Indianapolis, Indiana
January 8, 2002
An announced goal of the Receiver was to make an initial distribution of funds to investors at the end of 2001. In keeping with this goal, last December the Receiver filed and presently has pending before the Court a motion to make an initial distribution of $1,000,000.00 to all creditors with allowed claims. This payment will equal approximately $0.03 for each dollar of claim.
It was anticipated that this payment would be made by the Receiver in January of this year, however, the sudden guilty plea of Kenneth Payne on January 7, 2002, and certain unresolved matters related to Payne’s sentencing have required the Court to continue final hearings related to the distribution. The Receiver now believes that it is likely that the proposed distribution will occur sometime around the end of February or the 1st of March.
Mr. Knauer thanks all of the investors for their patience and assures them he is doing all that he can to arrange for the anticipated distribution as promptly as possible. He also states that it is now his goal to make a second distribution yet this year. Once the procedures required to make the first distribution have been completed, subsequent distributions will not require nearly the time and amount of paperwork involved in the first one.