A selection of our firm's experience over more than 30 years is below. Additional case histories and details are available upon request.
Receiverships by case
- Union Bank of California v. Hemet Chrysler, Case No. RIC 517602 (Superior Court of Riverside County, California). Appointed as Receiver to take possession and liquidate the assets of an automobile dealership; negotiated return of vehicles to General Motors. When their bankruptcy intervened dealer trades were arranged to liquidate new car inventory. Used car inventory was auctioned, and major equipment, parts inventory, and supplies were sold to satisfy bank debt, which was paid in full.
- Blodgett v. Frederick, Case No. INC 1207463 (Superior Court of Riverside County, California). Post-judgment receivership involving the sale of fractional interests in various real estate ventures. Made distributions to judgment creditors.
- Union Bank of California v. Bodice & Knit, Case No. BC359015 (Superior Court of Los Angeles County, California). Took possession and sold the assets of a knitting operation located in Los Angeles.
- National Bank of California v. C&H Electric, Case No. PC 035855 (Superior Court of Los Angeles County, California). Took possession of and sold the assets of an electrical contractor in Los Angeles county. Investigated several instances of corruption involving major public works projects in order to successfully defend several bond claims.
- Union Bank of California v. Crinklaw Farms, Case No. M54696 (Superior Court of Monterey County, California). Appointed Receiver over a large garlic ranch that had been taken over by a religious cult after the death of the owner. Sold current harvest of garlic along and warehouse of imported garlic to a large processor in the area to satisfy bank debt. Liquidated remaining assets consisting of vehicles, office equipment, and supplies.
- Ruben v. Maxey, Case No. BC369292 (Superior Court of Los Angeles County, California). Receiver appointed to operate a kidney dialysis center in Inglewood, California, whose partners were engaged in litigation. The center was one-third owned by the litigating partners and two-thirds owned by a national concern. Resolution of the case was by the sale of the one-third interest of the partners to the national concern for $2.2 million; the original offer for that interest had been $80,000. Performed a forensic investigation to resolve the financial controversy between the two owners.
- Dreamcatchers v. Hairlocs, Case No. EC 050461 (Superior Court of Los Angeles County, California). Post-judgment receivership that required the valuation and sale of several lots of intellectual property at private sales under CCP 701.510 to 701.680.
- Union Bank of California v Valley Western Distributors, Case No. Appointed Receiver to liquidate a $60 million distributor of flooring materials by motion of the senior secured creditor. After being contacted early in the case by a junior secured creditor who was concerned about the company’s inventory being auctioned, which might harm their local market, arrangements were made for that creditor to buy the bank’s position at par. Subsequently managed the business for an additional six months while the creditor located a new distributor, who bought the inventory at par. Receivership concluded when the new distributor took over, after which the Receivership transitioned to a General Assignment in order to conclude the liquidation. Filed all required federal and state income tax returns and sales tax returns. Filed for and obtained over $800,000 in tax refunds for the estate.
- Union Bank of California v. Ambitech International, Case No. PC038454 (Superior Court of Los Angeles County, California). Receivership sought by the bank to complete the wind-down and liquidation of a printed circuit-board manufacturer based in California with assets including major defense subcontracts in Beaverton, Oregon. Sold the subcontracts to the company’s employees to retire the bank debt. Liquidated the Chatsworth, California, facility and discovered a major environmental program that led to the involvement of the California Department of Toxic Substances Control and the United States Environmental Protection Agency in a Superfund Cleanup project. Worked with and assisted representatives of both of these agencies directly to achieve a positive outcome.
- Trago International et al. v. Montgomery et al., Case No. YC054317 (Superior Court of Los Angeles County, California). Post-judgment receivership involved the sale of intellectual property under CCP 701.510 to 701.680.
- Ballestra et al. v. Ricor Racing and Development, Case No. BC273230 (Superior Court of Los Angeles County, California). Post-judgment receivership to collect royalties on several patents. Forensic investigation traced funds over several years.
- Bank of America v. United et al. Case No. A-09-603267-B (District Court of Clark County, Nevada). Receivership included five automobile dealerships in Las Vegas, Nevada. Liquidated inventories of new and used cars, utility vehicles, parts, supplies, tires, shop equipment, paint equipment, and other rolling stock.
- Keshen v. Tallen, Case No. BC503552 (Superior Court of Los Angeles County, California). Appointed to manage seven real estate LLCs in a partnership dispute. Procured financing for expiring loans. Leased property and filed all tax returns for the entities. Conducted forensic accounting that covered more than a decade of records for the relevant entities.
- Wilshire State Bank v. Unicorp Beef Inc. et al., Case No. LC086199 (Superior Court of Los Angeles County, California). Determined the disposition of more than $6 million of missing inventory for Plaintiff, Wilshire State Bank. Ensuing investigation revealed a loan-kiting scheme involving several banks in the Korean community and possible improprieties of at least one bank director. Turned all findings over to several agencies of the U.S. Government, including the Criminal Investigation Division of the IRS, the U.S. Treasury Department, and the Department of Homeland Security, resulting in the successful prosecution of the principal of the debtor company.
Additional receivership history by industry
- Automobile dealership: Recovered stolen equipment, liquidated inventory, and returned 100% of value to both secured and non-secured creditors.
- Food distribution: Liquidated inventory, traced money flow through US companies to Asian companies, and completed criminal referral.
- Savings and loan: Class action litigation with 1300 subjects. Designed and implemented investigation plan, and 93% of value was found in 120 days.
- High-tech company operating across two states: Proved that owner had diverted assets. Despite complex state tax and EPA issues, the profitable unit's sale was negotiated, and 98% of the loan value was returned to the lender.
- Flooring distribution company: Identified reasons for business failure, including gang infiltration. After owners consented to receivership, inventory was liquidated, and 100% of the investment value was returned to secured creditors and 40% to unsecured creditors.
- Garment manufacturing company: Discovered fraud, located hidden assets, and secured equipment that was previously repossessed by a prior lender. Debtor had converted assets to personal use.
- Hotel (more than 180 rooms): Investigation determined that the debtor kept no financial records, misappropriated cash receipts, and failed to pay vendors, including mandated insurance coverage. Reconstructed financial records, negotiated new agreements with vendors and taxing authorities, and improved daily operations.
- Real estate development company: Traced use of funds over approximately four years and identified numerous undisclosed business entities and assets owned by the debtors.
- Autoshepherd LLC. Liquidated assets of an online reseller of automobile parts and accessories under General Assignment for Benefit of Creditors. Made distribution to unsecured creditors.
- Valley Western Distributors. Accepted General Assignment for the Benefit of Creditors to conclude the liquidation of assets begun in court-appointed Receivership. Ownership of the company agreed to the appointment of prior Receiver as Assignee. Returned 40% to unsecured creditors after paying out over $12 million to secured creditors.
- Non-profit multi-jurisdictional investigation involving public funds, criminal referral, and conviction of employees and others. Recovered substantial percentage of loss. Designed controls and implemented and conducted training programs.
- Privately held property development company for which Chapter 11 filing was recommended. Negotiated creditor and subcontractor settlements, resulting in a significant verdict in the client's favor. Assisted counsel with recovery actions.
- Private client in Europe, defrauded of more than $3 million by a US citizen. Trace money to real estate and investment accounts and returned more than $2 million to the client.
- Supermarket chain investigation in which we uncovered the fact that a current employee who was testifying as part of a lawsuit against the company was secretly involved in a long-term relationship with the plaintiff.
- Savings and Loan audit of cash handling, physical security, and regulatory compliance procedures and loan underwriting standards. Employees were subsequently terminated for theft, and new policies and procedures were implemented. Newly implemented underwriting standards reduced the amount of loan losses.
- Forensic investigation of a non-profit automobile donation program revealed theft of vehicles and money by employees. After calculating the loss and reviewing the controls and procedures of the organization, the business unit was closed and inventory was liquidated.
- Financial investigation of an after-market automobile parts manufacturer confirmed internal theft by the CFO.
- Investigation of a computer software company that had defaulted on a $7 million loan and offered a $2 million settlement revealed a connection to a previously undisclosed foreign partner, resulting in a substantial increase in the offer to settle.