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U.S. Securities and Exchange Commission

Universal Express, et al.

On March 24, 2004, the SEC filed an action against Universal Express, Inc., Richard Altomare, Chris Gunderson and four other defendants. For more information about the SECís action, see Litigation Release Nos. 18636 (Mar. 24, 2004) and 20165 (June 25, 2007). On February 21, 2007, the Court granted the SECís motion for partial summary judgment against Universal Express, Altomare and Gunderson. On August 31, 2007, the Court appointed Jane W. Moscowitz, Esq., as Receiver to take control of the business operations of Universal Express.

In August 2007, the Court also commenced contempt hearings against Universal Express, Altomare and Gunderson.† On April 18, 2008, the Court issued an Opinion and Order finding defendant Richard A. Altomare in contempt of the Courtís March 2007 judgment against him.† Altomare was ordered to surrender to the United States Marshal on May 2, 2008 to be incarcerated until his contempt is purged, unless he pays the full disgorgement and prejudgment interest owed under the Courtís prior judgment before that time. Altomare surrendered on May 2, 2008 and remained incarcerated until July 23, 2008, when the Court released him based upon its finding that he lacked the present financial ability to pay the judgment. In its Order, the Court noted that Altomare remains obligated to pay the judgment and, on August 15, 2008, the Court issued an Order freezing Altomareís remaining assets.

The Receiver has filed three reports with the Court, the First Report on September 28, 2007, and the Second Report on November 14, 2007 and the Third Report on July 1, 2008.

The Court has approved the Receiverís recommendation for the sale of certain unprofitable subsidiaries of Universal Express and has ordered Altomare to turn over to the Receiver a collection of Michael Jackson master tape recordings. Additional materials on the case can be viewed in the Courtís public files in the U.S. District Court for the Southern District of New York.

On November 13, 2008, the United States Court of Appeals for the Second Circuit issued an Order affirming the District Courtís grant of partial summary judgment against Universal Express, Altomare and Gunderson.

The Receiver has collected minimal funds to date, and a distribution to investors is not likely in the near future. The Receiverís work is continuing. If you have a question, you can contact the Receiver at:

Moscowitz & Moscowitz, P.A.,
Mellon Financial Center
1111 Brickell Avenue, Suite 2050
Miami, FL 33131

http://www.sec.gov/divisions/enforce/claims/univerxprs.htm


Modified: 12/03/2008