Mr. Hays was appointed as the Fund Administrator on July 7, 2009 to conduct claims procedures, develop a plan of distribution and effectuate a distribution of fund to investors for Tri-Star Investment Group, L.L.C. a/k/a Tri-Star Investment Group (“Tri-Star”). On December 10, 2002, the Securities and Exchange Commission (“SEC”) filed a lawsuit in federal court in Atlanta, Georgia, against Defendants James L. George, Paul E. Brodhagen, and Michael J. Wright relating to their roles as facilitators of a fraudulent securities offering involving Tri-Star. The Court has now entered Final Judgments against each of the Defendants requiring Defendants George and Wright to make payments into the Registry of the Court of civil penalties and a disgorgement of the profits they gained in the scheme, as well as pre-judgment interest. Defendant Brodhagen was not required to make such payments due to his demonstrated inability to pay.
Defendants George and Wright have now paid the full amounts required by the Final Judgments entered against them into the Registry of the Court. As a result, the total amount of the Registry Funds as of May 29, 2009, was $341,301.91. On July 7, 2009, the Court appointed Mr. Hays to act as the Funds Administrator in the case to oversee the administration and distribution of the Registry Funds to defrauded investors in the Tri-Star scheme.
INVESTOR UPDATE ON MAY 20, 2010
The Funds Administrator filed a motion for approval of distribution on April 21, 2010. The Funds Administrator issued checks for allowed claims. The distribution is 3.78% of allowed claims.