Horse Breeder Trustee Settles Fraud Claims For $27M

Law360, New York (July 25, 2011, 2:45 PM EDT) -- The bankruptcy trustee for Kentucky horse breeder ClassicStar LLC on Friday inked $27 million in settlements with investors accusing the GeoStar Corp. subsidiary of convincing them to claim $500 million in improper tax deductions in a fraudulent mare-leasing scheme.

James D. Lyon, the Chapter 7 trustee for ClassicStar, a thoroughbred horse breeding outfit operated by energy company Geostar Corp., granted five investors unsecured claims against the estate totaling $27 million in order to resolve fraud and racketeering allegations.

The settlements finalize a truce the trustee reached...
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Case Information

Case Title

In Re: ClassicStar Mare Lease Litigation MDL No. 1877


Case Number

5:07-cv-00353

Court

Kentucky Eastern

Nature of Suit

Racketeer/Corrupt Organization

Judge

Joseph M. Hood

Date Filed

October 19, 2007

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