Receivership is a tool used by the courts when it finds that the interests of investors, creditors or the general public would best be served if someone else were appointed to manage the affairs of a company that has been dishonestly or irresponsibly managed. Receiverships are often used to contain the damage resulting from Ponzi schemes and other fraudulent investment practices, as well as mismanaged companies.
Individual litigants, as well as the federal government through various agencies including the Securities Exchange Commission, can seek the appointment of a receiver upon discovery of a violation and when the intervention of a receiver will be necessary to preserve or recover assets, identify the scale of investor losses, or even make sense of the company's finances and records. Most SEC receiverships result from widespread fraud or other criminal activity from a business, most often ones that provide financial services.
Waserstein Nunez & Foodman and its experienced team of lawyers with extensive fraud and business transaction experience can act as receiver under a general or limited appointment, act as legal counsel to the receiver, or represent other parties with an interest in the receivership estate. Some of the functions we undertake on behalf of our clients include negotiations, documentation and enforcement of consent decrees, identification and recovery of receivership assets, recover fraudulently transferred assets, develop a system for evaluating and meeting investor and creditor claims, prevent investor or creditor claims again the receivership estate, and move for termination or modification of the receivership.