| June 25, 2007
To All Investors and Creditors
Re:Securities and Exchange Commission v. Global Online Direct, Inc.; Bryant E. Behrmann; and Larry "Buck" Hunter, United States District Court, Northern District of Georgia, Atlanta Division, Civil Action No. 1:07-CV-0767-WSD
Dear Investors/Creditors:
On June 4, 2007, the United States District Court for the Northern District of Georgia, Atlanta Division (the "District Court") appointed me as Receiver to take control of Global Online Direct, Inc., and their subsidiaries and affiliates (collectively, the "Global"). Based on the District Court's Orders, all assets of Global and Defendants Bryant E. Behrmann ("Behrmann") and Larry "Buck" E. Hunter ("Hunter") (collectively, "Defendants") and their subsidiaries and affiliates are frozen and all actions against Defendants, including but not limited to any effort to enforce claims through self-help or other means are expressly prohibited without prior approval of District Court. In other words, claims against Global, Behrmann, Hunter or their subsidiaries or affiliates and efforts to take possession of or to assert a lien interest in the property of these entities is prohibited.
Prior to my appointment as Receiver, on June 4, 2007, the United States Securities and Exchange Commission (the "Commission") filed a lawsuit in the District Court against the Defendants. In its lawsuit, the Commission alleged that the Defendants had been conducting an investment scheme from 2005 through the present in which they engaged in the unlawful sale of securities to investors raising more than $15,000,000 from 8,000 investors. Among other things, the Commission alleged that the Defendants promised annual returns of more than 1103% on investments over $10,000.
On April 5, 2007, the District Court granted its Order Granting Preliminary Injunction and Ordering Other Ancillary Relief ("April 5, 2007 Order"), enjoining Defendants from violating Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act").
On June 4, 2007, the District Court modified certain provisions of the April 5, 2007 Order, granted an order appointing me as a Receiver for Defendants, freezing all their assets, ordering other ancillary Relief and prohibiting further fraudulent activities alleged in the Commission's complaint ("Order").
As the Receiver, one of my principal responsibilities is to locate, recover and preserve the assets of the Defendants and their subsidiaries and affiliates. Accordingly, my initial work has been focused on the marshaling of assets, analysis of the books and records of the Defendants and the evaluation of the alleged business operations. At this time, I have made no recommendations to the District Court as to whether Global can or should be operated or liquidated. Before any steps are taken to sell or liquidate the Defendants or their assets, notice will be provided to creditors and investors and I will seek Court approval.
Following the guidelines set forth in the Order and local court rules, in a few weeks I shall file an inventory report with the District Court and a copy of that inventory report will be found in the records of the United States District Court as well as on the website for Global located at http://www.grassmueckgroup.com/global_online.php.
We are in the process of evaluating the assets described in this inventory.
Given the status of the District Court proceedings as well as the Receiver's investigation, I am not in a position to make an estimate as to the timing or the amount that may ultimately be distributed to creditors and investors, if any. If assets are discovered that will yield a return to investors or creditors, you may receive notice of the claims procedures, the date for filing claims and any District Court hearing regarding the Receiver's distribution plans. Again, it is too soon to estimate whether such process will be warranted or the timing of such process.
In the meantime, you will receive periodic updates regarding the status of this matter. However, please note that the cost of such communication is extraordinary in light of the fact that there may be in excess of 8,000 creditors and investors worldwide. Given the cost associated with such mailings, we will only advise you of significant matters that affect your interests and such communications may be limited to email postings and updates on our website. I would encourage you to follow the case by using the website established for Global, or to review the records at the District Court. To facilitate this, we will post significant pleadings and other updates on this website.
In order to facilitate communication, I will be holding conference calls starting this week. Due to the number of callers expected and the limitations of technology, there will not be any opportunity to ask questions and each call will be limited to the first 1000 callers. If the line is busy when you call, please call back at a later time. Note that each of the calls below will discuss the same information and therefore it is not necessary to attend more than one call. All call times are listed in Pacific-Standard time and use United States phone numbers. If you are calling from out of the country, it will be necessary to first dial the country code (011).
| Day | | Time
(Pacific DaylightTime) |
| Call In Number |
| Passcode | | June 27, 2007 |
| 9:00 AM (PDT) |
| 605-772-3500 |
| 484409305# | | June 27, 2007 |
| 9:30 AM (PDT) |
| 605-772-3500 |
| 431677189# | | June 28, 2007 |
| 1:00 PM (PDT) |
| 605-772-3500 |
| 485180054# | | June 28, 2007 |
| 1:30 PM (PDT) |
| 605-772-3500 |
| 470863308# | | July 2, 2007 |
| 3:30 PM (PDT) |
| 605-772-3500 |
| 496003722# | | July 2, 2007 |
| 4:00 PM (PDT) |
| 605-772-3500 |
| 423454588# | | July 3, 2007 |
| 9:00 AM (PDT) |
| 605-772-3500 |
| 464370468# | | July 3, 2007 |
| 9:30 AM (PDT) |
| 605-772-3500 |
| 456357385# |
If you have any questions after the conference call, please email them to the address listed below. We will use the questions as the basis for a second round of conference calls to answer the most commonly asked questions.
Sincerely,
Michael A. Grassmueck
Receiver
P.O. Box 3649, Portland, Oregon 97208-3649
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