Stillwater Loses Appeal Over Transfer Claims For 11 Funds
On March 30, 2018, United States District Judge Edgardo Ramos affirmed the dismissal of all claims by Stillwater Liquidating LLC against multiple McLaughlin & Stern, LLP clients. In 2014, the liquidating trust for Stillwater Asset Backed Offshore Fund Ltd. filed a $50 million adversary proceeding in the United States Bankruptcy Court for the Southern District of New York. The Stillwater liquidating trust accused the defendants of engaging in a fraudulent scheme to strip the debtor fund and related entities of their real estate assets. The claims included fraudulent conveyance, unjust enrichment, and constructive trust claims against certain purchaser defendants, and conspiracy to defraud and convert property and aiding and abetting conversion and breach of fiduciary duty claims against lenders. Brian Grieco, a bankruptcy litigation attorney with McLaughlin & Stern, who was instrumental in obtaining dismissal of these claims in the Bankruptcy Court, continued his role in the District Court, successfully obtaining the victory on appeal.
McLaughlin & Stern, LLP handles a broad range of bankruptcy-related litigation, such as both federal and state fraudulent conveyance litigation.