Attorneys Sara E.D. Fazio and Heather A. Bell collectively possess approximately fifteen (15) years of experience serving as counsel to federally appointed receivers in matters brought by the Securities and Exchange Commission, the Federal Trade Commission and the U.S. Attorney’s Office involving Ponzi schemes, hedge fund fraud, consumer fraud, insider trading, money laundering, international asset tracing, and various criminal matters. Ms. Fazio and Ms. Bell recognize that the ultimate objective for a receiver is to protect the interests of the affected parties, be they defrauded investors, defrauded consumers, or victims of crime, and preserving and marshalling the assets of the entities in receivership for the benefit of the affected parties. Ms. Fazio and Ms. Bell also appreciate the need for total transparency and accountability to the Court, the affected parties and any administrative agency involved.
In representing receivers and administering receivership estates, Ms. Fazio and Ms. Bell have garnered extensive experience in all matters relevant to conducting a successful receivership. They have operated, dissolved and sold businesses, disposed of real and personal property, filed appropriate tax returns and negotiated tax liability, conducted litigation against third parties, traced assets internationally, repatriated estate assets, implemented procedures for appointing an advisory committee, drafted and implemented claims procedures and distributed assets to investors. As counsel to U.S. federal receivers, Ms. Fazio and Ms. Bell have also developed working relationships with professionals in the Cayman Islands, Turks & Caicos, Dominica, the Bahamas and St. Lucia. Ms. Fazio and Ms. Bell have also been involved in matters regulated by the Cayman Islands Monetary Authority and adjudicated before the Grand Court of the Cayman Islands. In matters involving two jurisdictions, they have successfully negotiated joint cooperation agreements and asset pooling arrangements.
Recognizing that the current economic and regulatory climate demands an ever-mounting need for the appointment of receivers, Ms. Fazio and Ms. Bell are pleased to offer their services as Receiver in any federal or state matter. If you would like to request a proposal, please contact them directly at (616) 254-8418 (Fazio) or (616) 254-8413 (Bell). Additionally, KEHB is a full-service law firm and its attorneys possess a breadth of experience in different areas of the law. In your case, a KEHB attorney with a specific practice area may be best suited to act as a receiver in your matter.
Following is a synopsis of representative cases in which Ms. Fazio and Ms. Bell have served as counsel:
- SEC v. Beacon Hill Asset Management, et al., Case No. 02-cv-8855 (United States District Court for the Southern District of New York).
Represented Receiver for New Jersey limited partnership hedge fund that was one of three feeder funds to a Cayman Islands registered master fund. Also represented the Joint Official Liquidators of the master fund in parallel proceedings in the Cayman Islands. Instituted third party litigation at the advice of the Liquidation Committee, resulting in multiple global settlements with service providers to the hedge fund and separate body of investors who filed individual claims against same parties. To date approximately $320 million in assets have been distributed to defrauded investors and shareholders, while approximately another $40 million remains to be distributed.
- SEC v. Charles R. Homa, et al., Case No. 99-cv-6895 (United States District Court for the Nothern District of Illinois).
Represented Federal Receiver for several individuals and businesses in nation-wide Ponzi Scheme in which almost 3,000 investors were bilked out of approximately $300 million. Initially the receivership estate had zero assets, but due diligence and the institution of litigation against several parties to whom monies had been fraudulently conveyed yielded the return of over $70 million to defrauded investors. Conducted notice procedures and claims administration for parallel class action against international financial institution. Also represented the Cayman Islands Joint Official Liquidators in related matters in the Cayman Islands. Successfully negotiated tax settlements with many state taxing authorities and the IRS to minimize the tax dollars owed while maximizing the return of estate assets to investors. Repatriated funds from several countries in the Caribbean.
- FTC v. International Product Design, Inc., et al., Case No.1:07-cv-01114 (United States District Court for the Eastern District of Virginia).
Represented Federal Receiver of national “patent services” company with locations in Long Island, New York; Reston, Virginia; and Las Vegas and Reno, Nevada. The company bilked consumers out of approximately $60 million by operating in an illegal manner. Assessed whether the company could be run legally and profitably and ultimately dissolved the business. Successfully negotiated tax settlements with many state taxing authorities and the IRS to minimize the tax dollars owed while maximizing the return of estate assets to investors. The FTC hired an independent claims processing group to distribute assets of the receivership to defrauded consumers.
- SEC v. Alanar, Inc., et al., Case No. 1:05-cv-01102-DFH-TAB (United States District Court in the Southern District of Indiana).
Served as special counsel to Receiver in matter involving defendants who sold over $150 million in affinity bonds prior to being shut down in the SEC action. Assisted in the formulation of a distribution plan and the conduct of the claims administration. The case involves up to 17,000 investors.
- United States of America v. Brewer, et al., Case No. 3:07-cr-90-J-25 HTS (United States District Court for the Middle District of Florida).
Represented Federal Receiver in a criminal matter involving property and assets of many defendants. Secured and liquidated various types of assets including securities, real estate, art work, and sports collectibles. Distributed assets to victims of a criminal fraud scheme involving workers compensation insurance premiums.
- The Government of the Virgin Islands, Bureau of Internal Revenue v. William Lansdale, et al., Case No. 1997-0079 (United States Virgin Islands St. Thomas and St. John Division).
Served as special counsel to a tax Receiver over oil, gas and mineral rights throughout the United States. The case involves the collection of a tax deficiency in the amount of approximately $23 million owed by the defendants to the Virgin Islands Bureau of Internal Revenue. Assisted in drafting and filing turnover order and final accounting report in District Court; and drafted and ultimately prevailed on Appellee brief filed in related Third Circuit matter.
- SEC v. Regald B. Smith, Case No. 7:00-cv-358 (United States District Court for the Eastern District of Kentucky).
Represented Federal Receiver in civil matter involving a fraudulent bond scheme executed by a broker/dealer. Liquidated vintage automobile restoration company, including sale of inventory. Sold interest in partially constructed hotel and resolved property lien issues.
- FTC v. Mazzoni & Son, Inc., et al., Case No. 1:06-cv-2385 (United States District Court for the Northern District of Ohio).
Represented Federal Receiver appointed to oversee, operate and ultimately dissolve a company that was selling business opportunities to consumers in the field of medical claims processing.