Olshan Secures Trial Win With Bankruptcy Court Finding that Diamond Finance Operated as a Ponzi Scheme and Holding Torac Realty Liable as a Willing Participant

Firm News

In February 2024, Olshan secured a trial win on behalf of its client, the Chapter 7 Trustee of the bankruptcy estate of Diamond Finance. Following a bench trial, the Court issued a 49-page opinion finding the Trustee had established that the bankrupt, a subprime auto lender, was in fact a Ponzi Scheme. The Court awarded substantial damages, attorney fees and interest. The Chapter 7 Trustee was represented by Litigation partner Thomas Fleming and Bankruptcy & Financial Restructuring of counsel Michael Fox, and by partner Jonathan Koevary at trial. A copy of the decision is available here

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