- 6 -
the same assets to more than one creditor; (2) M&L gave its
bookkeeper false information regarding payees of M&L checks; (3)
M&L falsely claimed that its books and records had been audited
by a certified public accountant named Jonathan Williams;4 and
(4) M&L falsely claimed to have obtained a $15 million loan
commitment from Manns Haggerskjold. The Securities Commissioner
concluded that M&L's conduct was "replete with facts indicating
fraud, dishonesty, incompetence, and gross mismanagement of its
affairs, all to the detriment of the estate creditors and past,
present, and future investors". The Securities Commissioner
concluded that this conduct would continue to the detriment of
creditors' interests. The Securities Commissioner's ex parte
motion was made part of the bankruptcy file.
On December 10, 1990, RTC joined the Securities
Commissioner's ex parte motion and further alleged that M&L's
conduct demonstrated its pattern of defrauding everyone who
crossed its financial path, including the Bankruptcy Court.5
RTC's motion was made part of the bankruptcy file.
On December 18, 1990, the Bankruptcy Court granted the
Securities Commissioner's motion and Christine J. Jobin (Ms.
4 By affidavit attached to the Securities Commissioner's ex
parte motion and made part of the record in this proceeding,
Jonathan Williams expressly denied any participation in the
preparation of M&L audit reports.
5 RTC's motion is captioned Joinder by RTC in Motion for Ex
Parte Order Allowing Appointment of Trustee.
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