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Our firm has extensive experience representing fiduciaries, including bankruptcy trustees, federal equity receivers, state court receivers, liquidating trustees, foreign liquidators, and creditors’ committees. We assist clients who are appointed as fiduciaries in a wide variety of practice areas that arise under these types of cases. Some of our lawyers also serve as bankruptcy trustees and receivers, and we are prepared to jump in on a moment’s notice to assist in marshalling assets and in commencing any litigation required to preserve or enhance the recoveries for victims.

Types of Fiduciaries

Federal Equity Receivers

We have significant experience representing receivers appointed at the request of the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) in large scale fraudulent enterprises and Ponzi schemes.  As one of the nation’s foremost authorities on the practical and legal ramifications of federal equity receiverships, our attorneys are frequently called upon to act as a federal equity receiver or as lead counsel to a federal equity receiver. .

Our firm serves as general counsel for different types of fiduciaries, and we handle most issues that arise in these cases such as:

  • Taking over a business and preserving available assets and records
  • Assisting in the investigation of missing assets and reconstruction of records in aid of investigation
  • Handling the administrative aspects of small to large cases, involving hundreds of millions of dollars and thousands of creditors
  • Setting up channels of communication, including websites, to aid the fiduciary in efficiently communicating with a large number of creditors and investors
  • Providing proper notices and ensuring proper accounting and administrative procedures are put in place
  • Reviewing and objecting to claims
  • Reviewing and responding to potential adverse motions such as motions for relief from stay or objections to plans of reorganization of distribution
  • Analyzing and constructing potential litigation claims for the receiver

Some cases our attorneys have handled include:

  • SEC v. Bivona et al., Case No. 3:16-cv-01386-EMC (N.D. Cal.) – Receiver
  • CFTC v. Denari Capital LLC, et al., Case No. 19-cv-07284-EMC (N.D. Cal.) – Receiver
  • SEC in SEC v. Direct Lending Investments, LLC, Case No. 2:19-cv-02188-DSF-MRW – Counsel for Receiver
  • SEC v. Capital Cove Bancorp, LLC, et al., Case No. CV15-00980-JLS(JCx) (C.D. Cal.) – Counsel for Receiver
  • SEC v. Secured Capital Investments et al., Case No. CV15-01792-VAP(KKx) (C.D. Cal.) – Counsel for Receiver
  • FTC v. Allied Wallet, Inc., et al., Case No. 2:19-CV-4355-SVW-E (C.D. Cal.) – Counsel for Receiver
  • FTC v. First Time Credit Solutions, Corp, et al. Case No. CV15-01921 (DDP (PJWx) – Counsel for Receiver
  • FTC v. On Point Global, LLC et al, Case No. 19-25046-Civ-Scola (S.D. Fla.) – Local counsel for Receiver

Bankruptcy Trustees

We have deep experience representing trustees appointed in both Chapter 7 and Chapter 11 bankruptcy cases.  We can handle complex cases or any case requiring legal guidance, including administration of the estate, real estate sales, or litigation to preserve or recover assets for the benefit of creditors. The firm represents:

Chapter 7 Trustees: We assist the trustee in taking possession and control of the assets of the debtor and proceeds to administer them in the best interest of the bankruptcy estate. We provide legal advice on all aspects of a Chapter 7 case, including the claims allowance and distribution process, asset administration, and litigation matters.

Chapter 11 Trustees: We work collaboratively with Chapter 11 trustees from the moment they are appointed and we assist and advise the trustees regarding the takeover of a businesses, asset preservation, and the operations of a business. We provide legal guidance and assistance in the development of a plan of reorganization.

Plan Trustees:  When appointed pursuant to a plan, we assist plan trustees in implementing the plan and ensuring that assets are administered and distributions are made properly pursuant to the plan.

Liquidating Trustees: We assist trustees in liquidating assets that remain in liquidation. These types of trustees may commence complex litigation matters that require the assistance of counsel.

Some cases our attorneys have handled include:

  • Chapter 11 trustee of Sonya D. International, Inc., Hazlaha LLC and Sonya Dakar, where the trustee 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 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. We 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 our attorneys 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.

State Court Receiverships

We have experience assisting state court receivers in managing, preserving, and liquidating the receivership estate; including preparing receiver certificates to ensure payment of receiver fees and costs and bringing appropriate motions in state court to advance the objectives of the receivership estate in a cost-effective and diligent manner.

Some cases our attorneys have handled include:

  • 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 a fraud litigation matter, reconstructing missing records and tracing over $9 million of funds removed by the defendant prior to the receiver’s appointment.

Types of Fiduciary Services

General Counsel and Administration Professional Services

Our firm serves as general counsel for different types of fiduciaries, and we are well-qualified to handle most issues that arise in these cases such as:

  • Taking over a business and preserving available assets and records
  • Assisting in the investigation of missing assets and reconstruction of records in aid of investigation
  • Handling the administrative aspects of small to large cases, involving hundreds of millions of dollars and thousands of creditors
  • Setting up channels of communications, including websites, to aid the fiduciary in efficiently communicating with large numbers of creditors and investors
  • Providing proper notices and insuring proper accounting and administrative procedures are put in place
  • Reviewing and objecting to claims
  • Reviewing and responding to potential adverse motions such as motions for relief from stay or objections to plans of reorganization of distribution
  • Analyzing and constructing potential litigation claims for the receiver

Asset Management

The assets in a bankruptcy or receivership case can consist of almost anything: real property, mortgage interests, securities, commodities, cryptocurrency, and tangible assets. We have seen almost everything and can assist in all aspects of asset management such as:

  • Identifying the assets
  • Ensuring that the assets are protected and preserved
  • Evaluating potential secured interests against the assets
  • Identifying any specialists, brokers or marketing assistance required to maximize the value of the assets
  • Preparing documentation required for court approval of asset dispositions, whether abandonment or sales
  • Communicating with prospective buyers and interested parties in connection with asset sales

Litigation

When the assets are insufficient to cover the claims, as is all too often the case, fiduciaries look for other culpable parties to try to increase the proceeds available for creditors or defrauded victims. Our firm’s litigators are experienced in both identifying, prosecuting and defending litigation claims, and we evaluate standing issues and possible defenses right up front. The firm offers flexible fee arrangements for fiduciaries, which eases the financial burden for the estate. The firm handles all types of litigation claims in fiduciary cases, the most common of which are:

  • Avoidable transactions (formerly known as fraudulent transfers)
  • Preference actions
  • Officer and director liability claims
  • Professional negligence and malpractice claims – these most commonly arise against attorneys, auditors, accountants, financial institutions, and sales agents
  • Commercial tort claims for misconduct based on negligence, breach of fiduciary duty, fraud, aiding and abetting claims, conflicts of interest or misappropriation
  • Commercial claims, which involve issues such as contract, lease, and insurance disputes
  • Collection matters

Real Estate and Transactional Services

Receivership, restructurings and liquidations often involve real estate or real estate-related issues. Our firm has deep real estate experience and we are well-equipped to handle most issues that arise. When fiduciaries hold real property, many issues can arise that require legal assistance, including:

  • Documenting purchase and sale agreements
  • Managing and preserving property pending disposition
  • Providing guidance regarding necessary accounting
  • Collecting rents
  • Reviewing or drafting agreements with service providers
  • Reviewing or preparing leases
  • Addressing any licensing or regulatory issues
  • Ensuring compliance with health and safety regulations
  • Evaluating any environmental issues
  • Dealing with abandoned property or abandoning property
  • Removing or settling disputed liens
  • Assist with obtain court approval regarding material actions relating to real property, including sales
  • Addressing potential tax issues