Cole Schotz Secures 19.98 Million Dollar Judgement for The Wimbledon Fund
Cole Schotz P.C. secured a judgment in favor of The Wimbledon Fund, SPC Class TT in the U.S. District Court for Central District of California, marking a significant victory following five years of litigation across multiple states. On July 18, the Cole Schotz team secured a final judgment for $17.66 million against a prominent Hollywood producer and director, and for $2.32 million against his production company.
Wimbledon filed suit against film producer David Bergstein’s asset management firm Swartz IP Services Group Inc. (SIP) in 2015, for the fraudulent transfer of $17.66 million in purchased notes to third parties before letting SIP default on the loan, including $2.3 million fraudulently transferred to a separate production company.
The Cole Schotz team secured an initial victory in the Supreme Court of the State of New York against SIP on November 24, 2015 in the form of a judgment in the principal amount of $18.2 million. Wimbledon subsequently reached a settlement with various parties, but retained its claims against certain unaffiliated defendants.
While defendant argued that he was not behind the fraud, despite evidence presented that he was an officer for SIP, the Cole Schotz team convinced U.S. District Judge Christina A. Snyder to declare the defendant as jointly liable for the contractual obligations owed by SIP. The judge granted Wimbledon’s summary judgment and determined the Hollywood producer must pay the sum which is owed for his involvement in the corrupt loan purchase financing transaction.
The Cole Schotz team that represented The Wimbledon Fund was led by James Walker and consisted of members Leo Leyva, Eric Latzer, Cameron Welch and James Kim. The firm’s efforts spanned its Texas, New York and New Jersey offices.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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