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. 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," individually, the "Estate Judgment" and the "Melton Judgment").
On September 4, 2007, the Court approved a Plan of Distribution (the "Final Plan") to distribute collections on the Estate Judgment and the Melton Judgment 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 proposed to distribute the Distribution Fund, net administrative expenses, pro rata to defrauded investors.
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.
The Administrator of the Estate has since alerted the Commission to an additional asset of Greth recently discovered - an IRA Account (the "IRA Account") holding approximately $27,000. With the consent of the Administrator, the SEC currently is in the process of applying to the Court for turnover of the funds held in the IRA Account (the "New Fund") in (partial) satisfaction of the Estate Judgment, for distribution to eligible investors. To this end, on October 31, 2017, the Court entered appointed Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the New Fund.
For more information, please contact the Distribution Agent:
Catherine E. Pappas
Telephone Number: 215-597-0657