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Trustee brings Action against Wachovia |
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Friday, 03 October 2008 |
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Today I commenced an adversary proceeding against Wachovia Bank, National Association and several of its affiliates in Bankruptcy Court in the Southern District of New York. The lawsuit seeks recovery more than $43 million of conveyances allegedly made to Wachovia in the form of cash and mortgage liens, and the imposition of equitable liens and constructive trusts on several properties in which Wachovia continues to hold liens, or the proceeds therefrom. The Complaint also asserts that Wachovia aided and abetted breaches of fiduciary duty by Edward Okun and Lara Coleman against the 1031 Tax Group Debtors, and seeks to recover more than $140 million of damages arising from such actions. Wachovia housed more than 250 bank accounts for the 1031 Tax Group Debtors as well as other Okun Entities; provided several personal loans to Okun; and made commercial loans to Okun-related entities, such as IPofA affiliates. The complaint alleges that during the course of this relationship, Wachovia learned that Okun and others were misappropriating funds of the 1031 Tax Group Debtors, but did nothing to stop the misappropriations, and in fact took steps that furthered the misconduct. This lawsuit is the latest of our multifaceted efforts to recover the misappropriated funds for the benefit of the 1031 Tax Group Debtors' estates, to enable us to maximize recovery to creditors. |