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One of the largest car dealerships in the United States had been involved in intricate fraudulent schemes involving millions of dollars. The debtors' estates had no free and clear assets. Several employees of the dealership were convicted of crimes, and the owner fled the country.
As counsel for the chapter 11 trustee, SulmeyerKupetz assisted in obtaining significant recoveries in hundreds of actions to recover fraudulent and preferential transfers. The firm also helped to secure a favorable $10 million settlement during heavily contested litigation with the dealership's auditor, reduce the state taxing agency's priority claim from approximately $5.5 million to $1.5 million, and reduce a federal agency's unsecured claims from $250 million to approximately $33 million. As a result, the trustee was able to distribute approximately $6 million to unsecured creditors.
Sam Stein, through a family limited partnership, Santa Monica Beach Hotel, Ltd., was the developer of a luxury hotel on the beach in Santa Monica, California (now known as Shutters). Faulty construction resulted in years of arbitration and litigation and the filing of chapter 11 cases.
Representing a chapter 7 trustee in litigation involving proceedings in the Los Angeles County Superior Court and the Bankruptcy Court, SulmeyerKupetz played a key role in obtaining a $33 million settlement. The firm also successfully litigated with the secured lender concerning interpretation of a pre-conversion bankruptcy order, netting the Stein estate approximately $11 million. In addition, SulmeyerKupetz handled state court litigation concerning the Steins' liability to the lender under personal guarantees. The lender sought $95 million, but judgment was entered for only $1.2 million.
As chapter 11 trustee, Arnold Kupetz was responsible for the operation of two large mini-warehouse facilities in Van Nuys and Sylmar. After approximately two years of rehabilitation, during which occupancy was increased to nearly 100%, Mr. Kupetz was able to sell the facilities. The sales enabled all creditors to be paid in full, and investors to be repaid nearly 70% of their original investment in the projects.
Sportsclub, Inc. operated a chain of large warehouse sporting-goods facilities. Arnold Kupetz was appointed chapter 11 trustee to liquidate inventory in three facilities in Woodland Hills, San Bernardino and Sacramento. He conducted a massive retail liquidation sale over the three-month period, utilizing in-house and in-store personnel, which produced approximately $1 million more than the best offer received from professional liquidators.
As chapter 11 trustee, Arnold Kupetz uncovered a massive "Ponzi scheme" involving $20 million of investors' funds. Mr. Kupetz completed development of a major residential land subdivision in Ridgecrest, California, contracted with local real estate brokers and established a marketing plan for sales of custom lots to home builders. A plan of reorganization was confirmed, and the debtor's principal was convicted of fraud.
General Information
Attorney Profiles and E-Mail
Practice Descriptions
Representative Cases
Articles
Links
Directions
Home Page