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San Francisco Litigation - Wind down of Trust

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As I have noted before, in August and September 2013, the Liquidation Trust went to trial in United States District Court for the Northern District of California on its final claim, which was a claim for negligence against the law firm that represented 1031 Advance, Inc. in its sale to 1031 Tax Group, Inc.  After a hard fought  three week trial, the jury concluded that the law firm was not negligent.  While we are disappointed with and disagreed with the jury verdict, we believe we did the best job possible with the evidence and have to respect the verdict.
 
After careful consideration and in consultation with my counsel, I have concluded that it is not in the best interests of the Liquidation Trust to pursue post-trial motions or an appeal, which would have been a costly and risky effort, and at best would result in the right to a new trial.  In view of that, both sides in the case have agreed to entry of a judgment for the defendant in order to end the case.
 
As you know, as to all of the other many claims the Trust had, we obtained significant recoveries for the benefit of the creditors/exchanger, and this is the only one that resulted in a defense verdict.  I think that is a good track record, and I am proud of the work my counsel and I did and the results we achieved. 
 
I do not expect further significant recoveries for any assets and will be considering what steps to take to conclude the work of the Liquidation Trust.
 
Thanks,

Jerry McHale

 

Dear Victim or Interested party,

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Welcome to the home page of the Bankruptcy Trustee for the 1031 Tax Group and related companies.

On October 23, 2007, Judge Martin Glenn of the United States Bankruptcy Court Southern District of New York granted a Motion for Appointment of a Chapter 11 Trustee. On October 24, 2007, the Office of the United States Trustee appointed Gerard (Jerry) McHale, Jr. to act as a Chapter 11 trustee for The 1031 Tax Group and related companies.

This website is updated regularly as more information becomes available. We have also posted links to other related websites. Our contact information is posted under the Contact Us link on the left.

 

Supreme Court denies Okun appeal

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On Friday, March 14th, the Supreme Court of the United States denied Edward Okun's appeal.  

A copy of the denial letter can be downloaded here: Petition for writ of certiorari denied (PDF)

Update 5/3/2012:  We have obtained the complete case docket for Okun's Supreme Court case.  It can be downloaded here:  Okun vs. US - 11-9381 complete (PDF)