Davis Wright Fingered In $400M Sunwest Ponzi Suit

Law360, New York (June 17, 2009, 12:00 AM EDT) -- The receiver for retirement home operator Sunwest Management Inc. has brought a $400 million suit alleging Davis Wright Tremaine LLP played a key part in assisting its former client with running a Ponzi scheme.

Michael Grassmueck, the court-appointed receiver for Sunwest and its units in a securities fraud case brought against them by the U.S. Securities and Exchange Commission, lodged the suit on June 11 in the U.S. District Court for the District of Oregon.

The suit accuses the Seattle-based law firm of writing memoranda that...
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