This is a lawsuit by the Receiver against numerous individuals and entities, who functioned as brokers/agents with respect to the fraudulent Hammersmith Trust and Microfund programs. Each broker/agent was paid handsomely for his/her efforts to induce unsuspecting investors into the program and the Receiver seeks to recover the funds paid to them. The aggregate amount sought is $5,386,817.00.

On December 7, 2000, the Court approved a $30,000.00 settlement between the Receiver and Michael Klein. On December 12, 2000, the Court entered an Order of Dismissal as to Adam Shaw because of his bankruptcy filing. On March 20, 2001, the Court entered an Order of Dismissal as to Larry Lewis. On April 30, 2001, the Court issued an Order approving a settlement in the amount of $26,993.65 between the Receiver and Simplified Communications.

As a result of the failure of several of the other Defendants to file an answer after they were served, the Receiver requested the entry of a default judgment against them. On February 6, 2001 the Court entered a Default Judgment in favor of the Receiver against Thomas and Linda Smith, Bancorp Mortgage, Inc., Rick Sherrill and Murray Stucker. On August 14, 2001, the Court entered a Default Judgment against Chatham International, Inc. and Caton & Associates, Inc.

On March 7, 2001, the Court issued its Order requiring the Receiver to file a Litigation Budget. On April 5, 2001, the Receiver filed his Litigation Budget. It can be viewed below. On April 16, 2001, the Court issued its Order regarding the budget.

As of this time, all defendants have been served. Defendants, Chris Carlson, Jeffrey Matz, Thomas McCrimmon, Chatham International, United Holdings, Greg Skibbee and Leon Hurst have all filed answers to the lawsuit. They can be viewed below. As a result of the conviction and sentencing of Jeffrey Matz, the Receiver filed a Motion to Dismiss him without prejudice. On August 15, 2001, the Court issued an Order of Dismissal.

On May 2, 2001, the Court issued an Order requiring the parties to meet and prepare a proposed scheduling order. On May 17, 2001, the Court issued an Initial Scheduling Order. On June 5, 2001, the Receiver filed an Amended Complaint. As a result of the judgments referenced above and the settlement referenced below, no matters remain for the Court to try and so on September 18, 2002 the Court approved an Order administratively closing the case. The only remaining activity relates to attempting to collect on judgments.

After answers were filed by the Defendants indicated above, the Receiver entered into settlement discussions with several of them. An agreement was reached between the Receiver and Leon Hurst pursuant to which an Agreed Judgment was entered against Mr. Hurst in the amount of $450,000.00. An agreement was also reached between the Receiver and Greg Skibbee pursuant to which Mr. Skibbee is to pay the Receiver a total of $20,000.00. On October 5, 2001, the Receiver filed a Motion to Approve Compromise and Settlement with respect to Greg Skibbee and on October 24, 2001, Judge Lynn issued an Order approving the settlement. An agreement was also reached with Thomas McCrimmon as a result of a mediation. On November 13, 2001, the Receiver filed a Motion to Approve Settlement Agreement with Thomas McCrimmon. On December 7, 2000, Judge Lynn issued an Order approving the settlement. In accordance with the agreement, on January 24, 2002, the Court entered an Agreed Judgment in the amount of $415,000.00 against Thomas McCrimmon in favor of the Receiver. On September 3, 2002 the Receiver filed a Motion to Approve Settlement Agreement as to Chris Carlson. On September 17, 2002 the Court issued an Order approving the settlement.

On May 15, 2001, the Receiver filed a Motion to Impose Costs against the defendants who evaded service. On May 16, 2001, the Court issued an Order setting the matter for hearing. After the hearing, the Court issued its Order regarding the matter.

On September 18, 2001, the Court issued an Order requiring the Receiver to file a litigation budget with respect to a lawsuit pending in the United States District Court for the District of Arizona styled National Union Fire Insurance Co. of Pittsburgh, Pa. v. United States Holdings, L.L.C., et al.; Cause No. 01-0657-PHX-JWS (the "Phoenix Lawsuit"). The Phoenix Lawsuit relates to Jeffrey Matz, one of the Defendants named in this lawsuit. More information regarding the Phoenix Lawsuit can be found in the lawsuit section of this web site. On October 1, 2001, the Receiver filed his Litigation Budget relating to the Phoenix Lawsuit. On October 2, 2001, the Court issued an Order Setting Hearing and on October 18, 2001, the Court issued an Amended Order Setting Hearing. On November 15, 2001, the Court issued an Order approving the litigation budget.