Successful representation of California bank in complex mortgage foreclosure debt recovery action through state court and bankruptcy court in the Southern District of Florida, which resulted in the criminal indictment of the borrower's principal for bank fraud.
Counsel to three investment funds that lent hundreds of millions of dollars to entities known as the "Banyon entities" which, in turn, used those proceeds to acquire structured settlements from Rothstein Rosenfeldt Adler P.A. ("RRA"). These loans were guaranteed by the principals of the Banyon entities, George and Gayla Sue Levin. Unbeknownst to our clients, the settlements were actually part of the billion dollar Ponzi scheme perpetrated by Scott Rothstein, RRA's founder. When the Banyon entities' loans defaulted, the principals' guarantees became due. After failing to pay on the guaranty, we commenced involuntary chapter 7 bankruptcy proceedings in the Southern District of Florida against the Banyon principals, asserting over $150 million in claims on behalf of our clients. In December 2010, our clients were sued for approximately $420 million in a "clawback" lawsuit filed by the RRA Trustee. We successfully defended our clients, obtaining a settlement with the RRA Trustee for less than 10% of the amount originally sought. We also successfully obtained a $200 million judgment against Gayla Sue Levin and reached an agreement with George Levin to consent to entry into bankruptcy.