Three investors, the required number of creditors, in Scott Rothstein’s alleged Ponzi scheme filed an involuntary petition to put, Rothstein Rosenfeldt Adler, into Chapter 11 bankruptcy.
It is reported that the federal government seized eight properties. Other creditors are lining up to get, obtain liens, replevin property or recover property as not having been properly transferred. The race to the court was on.
A bankruptcy would stay and remove all civil legal action against the firm to the federal jurisdiction of a bankruptcy court. A Broward County Circuit Court judge appointed a receiver last week, to oversee the firm’s finances. The petitioning investors in the bankruptcy are also seeking emergency appointment of a Chapter 11 trustee because of a “continuing risk of loss, concealment, dissipation and/or destruction” of RRA’s property.
The bankruptcy court will be able to centralize all of the asset recovery efforts and manage the equitable distribution of the estate assets. Please see article in the South Florida Business Journal, Wednesday, November 11, 2009,
Tags: Bankruptcy, Broward County Circuit Court, Chapter 11, Ponzi Scheme, Rothstein Rosenfeldt Adler
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