BofA, Countrywide Condemn Tax Group's Ch. 11 Plan

Law360, New York (September 28, 2009, 3:32 PM EDT) -- Accused of aiding The 1031 Tax Group LLC’s $126 million Ponzi scheme, Bank of America NA and Countrywide Bank FSB have objected to the bankrupt exchange fund firm’s latest Chapter 11 plan, claiming the proposed reorganization runs roughshod over the banks’ crucial setoff rights.

On Sept. 25 the banks urged Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York to deny confirmation of 1031 Tax Group’s second amended plan of reorganization, contending that the plan improperly frees the debtor from...
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