Free Response in Opposition to Motion - District Court of Arizona - Arizona

t ORIGIIIAI,
I _` .. .__, Irrnro _ {-\ ; ’
GUTTILLA & MURPHYA · f
A Professional Corporation
° ( 4150 Wesr Nonrmznn Avenue
_ - · PHOENlX,ARlZONA 85051 ~ I
(623) 937-2795.
. I FAX (623)937-6897 _ I , oumo. 0835-002 - ‘
in I · I April 22,.2004 A V _ 2
A Burton M. Bentley V A :;;:1: FII ¤:=·R2e li =
5343 North 16th Street . . _ V
° I Suite 480 . V V
Phoenix, Arizona 85016 I . ` A
` Re: International Funding Receivership - V A
. Recovery of Assets
- A Dear Mr. Bentley: I ` _
Enclosed is a copy of a two page document that you produced to us today as part of your I
clients’ Rule 26.1 Disclosure Statement. In the last paragraph Ron Holt acknowledges that there
are funds being held in Switzerland; These funds are obviously the $3 million that Mr. Holt has
A I V previously admitted transferringoffshore and are no doubt the same funds he offered in
settlement a few weeks ago.
As your client well knows, he is required by the Preliminary Irzjunction (XI VII) to
V repatriate all iimds held offshore to the United States and then under the Amended Order
Appoirzting-Receiver (11 3) to turnover those funds to the Receiver. Similar obligations are l
imposed on him by- the court orders in the CFTC Action. Accordingly, the Receiver demands
that your client immediately repatriate the above funds and tum them over to the Receiver.
The turnover to the Receiver should be accomplished by having the funds wire
transferred to the Receivership account using the following coordinates:
¢ V Receiving Bank Name and Address:
_ _ JP Morgan`Chase Bank · _
- · 4 New York Plaza
17*** rim V i
V New York, New York 10004 I
‘ Account Name: . n ‘
· Intemational Funding Assoc, et al.
Bank Account Number: r
. 312-9598903-65 _ ; _
. I r EXHIBIT; I ».»i Y I B
· _ CHASUS33 ` < . IV V q I A
. ° A ,_
Case 2:O3—ov—O1826—PGFI Document 116-2 Filed O2/06/2006 Page 1 of 4

`A , Burton M. Bentley “ 1 A T ` A
‘ April 22, 2004 ‘ _ - - A 1
Page 2 - A A ` A
Please provide me with a copy-of the wire transfer instructions. if thesefunds are not A _- ` A
promptly turned over to the Receiver, he will file a petition to have Mr. Holt held in contempt of
A court. As I am sure you know, the CF TC has already filed such a motion in its case. »
‘ o truly yours, .·· R l ‘ l
·· ‘ Q Patrick M. Mu ' r
PMM:cma - V V ‘ li
Enclosure T .
cc: Lawrence 1. Warfield, Receiver (w/enclosure)
Marshall M. Gandy, Securities and Exchange Commission (w/enclosure) ` _-
A Timothy J. Mulreany, Commodity Future Trading Commission (w/enclosure) °
_' ` A Y Ryan W. Anderson (w/out enclosure) A - A
· zezsv n V » . e
Case 2:03-cv—O1826—PGR Document 116-2 Filed O2/06/2006 Page 2of 4

v I ` ` l j"; 1 `· IT — V . `
I Re: AUDIT OF SEC EVIDENCE COMPUTER DISC ‘ I _ l `
Prior to my deposition with the SEC, CFTC, IFA,-etc. two weeks ago, weheld a . I 3
` discussion on a possible settlement. Since then anintense review has occurred of the . .
International Funding Association and Cambridge Global Group evidence computer disc
submitted by the SEC. . · 1
We used the copy of the disc identified as SES vs. Holt, that your office I
I - provided to me containing a supposed summary of Association activity and financial 1
A . I history. ‘ - · i
, I ` _ Review guidelines were as follows: I I A
» V 1. Identify cash in. _ r
- ‘ 2. Identify cash out. .
3. Identify open or outstanding accounts V
4. Identify paid off or closed accounts. -
V Using these guidelines each account was audited. Two lists were then prepared;
· 1. A list showing the total cash in and cash out of all accounts-. _
. 2. A list of accounts that had been paid back less than the amount `
placed in.
A The individual audited totals are provided asfollows: · l
I I P 3 5 _ I. Total-Account Activity . _
- I _ . Cambridge Global Group Intemational Funding Association. 3 3 ‘ - . -
‘ Cash In Cash Out I n Balance Cash In . Cash Out Balance ‘ `
_ A 2,822,3.08Wm. .1,171,262 1,653,691 22,646,566 24,874,278 (2,227,712) ‘
h H. Only Less In than Out Accounts n
Cambridge Global Group _ Intemational Funding Association _
Cash In I Cash Out Balance Cash In Cash Out Balance I _ r
2,223,198 270,251 1,953,096 13,273,372 4,837962 - 8,889,410 ‘ V .
_ Case 2:03-cv—O1826—PGR l Document 116-2 ‘ Filed O2/06/2006 Page 3 Or 4
I a I 1 _ p A Hour 0106

CONCLUSIONS: A I ` Q I
1. The Total Net Program Activity itemizes an overage amount of $574,021 paid · _
I out to the total Intemational Funding Association membership. .
_ _ Exchange In $1,693,691 less Out ($2,227,712) =$574,021 i
2. The Net Program of only accounts paidout less than paid in shows an .
_ - outstanding amount of $10,842,506.
Cambridge Balance $1,953,096 add IFA $8,889,410 = 10,842,506 _ _
. 3_ I Transfer monies out exceeded transfer in monies and are shown as deposits. A
- In numerous occasions there were monies shown as being transferred out of r
one account going to. another account and we were unable toidentify the
account that it was transferred to. This therefore indicates that deposits totals
may not be correct. ` ‘
l` A 3. Closed accounts were marked as closed; closing balances were shown - I
p _ t calculated on the account, yet several accounts did not show a date when the
g ` g payoff was sent to the account holder. » _ _ ~
I Burt please evaluate this information and advise as to what you would propose now. Are I
l we able to get a settlement based upon Total Net (OVERAGE) Amount? I don’t have
any money. Will the court accept the Swiss guy with the IFA Money Account as
settlement? I will get the above-discussed 102-page printout of each summary to you
Ron Holt I · n · C .
` l Case 2:O3—cv—01826—PGFi Document 116-2 Filed O2/06/2006 l Page of 4 ` · `
I ‘ . I- I Q A . HOLT 0707

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