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Judge Studies Evergreen Scam Settlement

ORLANDO-U.S. Bankruptcy Court Trustee R.W. Cuthill Jr. will outline a tentative settlement with the family of convicted conman William J. Zylka of New Vernon, NJ, who sold unregistered mortgage-backed securities for 10 years in an alleged $214 million swindle.

By Alex Finkelstein | Updated on October 30, 2002

ORLANDO-The 21-month-old civil and criminal investigations of the defunct Evergreen Security Ltd. takes a new turn Nov. 4 when U.S. Bankruptcy Court Trustee R.W. “Bill” Cuthill Jr. outlines a tentative settlement he has made with the family of convicted conman William J. Zylka of New Vernon, N.J.

Cuthill will ask Bankruptcy Court Judge Arthur B. Briskman to approve a $189,000 settlement with the Zylka family while Zylka remains in a New York jail awaiting sentence for his part in allegedly stealing $27.7 million of the missing $214 million Evergreen took in from 2,203 global investors who thought they were putting their money into U.S. government mortgage-backed securities.

Zylka and his gang of lawyers, accountants and brokers are accused of pulling off the second largest scam in Florida history, next only to the 1985 ESM Government Securities Fund fraud that stole $315 million from institutions and government entities, according to Bankruptcy Court records.

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