Thornburg Sues Former Execs To Recover Funds

Law360, New York (October 7, 2009, 6:19 PM EDT) -- Bankrupt real estate investment firm TMST Inc., formerly known as Thornburg Mortgage Inc., has sued two of its former executives, alleging that they used TMST employees and property to start a new company, SAF Financial Inc.

Thornburg filed an adversary proceeding against former CEO Larry Goldstone, Chief Financial Officer Clarence Simmons III and SAF on Tuesday in the U.S. Bankruptcy Court for the District of Maryland.

Prior to TMST's May 1 bankruptcy filing, Goldstone and Simmons were aware the company would be seeking liquidation and that...
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