Life Partners Holdings’ Chapter 11 trustee, H. Thomas Moran, II (who is also the sole director of the Company’s direct and indirect subsidiaries), announced the filing of several additional lawsuits related to his ongoing efforts to recover money on behalf of the Company’s investors.
This announcement follows Moran’s filing of a report concerning his investigation of the Debtors’ pre-petition business conduct. The report details the “wide-ranging scheme to defraud orchestrated by Brian Pardo, the company’s former CEO and chairman, together with a number of accomplices, that eventually forced the company into bankruptcy.” The trustee notes that some of the lawsuits assert claims against individuals and entities who participated in marketing the fraudulent investments, including certain of the Life Partners “master licensees,” and seek recoveries for their role in the scheme.
In other suits, however, the claims the trustee has brought assert that the defendants received amounts that, under applicable state or federal law, are recoverable as preferences or constructively fraudulent conveyances for the benefit of the Life Partners bankruptcy estate (and ultimately its defrauded investors). The trustee further states that in some cases, the defendants are charities which received payments from Life Partners.
In those cases, Moran explains, “While it is our legal and fiduciary duty to recover funds for distribution to defrauded investors, it is unfortunate that the philanthropic missions of some charities were drawn into Mr. Pardo’s house of cards.” Read more bankruptcy news.
The post Life Partners Holdings Lawsuits Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.