Frequently Asked Questions About the Allocation
1. What can I do if I think that the base amount that was used to calculate the allocation percentage for my account is wrong?
Your allocation amount is based on your March 31, 1999 Intrust statement if it was available to the Receiver or if you provided it to the Receiver by April 2, 2001. Otherwise, your allocation is based on your December 31, 1998 Intrust statement or, if that is not available, your April, 2000 statement. This process is set out in the Final Allocation Order approved by the Court. If you believe that your base amount is incorrect, you may file a claim in the Intrust receivership. Click [here] to review the Claims Filing Instructions.
2. Can I use the preclose cash from my account to pay for my allocation?
Yes. This is Alternative #2 in the letter sent to you by Millennium Trust Company on May 1, setting out the details of the allocation process.
3. What is happening in the litigation against those you believe were responsible for the $68 million fraud?
The Receiver and it legal counsel have been actively pursuing actions against those they believe were responsible for the fraud. Claims have been filed against Laurence Capriotti, Jack Hargrove, Alan Hurwick, Intercounty Title Company of Illinois and ITI Enterprises, Inc. The Receiver has also filed a suit against ITI Enterprises Inc. relating to a promissory note of $1.6 million held by Intrust. The individuals have mounted vigorous defences against these charges. Judgments have been obtained against the corporate defendants in both suits and the Receiver is currently taking action to execute on these judgments. The Receiver recognizes that account holders are concerned that all measures be taken to try to recover the funds which were stolen. As the criminal investigations being conducted by law enforcement agencies are grand jury investigations, these law enforcement agencies cannot share any information related to those investigations with the Receiver or any other third party,
4. Why am I being asked to pay Millennium rather than Intrust or PricewaterhouseCoopers?
Millennium purchased the business of Intrust and is now the successor trustee of Intrust, carrying on the former Intrust business. This transaction was approved by the Court on November 30, 2000 and the transaction closed on December 1, 2000. As Millennium is now administering the former Intrust accounts and, per Court Order, is implementing the allocation, it is appropriate for you to pay your allocation amount to Millennium.
5. I have two accounts, an IRA account and a custodian account. Your listing shows that the custodian account is excluded but I am still getting a statement. Why is this?
It is only your IRA account which has had an allocation amount levied against it. The TMAS system prepares statements for all accounts and these are mailed to account holders. The custodian account is a detailed account of the portion of your IRA managed by an investment advisor. There is no doubling up on your allocation amount because you have both an IRA and a custodian account.
6. I want my investment advisor to decide how to pay my allocation. Do I have to return my Allocation Payment Direction Form?
Yes, it is necessary that you return your Allocation Payment Direction Form. There is a space for you to indicate the name of your investment advisor and your desire that your advisor make the decision on what assets to liquidate to pay your allocation amount.
7. I am not sure of the tax implications of how I make my allocation payment. Can you advise me?
Unfortunately, neither the Receiver nor Millennium is in a position to offer you tax advice on this matter. You should consult your own tax advisor.
8. If I pay the receivership allocation fee will I then be allowed to commingle my non-cash preclose positions in my IRA account with contributions made after the settlement date?
Yes, you can invest current contributions to your account in the same way as you have invested preclose positions in the past.
9. I had cash in my Intrust IRA account and I had value in a futures trading account. Is the allocation supposed to be on the value of the Intrust account, or the value of my futures trading account?
The allocation amount for your account is that shown in the relevant Intrust statement for your account. See Question #1, above. If the current value of the futures portion of your account was not reflected in your Intrust account, you are required to pay your allocation based on what is shown in the Intrust records. You may, however, file a claim in the receivership if you so desire.
10. If I mail my Allocation Payment Direction form in now, when will the money actually be withdrawn from my account?
Millennium is currently acting upon instructions from account holders. Because of the volume of responses, it is not possible to predict when the funds will be withdrawn from your account.
11. When will my account be unfrozen?
Accounts cannot be unfrozen until the $68.1 million shortfall is collected. We cannot, at this time, predict when this may occur. By August 1, 2001, Millennium is required to file a report with the court regarding the status of collection of the $68.1 shortfall. Thereafter, the Court will make a determination as to when the accounts can be unfrozen.
