- 16 -
On or about December 27, 1990, Mr. Norby, accompanied by Mr.
Rittenhouse, reviewed M&L's bankruptcy file. He did so because
he anticipated claiming a theft loss for his M&L investment on
his 1990 Federal income tax return, and he wanted to obtain
documentation to support his claim.
Mr. Norby read and believed that the fraud allegations made
by the Colorado Securities Commissioner and RTC were true. He
discovered that the Manns Haggerskjold loan commitment M&L
professed to have secured in its October 30, 1990, letter to
investors did not exist. He also reviewed the bankruptcy
schedules. Because of Mr. Krug's failure to tell him about M&L's
bankruptcy petition on October 2, 1990, and based on his
understanding of the contents of the bankruptcy file, Mr. Norby
did not believe M&L's assets exceeded liabilities. He concluded
that his investment would not be repaid.
Mr. Norby also learned from the bankruptcy file that Ms.
Jobin had been appointed trustee, but he did not contact her. He
received two creditor's notices from Ms. Jobin and filed a proof
of claim in the bankruptcy proceeding on November 5, 1991. He
did not file a claim in 1990 because he did not believe that
there would be assets remaining after secured creditors' claims
were satisfied. He did not contact an attorney in 1990 or in
1991. He was not involved in collateral suits to recover his M&L
investment.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011