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Former New York bankruptcy judge Cornelius Blackshear dies at 81

4 Min Read (Reuters) - Retired U.S. Bankruptcy Judge Cornelius Blackshear, who was involved in notable Chapter 11 cases from Pan Am to Johns Manville, died on June 10 following a stroke-related illness. He was 81. REUTERS/Chip East Before sitting on the Southern District of New York bankruptcy bench from 1985 until 2005, Blackshear worked for the U.S. Department of Justice’s bankruptcy watchdog, the U.S. Trustee Program. In 1983 he became the first Black U.S. Trustee, according to a statement from Fordham Law School, where he earned his law degree and later taught. Blackshear represented the U.S. Trustee program in the 1982 case of manufacturer Johns-Manville, the largest company to ever seek bankruptcy at that time. That case, prompted by thousands of lawsuits alleging asbestos-related illnesses, made history for resolving the asbestos claims through the creation of a $2.5 billion trust to pay out victims.

Justice Department objects to National Rifle Association's bankruptcy plan

Justice Department objects to National Rifle Association s bankruptcy plan By Khristopher J. Brooks NRA files for bankruptcy The U.S. Department of Justice is objecting to the National Rifle Association s bankruptcy plan, pointing to what the agency says is mismanagement of funds by leaders of the gun advocacy organization.  Lisa Lambert, assistant U.S. Trustee in the DOJ s Trustee Office, said Monday during the NRA s bankruptcy case in Texas that the group s longtime CEO, Wayne LaPierre, used NRA funds for his own purposes and failed to properly safeguarded the group s financial records. The record is unrefuted that Wayne LaPierre s personal expenses were made to look like business expenses, she said in a hearing in the United States Bankruptcy Court for the Northern District of Texas.

The Failure of the United States Trustee Program in Chapter 11

« FDIC Valid-When-Made Rule Amicus Brief | Main | Rent-to-Own Dogs » posted by Adam Levitin The United States Trustee settled with three large law firms that failed to disclose the nature of their relationship with the Sackler Family Purdue when they were engaged by Purdue in its bankruptcy. The result is that these firms will return $1 million in fees.  This action has produced headlines like Bankruptcy Watchdog Bares Teeth at BigLaw in Purdue Ch. 11, but I have a completely different take on the story. I see this settlement as an indictment of the US Trustee Program as a complete failure in chapter 11.  In Purdue, the UST is focused on a measly million of fees, and is AWOL on the issues that affect billions in creditor recoveries. And the story is hardly limited to Purdue.

Purdue Pharma-hired law firms reach $1M settlement with DOJ

Purdue Pharma-hired law firms reach $1M settlement with DOJ FacebookTwitterEmail Purdue Pharma is headquartered at 201 Tresser Blvd., in downtown Stamford, Conn.Matthew Brown / Hearst Connecticut Media STAMFORD Three law firms hired by OxyContin maker Purdue Pharma have agreed to collectively relinquish $1 million in fees earned from the Stamford-based firm’s bankruptcy, as part of a settlement to resolve concerns about the adequacy of their disclosures during the bankruptcy proceedings, the Department of Justice announced Thursday. The Justice Department’s U.S. Trustee Program, which focuses on protecting the integrity of the bankruptcy system, alleges that in their applications to be retained by Purdue during its bankruptcy the firms did not disclose that before the company’s September 2019 bankruptcy filing they each had entered into a written “joint defense and common interest agreement” on behalf of Purdue with other parties, including members of the Sackler fami

Purdue Pharma-hired law firms reach $1M settlement with DOJ

US Executive Branch Update – March 11, 2021

Consumer bankruptcy firm refunds Montana clients to settle misconduct claims

Consumer bankruptcy firm refunds Montana clients to settle misconduct claims Westlaw News Maria Chutchian A consumer bankruptcy law firm has agreed to return payments it collected from clients in Montana to resolve allegations from the federal government accusing it of misrepresenting its services and fees and other misconduct. The U.S. Trustee Program, which serves as the bankruptcy watchdog arm of the U.S. Department of Justice, announced the settlement with Deighan Law on Wednesday after it was approved by a Montana bankruptcy court on Tuesday. The firm, which was previously known as Law Solutions Chicago and now does business as UpRight Law, has agreed to refund $300,000 in fees and has been barred from practicing in Montana through 2024, according to a statement from the DOJ.

Consumer bankruptcy firm refunds Montana clients to settle misconduct claims

Four new defendants added to federal indictment alleging multi-million dollar embezzlement conspiracy resulting in failure of Chicago bank

Court Converts One Aviation Bankruptcy Case to Liquidation

 - February 19, 2021, 12:31 PM With most of its salable assets already in the hands of other entities, the nearly six-year run of Albuquerque, New Mexico-based One Aviation came to an end Thursday with an order by U.S. Bankruptcy Court Judge Christopher S. Sontchi to liquidate the company’s remaining assets. “I ve lost confidence in management,” Sontchi said in converting One Aviation s reorganization effort, which began in October 2018, to Chapter 7 liquidation. “We need an independent fiduciary to come into this case and have a look at it…we need to stop the music here.” None of the remaining parties in the case opposed the ruling, including Citiking International, which had intended to take control of One Aviation upon its exit from Chapter 11 reorganization. However, the Chinese-backed entity repeatedly failed to make good on its court-approved emergence plan, leaving One Aviation to pursue alternatives to keep the company whole.