Law360, Wilmington (May 22, 2012, 9:07 PM ET) -- A Delaware bankruptcy judge on Tuesday refused to allow the litigation trustee for DBSI Inc. to add hundreds of defendants to a suit against broker-dealers that allegedly profited from the $500 million Ponzi scheme that sank the real estate investment firm.
The trustee, James R. Zazzali, launched an adversary proceeding in November 2010 against more than 100 broker-dealers seeking to claw back $48 million of alleged fraudulent transfers tied to the scheme. The trustee has since identified and sought to add as defendants 525 “registered representatives”...
Hundreds Of Proposed Parties Barred From DBSI Ponzi Suit
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