- 5 -
fact, there was no loan commitment from Manns Haggerskjold. Both
letters contained additional false representations, notably that
M&L's assets exceeded liabilities.
M&L filed original bankruptcy schedules on October 25, 1990,
and an amendment on November 15, 1990. Both the original
schedules and the amendment falsely showed that assets exceeded
liabilities.2
At some point not specified in the record, the Colorado
Division of Securities began to investigate M&L's operations. As
a result of its investigation, on December 3, 1990, the Colorado
Securities Commissioner filed an ex parte motion to oust M&L as
debtor in possession and to have a trustee appointed.3 In
support of the ex parte motion, the Securities Commissioner
alleged the following: (1) M&L executed a security interest in
2 M&L's Oct. 25, 1990, bankruptcy schedules listed assets
in the amount of $29,865,909 and liabilities in the amount of
$5,505,875. These schedules also state that M&L had promissory
note obligations to numerous private investors that were not
listed due to claimed lack of information. The Nov. 15, 1990,
amendment lists assets in the amount of $29,865,909 and
liabilities in the amount of $15,251,956. This amendment also
indicates an additional amount of unsecured claims in an unknown
amount.
On Feb. 1, 1991, M&L filed another amendment to its
bankruptcy schedules. This amendment also falsely showed assets
in excess of liabilities. In July or August 1991, Christine J.
Jobin, the bankruptcy trustee, filed a further amendment adding
unsecured creditors.
3 The Securities Commissioner's motion was captioned Motion
for Ex Parte Order Allowing Appointment of Trustee, or for
Expedited Hearing.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011