Search
Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Social
Recent SEC Releases
« Ponzitracker Nominated for LexisNexis Top 25 Business Law Blogs | Main | Michigan Investment Advisor Sentenced to Eight Years in Prison for $4 Million Ponzi Scheme »
Monday
Oct172011

Rothstein Trustee Files Clawback Actions Against Miami Heat and Florida Panthers

The court-appointed trustee overseeing the liquidation of Scott Rothstein's $1 billion Ponzi scheme recently filed a flurry of preference actions (also known as clawback lawsuits) whose targets included the Miami Heat and Florida Panthers from which nearly $200,000 is sought.  Herbert Stettin, the bankruptcy trustee, filed the suits last week, seeking $156,000 from the Miami Heat and $31,250 from the Florida Panthers.  Stettin filed twenty clawback suits last week alone as he scrambles to comply with Section 546(a)  of the Bankruptcy Code, which requires that all preference actions to be filed within two years of the bankruptcy petition filing date (the "Filing Date").  Rothstein's former law firm, Rothstein Rosenfeldt Adler, P.A. ("RRA"), was placed in involuntary bankruptcy by several creditors on November 10, 2009.

In the clawback suits, Stettin seeks the return of funds transferred from RRA within the 90 days prior to the Filing Date.  Codified in Section 547 of the Bankruptcy Code, the Preferential Payment Rule, as it is known to some, requires a creditor to return funds paid to satisfy existing debts by a debtor who files bankruptcy within ninety days of that transfer.  The ninety-day period is extended to one year in the case of creditors who qualify as an insider.  Several exceptions exist, including when the transfer is made contemporaneously for "new value," or in the course of ordinary business.  

The suits filed by Stettin against the Miami Heat and Florida Panthers (the "Teams") are largely "cookie-cutter" complaints that simply recite the elements required under Section 547 and fail to specify the exact nature of the transfers.  Along with requesting the return of the transfers, Stettin also seeks permission to disallow any claims held by the Teams until the transfers are returned to the bankruptcy estate.

A copy of the Miami Heat complaint is here.

A copy of the Florida Panthers complaint is here.

A copy of the RRA involuntary bankruptcy petition is here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (1)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Lovely Web-site, Carry on the excellent work. With thanks!

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>