Receiverships & Insolvency
For more than 30 years, RCC attorneys have represented receivers, liquidators and trustees of insolvent companies and financial institutions in asset recovery and other insolvency-related litigation in state and federal courts around the country. We have investigated and prosecuted claims against failed entities’ directors, officers, lawyers, accountants, brokers, and others in causes of action ranging from RICO and fraudulent conveyance to professional malpractice and breach of contract. We have obtained dozens of favorable settlements and prevailed in jury trials and appeals, often working with prominent experts on key insolvency litigation issues. We have obtained hundreds of millions of dollars in recoveries for our clients, and, in the process, won precedent-setting victories, including opinions that established receiver standing, confirmed receivers’ use of civil RICO, and limited the in pari delicto defense.
Notable engagements include:
- We served as lead counsel in multiple RICO and other cases filed around the country by receivers from five states arising from the insurance company looting and money laundering scheme led by convicted felon Martin Frankel. We also assisted the receivers with numerous international and domestic asset recovery issues. Over $168,000,000 in cash settlements and recoveries were obtained, including substantial settlements with a Swiss bank, several major international brokerage firms and large regional banks, and a pre-filing settlement with one of the nation's most prestigious law firms. We defeated multiple motions to dismiss and prevailed on three federal appeals.
- We have conducted professional liability investigations for the receiver of seventeen insolvent financial institutions located around the country. We have obtained numerous pre and post-filing settlements from directors, officers and other associated entities (and their insurers) and are preparing for trial in a case against a major accounting firm.
- We represented the trustee of a liquidating trust, which was assigned claims of a bankrupt manufacturer and its creditors. In a mediation, we established that that the former directors and officers of the debtor’s predecessor had profited from a leveraged buy-out that was voidable under the Illinois Fraudulent Transfer Act and otherwise breached their fiduciary duties. We obtained a substantial settlement for the Trustee from the former directors/officers and their insurer.