Crown paper liquidating trust
Inc., Price Waterhouse Coopers LLP and a unit of Credit Suisse Group, of approving a fraudulent transaction executed by Crown's parent company at the time, James River Corp.
In that transaction, James River set up Crown as a subsidiary, then saddled it with hundreds of millions of dollars in debt and underperforming assets, according to the Crown trust's court filings, and then spun off Crown as a separate company.
Beck was appointed Liquidating Agent to assume control over the debtors and the determination of claims and prosecution of any causes of action to which the debtors remain entitled.
In April 1998, upon the recommendation of creditors, Mr.
The investment banks and accounting firms, Crown's trust charges, "falsely represented" that Crown "would be solvent and viable" after the transaction and helped defraud the company's creditors.
The company went bankrupt approximately five years later.
In addition to his service as Trustee of Southeast, he has been designated as Successor Agent to the Federal Deposit Insurance Corporation as Receiver of Southeast Bank, N. In this capacity, he has administered the remaining assets and claims in this formerly billion bank’s receivership, including a distribution of over 0 million to himself as Trustee of Southeast Banking Corporation, and tens of millions of dollars in other claims and assets. Beck was selected by the creditors to become trustee of the Conti Financial Corporation Liquidating Trust formed pursuant to the confirmed Chapter 11 Plan of the company and its affiliates (U. Bankruptcy Court for the Southern District of New York).
The company was formerly a NYSE listed company engaged nationally in the sub-prime lending area.
The offices have been efficiently closed, records and systems preserved and the employees gradually eliminated.
Beck’s appointment consisted of cash, significant real property development sites in Jacksonville, Florida, other real estate, holdings in shares of other companies, an over-funded pension plan and four lawsuits initiated in the U. District Court for the Southern District of Florida against the company’s former officers and directors, attorneys, investment bankers and accountants. Beck’s appointment, these lawsuits had been dismissed and appeals of such dismissals had been initiated to the U. Remaining assets of Southeast included cash reserves and real property holdings in subsidiaries of the Debtor.
One of these properties consists of a 200 acre undeveloped parcel in Jacksonville, Florida impacted by access limitations, wetlands and lack of zoning and land use entitlements. Beck engaged consultants and attorneys to address the concerns.
A district court and the 9th Circuit Court of Appeals agreed with the accounting firms and investment banks and dismissed the case.
The appeals court said that suits to recover damages should be brought by the actual creditors, rather than the trustee, according to an attorney following the case.