General Information and Documents for ABC Viaticals, Inc.

中文 - Chinese

September 17, 2007

The activities of the Receiver continue on a number of important issues.

Claims:

The Receiver believes that all investors have received a claim form. He estimates that about 95% of the claims forms have been returned from the Taiwanese investors, about 90% of the claim forms have been returned from the Puerto Rican investors and that substantially all of the domestic investors have returned the forms. The Receiver is now engaged in the slow process of reviewing each of the thousands of claims forms to verify the amount and proof of the claims made. Once a large group of claims is approved by the Receiver, he will file a motion with the Court to get Court approval of the amount of the claims. This process will continue until all of the claims have been approved by the Court. It is very important for all to understand that the Receiver cannot make a distribution of any money until ALL of the claims have been approved by the Court. The reason is simple - the Receiver cannot know what share each investor is entitled to until he knows the total of all claims. This is a lengthy process.

Litigation:

Goldenberg / IFS / KPMG - As you know the Receiver has filed suit against IFS, its principal agents in the United States ( Goldenberg, Wolock and Kotler) and the IFS accounting firm, KPMG. IFS has failed to answer and a default judgment has been taken against IFS for approximately 48 million dollars. A similar non-discharable judgment has been taken against Wolock. Goldenberg has agreed to an order to provide information to the Receiver and that process continues. KPMG has just recently been served with the law suit and is expected to either answer or contact the Receiver shortly.

Kaplan - The Receiver sued one of the largest brokers of the ABC product. Donald S. Kaplan filed a number of motions trying to dismiss or remove the suit to California. All of his motions have been denied and the suit will proceed in the court administering the Receivership.

Erwin & Johnson - The case is proceeding. Nothing new to report.

Bonding Companies:

IFS - The Receiver and Examiner have previously reported that the investigation of this business indicates it is a total fraud and that no funds can be expected from this company. Two of its owners, Goldenberg and Wolok, have been indicted on criminal charges and arrested in connection with another viatical case unrelated to ABC.

Albatross - Early indications from the investigation by the Receiver indicate that Albatross too is a fraud. The Receiver is withholding a full explanation of his early conclusion until more facts can be gathered. However, this is not good news for the Receivership or the investors.

Lamonda:

The sentencing hearing for the LaMondas has not concluded. The government agreed to move the date. They are set for continued sentencing hearings in September and we will keep you posted on the decision of the judge. The LaMondas' assets are being gathered and sold and the funds will be added to the Receivership.

Portfolio Sale:

It is clear to the Receiver that all or part of the portfolio needs to be sold. With the preliminary indications being that the bonding companies are fraudulent and there being no maturities at this time, either some or all of the portfolio will need to be sold. The Receiver is considering creating a series of groupings or traunches of the policies and placing those on the market to obtain competitive bids for each. This method will allow the Receiver and the Court the opportunity to understand how the highest value can be obtained for the policies actually sold. It is still a strategy of the Receiver that it may be wise to sell part of the portfolio, make a partial distribution and hold the balance to maturity in order to achieve the highest level of return for the investors. It is the Receiver's goal to have the information on these groups of polices updated as much as possible, on the market and offers obtained by the end of this year. All sales will have to be presented to the Court and approved before they are closed.