January 2007: Distribution News We at Cureton Clark, P.C. have entered into the second phase of our representation of builder members to protect their distribution rights in the HOW liquidation. After numerous communications with the Commission’s Special Deputy Receiver, Patrick Cantilo, we learned that he does not intend to make distributions until the later part of 2008 as a result of two large lawsuits and an Internal Revenue Service issue. A distribution in late 2008 is not guaranteed and, to that end, monies may not be distributed until 2009 or later. To prevent the membership fund’s complete dissipation, and in an effort to expedite the liquidation, we are in the process of obtaining information not only regarding the lawsuits but also obtaining details pertaining to the actual amount of money currently in the fund, including any reserves that have been put aside to defend litigation. Our knowledge regarding the present suits will enable us to not only determine the validity of the 2008 distribution date but will provide an opportunity to discuss same with the Trustee. This will protect and preserve the funds presently in place thereby increasing the amount of money builders will receive. Without Cureton Clark, P.C.’s involvement and oversight, the Trustee has no legitimate overseer. Each year that passes means less money in builder pockets and more builders that will not receive a distribution. Over the next month, Cureton Clark, P.C. not only expects to have a firm grasp of all litigations pending involving HOW builders but anticipates determining each of our client’s eligibility and percentage of interest entitlement. January 2006: HOW Representation Group meets Builders and Executive Officers at the NAHB Convention The HOW Builders’ Representation Group received enthusiastic support at the annual NAHB convention in Orlando. The builders were informed that a plan of liquidation has been approved by the Virginia Corporation Commission and that there may be a "substantial" surplus available for distribution to HOW Builders after payment of all obligations. Lead counsel Jerald R. Cureton, associate counsel and Builder Liaison Robert Johnston represented our group. Meetings took place with HOW builders, association executive officers and former HOW executives who reviewed the status via power point and direct discussions. As a result, group representation grew significantly. In addition to the possibility of receiving some return on their investment, a principal focus of the builders was that HOW might not have been insolvent and hence, there may have not been any reason to put HOW in receivership eleven years ago. This conclusion is buttressed by the fact that most if not all of HOW’s liabilities have been fully paid there is a "significant" surplus remaining. Currently the Group is in contact with the Special Deputy Receiver and the Virginia Insurance Commissioner. We are receiving cooperation from them as we actively monitor the Receivership proceeding. Important developments will be highlighted on this site. We suggest that HOW builders review it periodically. If you have any questions, please contact Gina Zippilli or Jerry Cureton.