The Resolution Law Group: Judge Approves Creditor Vote on Jefferson County, Alabama’s Bankruptcy Plan

A US judge has paved the path for the creditors of Jefferson County, Alabama to vote on a plan to conclude what is being called the second biggest municipal bankruptcy in US history. Now, the county’s creditors—they are owed $4.2 billion—have until October 7 to vote.

Most of them have already agreed to the negiotiated plan, which would deliver just $1.735 billion to warrant holders of the county’s sewer system that are owed $3.078 billion. A deal has also been reached over non-sewer debt.

It will be up to US Bankruptcy Judge Thomas Bennett to look into a timeline that would wrap up Jefferson County’s bankruptcy. He is the one who approved the vote on the plan. If creditors the plan, it will need to be confirmed during a hearing that would take place in November.

The debt-reduction plan is based on a settlement reached between Jefferson County, and JP Morgan Chase & Co (JPM), hedge funds, and other creditors. The financial firm and the funds hold most of the $3 billion in sewer warrants. The county wants to cancel these and approximately $2 billion of new debt would replace them.

Per the plan, JPMorgan would get back 31% of the $1.22 billion owed to it. Several hedge funds would get over 80% of $872 million. Meantime, Jefferson County would up sewer rates of 7.4% a year for four years, susceptible to an increase if interest rates see one too.

As for warrant holders that are owed over $500 million and not included in the deal, they are allowed to vote either to collect 65 cents/dollar owed or, if they surrender the right to get money from insurers, they could get 80 cents for every dollar. The reductions in sewer warrants would be the first time investors of municipal bond in this country would be compelled to sustain losses on the principal they are owed because of a US bankruptcy case. Jefferson County’s bankruptcy is linked to a sewer refinancing marred by political corruption.

Unlike with corporate bankruptcies, creditors cannot seize or sell the county’s assets in a municipal bankruptcy and a trustee cannot be appointed. Recently, the city of Detroit, Michigan made national headlines when it filed the biggest municipal bankruptcy in the US to date and sought Chapter 9 protection. The city has about $18 billion in liabilities.

Please contact The Resolution Law Group if you believe you are the victim of institutional investor securities fraud. Our stockbroker fraud law firm represents corporations, financial firms, partnerships, banks, municipalities, retirement plans, school districts, large trusts, charitable organizations, high net worth individuals, and private foundations. Your case assessment with our securities lawyers is free.  Call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

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The Resolution Law Group: Investors Claim They Lost $300M in Ohio Ponzi Fraud Lawsuit

In Ohio, investors are suing Glen Galemmo for allegedly running a Ponzi scam. The securities fraud lawsuit claims that approximately 100 to 200 investors lost more than $300 million. Galemmo is now named in two complaints related to these claims. His wife, Kristine Galemmo, is also being sued, as are his business partner Edward Blackledge and numerous investment funds, LLC, and companies. Plaintiffs are grouped as the Galemmo Victims Fund I and II.

The Cincinnati money manager ran Galemmo Investment Group, Queen City Investment Fund, and other entities for over a year. However, last month, he sent out a mass email to investors explaining that Queen City Investments, which he owns, was stopping operations. He told them not to come to the building because they would not be let in and that his lawyer had told him to avoid contact with them. He said that their inquiries should go through the IRS.

According to the complaint, Galemmo claimed to have over $20 million in assets under management. When the S & P 500 was declining between ’06 and ’11 he purportedly said that he’d made earning returns of 432% by investing in individual stock.

The plaintiffs say that if Galemmo’s return numbers had been accurate, then his compensation should have been over $60 million yet he wasn’t even able to pay small tax bills. They say that documents never indicated dividend income payments and filings didn’t state how much of the fund investors held.

Galemmo previously explained his strategy in a media interview with the Cincinnati Business Courier in 2001 as concentrating on stock that were undervalued but showed “potential for runups” and he allegedly told customers that he would purchase low, sell high, and respond fast to changes in the market. He also purportedly hid the Ponzi Scam via a number of actions, including having different brokers invest assets so it would be hard to get a grasp of his holdings or the performance of investments.

Most of the victims are from Cincinnati. They contend that as part of the Ohio Ponzi scam, Galemmo paid some investors’ money to pay earlier investors and that the money manager and his associates bilked them.

They are alleging misrepresentations and omissions, the making of false statements, failure to disclose material facts, failure to exercise reasonable care, breach of fiduciary duty, failure to invest funds in the manner purported, using funds for unapproved purposes, violating the Ohio Revised Code’s Chapter 1707, and other allegations. They want damages and a declaration by the court that laws were violated, a temporary restraining order of the defendants’ funds, and well as preliminary and permanent injunction.

If you suspect that you were the victim of stockbroker fraud, contact our Ponzi fraud lawyers today and ask for your free case assessment. Please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

The Resolution Law Group: UBS Agrees to Pay $120 Million in Lehman Bros. Dispute

UBS has agreed to pay $120 million to settle a lawsuit by investors who accused the Swiss bank of misleading them about the financial condition of Lehman Brothers Holdings in connection with the sale of structured notes.

The preliminary settlement was disclosed in papers filed late Thursday in the U.S. District Court in Manhattan, and requires court approval.

It resolves claims over roughly $900 million of Lehman securities that UBS (UBS) underwrote and sold between March 2007 and September 2008, court papers show. Lehman filed for bankruptcy protection on Sept. 15, 2008.

UBS had no immediate comment on the settlement. Lawyers for the investors didn’t immediately respond to requests for comment.

 UBS has agreed to pay $120 million to settle a lawsuit by investors who accused the Swiss bank of misleading them about the financial condition of Lehman Brothers Holdings in connection with the sale of structured notes.

The preliminary settlement was disclosed in papers filed late Thursday in the U.S. District Court in Manhattan, and requires court approval.

It resolves claims over roughly $900 million of Lehman securities that UBS (UBS) underwrote and sold between March 2007 and September 2008, court papers show. Lehman filed for bankruptcy protection on Sept. 15, 2008.

UBS had no immediate comment on the settlement. Lawyers for the investors didn’t immediately respond to requests for comment.

The Resolution Law Group: US gov’t accuses Bank of America of civil fraud in sale of $850M of mortgage bonds in 2008

WASHINGTONThe U.S. government has accused Bank of America Corp. of civil fraud, saying the company failed to disclose risks and misled investors in its sale of $850 million of mortgage bonds during 2008.

The Justice Department filed a lawsuit Tuesday against the bank and several subsidiaries in federal court in Charlotte, N.C., where Bank of America is based. The Securities and Exchange Commission filed a related lawsuit against Bank of America there, too.

Bank of America disputed the allegations.

The lawsuits accuse the second-largest U.S. bank of misleading investors about the risks of the mortgages tied to the securities.

And the government said the bank failed to tell investors that more than 70 percent of the mortgages backing the investment were written by mortgage brokers outside the banks’ network. That made the mortgages more vulnerable to default, they said. The bank disclosed the percentage of such mortgage loans in the investment only to a select group of investors, the suits alleged.

Bank of America could face monetary penalties. The government didn’t specify how much it is seeking, but it estimated that investors lost more than $100 million on the deal.

Bank of America’s CEO at the time described those mortgages as “toxic waste,” the SEC said.

“Bank of America’s reckless and fraudulent … practices in the lead-up to the financial crisis caused significant losses to investors,” Anne Tompkins, the U.S. attorney for the Western District of North Carolina, said in a statement. “Now, Bank of America will have to face the consequences of its actions.”

Bank of America said it will refute the government’s allegations in court.

“These were prime mortgages sold to sophisticated investors who had ample access to the underlying data and we will demonstrate that,” company spokesman Lawrence Grayson said in a statement. “The loans in this pool performed better than loans with similar characteristics (made and packaged into securities) at the same time by other financial institutions.”

“We are not responsible for the housing market collapse that caused mortgage loans to default at unprecedented rates and these securities to lose value as a result,” Grayson added.

The action was brought by a financial-fraud enforcement task force set up to pursue cases related to the 2008 financial crisis. The Justice Department lawsuit marks the most high-profile action brought by the Obama administration over conduct related to the financial crisis since the department sued credit rating agency Standard & Poor’s in February. That lawsuit alleged that S&P knowingly inflated its ratings of risky mortgage investments ahead of the crisis.

S&P, a unit of McGraw-Hill Cos., has rejected the allegations.

The actions against S&P and Bank of America followed years of criticism that the government had failed to do enough to hold accountable those companies that contributed to the crisis.

When the real estate bubble burst in 2007, home values plunged and millions of people defaulted on their mortgages and lost their homes. Investors who bought securities backed by high-risk mortgages lost billions. Regulators have said that inaccurate statements by banks in packaging and selling mortgage bonds contributed to the investors’ losses.

The lawsuit “marks the latest step forward in the Justice Department’s ongoing efforts to hold accountable those who engage in fraudulent or irresponsible conduct,” Attorney General Eric Holder said.

Bank of America received $45 billion in federal bailout aid during the crisis. It became one of the biggest players in the mortgage market through its acquisitions of Merrill Lynch and Countrywide Financial, which wrote many high-risk mortgages that contributed to the crisis.

Bank of America has been dogged by litigation largely as a result of those acquisitions. The bank has had to pay tens of billions of dollars to settle class-action lawsuits and previous actions brought by the SEC.

If you feel you are the victim of Mortgage Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group approach your case in a manner and passion that gives you the best possible chance to win.

The Resolution Law Group, P.C., is a premier boutique law firm engaging in high-stakes commercial and private disputes, encompassing a broad range of legal services. With a national complex litigation practice and a strategic alliance of contract litigators and law firms, seasoned in targeted legal disciplines, we have emerged as a firm taking on consumer advocacy at the national level.

Resolution Law Group lawyers and its contract litigating partners focus their talents on helping clients achieve the best possible results in their trial and arbitration matters. The Resolution Law Group is directed in its ability to handle the most difficult legal situations with targeted and steadfast intensity.

The Resolution Law Group has a reputation for a “bet the company” commitment and in its efforts to prevail in cases where the opposition is formidable and more securely funded. This area of “Complex Tort Litigation”, at its broadest base is cutting edge, and focused on the lending abuses of the nation’s leading residential lenders, and the impact of those practices on the national economy.

In lender litigation, one specialized arena, the firm is engaging institutions that have comparatively unlimited financial resources. As we now know, the nation’s largest financial organizations, who have been found responsible of fraud, continue to avoid their moral and financial responsibility to the American Homeowner.  Through Complex Tort Litigation, the firm is leveling the playing field and holding these defendants accountable for violations of state and federal laws.

The trial lawyers at The Resolution Law Group approach your case in a manner and with a passion that gives you the best possible chance to win.

The Resolution Law Group have worked on virtually every type of commercial dispute. Although a boutique firm, we have earned a reputation for handling some of the toughest and most high-profile cases in the U.S. High-stakes and huge-exposure matters are the firm’s forté, although we handle all manner of small- and medium-sized disputes for a variety of clients. Our approach to litigation is lean and efficient and is always focused on our client’s goals. The Resolution Law Group’s lawyers bring both intense legal expertise and top-notch trial skills to the task. We represent both plaintiffs and defendants, and we use those collective skills on every matter we handle.

If you suspect that you are the victim of Mortgage Fraud, do not hesitate to email or call please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: Determining the right legal action is a complex process.

The Resolution Law Group practices both multi-party litigation as well as individual litigation. In a multi-party suit, many plaintiffs with similar injuries at the hands of a bank come together in a single suit to litigate their claims jointly. A multi-party suit operates just as a regular lawsuit, except multiple plaintiffs have the same or similar causes of action against the bank. Each plaintiff has their individual facts asserted and are allowed to pursue their own individual resolution of the case. TRLG’s multi-party litigation actions lie at the heart at what our goals are—quality representation at a cost effective price. TRLG also pursues individual litigation on behalf of clients whose claims may not fit into our multi-part litigation actions. This may be the result of unique issues involved or the fact that TRLG is not pursuing a multi-party litigation action against a specific lender. Even if a client does fit into a multi-party litigation action, the client has the choice of having TRLG represent them individually especially in cases of Robo-Signing.

No client should be left to make the decision as to the appropriate legal action to take without first consulting legal counsel. Our team of attorneys and representatives work diligently with each prospective client to ensure the legal action best suited for their circumstance is received.

Were the terms of the ultimate loan really different than what you were told you were getting and what you understood you were getting? For too many borrowers in trouble, the answer is a resounding yes. Here are some common red flags to look for in deciding whether you may have legal recourse (examples follow):

  • Missing paperwork
  • Proof of Note Security
  • Hidden and misrepresented payments
  • ‘No-doc’ mortgages

CHECK YOUR DOCUMENTS. If you now realize your income was falsified without your knowledge, do you have a claim? “Yes—you have been lied to and deceived and have been induced by the mortgage broker to lie about your income.”

If you suspect that you are the victim of Mortgage Fraud and would like to join a class action lawsuit, do not hesitate to email or call The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: Why Complex Litigation?

A complex Tort Litigation lawsuit may be the best defense against your loan servicer, investor or lender who knowingly or negligently originated mortgages and exposed borrowers to economic risks they were not aware of or fully understood.

A legal claim may help homeowners hold the banks responsible for unlawful foreclosures.

A key issue, in consideration of all applicable laws and rules governing lawyers in most states, and the nature of the claims alleged by homeowners against the banks and applicable laws regarding those claims, is whether and how homeowners who were induced to take mortgages from these banks can seek redress for alleged wrongs.

A Complex Tort Litigation case is not about emergency relief–it won’t stop a foreclosure, or get a house back.It may or may not induce the bank to take favorable action as to modifying a loan or placing a hold on foreclosure actions.  Those decisions will most likely be unilateral actions taken by the bank, not actions mandated by the court.

Complex Tort Litigation cases are a longer term potential remedy intended to seek financial damages and restitution for wrongs allegedly committed by the banks and other defendants.

Who is a potential client for multi-party litigation?

  • A client who has had some sort of change in circumstances: either the client lost income, or had a severe decrease in the value of his/her property–or both.
  • A client can also have no financial difficulties and be current on their mortgage payments.
  • Any loan transaction handled by MERS
  • Loans that were securitized
  • A client may have already lost the home due to illegal or premature foreclosure action.

If you suspect that you are the victim of Mortgage Fraud, do not hesitate to email or call please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

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