Selected Cases

The firm now known as Gumport | Mastan was founded in 1995. Its name partners have handled litigation and investigations arising from allegations of financial fraud, including bankruptcy fraud and public corruption. In addition, both Mr. Gumport and Mr. Mastan have served as bankruptcy trustees. The following are among the diverse cases handled by the firm and its predecessor firms (the “Firm”) and/or the Firm’s members:

County of San Bernardino: The Firm served as special counsel to the County of San Bernardino to investigate and report on alleged bribes paid by contractors to the top appointed official of the County. Following the submission of the Firm’s report, the Firm represented the County and its affiliates in civil litigation against a solid waste disposal contractor, a bond underwriter, a billboard firm, and former officials of the County. A portion of the case is officially reported in County of San Bernardino v. Walsh, 158 Cal. App. 4th 533 (2007).

In re Reed Slatkin: The Firm served as co-counsel to the trustee of the bankruptcy estate of Reed Slatkin, a co-founder of Earthlink and the operator of an alleged $500 million Ponzi scheme based in Santa Barbara. With co-counsel, the Firm assisted the trustee in investigating Slatkin’s financial affairs, represented the trustee in subsequent asset recovery litigation in more than 100 adversary proceedings, and advised the trustee in connection with foreign asset recovery litigation.

In re Bruce McNall and Affiliates: The Firm was general counsel to the chapter 7 trustee of the bankruptcy estate of Bruce McNall, a former owner of the Los Angeles Kings hockey franchise. Financial institutions filed claims in excess of the $200 million. The Firm represented the trustee in litigation to recover the pre-bankruptcy transfer of the hockey franchise, and the trustee recovered $7.25 million pursuant to a court-approved settlement of that litigation. The firm also represented the trustee in a two week trial of fraudulent transfer claims against one of McNall’s former bank lenders, and obtained a judgment against that bank for approximately $2 million. The firm also represented the trustee in obtaining asset freeze orders against various McNall insiders, including an insider with a Swiss bank account and another insider who had transferred assets into an offshore trust. Pursuant to that insider-related litigation, the trustee recovered in excess of $2 million. The firm also assisted the trustee in liquidating McNall’s assets, including his Holmby Hills mansion, rare sports memorabilia (including a T206 Honus Wagner baseball card that McNall co-owned with Wayne Gretzky), and race horses.

March Joint Powers: The Firm served as special counsel to the March Joint Powers Authority, a joint powers authority whose members include RiversideCounty, and that has oversight of the March Airforce Base. The Firm’s task was to investigate and report on the use of allegedly inaccurate flight path information shown to the public in connection with obtaining public approval of a contract to operate a cargo port at the airbase.

Alaskan Native Corporation: The Firm served as special counsel to conduct an internal investigation for an Alaskan Native corporation concerning multiple transactions by prior management.

First Securities Group: This case resulted from an alleged $30 million Ponzi scheme operated by a Beverly Hills broker-dealer that was a member of SIPC. At SIPC’s request, a member of the Firm became the SIPC trustee and the broker-dealer and the Firm became counsel to the trustee. The Firm determined hundreds of claims, and administered in excess of $6 million in SIPC payments to victims of the scheme. Additionally, the Firm assisted the U.S. Attorney’s office in administering a victim’s restitution fund created with assets seized from the principals of the broker-dealer.

Intermagnetics & Affiliates: Prior to founding the Firm, Mr. Gumport served as chapter 11 trustee and counsel in connection with an investigation and litigation arising from an alleged scheme by the prior debtor-in-possession to rig a court-approved bankruptcy case of videotape technology. The debtor disappeared and assumed a new identity. Mr. Gumport obtained the debtor’s civil arrest and referred the debtor for criminal prosecution. The debtor subsequently pleaded to bankruptcy fraud. An appeal of a portion of that case is reported in Gumport v. China International Trustee & Investment Corp. (In re Intermagnetics America, Inc.), 916 F.2d 922 (9th Cir. 1991).

Newedge: Prior to founding the Firm, Mr. Gumport served as court-appointed examiner in connection with the bankruptcy of Newedge, a US affiliate of international arms dealer Adnan Khashoggi. As examiner, Mr. Gumport investigated and reported on the withdrawal of approximately $89 million from the affiliate and alleged breaches by Khashoggi affiliates of a $150 million stock subscription agreement. Subsequently, Mr. Gumport served as special counsel to the trustee of another Khashoggi affiliate in obtaining an asset freeze order that precluded Northrop Corp. from paying a $30 million commission to Liechtenstein affiliate.

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