Maywood Ch. 11 Trustee Eyes Deal In NJ Fraud Suit

Law360, New York (September 8, 2009, 5:30 PM EDT) -- The trustee in Maywood Capital Corp.'s Chapter 11 proceedings has proposed a settlement between the real estate company and the New Jersey Bureau of Securities in an effort to resolve claims related to an alleged multimillion-dollar mortgage loan Ponzi scheme.

Chapter 11 trustee John S. Pereira's motion, filed Thursday in the U.S. Bankruptcy Court for the Southern District of New York, provides that the New Jersey agency will receive a reduced unsecured claim of approximately $19.3 million.

According to the motion, the claim represents the amount...
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