FOR RECEIVER'S USE ONLY
This form is for the use of persons who purchased the common stock of Market America, Inc. on certain days in 1994, 1995 and 1996 for the purpose of making a claim on a fund established in a case brought by the U.S. Securities and Exchange Commission, entitled SEC v. Gilbert A. Zwetsch and James H. Ridinger, in the United States District Court for the District of Columbia on May 4, 1999.
The SEC alleged in its complaint that Zwetsch and Ridinger violated the antifraud and reporting provisions of the federal securities laws with respect to, among other things, a manipulative scheme involving the securities of Market America, Inc. Without admitting or denying the SEC's allegations, Zwetsch and Ridinger consented to the entry of a court order that enjoined them from future violations of the federal securities laws, imposed fines against them and ordered them to pay $1,791,634 in disgorgement and pre-judgment interest to be put into a fund to be distributed to defrauded investors pursuant to a plan of distribution.
On April 29, 2002, the Court approved the SEC's plan of distribution and appointed Jerry A. Isenberg as Receiver of the fund to administer its distribution. The Court Order is attached hereto as Exhibit B.
Among other things, the Court Order provides that persons who were "net buyers" of the common stock of Market America, Inc. on certain specified days ("Eligible Purchase Dates") who paid more than a defined Estimated Fair Market Price on those days are eligible to receive a distribution from the fund.
The Order sets forth a procedure that would have required purchasers that both bought and sold the common stock of Market America, Inc. on one of the Eligible Purchase Dates to establish their status as "net buyers" by using a first-in-first-out method that would net the earliest sales against the earliest purchases. Pursuant to a further provision of the Order that permits the Receiver, after consulting with the SEC, to modify the procedure set forth in the Order to effectuate its purposes, the Receiver determined to net all purchases and sales on an Eligible Purchase Date, without reference to the timing of such purchases or sales. The Receiver also determined, after consultation with the SEC, to use an average purchase price for all purchases on an Eligible Purchase Date to be used to compare against the Estimated Fair Market Price for net buyers.
For you to be eligible to participate in the fund, the Receiver must actually receive this form by no later than 5:00 PM, Eastern Standard Time, on Friday, April 11, 2003. Please allow enough time in sending the form so that it will arrive in time. Any claim that would result in a total distribution of less than $25 will be DENIED.
By signing and returning this Claim Form you are certifying to the truth and accuracy of the information set forth herein.
If the space provided below is insufficient, please feel free to attach additional pages for your responses. Please use a separate form for each account in which you invested. Please copy this form as needed or request that we send you more forms.
2. Mailing Address:
3. Business Phone Number:
4. Home Phone Number:
5. Facsimile Number:
6. E-mail address (if available):
7. Account #:________________
8. Social Security/Tax ID#:
9. Provide the following information for all your purchases and sales in the common stock of Market America, Inc. on the dates listed:
(Exclusive of Commissions)
|# of Shares Purchased||# of Shares Sold on the Same Day|
If you did not purchase shares of Market America, Inc. common stock on any of the dates listed above you are not eligible for a distribution.
10. You must include with this form a copy of the following: All account statements, confirmations, or other reliable documentation evidencing the purchases and sales referenced in Item 9 above.
11. If the account holder that purchased the common stock of Market America, Inc. is an entity, list all persons, or attach a list of persons who directly or indirectly hold beneficial interests in such entity. Please provide documents sufficient to establish your authority to act on behalf of the entity.
12. If you are making a claim on behalf of an estate, trust or similar entity, as a custodian, or on behalf of a person not able to assert a claim on his or her own behalf, please provide documents sufficient to establish your authority to so act.
Return this completed and signed Claim Form, together with all
requested supporting documentation, to:
Jerry A. Isenberg, Esq., Receiver
1717 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
so that it is ACTUALLY RECEIVED no later than Friday, April 11, 2003 at 5:00 PM (Eastern Time). FACSIMILE AND ELECTRONIC COPIES OF THIS FORM
WILL NOT BE ACCEPTED.
To receive an acknowledgement of the receipt of this Claim Form, please enclose a stamped, self-addressed postcard.
IT IS A VIOLATION OF UNITED STATES FEDERAL LAW TO FILE A FRAUDULENT CLAIM. CONVICTION CAN RESULT IN A FINE OR IMPRISONMENT OR BOTH.
The undersigned has read the above Claim Form in its entirety and acknowledges that he/she is fully aware of and understands the terms of the Claim Form.
The undersigned certifies that the information and documentation submitted to the Receiver is true and accurate to the best of the undersigned's knowledge, information and belief.
(If ownership of the account is shared, all must sign above. Give each owner's name, address, phone number, and extent of ownership on a signed separate sheet. If other than a personal account, e.g., corporate, trustee, custodian, etc., also state your capacity and authority. Please supply the trust agreement or other proof of authority.)