Representative Engagements

Bankruptcy, litigation & accounting services

Partial List of Engagements

Please explore LSS&M'S role in the following engagements:

Aetna

HARTFORD, CONNECTICUT

Arrow
LSS&M assisted in the evaluation of bond exposure on a bank’s agriculture lending subsidiary.

Settled favorably out of court.
American Workforce

401(K) PROFIT SHARING PLAN & TRUST WITH JOHN LITZLER AS TRUSTEE

Arrow
John Litzler served as Trustee in these proceedings, which resulted from a court order to separate the 401(k) plan from the corporate filing of Miller Personnel, Inc.

This plan contained several million dollars in employee related funds and required extensive litigation against former employees, bonding companies, accountants, banks, and various insurance carriers. LSSM uncovered and traced millions of dollars of prohibited and reportable transactions involving the 401(k) and assisted the U.S. Justice Department and the Texas Attorney General on several causes of action.

The Trustee distributed funds exceeding 70% of the 401(k) participants’ balances.
Ameritruck Distribution

RECOVERY OF OVER $14 MILLION WITH JOHN LITZLER AS TRUSTEE

Arrow
Largest refrigerated truck line in the country. John Litzler as Trustee negotiated a settlement with secured lender, which resulted in a recovery of over $14 million for the Estate.

In addition to settlement, with the assistance of LSSM, the Trustee sold over $1.5 million in real estate, settled preferences in excess of $1 million, and filed lawsuits exceeding $20 million relating to fraudulent transfers and the director and officers’ insurance policy.

LSSM has examined/resolved approximately $60 million in Chapter 11 administrative claims and currently is reviewing general unsecured claims in excess of $150 million.
Brio Petroleum Corp.

JOHN LITZLER AS ACCOUNTANT

Arrow
John Litzler served as the accountant on this international crude oil trader and refinery operator.

The Trustee and the unsecured creditors committee hired Mr. Litzler to perform investigatory work on preferences and avoidable transactions working with the FBI, Department of Energy, and Defense Fuel Agency, which led to filing of a “Farrah Action” by Trustee; settled out of court.
CareSelect Group

RECOVERED $1 MILLION WITH JOHN LITZLER AS TRUSTEE

Arrow
John Litzler served as Trustee on this conglomerate of medical practices.

The Trustee and his litigation team recovered approximately $1 million from a D&O claim and the related fraudulent transfers of certain medical subsidiaries. The Trustee also managed the efforts to subordinate 100% of the bank debt.

LSSM, using its tax expertise, amended prior year tax returns and recovered approximately $1 million in tax refunds.
Chanel Financial

SHREVEPORT, LOUISIANA

Arrow
Mortgage servicing and brokerage company. This company and its sole owner were placed in Chapter 11, and John Litzler was appointed Trustee.

Operating under Chapter 7, the Trustee liquidated the mortgage loan servicing operation and other assets. LSS&M worked with counsel and the U.S. Attorney on other issues, including assets “secreted” from the bankrupt estate.

The Debtor was indicated, convicted and served prison time.
Cornerstone Prodigy Group

(CPG)

Arrow
CPG was engaged in a telemarketing program soliciting investors for non-existent products line. In excess of $15 million was raised from the “Ponzi” scheme.

As accountants for an SEC appointed Receiver, LSSM traced investor funds to improperly acquired properties. LSSM assisted in locating and liquidating the property for distribution to claimants. Investors ultimately received 50% on their claims.
Future Communications/Multi-Family Cablevision

JOHN LITZLER AS TRUSTEE

Arrow
John Litzler was the Trustee of a holding company which owned numerous operating entities.

The Trustee put the subsidiaries in Chapter 11 and assumed management responsibilities. With the assistance of LSSM, the Trustee successfully negotiated the sale of subsidiary assets, in full satisfaction of general unsecured claims and payments to the parent company on its subordinated inter-company debts.
Hammersmith Trust/Bridgeport Alliance

MILO SEGNER AS ACCOUNTING EXPERT

Arrow
This case involved a worldwide “Ponzi” scheme based out of Florida in which investors were swindled out of over $64 million.

LSSM, as accountants for the SEC appointed receiver, traced investor funds and assisted in the locating and collection of assets acquired through the scheme.

LSSM was then engaged as experts for the Department of Justice. Milo Segner provided extensive expert testimony through the Federal District Court trial and sentencing.
Harbor Financial Group

JOHN LITZLER AS TRUSTEE

Arrow
John Litzler presently is serving as Trustee for six related companies, which were involved in originating, purchasing, and selling over $11 billion in residential mortgage loans.

The Trustee has recovered in excess of $66 million for the estate, including over $35 million from various litigation involving banks, insurance companies, a major accounting firm, a government agency, and a major corporation.
Heritage Southwest Medical Group

LSS&M AS ACCOUNTANTS

Arrow
Heritage was a corporation formed to provide health care services for members of prepaid health plans. Placed in involuntary bankruptcy, Heritage had annual revenues in excess of $160 million. It provided for the medical services through contracts with various health care providers, and had several hundred thousand eligible members including commercial and senior members.

This is a complex case involving multiple related entities, which act as funders and providers of medical services. As accountants for the Chapter 7 Trustee, the Firm is actively investigating preferences and fraudulent transfers in excess of $20 million.
Le Club Privé

LSS&M AS ACCOUNTANTS APPOINTED BY SEC

Arrow
An internet-based company in Costa Rica operating a “ponzi” scheme establishing offshore trusts that defrauded investors of over $10 million.

As accountants for the receiver appointed by the Securities and Exchange Commission, LSSM developed cash models and traced numerous cash transactions involving offshore bank accounts in countries throughout Europe, Asia, North America, Central America, and the Caribbean.
Malcolm Kelso/Legal Econometrics

JOHN LITZLER AS TRUSTEE

Arrow
John Litzler was the Chapter 7 Trustee in this case, which was heavily litigated and involved the reduction of over 25 appeals.

All general unsecured claims were paid in full.
Jerry H. Mudd et al.

JOHN LITZLER AS TRUSTEE

Arrow
ohn Litzler was the Chapter 7 Trustee. Assets located and liquidated in excess of $400,000.

Debtor was indicted, convicted and sentenced for securities fraud (“ponzi”) in excess of $13,000,000.
TIC United Corp

Recovered $20 MILLION WITH JOHN LITZLER

Arrow
Debtor was a conglomerate of diversified operations including transportation, steel foundries, and real estate. John Litzler is the Chapter 7 Trustee.

The Trustee has liquidated substantially all remaining property of the Debtor. The Trustee and his legal team obtained a ruling on summary judgment resulting in $20 million recovery from the secured lender based on invalid cross-collateralization of liens, unperfected liens, and unauthorized transfers of funds.

Total funds recovered for the estate exceed $20 million to date.
Daniel Ralph Urschel (3 Bar D Ranch)

CANADIAN, TEXAS, LSS & M ASSISTED TRUSTEE

Arrow
LSSM was hired by the Trustee to handle examination, accounting, and all filings on the 27,000-acre ranch, which included oil and gas property, ranch and equine operations.

LSSM provided assistance to the Trustee and his counsel, which was instrumental in managing a quarter horse breeding operation.

LSSM developed and implemented a plan of reorganization involving the operation and orderly liquidation of the estate’s assets, valued at approximately $10 million.
George Winans

MILO SEGNER WAS APPOINTED RECEIVER

Arrow
Milo Segner was appointed as a Federal District Court receiver in this collection proceeding involving the Internal Revenue Service and a judgment creditor.

The Receiver conducted an extensive examination of numerous fraudulent transfers. Without protracted and expensive litigation, the Receiver was able to settle such that the IRS and the judgment creditor received $4 million (100% of their clams with interest) and a surplus was distributed to the defendants.

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