Receivers Advising Victims of Swindlers Can Also Encounter Legal Troubles

LOS ANGELES, Oct. 13, 2016 /PRNewswire/ -- Receivers aiding in the recovery of funds for investors and victims that were swindled also can run afoul of the law if they're not extremely familiar with tax laws and rulings, says receivership law specialist Byron Moldo.

Moldo, a member of the Bankruptcy, Receivership, and Reorganization Practice at the law firm Ervin Cohen & Jessup in Los Angeles, will explain some of these tricky tax rules at the National Association of Federal Equity Receivers' (NAFER) conference in Washington, D.C.

Joining Moldo on the October 14 panel,  "Money, Money, Money: Tax, Insurance, Expenses and Reporting," is Irving H. Picard, the court-appointed trustee for the victims of Bernie Madoff's multibillion-dollar Ponzi scheme.

Picard "will focus on the money aspect, while I will focus on the tax aspect," says Moldo, adding that the panel will be "important as a refresher and make people aware of this aspect of practicing in this area."

Moldo will discuss a 2009 memo by the U.S. Department of Justice's Tax Division addressing the interplay of claims by the government and investors/victims, including the distribution of funds by receivers in fraud matters.

"If someone acting as a receiver doesn't do things properly to comply with the tax code or use someone who does, there can be some serious exposure," Moldo warns. "There was a case a few years ago where someone acting as a receiver was held personally liable because the receiver distributed funds to investors instead of recognizing a claim of the government. After that, this memo was issued to clarify these issues."

Moldo, who served as a Chapter 7 and 11 Bankruptcy Trustee in the Central District of California for 10 years, regularly serves as a receiver in federal and state court cases, as assignee for the benefit of creditors, and as a fiduciary in other court-supervised matters.

About Ervin Cohen & Jessup LLP
Ervin Cohen & Jessup LLP is a full-service firm that provides a broad range of business-related legal services including corporate law; litigation; intellectual property & technology law; real estate transactions and finance; construction & environmental law; tax planning and controversies; employment law; health care law; bankruptcy, receivership and reorganization; and estate planning. For more information, visit http://www.ecjlaw.com/

SOURCE Ervin Cohen & Jessup LLP

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