Celebrating 125 Years

Trustees and Receivers

Jackson Walker has not only had opportunities to represent, as general and special counsel, trustees and examiners in cases under the Bankruptcy Code, but the firm also has unique expertise in trustee and receiver cases filed under the federal securities laws, the Securities Investor Protection Act (SIPA) and Texas state receivership statutes. Often such engagements require investigation of complex fraudulent schemes and litigation to recover assets for the benefit of creditors.

Due to increasingly robust enforcement of securities laws by the Securities and Exchange Commission (SEC), more receivers are being appointed by United States District Courts. JW attorneys have the skills and expertise necessary to perform all the services associated with such receiverships. The firm's attorneys have served as federal court receivers and counsel to such receivers in cases commenced by the SEC based on fraud and other improper conduct.

JW attorneys have also been appointed as receivers by state courts. For example, a JW partner served as the receiver for a trust company in a lawsuit brought by the Texas Department of Banking. The case involved massive fraud in which unsophisticated investors' assets were stolen in an investment club scheme.

Another area in which JW has substantial experience is the liquidation of securities brokers or dealers under SIPA. A JW partner is a former attorney with the Securities Investor Protection Corporation (SIPC) in Washington, D.C. He has served as the attorney for SIPA trustees and as the trustee in two SIPA cases, including one involving over $350 million in customer assets.

JW attorneys have also represented claimants in large Ponzi scheme cases, including Stanford Financial, seeking the maximum recovery possible for our clients. JW has also been engaged to defend against avoidance claims brought by trustees and receivers.

Jackson Walker has experience in all aspects of trusteeships and receiverships in federal and state courts. Our attorneys can serve as trustees, receivers and examiners, and as their attorneys, as well as represent creditors and other interested parties in such cases. Reflecting the firm's expertise in this practice area, a JW partner recently made presentations on receiverships to conferences sponsored by the Texas State Bar and the University of Texas School of Law.

Sample Representations

Trinity Energy: represented Chapter 11 Trustee (and later the Plan Trustee) of oil and gas exploration and production company. Creditors and preferred shareholders were paid in full, leaving funds available for a small distribution to common shareholders

Gerard Lazzara: representing Chapter 11 Trustee of estate of individual shareholder of related corporate chapter 11 debtor

Fiduciary Trust Co.: represented a receiver for the liquidation of a trust company under the Texas Banking Act

Ballentrae Health Care, Inc.: represented the plan trustee in the liquidation of estate assets and distributions

Norgulf Shipping Limited: represented the Chapter 7 Trustee of a failed shipping company with claims in excess of $120 million

Ponta Negra: represented a Jackson Walker partner who was appointed a receiver by the federal court pursuant to a request by the SEC based upon allegations of a Ponzi scheme

Sunpoint Securities, Inc.: represented a Jackson Walker partner who was appointed as trustee to liquidate a securities firm under the Securities Investor Protection Act involving customer and corporate assets in excess of $350 million

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