Kathy Bazoian Phelps

Partner

[email protected]

310-424-4080

310-488-4883

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SIGNIFICANT ENGAGEMENTS & TRANSACTIONS

Overview

Kathy Bazoian Phelps is a partner at Raines Feldman Littrell LLP in Los Angeles, with over three decades of legal experience since beginning her practice in 1991. She specializes in insolvency law, fiduciary representation, and fraud litigation, frequently representing bankruptcy trustees and federal and state court receivers. Kathy also serves as special litigation counsel in complex fraud-related cases, including those involving Ponzi schemes, where she is widely recognized as a leading authority. Kathy also files SEC and CTFC whistleblower claims.

Kathy is the co-author of The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes, a widely acclaimed resource in the field of fraud litigation, and she regularly posts her Ponzi Scheme Blog: https://theponzibook.blogspot.com. She has extensive experience handling litigation and claims in Ponzi scheme-related matters, including those with parallel criminal and civil forfeiture proceedings.

In addition to her legal practice, Kathy is an accomplished speaker, author, and mediator. She serves on the mediation and arbitration rosters for the Financial Industry Regulatory Authority (FINRA) and is part of the Bankruptcy Mediation Panels for both the Central District of California and the District of Arizona.

Outside her professional work, Kathy is an avid traveler and student of Mandarin Chinese, reflecting her broad personal interests and global perspective.

SIGNIFICANT ENGAGEMENTS & TRANSACTIONS

Court-appointed Receiver at the request of the SEC in SEC v. Bivona et al., Case No. 3:16-cv-01386-EMC (N.D. Cal.).
Court-appointed Receiver at the request of the CFTC in CFTC v. Denari Capital LLC, et al., Case No. 19-cv-07284-EMC (N.D. Cal.).
Lead counsel for Bradley D. Sharp, the court-appointed receiver at the request of the SEC in SEC v. Direct Lending Investments, LLC, Case No. 2:19-cv-02188-DSF-MRW.
Lead counsel for Robert P. Mosier, the court-appointed receiver requested by the SEC in SEC v. Capital Cove Bancorp, LLC, et al., Case No. CV15-00980-JLS(JCx) (C.D. Cal.).
Lead counsel for Robert P. Mosier, the court-appointed receiver requested by the SEC in SEC v. Secured Capital Investments et al., Case No. CV15-01792-VAP(KKx) (C.D. Cal.).
Lead counsel for David A. Gill, the court-appointed receiver requested by the SEC in SEC v. Diversified Lending Group, Inc., Case No. 09-01533-R-(JTLx).
Local counsel for Melanie E. Damian, the court-appointed receiver at the request of the Federal Trade Commission in FTC v. On Point Global, LLC et al, Case No. 19-25046-Civ-Scola (S.D. Fla.).
Local litigation counsel for Melanie E. Damian, the court-appointed receiver requested by the Commodities Futures Trading Commission in CFTC v. Hunter Wise Commodities LLC et al., Case No. 12-CV-81311 (S.D. Fla.).
Local Litigation Counsel for Burton Wiand, the court-appointed receiver requested by Commodities Futures Trading Commission in CFTC v. Equialt LLC, Case no. 8:20-cv-00325-T-35AEP (M.D. Fla.).
Local counsel for Mark Dottore, appointed as receiver in the case of Digital Media Solutions LLC v. South University of Ohio LLC, et al., Case No. 1:19-cv-145 (E.D. Ohio).
Lead counsel for Stephen J. Donell, the court-appointed receiver at the request of the Federal Trade Commission in FTC v. Allied Wallet, Inc., et al., Case No. 2:19-CV-4355-SVW-E (C.D. Cal.).
Lead counsel for Stephen J. Donell, the court-appointed receiver at the request of the Federal Trade Commission in FTC v. First Time Credit Solutions, Corp, et al. Case No. CV15-01921 (DDP (PJWx).
Special litigation counsel for Chapter 7 trustee in Fox Ortega Enterprises, Inc. dba Premier Cru in prosecuting portfolio of fraudulent transfer litigation on a contingency basis.
Chapter 11 trustee of Sonya D. International, Inc., Hazlaha LLC and Sonya Dakar, where Kathy ran the operations of a skin care clinic, investigated the business operations and inter-company transfers, and facilitated a complex settlement which will result in payment in full to creditors.
Counsel for group of defrauded investors in alleged Ponzi scheme bankruptcy case of Vincent Singh and Perfect Financial Corp., defending them against the Chapter 7 trustee’s fraudulent transfer, preference and usury claims.
Counsel for state court appointed receiver in Strand Capital Corp. v. Quigg LA14, LLC, Case No. BC 649687 (Los Angeles Sup. Ct).
Counsel for state court appointed receiver in Unicorp, Inc., a fraud litigation matter, reconstructing missing records and tracing over $9 million of funds removed by the defendant prior to the receiver’s appointment.
Counsel for Chapter 11 trustee, and thereafter successor Chapter 7 trustee, in the bankruptcy case of Persistence Capital, LLC, involving the unwinding of a Ponzi scheme, where the debtor sold a fictitious investment product related to pools of life insurance policies. Kathy assisted the trustee in establishing the nature of fraud, unwinding a series of complex financial transactions, tracing the funds, and pursuing litigation to recover funds in the case. The principals of this debtor were both ultimately convicted and sentenced.
Counsel for Chapter 11 trustee and thereafter the successor Chapter 7 trustee, in the bankruptcy case of Eonxchange, LLC, where she investigated the fraudulent Ponzi-like activity of the debtor related to an emission credit trading program through the SCAQMD where over $90 million was misappropriated from customers and investors. Substantial funds were recovered for the benefit of the creditors and the principal of the debtor was ultimately convicted.
Counsel for Chapter 11 and Chapter 7 trustees in a multitude of bankruptcy cases, handling:
- operating going concern businesses
- winding down various types of businesses
- tracing funds
- selling real estate
- prosecuting fraudulent conveyance and preference litigation
- addressing countless administrative issues arising in those cases

RECENT AWARDS & DISTINCTIONS

2020 President’s Award, National Association of Federal Equity Receivers
2018 International Advisory Award: Business Insolvency and Restructuring Lawyer of the Year in California
American College of Bankruptcy, Fellow, Inducted into the 27^th Class, March 2016
American Bankruptcy Institute, Committee Member of the Year, April 2016
The International Who’s Who of Asset Recovery Lawyers, 2013 – 2019
Super Lawyers, 2007, 2009, 2010, 2013-2021
Super Lawyers Top Women 2016, 2017
Martindale Hubble AV Preeminent Attorney 2016-2021
Best Lawyers in America, Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, 2019-2021

PUBLICATIONS

The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes. co-authored with Hon. Steven Rhodes (Ret.) (LexisNexis® 2012)
Ponzi-Proof Your Investments: An Investor’s Guide to Avoiding Ponzi Schemes and Other Fraudulent Scams (IRR Publishing 2013)
Fraud and Forensics: Piercing Through the Deception in a Commercial Fraud Case, co-author (American Bankruptcy Institute 2015)
The Depths Of Deepening Insolvency: Damage Exposure For Officers, Directors and Others, co-authored with Prof. Jack F. Williams (American Bankruptcy Institute 2013)
Author of The Ponzi Scheme Blog at theponzischemeblog.com
In Pari Delicto: Solutions to an Inequity Plaguing Bankruptcy Trustees and Innocent Creditors, co-author, published in Norton Annual Survey of Bankruptcy Law(West 2015)
Equity Receivers and the In Pari Delicto Defense, published by the American Bar Association in the May 2014 volume of The Business Lawyer.
Handling Claims in Ponzi Scheme Bankruptcy and Receivership Cases, 42 Golden Gate U. L. Rev. 567 (2012)
What Do You Do When the Feds Come For Your Assets? Third-Party Claims in Forfeiture Proceedings, American Bar Association Business Law Section’s Online Resource, Business Law Today (June 21, 2012)
Liability of Professionals and Insiders in Ponzi Schemes, 27 CEB Cal. Bus. L. Prac. 22 (Winter 2012)
Emergence of Mareva by Letter: Banks’ Liability to Non-Customer Victims of Fraud, Business Law International, Vol. 12 No. 2 (May 2011)

PROFESSIONAL AFFILIATION

National Association of Federal Equity Receivers
Board of Directors, 2012 – 2014, October 2016 to present
Secretary, 2019 to present
Co-Chair, Conference Committee, 2012 to 2020, presently a member
Chair, Judicial Outreach Committee, 2016 to 2019, presently a member
Member, Nominating Committee, 2016 to 2019
Member, Regional Dinner Committee, 2017 to present
California Receivers Forum, Los Angeles/Orange County Chapter
Editor in Chief of Receivership News, 2012 to present
Secretary, 2010 – 2012
Board of Directors, 2010 to present
American Bankruptcy Institute
Board of Directors, 2017 to 2020
Member, Publications Committee, 2017 – 2019
Co-Chair of Commercial Fraud Committee, April 2015 to 2017
Special Task Director of Commercial Fraud Committee, 2013-2015
American College of Bankruptcy
Fellow, Class of 2016
Co-Chair of Ninth Circuit Distinguished Law Student Award Committee, 2017 to present
Member, Finance Committee, 2018 to present
Member, International Chamber of Commerce FraudNet global network, 2012-2015, icc-fraudnet.org
American Bar Association, White Collar Crime, Asset Forfeiture and Business Bankruptcy Subcommittee focused on parallel insolvency and criminal proceedings, 2012 to 2018
National Association of Bankruptcy Trustees, Member
Armenian Bar Association, Member
Los Angeles Bankruptcy Forum, Member