Successful Resolution of $2 Million Investment Fraud Case
May 22, 2009 ⋅ Category: Good Results for Our Clients
In April 2009, Richard Barrett-Cuetara, Eric Yepez and Melissa J. Pegram successfully resolved a $2 Million investment fraud case on behalf of their clients. The Firm's clients were investors, officers, shareholders and members of the board of directors of the defrauded corporation. The lawsuit alleged the President of the defrauded corporation had misappropriated corporate funds, breached his fiduciary duties, participated in “self-dealing”, and conspired with a national banking institution to usurp all ownership rights in the defrauded corporation in a “quid pro quo” arrangement of favorable loans to the President of the defrauded corporation in exchange for alleged bribery payments to the national banking institution. In a favorable settlement, the Firm's clients received the return of more than $1.5 Million dollars, representing approximately 75% of their initial investment of $2 Million dollars. Mr. Barrett-Cuetara and Mr. Yepez prosecuted the litigation, while Ms. Pegram, Chair of the Firm’s Corporate and Business Law Section, analyzed various documents and transactions that were a part of this arrangement and also prepared the settlement documents, including the Settlement Agreement, the Promissory Note, a Pledge Agreement, utilizing stock in several corporations as security for payment of settlement obligations, corporate resolutions and consents, and Deeds of Trust to secure performance of obligations under the terms of the settlement documents.