Receiverships & Fiduciary Roles

Our attorneys are regularly employed or judicially appointed to fill a wide variety of fiduciary positions, as independent and neutral third parties such as receivers, trustees, litigation trustees, plan trustees, examiners, disbursing agents and plan implementation agents in both state and federal court. These attorneys enjoy an active practice as receivers for United States governmental agencies in the prosecution of international fraud schemes and domestic fraud schemes with international implications, where the wrongdoers are located in other countries and their money is moved across international borders, impacting American and international investors alike. Often, this is done on behalf of federal agencies such as the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC), Commodity Futures Trading Commission (CFTC) and Securities Investor Protection Insurance Corporation (SIPC). Our attorneys are also appointed as state court receivers to manage properties such as apartment complexes and preserve their value for the benefit of secured lenders and owners. This often involves litigation with municipalities over city, police and fire code violations. Besides serving in these fiduciary roles, our attorneys frequently represent the parties who hold these fiduciary positions.

Trustees

Several of our attorneys are on the panel of Chapter 7 trustees and administer estates in liquidation. Our attorneys also represent Chapter 7 trustees in a wide variety of matters including complex commercial litigation involving avoidable transfers and officer and director litigation. In addition, these attorneys are often appointed as Chapter 11 trustees or represent Chapter 11 trustees who have been appointed to take over a Chapter 11 debtor's business or assets.

Committees

Our attorneys have a wealth of experience in representing official and unofficial committees in Chapter 11 bankruptcy cases for unsecured creditors, bondholders and other constituencies. We also represent parties who serve on those committees.

• Representation of Joseph J. Wielebinski, as Receiver, in the Le Club Prive, S.A. case, which was commenced by the Securities and Exchange Commission (SEC) in the United States District Court for the Northern District of Texas. Le Club Prive, S.A. and other entities and individuals operated an Internet based fraudulent investment scheme. The receiver promptly froze the domestic funds of the defendants and conducted a thorough forensic investigation including efforts in offshore jurisdictions. These efforts led to the recovery of additional monies including funds in a Houston, Texas forfeiture action commenced by the United States and the freezing of funds in Luxembourg. Contemporaneously, a claims process was instituted, which resulted in the filing of nearly 1,400 claims.
• Representation of Joseph J. Wielebinski, as Receiver, in the Ameritech, Inc. case. This action was commenced by the SEC. Munsch Hardt supported the SEC in obtaining a $24 million judgment against the principal individual defendant, who was extradited from Panama, defending that judgment on appeal, handling the claims of investors, addressing the environmental issues created by a fraudulent oil and gas scheme and retaining an international investigative team on a contingent basis to pursue the assets of the Panamanian organization that sponsored and supported this illegal enterprise.
• Joseph J. Wielebinski has also been requested to serve as a receiver for the Federal Trade Commission (FTC) and the Securities Investor Protection Corporation (SIPC) and is a Special Deputy Receiver for the Texas Department of Insurance (TDI).
• Representation of a Chapter 11 liquidating trustee in an international fraud case involving litigation and assets in the Isle of Man, Switzerland, Germany, Bahamas, Luxembourg, United Kingdom and other countries. As counsel for this trustee, Munsch Hardt was able to recover approximately $80 million in a bankruptcy case with listed assets of less than $300,000.
• Representation of a Chapter 7 trustee in jointly administered involuntary cases filed against the operators of a massive Ponzi scheme, with hundreds of avoidance cases against both domestic and foreign defendants including litigation in the Isle of Man. The case concluded with payment in full of all priority and secured creditors, and a 30 percent distribution to the general unsecured creditors.