Alanar Receivership

June 30, 2009

Criminal Charges Filed Against the Reeves Defendants

On June 30, 2009, the Sullivan County (Indiana) Prosecutors office filed criminal charges alleging securities fraud against the four Reeves Defendants.  The filing of these criminal charges was a collaborative effort of the Securities Division of Indiana Secretary of State Todd Rokita’s Office, the Office of Sullivan County Prosecutor Robert Hunley and the Indiana State Police.  Information regarding the status of the criminal proceedings may be found on the following websites:

Sullivan County Prosecutor’s Office

            http://www.sullivancountyprosecutor.com/alanar-information

Securities Division, Indiana Secretary of State

            http://www.in.gov/sos/alanar/

U.S. District Court Adopts Trade Creditor Claims Procedure

On June 12, 2009, the United States District Court for the Southern District of Indiana entered an order granting the Receiver's request to adopt a trade creditor claims procedure. Information regarding the trade creditor's claims procedure is being mailed by the Receiver to all known trade creditors and bond issuers. Notice will also be published in the national edition of a major national newspaper. In addition, information regarding the trade creditor's claims procedure, including directions on how to submit a claim, may be viewed by clicking on the following links:

Order Adopting Trade Creditor's Claims Procedure

Trade Creditor's Claims Procedure

Letter to Trade Creditors

Trade Creditor Proof of Claim Form

U.S. District Court Grants Receiver's Request to Make Distributions to Investors in Category A Bond Issues That are Fully Paid Off

On June 11, 2009, the U.S. District Court for the Southern District of Indiana entered its order granting the Receiver's request to make distributions to holders of certain Category A bonds. The Court's order authorizes the Receiver to make distributions to the investors in the Category A bond issues that are now fully paid off. Eligible bondholders will soon be sent the necessary paperwork that should be completed and returned so that they may receive payment. The Court's order may be viewed here.

Court Grants Receiver's Motion for Authorization to Make Initial Distribution to Investors in Category B Bonds and Bond Funds

On January 9, 2009, the U.S. District Court for the Southern District of Indiana granted the Receiver's motion for authorization to make an initial disbursement of $10 million of pooled funds to investors in the Category B bond issues and the Churchmen's Bond Funds. A copy of the Court's Order may be viewed here. Initial payments were sent to investors in mid-February.

Bradley W. Skolnik

Alanar Receiver