United States Trustee Gerald McHale recently brought suit against Wachovia Bank, and affiliates, for the recovery of “$43 million of conveyances allegedly made to Wachovia in the form of cash and mortgage liens, and the imposition of equitable liens and constructive trusts on several properties in which Wachovia continues to hold liens, or the proceeds therefrom.” Allegations abound that Wachovia not only helped Ed Okun in his scheme but perpetuated it’s continuation despite their (Wachovia’s) knowledge that Okun was violating many banking laws in his business practices.
Today Gerald McHale announced that he has filed a “Statement of Position and Response” to judge Payne’s order in the Ed Okun criminal case. The statement was filed in regards “to the effect of the pending bankruptcy cases of the 1031 Debtors on the likely availability of funds for the purpose of restitution in the criminal case.” The statement was filed October 15, 2008.
3 Key Points
1. McHale agrees “concurs” with the presentation set forth in the Government Statement filed September 12, 2008. See US vs Okun (Government Position) pdf bottom of article.
2. McHale submits that the continuation of the bankruptcy proceedings and the criminal proceedings “are collectively serving the interests of justice and judiciary effciency.”
3. McHale asserts that “Victims of the criminal case are better served by the bankruptcy process which is well underway and has already resulted in the liquidation of many tangible assets and other recoveries.”
Sad But True
The saddest but most likely true statement is the one McHale uttered at the end of his announcement:
“Victims could see some recovery through the bankruptcy process sooner than the time that would be required for the defendant’s convictions in the criminal case will be final.”