Michael Christiansen’s sworn testimony in United States Bankruptcy Court, Arizona District, identified potential fraudulent conveyance of key corporate assets, management malfeasance, insidious conflicts of interest, and governance abuse of creditors and minority stockholders, all perpetrated by incumbent Debtor-in-Possession management.
His service as Chairman of the Creditor Committee achieved removal of Debtor-in-Possession management, appointment of an Independent Trustee, disqualification and disgorgement of opposing counsel legal fees, and subsequent retention of contingency litigation counsel. The Trustee is now actively pursuing a $100 million fraudulent conveyance claim on behalf of the Liquidation Estate, with trial in federal court now scheduled for March 2023.
Michael’s asset tracing analysis demonstrated that Respondent held a separate property interest in 48.6% of total community-controlled assets, directly attributable and traceable to Respondent’s pre-marital financial assets. The asset tracing report incorporated nine institutional financial accounts, covered 26 years of account records, and addressed pre-marital account values followed by community contributions, distributions, rollovers, investment returns and account appreciation, respectively apportioned to separate vs community interests.
Upon presentation of his “Tracing Analysis & Separate Property Claims” report, Petitioner’s counsel promptly requested settlement negotiations.
Michael’s asset tracing analysis demonstrated 19 years of irregular property transfers, misappropriated and amalgamated financial and real estate assets, unaccounted distributions and accounting discrepancies, all running to the detriment of the Family Trust Petitioner—while accreting to Respondent's previously undisclosed trust accounts—in aggregate amount exceeding $1.2 million.
His preliminary timeline, documentation and asset tracing presentation resulted in retention of a major west coast law firm with payment of legal fees deferred until financial recovery, which was ultimately achieved in 2017. The negotiated financial settlement achieved recovery of real estate and financial assets from Respondent roughly equivalent to the value asserted in Michael's original analysis.
Michael’s initial status conference presentation in United States Bankruptcy Court for the District of Delaware identified significant irregularities and potentially fraudulent creditor claims in a public telecom company bankruptcy filing.
His appointment and service as Chairman of the Unsecured Creditors’ Committee negotiated significant asset recoveries and supervised cash distributions to unsecured creditors at 104.0% of undisputed claims, totaling $4.4 million.
Case references, redacted analytics and redacted expert-equivalent reports are available on request.