On September 10, 2014, the Commission filed a complaint against defendant, Abatement Corp. Holding Company Limited ("Abatement") and relief defendants, Brenda M. Davis ("Davis") and International Balanced Fund ("IBF"). The complaint alleged that, from as early as 2004 through his death on May 15, 2014, Joseph Laurer ("Laurer") and Abatement defrauded investors into providing money to Laurer based on the representation he would be putting their money into Abatement's bond fund, which was promised to have a guaranteed fixed return, with no risk to the principal investment. In fact, Laurer bought no bonds with the investors' money. By at least as early as 2007, Laurer was operating a full-fledged Ponzi scheme. During the period between November 2004 and May 2014, approximately 50 people provided $4,656,000.00 to Laurer to invest. Among the personal expenses Laurer paid were $456,560.00 to purchase real estate in his wife's name, Davis; $594,000.00 directly to Davis; and, premiums on a $500,000.00 life insurance policy paid to Davis after he died. At the time of Laurer's death, $82,000.00 remained in a bank account held by IBF, which was solely controlled by Laurer. See Complaint.

The Court entered a final judgment against Abatement and IBF on October 29, 2014, and another against Davis on March 31, 2015. See Abatement and IBF's Final Judgmentand Davis's Final Judgment. In total $4,899,588.77 in disgorgement and prejudgment interest has been collected pursuant to the final judgements entered (the "Distribution Fund"), no further funds are anticipated except for possible dividends earned on the funds, which would be added to the Distribution Fund.

On May 20, 2015, the Court appointed Kurtzman Carson Consultants LLC ("KCC") as the Distribution Agent to oversee the distribution of the Distribution Fund to injured investors.

On July 28, 2015, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Distribution Fund.

On April 6, 2016, the Commission filed a motion for an order to pay the fees and expenses of the Distribution Agent and to approve a proposed distribution plan, together with a proposed distribution plan ("Distribution Plan"). See the Commission's Motion and proposed Distribution Plan.

On April 11, 2016, the Court granted the Commission's motion and approved the Distribution Plan. See Order Approving Distribution Plan.

The Distribution Plan provides that the distribution of the Distribution Fund will be distributed on a pro rata basis to the 33 injured investors, who invested in the Ponzi scheme and incurred loss, as detailed in Exhibit B of the Distribution Plan.

On April 5, 2017, the Commission filed a Motion to approve a second distribution as provided for in Step Two of the Plan. See the Commission’s Motion. On April 12, 2017, the Court entered an order approving a second distribution and authorized the disbursement of $302,842.63 from the Distribution Fund to the Distribution Agent for disbursement to injured investors as set forth on Exhibit B to the Commission’s Motion. See the Court’s Order.

For more information, please contact the Distribution Agent:

Kurtzman Carson Consultants LLC
Website: http://www.abatementdistributionfund.com
Email: info@AbatementDistributionFund.com
Telephone Number: (415) 798-5915