Brooke Clawback Suit Remains In Bankruptcy Court

Law360, New York (October 26, 2011, 5:57 PM EDT) -- A Kansas federal judge on Wednesday refused to take up an adversary proceeding filed on behalf of investors in now-bankrupt Brooke Corp. seeking to recoup losses from the insurance company's massive financial fraud.

U.S. District Judge Eric J. Melgren denied the defendants' request to have the bankruptcy reference withdrawn from Chapter 7 trustee Albert A. Riederer's suit seeking to recover money allegedly wrongfully transferred to a group of investors during the course of the fraud, saying the suit properly belonged before the bankruptcy court.

Riederer's suit...
To view the full article, register now.