On February 13, 2009, Texas Attorney General Greg Abbott charged the owners of two investment plans with orchestrating a fraudulent scheme that targeted retirees and teachers. According to the state's enforcement action, Howard G. Judah Jr. of Houston and Gregory F. Jablonski of Castle Rock, Colorado, falsely guaranteed lucrative investment returns, misrepresented their "life settlement" policy investment offerings, failed to disclose material information to investors, and committed multiple violations of the Texas Securities Act.
Court Appoints Receiver
The District Court of Travis County, Texas ordered on Friday, February 13, 2009 that Janet Mortenson is authorized to serve as Temporary Receiver of National Life Settlements, LLC, a Texas Limited Liability Company and NATT, LLC, a Texas Limited Liability Company. The Court entered a temporary injunction and order appointing Janet Mortenson as Permanent Receiver on February 26, 2009.
On April 23, 2009, the court entered an Agreed Order Continuing Case, which sets a date for the hearing on the State’s application for a permanent injunction against National Life Settlements, LLC, a Texas Limited Liability Company; National Life Settlements, Inc., a Colorado Limited Liability Company; NATT, LLC, a Texas Limited Liability Company; Howard Glenn Judah, Jr. and Gregory F. Jablonski a.k.a. Gregory F. Joblonski. The permanent hearing is currently scheduled for 9:00 a.m. on June 29, 2009, but the date could be rescheduled. The Receiver will post information concerning the hearing date and time on this web site. Investors are welcome to attend the hearing.
Notices to Investors
On March 6 Janet Mortenson, the Receiver of National Life Settlements, LLC and certain related entities, mailed a notice to all known investors.
The State Securities Board sent a questionnaire to all know investors.