Mortgage Fraud-Case Trustee Wants Phantom Investors Identified

ORLANDO-U.S. Bankruptcy Trustee R.W. Cuthill is calling the bluff of offshore account owners who claim to have lost about $120 million or 56% of the total $214 million allegedly scammed by New Vernon, NJ resident William J. Zylka, owner of 10-year-old, Orlando-based Evergreen Security Ltd.

If he doesn’t get their names, Cuthill won’t share with them any of the undetermined assets he may find among Zylka’s possessions, the trustee will tell the court.

Cuthill has told the court he suspects money launderers and tax evaders may be among the 2,000 investors who lost money in what lawyers are calling one of Florida’s largest mortgage securities frauds. Evergreen allegedly sold mortgage-backed securities offering a 10% return and purportedly guaranteed by the U.S. government.