Creditors' Trustee Sues First Magnus Execs For $1B

Law360, New York (February 27, 2009, 12:00 AM EST) -- The former executives of the now-defunct First Magnus Financial Corp. have been smacked with a $1 billion lawsuit by the trustee representing the mortgage company's creditors that accuses it of wasting the money it should have been stockpiling in the event of a crisis.

On Thursday, Larry Lattig, the litigation trustee for the First Magnus Litigation Trust, filed suit in the U.S. Bankruptcy Court for the District of Arizona, taking aim in particular at the former directors and officers of Tucson, Ariz.-based First Magnus and their...
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