Legal / Fraud

Compass Settles Le Nature’s Suit Against CIT, Krones

Trade publication Law 360 reported that Compass Financial settled a $14 million fraud and breach of contract suit against CIT Group and Krones AG as part of litigation over a scam that pushed bottling company Le Nature’s into bankruptcy. read more

Hawker Beechcraft, Lenders Agree to Extend Loan

Hawker Beechcraft and the majority of its lenders have reached an agreement to amend the terms of the company’s $400 million DIP financing until the end of February, a Dow Jones Newswires article said. read more

Law Firm to Investigate ICON Leasing Fund

Law firm David R. Chase announced its investigation of potential arbitration claims on behalf of investors in ICON Leasing Fund that purchased their investments through securities brokerage firms. read more

AP: Petters Bankruptcy Case Trustee Sues BMO Harris

The Associated Press reported that the bankruptcy trustee recovering money for victims of Tom Petters' $3.65 billion Ponzi scheme filed a lawsuit accusing a bank, since acquired by BMO Harris, of aiding the fraud by ignoring "astronomical" deposits. read more

October Total Commercial Bankruptcy Filings Down 16% Y/Y

Total commercial bankruptcy filings for October 2012 were down 16% from the same period in 2011, according to the American Bankruptcy Institute and Epiq Systems. read more

Krones to Pay $125MM for Role in Le-Nature's Fraud

U.S. Attorney David J. Hickton said that Krones has entered into a non-prosecution agreement for its role the Le-Nature's fraud. Krones will pay $15 million to the U.S. and $110 million to victims of the scheme. read more

WSJ: J.P. Morgan Nears SEC Settlement

The Wall Street Journal reported that J.P. Morgan Chase is close to a settlement with the SEC that would end one probe into how the company's Bear Stearns unit packaged and sold home loans to investors. read more

Creditors to Take Over Hawker Beechcraft After Sale Collapses

Hawker Beechcraft has filed an amended restructuring plan after its sale to Superior Aviation Beijing fell through. Now the creditors will take over the business jet manufacturer. read more

Reuters: BofA Employees Could Face Fraud Charges

Reuters reported that BofA employees could face civil fraud charges as part of a federal lawsuit accusing the bank of causing taxpayers more than $1 billion in losses by selling toxic mortgage loans to Fannie Mae and Freddie Mac. read more

Hawker Intends to Emerge From Chapter 11 as Standalone

Hawker Beechcraft said it intends to emerge from Chapter 11 as a standalone company. The company also announced it is no longer pursuing a transaction with Superior Aviation Beijing. read more

Court Approves Dewey Settlement With Partners, Estate

U.S. Bankruptcy Judge Martin Glenn has granted permission for a settlement between Dewey & LeBoeuf’s former partners and the law firm’s estate, valued at $71.5 million, a Reuters article reported. read more

American Airlines Seeks Court Order to Restructure Financing

American Airlines filed a motion with the bankruptcy court requesting an order authorizing $1.5 billion of new postpetitiion financing and using the proceeds to repay existing prepetition obligations secured by aircraft. read more

AG Sues JPMorgan for Fraudulent RMBS Sales

Attorney General Eric T. Schneiderman announced a lawsuit against J.P. Morgan Securities (formerly known as Bear Stearns), JP Morgan Chase and EMC Mortgage for making fraudulent misrepresentations and omissions to promote the sale of residential mortgage-backed securities (RMBS) to investors. read more

AMEX to Pay $112MM to Settle Deceptive Practices Case

American Express has agreed to pay $112 million in refunds and fines to settle regulators’ accusations that it charged unlawful late fees and deceived customers to pressure them to pay off old debts or buy extra card services. read more

BofA to Pay $2.43B to Settle Merrill Class Action Lawsuit

Bank of America said it has agreed to pay $2.43 billion to settle a class action lawsuit brought in 2009 on behalf of investors who purchased or held BofA securities at the time the company acquired Merrill Lynch. read more

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Terry Mulreany
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