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$12,903,250, less any recoveries made by the bankruptcy trustee.
See infra.
The Federal Bureau of Investigation agent who investigated
the embezzlement believed that approximately $3 million of the
funds Mr. Gherman embezzled was used to support FIP's losses over
the years 1982 through 1988, approximately $3 million was used in
so-called loans to Mr. Gherman or family members, and the balance
became the exit money.
The 1988 Bankruptcy
On August 10, 1988, certain clients of FIP filed a
receivership action captioned Shapiro v. Gherman, against Mr.
Gherman, FIP, and FFP in the Circuit Court of the Eleventh
Judicial Circuit in and for Dade County, Florida, wherein the
clients sought the appointment of a receiver, damages, and other
relief. James Feltman (Mr. Feltman) was appointed receiver. A
temporary restraining order was entered on that date which
prohibited the defendants from transferring or otherwise
disposing of their assets. Two days later, Mr. Feltman was
authorized to seize the Camelot.
Subsequently, on August 18, 1988, while the receivership
action was pending, some of the same clients commenced an
involuntary chapter 11 bankruptcy proceeding against the same
entities (bankruptcy estates) in the U.S. Bankruptcy Court for
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