FinFedInfo.com

IMPORTANT NOTICE:

January 2010: The estate of Finfed has been fully administered, and all distribution checks, including 1099 forms, have been sent to the victim's last known address. The estate has a temporary part-time employee, Monica Ramdath. Pursuant to court order and budgetary constraints, the Plan Administrator will not be able to answer any questions after April 30, 2010.

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This website has been set up by John Kozyak, the Bankruptcy Trustee for Financial Federated Title and Trust, Inc., and American Benefits Services, Inc., to provide a source of information for investors who lost money investing in viatical settlements sold by FinFed and its affiliates, and any other interested parties.

  • Please use the Developments link to obtain the most currently updated information on developments in the FinFed bankruptcy case and related matters that have occurred since the Trustee's last status report.

Notice to Victims - December 18, 2008

We are pleased to announce that an interim distribution to the victims is being mailed this week. To view our status letter accompanying the checks please click here. As stated in the letter, a small, final distribution is expected in the Spring of 2009 and will conclude this sad experience.

We wish you all a Happy Holiday Season. If you have any questions regarding your distribution or have a change in address, please contact Monica Ramdath at 305-377-0661 or mb@kttlaw.com.


Notice to Victims - Posted July 23, 2008

Many of you have inquired about a time certain when this case will close and your final distribution will be issued. We know that all the victims are anxious for the final distribution to be issued, but we are not able to do so until all appeals have concluded. The appeals of the Defendants Balsam, Tirado, Lewis, Hogan and Pierce are still pending and two have already reached the United States Supreme Court Level. John W. Kozyak, Plan Administrator and Criminal Restitution Receiver, is not involved in the appeal process and has no control over these lengthy proceedings. However, we are monitoring the progress and will continue to keep you apprised of any new developments. We are hopeful the appeals will conclude late this year or perhaps the first quarter of 2009.

Please remember that all change of addresses must be sent in writing to the following:
     John W. Kozyak, Plan Administrator
     Attn: Monica Ramdath, Paralegal
     2525 Ponce de Leon Blvd., Miami, Florida 33134

Notice to Victims - Posted November 16, 2007

We are pleased to announce that distribution checks for Criminal Restitution and Bankruptcy Case were mailed to the victims of the Finfed fraud on November 16, 2007. The total percentage recovered and distributed to the victims who filed timely claims is 24.9% of the approved claim amount.

If you have questions concerning these checks, please contact Monica Ramdath at (305) 377-0661 or email her at mb@kttlaw.com. Please read our latest status letter to victim under the "Status Report" link above.

News Flash - Louis W. Ratfield, Indicted:

Several of the Finfed Victims hired Louis Ratfield, a Lake Worth Florida tax preparer, to prepare trusts. Ratfield was also Ray Levy's accountant, and John Kozyak, Plan Administrator, obtained a Judgment against him for $400,000.000.

In a separate and unrelated action, Louis Ratfield was indicted on April 13, 2006 and arrested on Fraud and contempt charges on April 16, 2006. The Department of Justice in Washington, DC announced a federal grand jury in West Palm Beach, Florida returned a 56 count indictment charging Ratfield with preparing fraudulent federal individual and trust income tax returns, corruptly impeding the enforcement of the tax laws, and criminal contempt.

Ratfield allegedly marketed common law trust packages to clients throughout the U.S. via group seminars and individual client meetings, and sold over 100 trust packages at prices ranging from $2,995 to $5,995 each. The indictment further alleges that Ratfield positioned himself to secure all tax return preparation business from his clients and prepared at least 252 federal tax returns in connection with the scheme. Once the IRS began auditing his clients, Ratfield allegedly took numerous unlawful steps to obstruct and impede the audits. According to the indictment, Ratfields conduct caused a tax loss to the U.S. Treasury of more than $6.4 million.

NOTICE May 5, 2005 - Regarding Distribution of December 2004:

Attention Victims: We mailed a distribution in December 2004, which was accompanied by a duplicate "NON-NEGOTIABLE" copy of the original check. The original check and the non-negotiable/copy were attached by a perforated line to be detached. It was our intention to provide you with the NON-NEGOTIABLE portion so that you could maintain a record of the distribution for your files. Unfortunately, we have received a number of these NON-NEGOTIABLE/copies requesting we reissue the check. Please DO NOT RETURN this non-negotiable copy provided only for your records.  All uncashed checks have already been reissued. 

On October 7, 1999, an involuntary bankruptcy petition was filed against Financial Federated Title and Trust, Inc. ("FinFed") in the Bankruptcy Court for the Southern District of Florida, Case No. 99-26616-BKC-RBR. The Honorable Raymond B. Ray, U.S. Bankruptcy Judge, granted the involuntary petition, and on October 28, 1999 John W. Kozyak was appointed as Chapter 11 Trustee. A number of other companies have been determined to be alter egos of FinFed or have been consolidated into the bankruptcy case, including Asset Security Corporation ("ASC"), Viatical Asset Recovery Corporation, and American Benefits Services, Inc. ("ABS").

Since 1996, FinFed, directly and through brokers, solicited investors to purchase interests in "viatical settlements." A viatical settlement is an investment which involves the purchase of insurance policies from terminally ill individuals at a discounted rate, such that the insured (the "viator") is able to receive a cash benefit during life, and the purchaser pays the premiums and receives the death benefits under the policy. Over $115 million in investor funds were collected through ABS and its brokers for the supposed purpose of purchasing insurance policies in connection with viatical settlements. However, only a small portion of the investor funds was actually used to purchase such policies and the vast remainder of the investor money was used in a fraudulent "Ponzi" scheme to pay other investors and to fund the lavish lifestyles of FinFed's principals and others.

The United States Attorney's Office has obtained an indictment against FinFed, ASC, and Frederick C. Brandau, the person who controlled FinFed and ASC, as well as a number of other individuals and companies including Raphael "Ray" Levy, Gary Pierce, American Benefits Services, and a Bahamian company, CSI Ag., Ltd., for mail fraud, conspiracy to launder proceeds of an illegal activity, and for criminal forfeiture of a vast amount of real and personal property seized by the Government. Fred Brandau was convicted on 43 of 44 counts of the indictment and sentenced to 55 years in prison. Ray Levy and several others recently entered guilty pleas.  Several of the other criminal defendants were convicted of a variety of charges after a trial in July 2001.

Since being appointed, Mr. Kozyak has and his professionals have undertaken extensive efforts to investigate the activities of FinFed and its various affiliates and alter egos, to recover and protect assets, and to pursue recoveries on behalf of the investors who were the victims of the FinFed fraud.  On June 20, 2001 the Bankruptcy Court entered an Order confirming Mr. Kozyak's Chapter 11 Plan, which provides for the administration, liquidation and distribution of the assets of FinFed, ABS and their alter egos.  Mr. Kozyak continues to serve as the Plan Administrator of the Chapter 11 Plan.


Status Reports

The developments in the case have been described in a number of status reports which are reproduced on this website.

If you have any questions about the case or require additional information, please contact the Trustee's paralegal,  Ms. Monica Bruce Ramdath:

By Mail:

Kozyak Tropin & Throckmorton, P.A.
Attn: Ms. Monica Bruce
2525 Ponce De Leon Blvd., Miami, Florida 33134

By Phone or Fax:

(305) 377-0661 / Fax: (305) 372-3508

By E-Mail:

Ms. Monica Bruce mb@kttlaw.com

 

Other Sources of Information:

Department of Justice
The U.S. Attorney's Office maintains a website with a copy of the indictment and other information about the FinFed criminal case.
Department of Banking and Finance  
The Central Florida Regional Office of the Florida Comptroller's Department of Banking and Finance has additional information about its actions against ABS and its brokers.
United States District Court, West Palm Beach
The home page for the federal court in West Palm Beach where the criminal trial and sentencing hearings have been conducted.  The website includes a map and driving directions.
Internal Revenue Service
You may call the IRS to obtain tax information on how any investment losses sustained may impact your Federal income tax liability.  If you have experienced an undue hardship as a direct result of these losses, you may request to speak with the appropriate personnel who will further discuss your situation.  To request assistance 24 hours a day 7 days a week, call 1-800-829-1040.

 

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