Headline Article in Richmond-Dispatch Discusses GEAB&P’s Efforts to Recover More than $300 Million to Enable 100% Recovery of Lost Deposits on Behalf of Exchangers’ in LandAmerica Case

GEAB&P’s efforts have led to the recovery more than $300 million to enable the distribution of 100% of lost funds for those who deposited money with LandAmerica Exchange Services, Inc. a subsidiary of Land-America Financial Group, Inc.. Both companies went bankrupt in December 2008. This recovery was covered in an article entitled “Title Firm Customers To be Repaid in Full” that appeared in the Richmond Times-Dispatch on December 17, 2012. Customers, called exchangers, transferred funds from the sale of their investment real estate into the LandAmerica 1031 Exchange Services to defer capital gains taxes until they bought replacement, investment property.

The article covered the positive impact of the Firm’s rare feat of recovering more than 100% for bankruptcy creditors, with special focus placed on the human impact the recovery and distribution of deposits would have on those who filed bankruptcy claims in the LandAmerica bankruptcy case pending in the Eastern District of Virginia.

Partners Michael S. Devorkin and Jonathan L. Flaxer, of the Complex Business Fraud Litigation Group, counselled Gerard A. McHale Jr., liquidation trustee for the LandAmerica Exchange Service Liquidation Trust. Devorkin was quoted stating that it is “almost unheard of for people to get 100 cents on the dollar” of lost deposits.

With the $27 million dollars distributed at the end of 2012, Mr. McHale will have distributed a total of $265 million dollars to LandAmerica Exchange Services creditors through the liquidation trust and $38.4 million to a separate trust for the benefit of creditors of LandAmerica Financial Group Inc., the parent company. Additionally, Mr. McHale, as trustee, is holding another $15 million to pay exchangers for damages in addition to their lost deposits.

The success in the LandAmerica case follows the recent success of the Firm’s Complex Business Fraud Group in recovering more than $135 million to produce so far a 70% recovery for victims of a Ponzi scheme run by Edward Okun, which scheme lead to the bankruptcy of The 1031 Tax Group. Devorkin and Flaxer helped lead the Firm’s efforts on behalf of Mr. McHale, who also served as the Liquidation Trustee in that case. Okun is serving a sentence of 100 years in federal prison.-

You can find the article here.
You can find the press release relating to the case here.