A team of Golenbock Eiseman Assor Bell & Peskoe LLP attorneys recently obtained confirmation, for the 1031 Tax Group LLC (“1031”) bankruptcy trustee Gerard A. McHale, of a precedent-setting Chapter 11 reorganization plan. The owner of 1031, Edward Okun, was sentenced to 100 years in prison for fraud. Bankruptcy partner Jonathan L. Flaxer served as lead counsel, joined by litigation partners David J. Eiseman, Michael S. Devorkin and Jacqueline G. Veit.
The team has filed a number of suits or claims against individuals, professional firms, insurance companies, and financial institutions, which to date has resulted in recoveries which exceed $100 million and an expected distribution so far of 44% to victims of Okun’s Ponzi scheme. The team continues to prosecute vigorously several large claims, recoveries from which would enhance the recovery to victims.
The plan was the result not only of a creative cooperation agreement entered into between the bankruptcy estate and parallel class action case, but also the strong ongoing collaboration between the various practice groups at the firm. This case serves as an excellent example of Golenbock Eiseman Assor Bell & Peskoe LLP’s unique ability to investigate, litigate and secure impressive victims’ settlements in a broad range of complex fraud and Ponzi-type cases.