Kathy Bazoian Phelps
Senior Counsel in Ponzi Scheme Litigation
and Bankruptcy Matters
Kathy is a senior business trial attorney with more than 25 years experience prosecuting and defending claims for clients involved in Ponzi scheme matters and in bankruptcy proceedings. Kathy’s practice includes recovering assets for clients in complex fraud cases on under standard fee and alternative fee arrangements. Kathy also serves as a mediator in bankruptcy matters, in complex business disputes, and in matters requiring an expert on fraud or Ponzi schemes.
Kathy’s Clients in Ponzi Scheme Cases and Bankruptcy Matters
High Net Worth Investors
Debtors in Bankruptcy
Secured and Unsecured Creditors
Friday, March 31, 2017
Tuesday, February 28, 2017
Dror Soref, 66, had all but two counts in the criminal complaint against him dismissed as being filed outside of the statute of limitations. Soref and Michelle Seward were accused of persuading elderly investors to invest in the Soref-directed thriller “Not Forgotten” and a musical called “Twist.” Soref faced up to 75 years in prison but now faces a maximum of 6 years.
A bankruptcy court held that the liquidating trustee for the Tom Petters Ponzi scheme was not barred by the doctrine of in pari delicto from pursuing claims against BMO Harris Bank as successor to M&I Marshall and Ilsley Bank. Kelley v. BMO Harris Bank N.A. (In re Petters Company, Inc.), 2017 Bankr. LEXIS 535 (Bankr. D. Minn. Feb. 24, 2017). The court noted that the doctrine does not apply to receivers, that the liquidation trustee is also the receiver, and that “[t]he appointment of Kelley as receiver provides a compelling reason not to apply in pari delicto at this time.” The court also found that it is a fact-bound inquiry that is not appropriately decided on a motion to dismiss.