Thompson & Knight Aided 'Ponzi-Like' Scheme: Suit

Law360, New York (July 14, 2009, 12:00 AM EDT) -- The receiver for Sunwest Management Inc. has accused Thompson & Knight LLP of preparing memos to lure investors for the retirement home operator despite knowledge of its dire financial problems, aiding a “Ponzi-like” scheme that collected more than $450 million to sustain Sunwest.

Michael Grassmueck, the receiver appointed by the court in the fraud suit brought by the U.S. Securities and Exchange Commission, filed the $100 million suit against Thompson & Knight on Monday in the U.S. District Court for the District of Oregon.

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