5th Circ. Tells Ex-CEO Fraudster To Pay Victim's Legal Tab

Law360, New York (April 10, 2017, 8:53 PM EDT) -- In an unusual two-judge decision, the Fifth Circuit has reluctantly ordered a former shipping company CEO to pay about $5 million in legal fees General Electric Capital Corp. incurred in the bankruptcy resulting from the CEO's fraud.

Former USA Dry Van Logistics CEO Sergio Lagos and other executives pled guilty to falsifying their company's books to obtain a $38 million loan from GE Capital in 2013 and were sentenced in 2016. U.S. Circuit Judges Edward Prado and Stephen Higginson upheld a sentence sticking Lagos with legal bills from USA Dry Van's bankruptcy proceedings in an opinion transmitted to the trial court...

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