Newbury Common Trustee Says $70M Fraud Was Avoidable

Law360, Wilmington (December 8, 2017, 12:30 PM EST) -- The liquidating trustee appointed under the confirmed Chapter 11 plan of real estate firm Newbury Common Associates LLC filed a 16-count adversary complaint Thursday in Delaware alleging the company’s managers were negligent in allowing a third manager to perpetrate a fraud that cost Newbury $70 million and led to its bankruptcy.

In the complaint, the NCA Investors Liquidating Trust alleges that the founding managers of Newbury Common and property-owning subsidiaries operating under the Seaboard Realty LLC banner hired a third manager to oversee the operations of...
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