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"Forced Collections Against A Fraudster Like Madoff" & "Competing Over Mr. Allen Stanford’s Assets" described the problem of competing claimants trying to recover from a limited pool of funds.  This same problem has been encountered by the plaintiffs in The Lautenberg Foundation v. Madoff, 09-Civ-00816, whose lawsuit I mentioned at "Suing Peter Madoff For Bernard Madoff’s Securities Fraud".

The Lautenberg plaintiffs are damaged investors of Bernard Madoff’s Ponzi scheme and their lawsuit alleges they were injured by Bernard’s younger brother Peter.  As mentioned by their lawsuit, Peter Madoff is allegedly liable for his supposed tortious conduct while working as a "control person" at Bernard L. Madoff Investment Securities LLC  ("BLMIS").

While the Lautenberg plaintiffs argue that Peter Madoff is liable to them, a complaint filed in an adversary proceeding claims that the Lautenberg lawsuit tries to wrongly recover BLMIS assets from Peter Madoff.  This May 27, 2010 adversary complaint filed by Bernard Madoff Trustee Irving Picard, asserts that the Launtenberg plaintiffs were participants in Trustee Picard’s claims process for damaged investors.Continue Reading Peter Madoff & His Competing Claimants

This "Asset Search News Roundup" concentrates on an alleged $45 million dollar tax fraud and the conviction of Mr. Dennis Hecker’s girlfriend, Christi Michele Rowan:

  • An April 15th press release explained that property developers Mauricio Cohen Assor and his son, Leon Cohen-Levy are accused of hiding $45 million from the IRS by using nominees to

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The January 9th "Asset Search News Roundup" provides an update on a couple of matters from Minnesota:

  1. Both "Money Laundering By Minneapolis Managers?" and "Associated Bank Sued For Supposedly Ignoring Red Flags" described pending civil complaints against suspected securities fraudsters Trevor Cook, Patrick Kiley and their companies.  Another complaint filed against

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“Bankruptcy Fraud, Money Laundering & Hidden Assets” outlines how a Chapter 7 debtor hid his Porsche and Rolls Royce and other assets.  That debtor eventually pleaded guilty to violating 18 U.S.C. §152 (Concealment of assets; false oaths and claims; bribery) and one count of 18 U.S.C §157 (Bankruptcy fraud).  “An Asset Search For Automobiles” similarly highlights how a Chapter 7 debtor concealed his $113,000 Porsche 911, by fraudulently transferring it out of state and registering it in the name of his brother.

A September 29, 2009 adversary complaint filed against 84-year-old Chapter 7 bankruptcy debtor Michael R. Mastro too claims that a valuable automobile was fraudulently transferred.  As part of this suspected fraudulent transfer, Mr. Mastro’s wife Linda, could have assigned Mr. Mastro’s $400,000 Rolls Royce to “LCY LLC Series Automobiles“.  The “Gift Statement” she reportedly executed, states that the Rolls was transferred without any exchange of consideration:

Continue Reading Mr. Mastro Supposedly Transfers His Rolls Royce & Other Assets

As a high-profile Twin Cities auto magnate, Mr. Hecker had been one of Minnesota’s largest car dealers.  During April 2008, he sought a divorce from his wife of about fifteen years in Hennepin County Family Court, Case No. 27-FA-08-2731.  Mr. and Mrs. Hecker however, stipulated to dismiss said divorce case during October 2008. 

At that time, Mr. Hecker had business difficulties which later culminated in the entry of a nearly $477 million dollar judgment against him in Chrysler Financial Services Americas LLC v. Dennis E. Hecker, Hennepin County Civil Court, Case No. 27-CV-09-2152.  Given the fact of this $477 million dollar debt, Mr. Hecker filed a Chapter 7 bankruptcy petition on June 4, 2009. 

Mrs. Hecker meantime, applied to the Family Court for a monthly award of interim spousal maintenance and child support.  Similar to what I discussed at "Recovering Marital Assets Through A Domestic Court", page 4 ¶14 of her September 28, 2009 supporting affidavit asked the Court to "impute income" to Mr. Hecker:

Click On The Affidavit To Read It

  Continue Reading Has Auto Magnate Dennis Hecker Hidden His Assets?

Suspected Ponzi schemer Allen Stanford may have facilitated one of the largest financial frauds known to date.  Any receivers, investors or other stakeholders with claims against Mr. Stanford under bankruptcy or other laws, are of course trying to interdict Stanford’s assets.  As I mentioned in my "March 25, 2009 Asset Search News Roundup"…

Image: Steve Hillebrand / U.S. Fish and Wildlife Service

Investors who profited because of Allen B. Stanford’s suspected securities fraud / Ponzi scheme may face clawback lawsuits under the Bankruptcy Code, according to Bloomberg.Com’s "Stanford Receiver May Need a Decade to Pay Victims".  Investors who collected profits from Bernard Madoff’s Ponzi scheme could…