Fiduciary Representations

Fiduciary Representations

Overview

Fiduciaries must quickly evaluate the debtor’s affairs and implement strategies to maximize recovery for all stakeholders. We have significant experience representing chapter 11 trustees and other fiduciaries — including receivers, fiscal agents, examiners, assignees for the benefit of creditors, in state and federal insolvency proceedings — working closely with them to evaluate the debtor’s affairs and implement a successful chapter 11 restructuring or efficient and orderly liquidation.

What separates our restructuring lawyers from others, though, is our unique experience and success in litigating complex creditors’ rights issues in state and federal court on behalf of fiduciaries in some of the most complex and largest fraud cases in the country. Our restructuring lawyers leverage our substantial litigation team, and incorporate creative creditors’ rights remedies under state and federal law, leading to recoveries for creditors that could not have been obtained but for our efforts. Such success has led to repeat appointments of our restructuring attorneys as receivers in complex, multi-jurisdictional Ponzi scheme cases.

Notable representations include:

  • Liberty State Benefits of Delaware, Inc., et al. – Represented the Chapter 11 Trustee, subsequently appointed Liquidating Trustee in one of the most egregious Ponzi scheme cases pending in the District of Delaware.  The case involved four affiliated companies and hundreds of defrauded investors in numerous jurisdictions, and culminated in a successful plan confirmation in late 2014.  
  • Wellesley Services, LLC, et al. (Harvey v. Wellesley, et al.) – At the request of the State of New Jersey Bureau of Securities, served as court appointed receiver in one of the largest securities fraud cases brought by the New Jersey Bureau of Securities to recover more than $90 million of investor funds.
  • CAJ Trading, Inc., et al. (Farmer v. Natale, et al.) – Represented the court appointed receiver in a Ponzi scheme funded through the sale of unregistered securities by unregistered agents, defrauding investors holding more than $30 million in claims.