General Information and Documents for ABC Viaticals, Inc.

中文 - Chinese

June 14, 2007

A number of investors have contacted the Receiver and the Examiner with regard to the work done to date and the fees and expenses being charged. This update is only a summary of the most important efforts and accomplishments to date. Please understand that each of these undertakings is significant.

1. The Receiver has seized, taken possession and safeguarded all of the assets of ABC Viaticals, including all records, data bases, and the like. All operations have been closed, all offices emptied, and all personnel terminated.

2. Both the Examiner and the Receiver have established websites for the investors' benefit - www.abcexaminer.com and www.secreceiver.com. The information on both websites are available in English and Chinese. The Examiner and Receiver have also taken steps to allow ongoing communication with investors in both languages.

3. An immediate analysis was done of the cost of the insurance and all costs of maintaining the policies were reduced to the absolute minimums. This involved a substantial analysis of about 50 policies and much administrative time working with the insurance companies to make these arrangements. Costs were reduced from approximately $10 million to $7.5 million a year to keep the portfolio alive. As a result, the Receiver is current on all premium obligations for those policies.

4. As all the policies were held in the name of individual trusts, the Receiver prepared and filed a motion to expand the scope of his reach to all these trusts so that the policies would all be there for the investors.

5. The premium cost was about $9 to $10 million a year in the beginning. ABC only had $4.5 million in cash when the Receiver took over. Without ABC defrauding a lot of new investors, there would not have been sufficient money to pay the premiums. If not paid, the polices would lapse and investors would get nothing. With out the intervention of the SEC and the appointment of a Receiver, more investors would be harmed. To be sure that the portfolio was not lost as a result of the failure to pay premiums, time has been spent locating a lending source, negotiating a loan package, getting approval from the court for same and thus providing for a means to keep the assets in place so investors have a hope of some return. In that regard, a 9 million dollar line of credit is in now place to pay those premiums. Again, these are time consuming events which if they had not occurred, investors would get nothing.

6. A substantial amount of time has been invested in evaluating the alternative strategies that can be used to maximize the return to investors. The strategies being considered are in the February 8, 2007 update of www.abcexaminer.com. This analysis continues.

7. A substantial effort has been made to bring the records current on all policies so that they can be considered for sale. No decision has been made to sell any policies, but as that is one of the strategies outlined on the website, information has to be gathered to bring the state of the policies current. The Receiver and Examiner have been in contact with interested parties who may want to purchase one or more of the policies to determine the state of the market at present.

8. An extensive claims form and process has been developed, approved by the court and implemented. Investors all over the world have been notified of the process and their need to respond. Again, this involves over 3000 people in many countries and three languages and is not a simple matter.

9. An investigation of the bonding companies has been undertaken. The Receiver and Examiner are convinced that the IFS bonds are worthless. Suit has been filed against IFS and its agents in the US and a restraining order entered preventing them from hiding or secreting assets that the Receiver may be able to recover for the benefit of the investors. All events relating to this lawsuit are reported in English and Chinese at www.secreceiver.com. The Receiver is about to embark on an investigation of the Albatross bonding company to determine whether it will pay as agreed.

10. Suits have been prepared for filing against others involved in this matter for the recovery of assets that will benefit the investors.

11. The Receiver is in the process of expanding the Receivership to include the principals of ABC, including the LaMondas and all their assets, houses, etc. to provide more assets from which to reimburse investors.

This is a summary. A lot has been accomplished. Most importantly the assets that you invested in have been saved from total loss and a means established to keep them in place while the best strategy is devised to get the most money for the investors is decided.

The Receiver and the Examiner regret that the process takes the time that it does. We know that it is frustrating for you and others like you. We wish that we could tell you that it will all be over soon but that is not the truth. The Receiver and the Examiner are in the final days of another very similar life settlement receivership where we returned to investors the highest return on record of any of these types of matters. We are committed to helping you get the most back from you investment but it is not a process that happens quickly or without cost.

Thank you for your continued patience.