Trustee Goes After CEO In Subprime Bankruptcy

Law360, New York (September 8, 2008, 12:00 AM EDT) -- A bankruptcy trustee overseeing the case of Mortgage Investment Lending Associates has filed a lawsuit against its chief executive officer, alleging that he looted the company's assets instead of taking action to turn the company around while it was still a valuable entity.

In an adversary proceeding filed in the U.S. Bankruptcy Court for the Western District of Washington, trustee Geoffery Groshong contends that Layne E. Sapp should have made moves to sell, liquidate or reorganize Mortgage Investment Lending Associates while it still had significant value....
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