A high-profile bankruptcy of Hollywood financial adviser Dana Giacchetto’s Cassandra Group company offers a lesson on how a bankruptcy trustee can creatively use state fraudulent transfer laws to maximize returns to creditors.
Using the U.S. Bankruptcy Code and New York state fraudulent transfer law, the bankruptcy trustee recovered $6.9 million and distributed 35 cents on the dollar to creditors of Giacchetto’s company, said New York-based Bryan Cave partner Bob Wolf, who was special litigation counsel to the bankruptcy trustee in the case.
