Golenbock Eiseman Assor Bell & Peskoe LLP Secures 100% Distribution of Claims in LandAmerica Exchange Services Bankruptcy Case

New York, NY. January 30, 2013 — Golenbock Eiseman Assor Bell & Peskoe LLP, a full-service Manhattan law firm, announced the recovery of $27,493,012 to 382 customers of LandAmerica Exchange Services (LES) who filed bankruptcy claims to recover their lost deposits. Golenbock Litigation Partners Michael S. Devorkin and Jonathan L. Flaxer served as lead counsel for the Liquidation Trustee, Gerard A. McHale, Jr..

These customers, called exchangers, held claims classified as “LES 6” in the LandAmerica bankruptcy case pending in the Eastern District of Virginia. Upon this distribution, exchangers will have recovered 100% of their lost deposits. “As a result of the circumstances that often result in bankruptcy, such as business losses, diminishing asset values, difficulties in collection, poor management and misconduct, 100% recoveries for creditors are rare. Moreover, by the time the bankruptcy case is commenced, there will likely be only minimal cash available to fund litigation.” stated Michael Devorkin. “The Firm has successfully recovered on claims against third parties on behalf of bankrupt entities by pursuing strategic, cost-effective and pro-active planning,” added Jonathan Flaxer.

“I am extremely pleased that we were able to achieve this result for so many people who were badly injured by the bankruptcy of LandAmerica” stated Mr. McHale, Jr. “I particularly want to commend the work of my legal advisors at Golenbock Eiseman Assor Bell & Peskoe LLP who have been instrumental in making these recoveries, especially Michael Devorkin who led this effort.” On January 18, 2013, the LES Trust Oversight Committee issued a statement marking the 100% recovery for the customers of LES, stating: “The Committee wants to thank and congratulate Jerry McHale, the LES Trustee and Mike Devorkin of Golenbock Eiseman Assor Bell & Peskoe, Jerry’s primary outside counsel, for making this glorious result possible. We have witnessed first-hand the passionate dedication of Jerry and Mike and their unrelenting pursuit of recoveries.”

Including this distribution, the Liquidation Trust has distributed $265,683,601 to LES creditors. In addition, the Liquidation Trust has distributed $38,357,410 to the LandAmerica Financial Group, LES’ parent. This most recent recovery joins the series of additional principal recoveries, most of which were settled without the necessity of litigation. “Not only were we successful, but we managed to keep legal fees and expenses far lower than is often the case,” stated Mr. McHale, Jr. “This was possible because my counsel and I developed a successful strategy that persuaded the parties against whom the LES Liquidation Trust had claims to settle with us without the necessity of having to file and litigate expensive lawsuits and without fighting with other potential stakeholders with competing claims.”

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.

About Golenbock Eiseman Assor Bell & Peskoe
Golenbock Eiseman Assor Bell & Peskoe LLP is a full-service Manhattan law firm of approximately 50 attorneys which has served its clients’ complex litigation and corporate needs for over 30 years. The firm takes pride in its sophistication, experience and ability to take on major engagements for its domestic and international clients while also maintaining a hands-on, personalized approach to all matters.