In the Matter of Donald Matthew Greth, et al.
Case No. 05-cv-05040-RMB-AMD (D.N.J.)
On October 21, 2005, the Commission filed this action (the “Civil Action”) against Donald Matthew Greth (“Greth”) and Brenda B. Melton (“Melton”) (collectively, the “Defendants”). The Commission alleged in the Complaint that, from at least June 2003 through 2005, Greth and Melton engaged in a fraudulent scheme to deceive investors by misrepresenting and omitting material facts in connection with the offer and sale of shares in a fictitious “Christian” investment fund run by Greth. The Commission further alleged that the Defendants conducted a Ponzi scheme, using money obtained from new investors to pay prior investors and to enrich themselves. See Complaint. Greth died and on January 27, 2006, the Court granted the Commission’s motion to substitute his Estate for Greth as a defendant.
By final judgments entered by consent on February 23, 2007 and May 25, 2007, respectively , the Court ordered the Estate and Melton to pay a total of $1,396,965.74 in disgorgement and prejudgment interest (collectively, the “Final Judgments”). See the Estate’s Judgment and Melton’s Judgment.
On September 4, 2007, the Court approved a Plan of Distribution (the “Final Plan”) to distribute collections from the Final Judgments, plus accrued interest (the “Distribution Fund”). The Court also appointed Catherine E. Pappas, a Commission employee, as the distribution agent (the “Distribution Agent”). The Final Plan provides for the distribution of the Distribution Fund, net administrative expenses, pro-rata to harmed investors. See the Court’s Order and the Final Plan.
On August 27, 2009, expecting no additional collections on the Final Judgments, the Distribution Agent filed the final accounting for the Distribution Fund. Of the $557,808 held in the Distribution Fund, the Commission distributed approximately $513,000 to 230 investors and paid approximately $42,000 in expenses, including $35,000 to Estate counsel. See the Final Accounting.
The Administrator of the Estate has since alerted the Commission to an additional asset of Greth – an IRA Account holding approximately $27,000 (“New Fund”).
On October 31, 2017, the Court entered an order that appointed Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the New Fund.
With the consent of the Administrator, on December 5, 2017, the Commission filed a motion seeking an order from the Court directing the Administrator turnover the funds held in the New Fund in (partial) satisfaction of the Estate Judgment and authorize an additional distribution of the funds to eligible investors in accordance with the Final Plan. See the Commission’s Motion and Memorandum of Support.
On December 21, 2017, the Court granted the Commission’s motion and entered an order directing the Administrator turnover the additional assets of Greth, and authorizing the distribution of the New Fund to harmed investors in accordance with the previously approved Final Plan. See the Court’s Order.
For more information, please contact the Distribution Agent:
Catherine E. Pappas
Telephone Number: 215-597-0657