- 4 - petitioner used to lease a Cadillac, M&L made monthly payments of $6,000 to petitioner. Petitioner routinely reinvested portions of these funds, and he borrowed funds from banks to make additional investments in M&L. During his tenure with M&L, petitioner made numerous solicitations to potential investors (i.e., associates, friends, and relatives). These solicitations resulted in over $1 million of investments in M&L. In return for these investments, brokers, investors, and M&L paid petitioner finder's fees of varying amounts. In October of 1990, M&L filed a bankruptcy petition with the U.S. Bankruptcy Court for the District of Colorado. On December 18, 1990, the bankruptcy court removed M&L as debtor in possession and appointed a trustee. The trustee began a 3-month investigation of M&L's financial activities that revealed M&L (1) was operating ponzi and check-kiting schemes and (2) had no inventory from which creditors' claims could be satisfied. On July 17, 1991, petitioner filed a bankruptcy petition with the U.S. Bankruptcy Court for the District of Colorado. To recover funds for M&L creditors, the trustee commenced adversarial proceedings against M&L investors and officers and alleged that these investors and officers had received preferential transfers or fraudulent conveyances. In August of 1991, the bankruptcy court assigned the accounting firm of Patten, MacPhee & Associates, Inc. (the firm) to assist thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011