by Brendan L. McPherson
Polsinelli Shughart PC; Kansas City, Mo.
In a 4-3 decision,[1] New York’s highest court rejected requests by a litigation trustee and derivative plaintiff (collectively, the “plaintiffs”) to broaden liability against third-party auditors, accountants, investment bankers, attorneys and other professionals on claims they assisted corporate insiders in defrauding shareholders and creditors. Two separate—but related—cases were at issue. The first involved the 2006 Refco bankruptcy filing and the second was a derivative action brought on behalf of AIG by two different retirement systems.
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The Commercial Fraud Task Force Committee recently presented at the 22nd Annual Winter Leadership Conference in Scottsdale, Ariz. earlier this month. The session, entitled "A Panel Discussion Relating to the Bayou, Rothstein and Petters Ponzi Scheme Cases," was focused on each of these cases as well as clawback defenses, the types of fraudulent conveyance claims and areas of overlap between bankruptcy and criminal law. Panelists for the session included Jeff J. Marwil of Proskauer in Chicago, Paul S. Singerman of Berger Singerman, PA in Miami and Timothy G. Skillman of Grant Thorton LLP in Los Angeles.
Also presented at the WLC was the session "Ponzi Scheme Cases: A New Look at Potential Sources of Recovery," which focused on the breach of fiduciary duties by various employee types, scheme claims against professionals and a variety of other Ponzi Scheme issues faced in the bankruptcy field. Panelists for the session included James S. Feltman of Mesirow Financial Consulting, LLC in Miami, Ronald R. Peterson of Jenner & Block LLP in Chicago and Hon. Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Mich., Detroit. Kathy Bazoian Phelps, of Danning, Gill, Diamond and Kollitz, LLP in Los Angeles moderated.
A Panel Discussion Relating to the Bayou, Rothstein and Petters Ponzi Scheme Cases
Ponzi Scheme Cases: A New Look at Potential Sources of Recovery
ABI's 16th Annual Rocky Mountain Bankruptcy Conference will be held at the Westin Tabor Center in Denver, January 27-28, 2011. This year's conference will feature an ABI Past Presidents Panel, a presentation by the International Women's Insolvency and Restructuring Confederation and panels on a variety of other topics. The Rocky Mountain Bankruptcy Conference offers up to 9 hours of CLE/CPE Credit! Click here to register.
