Bump in the road. Bankruptcy Trustee Dillworth’s lawsuit seeking return of alleged ”fraudulently transferred” funds to Bobby Ginn and Lubert-Adler from a $675M Credit Suisse loan will move forward.
[Update 12-17-2010] The estate of Jeffry Picower, a major investor in Bernard Madoff’s Ponzi scheme, has agreed to repay $7.2 billion to victims of the fraud in a settlement with the trustee overseeing the investment firm’s bankruptcy and federal prosecutors in Manhattan, according to people familiar with the situation. The settlement is by far the largest related to the Ponzi scheme, and would quadruple the amount of money recovered for victims to date.
Expert reports and depositions
The preconference conference is scheduled for January 3, 2011.
"The wheels of justice grind slowly," as measured in billable hours.
The lawsuit is significant not only because of the amount of money involved and the well known defendants, but also because it’s not isolated. Its outcome could impact or be impacted by the outcomes of similar cases. Credit Suisse made loans to several luxury resort developers; among them Lake Las Vegas and Yellowstone Club. In nearly all cases, a large portion of the loan proceeds were distributed directly to investors, essentially taking out profits before they were earned. Each of the Credit Suisse loans ended in the bankruptcies of the debtor developments, resulting in a spate of lawsuits.