• Former University of Georgia Coach Jim Donnan Reaches Bankruptcy Settlement

    Jim Donnan, ex-ESPN analyst and former football coach at University of Georgia, has reached a settlement agreement in his ongoing bankruptcy case. The settlement has him returning millions of dollars he made from an alleged Ponzi scheme, according to court reports.

    Under the terms of the settlement, Donnan would pay $5.5 million to the creditors of West Virginia-based GLC Enterprises. A source familiar with the settlement told the press, “At the end of the day, his (Donnan’s) net worth is going to be pretty close to nothing.”

    Doonan’s attorneys said that their client was the first investor in GLC, a liquidation company that generated revenue through the purchase and resale of consumer products. He’s acknowledged investing $5.4 million of his own money in the company, which is also now in bankruptcy proceedings.

    Sources told the press that Donnan and the original operators of GLC, Greg and Linda Crabtree, are being investigated by the FBI and IRS for their roles in running an apparent Ponzi scheme.

    Court documents show investors sank about $82 million into GLC, but less than $12 million was spent on actual inventory.

    The court has not accepted the agreement offer as of yet. The agreement requires approval from the bankruptcy court, and any creditors in GLC’s bankruptcy case are entitled to raise objections.

    Bankruptcy is a valid legal option, no matter who you are, or what your social status is. As long as you qualify through the means tests, you can enter and work towards receiving a discharge. Bankruptcy offers the ability to get your financial life back on track with little disruption to your life.

    Benjamin Brand Services – Chicago bankruptcy lawyer

  • TD Bank Sued by Bankruptcy Trustee Liquidating Rothstein Law Firm

    The bankruptcy trustee in charge of liquidating the Rothstein Law Firm has sued Toronto Dominion Bank for allegedly assisting a $1.2 billion Ponzi scheme run by the former law firm chairman.

    Scott Rothstein pleaded guilty to five counts of racketeering, money laundering and wire fraud in January 2010. He also admitted he sold investors interests in bogus settlements in fake sexual harassment and whistleblower cases. He received a 50-year sentence in prison.

    The bankruptcy trustee, Herbert Stettin, says the bank’s authorized agents let Rothstein use its name, facilities and accounts to deceive investors. He accused the bank of ignoring red flags.

    “Td Bank played a central role in this massive fraud by giving Rothstein’s settlement program the appearance of legitimacy,” Stettin said in a filing in U.S. Bankruptcy Court.

    The law firm of Rothstein Rosenfeldt Adler PA went under when other attorneys in the firm found evidence of Rothstein’s illegal side business. Rothstein said he used the law firm to run a scheme that financed his lavish lifestyle and let him buy political insurance.

    A spokesman for TD Bank says they plan to aggressively defend against the lawsuit brought on by the bankruptcy trustee.

    It is entirely possible that the Ponzi scheme has been around in some form long before Charles Ponzi brought it to light, and there will always be greedy people who will try to use Ponzi schemes to steal from others. Potential investors need to do their due diligence and investigate when something seems too good to be true. Otherwise, you might find yourself in bankruptcy.

    Benjamin Brand Services – Chicago bankruptcy lawyer

  • Spiderman Sued by Bankruptcy Trustee for Poker Winnings

    Bankruptcy trustee Howard Ehrenberg is suing Tobey Maguire, star of “Spiderman,” in a claw back effort to reclaim more than $300,000.

    Ehrenberg is the trustee in the bankruptcy case of Bradley Ruderman. Ruderman is currently in prison for stealing $25 million from investors in his Ponzi scheme, fronted by a hedge fund that he managed.

    Ruderman played high stakes games of Texas Hold ‘Em poker with Maguire and lost big. The games were played in Southern California hotels between 2006 and 2009.

    Checks written to Maguire for covering poker losses total $311,200.

    Funds invested in Ruderman’s Capital were transferred to Maguire for payment. Maguire was unaware that investors victimized by Ruderman funded his winnings. The trustee said that the money still needs to be repaid.

    “It is a technical legal argument – if you are involved in an illegal activity, you don’t get that defense of ignorance,” Ehrenberg said. “The game he played in itself was illegal. That’s the linkage, the money was paid directly from Ruderman Capital.”

    Games played in private homes for stakes are not illegal in California. However, the suit alleges that the games that Ruderman and Maguire played were against the law because a paid event planner organized everything.

    If you are looking into the possibility of filing in bankruptcy court , contact a Chicago bankruptcy attorney for more information about the process.

     

  • Bankruptcy Judge Authorizes Sale of Aston Martin Owned by Peter Madoff

    A 1958 Aston Martin once owned by Peter Madoff, brother of Bernard Madoff, is to be sold at auction to help pay former investors who suffered losses from the brother’s Ponzi schemes.

    The trustee liquidating Bernard Madoff’s firm in New York won permission from U.S. Bankruptcy Judge Burton Lifland to sell the car. Bernard Madoff’s U.K. firm bought the 1958 Aston Marton MK III Drophead Coupe for his brother in 2008 for $267,000. According to trustee Irving Picard, Peter Madoff never reimbursed the firm for the purchase.

    RM Auctions is selling the Drophead Coupe at auction in California in August 2011.  The company sold a similar car for $330,000 in 2011.

    Liquidators of Madoff’s U.K. firm sued Peter Madoff in 2009 for allegedly enriching himself unjustly by taking the Aston Martin. The liquidators transferred ownership of the car to the trustee on May 4, 2011.

    Trustee Irving Picard sought a total of $198.7 million from Peter Madoff and other members of Bernard Madoff’s family. To date, he has recovered about $7.6 billion for investors who lost more than $17 billion in Madoff’s schemes. Most of the money is not available for distribution as of this time.

    If you are looking into filing for bankruptcy and would like to learn more about the process, contact a Chicago bankruptcy attorney for more information.