LaJon Corporation; LaJon Capital Fund, LP;
LaJon Capital Management, LLC; and LaJon Capital Advisors, LLC
in Receivership

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This site was last updated on March 25, 2009.

LaJon Corporation; LaJon Capital Fund, LP;
LaJon Capital Management, LLC; and LaJon Capital Advisors, LLC in Receivership

RECEIVER’S UPDATE TO LAJON INVESTORS

To: All Claimants, Creditors and Participants

Re: LaJon Capital Fund; LaJon Capital Advisors, LLC.; LaJon Corporation; LaJon Capital Management Fund, LLC.; and John H. Williams

This posting is intended to update all interested persons regarding the status of the LaJon Receivership and related proceedings.  Below is a summary of the latest developments in these proceedings since the Receiver’s last correspondence to investors, dated May 22, 2009:

Status of Canadian Criminal Investigation of Stephen Chesnowitz

According to the Waterloo Regional Police Service in Ontario, Canada, Stephen Chesnowitz was arrested on or about July 30, 2009 and charged with multiple counts of fraud arising from activities unrelated to his mishandling of funds obtained, through John Williams, from the LaJon Capital Fund.  The officer in charge of the Canadian investigation, Sgt. Robert Zensner, has informed the Receiver that he is interested in hearing from any investor in the LaJon Capital Fund who may wish to make a sworn statement concerning his or her dealings with Mr. Chesnowitz and/or John Williams that may have caused him or her financial losses.  Investors who may be interested in pursuing a criminal complaint against Mr. Chesnowitz in Canada should contact Sgt. Zensner directly, by e-mail, at Robert.Zensner@wrps.on.ca as soon as possible and, in any event, no later than September 30, 2009.

To avoid any possible confusion, the Receiver will not be involved in, and assumes no responsibility for, any investor’s decision to communicate or not to communicate with Sgt. Zensner (or any other law-enforcement officers), or for the substance of any such communication.  Naturally, the Receiver will cooperate with any request for information from Canadian authorities to the extent that such cooperation is permitted by applicable law and is consistent with the Receiver’s duties and interests.

Status of Maryland Securities Commissioner’s Civil Claims against John Williams

As many of you may know, the Maryland Securities Commissioner has civil claims pending against John Williams in the Circuit Court for Prince George’s County, Maryland (Case No. CAE07-04436).  The Receiver also has civil cross-claims pending against Mr. Williams in the same action.  Although the automatic stay arising from Mr. Williams’s bankruptcy case has prevented the Receiver from further litigating its cross-claims in Prince George’s County, the Securities Commissioner’s claims are not stayed.  As a result, the Securities Commissioner recently moved for summary judgment and asked the Circuit Court to enter an order requiring Mr. Williams to pay a total amount of $9,390,529.75 in restitution to the LaJon investors.  The Securities Commissioner’s motion is now available on the Receiver’s website (http://www.lajonreceiver.com).  By order dated September 9, 2009 (“Restitution Order”), Circuit Judge Chapdelaine directed Mr. Williams to pay $9,390,529.75 in restitution, payable to the Office of the Attorney General for Maryland, and declared this debt to be non-dischargeable in bankruptcy.  This order will also be posted on the Receiver’s website.

Status of John Williams’s Bankruptcy Case

The  Restitution Order awards the investors the most relief that the Receiver itself could have hoped to obtain against Mr. Williams on its cross-claims.  As a result, the Receiver has decided that there is no further justification in filing a non-dischargeability claim against Mr. Williams in his bankruptcy case.

The current deadline set by the bankruptcy court to file both non-dischargeability claims and objections to discharge against Mr. Williams is October 6, 2009.  Should the Receiver file any such claim or objection in the bankruptcy case (which now appears unlikely), the court papers will be published on the Receiver’s website.  Nevertheless, the Receiver continues to strongly urge any investor who believes that he or she may have an individual claim against Mr. Williams (including an objection to his discharge or a claim to declare any of his debts non-dischargeable) to seek competent, independent legal advice as to the validity of any such claim and whether and to what extent it can or should be pursued in the bankruptcy case.  Investors are also encouraged to seek independent legal advice to determine whether they may have other rights that can be asserted in Mr. Williams’s bankruptcy case.