On April 2, 2009, Judge James Zagel approved a $1.3 million settlement with optionsXpress. The settlement approved by Judge Zagel includes the entry of a bar order prohibiting anyone from pursuing litigation with optionsXpress arising out of its relationship with Enterprise Trust Company. We do not know at this time whether any of the objectors will appeal Judge Zagel's order approving the settlement.
As noted on the website, the Seventh Circuit Court of Appeals affirmed Judge Zagel's order approving an allocation plan for the assets that remain at Enterprise. We intend to have those assets repriced as of April 15, 2009 and the distribution will commence the week of April 20.m We will provide each of you with a schedule which will reflect the assets that you will be receiving in the distribution. If we can ascertain prior to April 20 that there will not be any appeals challenging the approval of optionsXpress settlement, the proceeds from the settlement will be included in the distribution. If we do not receive those assurances in a timely fashion, the settlement proceeds will remain in an escrow account until all challenges are resolved.
On March 3, 2008, the United States Securities and Exchange Commission (“SEC”) filed a lawsuit against Enterprise Trust Company (“Enterprise”), John H. Lohmeier, its CEO, and Rebecca A. Townsend, its Vice-President, in the United States District Court for the Northern District of Illinois (Civil Action No.: 08 CV 1260). On the same day, the District Court entered an order freezing all assets in the name of or held for the benefit of Enterprise. Accordingly, Enterprise cannot make any distributions nor can it honor any withdrawal requests at this time.
As a result of the above action, Enterprise is currently in receivership and current Enterprise clients can contact the receiver at enterprisereceiver@ngelaw.com for more information.