Free Motion to Appoint Receiver - District Court of Colorado - Colorado

Case 1:01-cv-00645-JLK

Document 97-2

Filed 07/25/2005

Page 1 of 2

Criteria for Receiver's Proposal The Securities and Exchange Commission is requesting proposals from individuals to act as a receiver and distribution agent to administer the claims process in a civil lawsuit pending in the United States District Court for the District of Colorado, SEC v. Kenneth Roy Weare, a/k/a Roy Weaver, J&K Global Marketing Corp., and AAA-Auction.com, which will distribute funds recovered for the benefit of investors. The applicant should have experience with equity receiverships in federal court, low cost and efficient location of investor/claimants, low cost and efficient administration of receiverships or investor claims processes, accounting, be familiar with computer programs for Excel spreadsheets and Access data bases, have the ability to send mass emails and create a website to collect responses, and have experience processing claims. The applicant should submit bids for the work to be done including the hourly rate of each person who will work on the project. The applicant should submit a proposal outlining fees, expenses, and costs involved for the following work. 1. Based on an Access data base containing approximately 48,415 record lines of historical investor information eliminate multiple entries by the same the same person for purposes of creating a contact list to use in soliciting claims from investors. There are approximately 23,000 unique investor names. Compare Access data base to summaries of deposit items listing investors' names and identification numbers, which deposits were received in several bank accounts located in the United States, Luxembourg and Canada to determine those investors who made deposits and received back any payments in order to identify the full group of potential claimants. Devise an efficient and comprehensive method of establishing the current location of the approximately 23,000 investors. Establish a claims procedure: Determine the form of the notice to be sent to investors and the information investors need to submit to establish their claim. Set length of time for investors to submit claims. Establish the level of proof investors must submit to support their claim. Have claims process approved by Court. Give notice to investors to begin claims process: Send initial email and other communications, including advertisements soliciting claims from individuals with valid email addresses. Possibly create website to obtain initial information. Determine which email addresses are no longer valid.

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Case 1:01-cv-00645-JLK

Document 97-2

Filed 07/25/2005

Page 2 of 2

Send notice by regular mail to investors without valid email addresses and engage in appropriate follow-up to locate investor claimants. 6. 7. Receive claims from investors and evaluate the validity of claims. Prepare distribution proposal assigning investors a pro rata share of funds collected after costs of distribution plan have been deducted and submit plan to the Court for approval. Give notice to claimants of process to contest final distribution plan. Administer distribution of funds from registry of the Court in coordination with the Clerk's office and prepare any tax forms related to interest earned on the funds to be distributed.

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EXHIBIT 1

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