Although real estate developer Michael R. Mastro tried to protect assets by forming three trusts, the Court in Mr. Mastro’s bankruptcy case still found these trusts to be void. According to the Court’s May 28, 2010 order, the trusts were void as to Mr. Mastro’s creditors because the trusts were “self-settled” (i.e. created and funded by Mr. Mastro for his own benefit). The Court therefore treated Mr. Mastro’s trust assets as bankruptcy estate property which could be liquidated for the benefit of Mr. Mastro’s unsecured creditors.
A June 6th report filed by Mastro trustee James F. Rigby, Jr. reveals that these creditors may get a penny on the dollar this year. Page 7 of the report additionally says that the creditors’ overall recovery from the Mastro bankruptcy estate might be just a 2% payout more or less. Equally disturbing is that Mr. Mastro and his wife Linda also disappeared in June. This caused the Court to issue bench warrants for the Mastros, who are believed to have recently stayed in Canada as fugitives.
Valuable jewelry which could be bankruptcy estate property, has too gone missing along with the Mastros. Missing for example, are one platinum ring with a 27.80 carat pear shape diamond and one 14 karat white gold ring with a 15.93 carat round diamond. On June 22, 2005, West Coast Diamond & Gem reportedly appraised the white gold ring’s total retail replacement value at $835,000.00. On June 21, 2007, West Coast may have similarly appraised the platinum ring’s total retail replacement value at $1,300,000.00:
Copyright 2011 Fred L. Abrams