US
(2009-09-30)
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SEATTLE, WA
(KPLU) -
The federal trustee in one of the state's biggest bankruptcy cases has taken steps to get back a 27-carot diamond ring, a new Rolls Royce and a waterfront mansion in Medina. The items were moved offshore after Seattle developer Michael R. Mastro was forced into bankruptcy.
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US Trustee James Rigby says the transfers to a trust in Belize were illegal. The total value of the items probably tops 16 million dollars. Rigby says he's not satisfied with Mastro's explanation at the recent first meeting of creditors as to why those assets were transferred.
"He said it was for estate planning purposes and that's usually the best explanation people can come up with when they attempt to put their assets beyond the reach of the bankruptcy court and the creditors."
Rigby has filed a lawsuit against the elderly Seattle developer, his wife and a handful of companies that make up the Mastro estate.
If recovered, proceeds from the sale of the Mastro home and other items would be used to pay off creditors for debts totaling nearly half a billion dollars. Topping the list of creditors are several local and national banks. Next in line would be Rigby and his legal team for some payments. And then there's a list of several hundred "friends and family" of Mastro who made investments in an unsecured real estate fund.
The next big step in this complex bankruptcy proceeding is a second meeting of creditors on October 28th.
Trustee's Lawsuit (PDF) © Copyright 2012, KPLU
