Greenberg Traurig Sued Over Mortgages Ltd. Collapse

Law360, New York (May 12, 2010, 1:42 PM EDT) -- Investors in the bankrupt Mortgages Ltd. have filed a putative class action against Greenberg Traurig LLP, saying a Greenberg partner helped draft documents that allowed the company to raise money for what effectively was a Ponzi scheme.

Greenberg partner Robert Kant put together private-offering memoranda that omitted key details of Phoenix-based Mortgages' financial health, even as he warned company executives that “they put people in jail” for their type of misconduct, investors said in a suit filed Tuesday in the U.S. District Court for the District...
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