Case Document 104 Filed 05/29/12 Page 1 of 4 John F. Kurtz, Jr., ISB No. 2396 Hawley Troxell Ennis Hawley LLP 877 Main Street, Suite 1000 PO. Box 1617 Boise, ID 83701-4617 Telephone: 208.344.6000 Facsimile: 208.954.5232 Email: jkurtz@hawleytroxell.com Attorneys for Receiver, R. Wayne Klein UNITED STATES DISTRICT COURT DISTRICT OF IDAHO SECURITIES AND EXCHANGE COMMISSION, Case No.: CV Plaintiff, and Case No.: CV COMMODITY FUTURES TRADING COMMISSION, Plaintiff, VS. DAREN L. PALMER and TRIGON GROUP, NOTICE OF SETTLEMENT INC, a Nevada Corporation, I The Honorable Edward J. Lodge Defendants. R. Wayne Klein, the duly appointed Receiver (?Receiver?) for Trigon Group, Inc. (?Trigon?) and the assets of Daren L. Palmer (?Palmer?), hereby provides notice of his intent to ?nalize a settlement agreement pursuant to the terms described below. Case Document 104 Filed 05/29/12 Page 2 of 4 SETTLEMENT Brad and Gloria Beauchamp The Beauchamps are former in?laws of Palmer. The Receiver?s investigation found $1.3 million paid to Brad Beauchamp in connection with construction of a home near Coeur d?Alene and another $25,000.00 paid to the Beauchamps as a gift from Palmer. The Receiver ?led suit against the Beauchamps on February 17, 2010 seeking a return of $1,325,000.00 they received from Trigon. The Beauchamps provided information demonstrating that the $1.3 million was actually spent on construction. The Beauchamps acknowledged receiving the $25,000.00 gift but asserted a ?nancial inability to repay that amount to the Receiver. On May 24, 2012, the Receiver entered into a settlement agreement with the Beauchamps. The Beauchamps provided documentation demonstrating their negative net worth and the losses incurred in their real estate business. Under the agreement, the Beauchamps have agreed to borrow funds from relatives and pay $3,000.00 to the Receiver in full settlement of the Receiver?s claim. In return, the Receiver will dismiss the lawsuit against them. REVIEW BY SEC AND CFTC The Receiver has given notice to the Securities and Exchange Commission and the Commodity Futures Trading Commission of this planned settlement and requested their comments. The SEC and CFTC have both informed the Receiver that they have no objections to this settlement. PROCEDURE FOR ADDRESSING ANY OBJECTIONS TO THE SETTLEMENT OR THE PROPERTY TRANACTIONS Objections, if any, to the settlement must be in writing and filed with this Court within ten (10) days of the date of the ?ling of this Notice of Settlement. If no objection has been ?led NOTICE OF SETTLEMENT PAGE 2 Case Document 104 Filed 05/29/12 Page 3 of 4 within ten (10) days, unless the Court orders otherwise, the Receiver will deem the settlement approved and move forward to implement its terms. In the event that an objection is ?led, the Receiver will have the right to: (1) notify in writing the objecting person, the settling party, and the Court that the Receiver believes that the objection lacks merit and seek the approval of the Court notwithstanding such objection, or (2) notify in writing the objecting person, the settling parties, and the Court that the Receiver believes that the objection is valid, whereupon the affected settlement agreement will be deemed to be terminated. CONCLUSION The Receiver believes the this settlement will provide bene?ts to the Receivership by bringing cash into the Receivership Estate and avoiding any further costs of litigation against these parties. DATED this 29th day of May, 2012. HAWLEY TROXELL ENNIS HAWLEY LLP F. Kurtz, Jr., Attorneys for the eceiver, R. Wayne Klein NOTICE OF SETTLEMENT PAGE 3 Case Document 104 Filed 05/29/12 Page 4 of 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 29th day of May, 2012, I electronically ?led the foregoing NOTICE OF SETTLEMENT with the Clerk of the Court using the system which sent a Notice of Electronic Filing to the following persons: Karen L. Martinez Alison B. Wilson Thomas M. Melton John W. Dunfee Tanya Beard Division of Enforcement Securities and Exchange Commission Commodity Futures Trading Commission 15 West South Temple, Suite 1800 1155 21st Street, NW. Salt Lake City, UT 84101 Washington, DC. 20581 martinezk@sec. gov jdunfee@cftc. gov himesm@sec. gov awilson@cftc. gov Counsel for Plaintijj? Securities and Exchange Counsel for Plainii? Commodity Futures Commission Trading Commission AND, I HEREBY CERTIFY that I have served the foregoing document to the following Registered Participants (list names and addresses): Daren L. Palmer US. Mail, Postage Prepaid Inmate #13952-023 Hand Delivered Federal Prison Camp Overnight Mail PO Box 1000 E?mail Duluth, MN 55814 Telecopy Defendant Alan Conilogue 14 US. Mail, Postage Prepaid Deputy Attorney General Hand Delivered State of Idaho Overnight Mail PO Box 83720 E-mail Boise, ID 83720?0031 Telecopy Local Counsel for Plainti?fs F. Kurtz, Jr. NOTICE OF SETTLEMENT PAGE 4