Wednesday, 23 July 2014
Last updated 29 min ago
Nov 26 2008 | 3:11am ET
Pacificor has been sued by the former owners of a mortgage lender the California hedge fund bought.
John and Kitty Gaiser have sued the Santa Barbara-based firm and the estate of its former manager, Michael Klein, seeking $30 million. The Gaisers’ lawsuit says that Pacificor “misused a position of trust and control in order to attempt to take control of and acquire—without compensation—John and Kitty Gaiser’s ownership of Quality Home Loans,” the Gaisers’ law firm said in a statement.
According to the suit, filed in Los Angeles County Superior Court, Quality Home Loans filed for bankruptcy after Pacificor sought to buy it. The hedge fund eventually acquired the mortgage lender after it filed for Chapter 11 bankruptcy protection.
“It is our hope that this lawsuit will rectify the massive damage done to the Gaisers by the named defendants,” the Gaisers’ lawyer, John Edgar, said. “We will look forward to proving these damages at trial.”
For its part, Pacificor has denied the charges, according to the Pacific Coast Business Times.
Klein was killed in a plane crash last year in Panama. Since his death, Pacificor and his estate have been inundated with lawsuits. The Sorenson Trust and Relief Return International have sued, claiming that Klein promised to allow them to redeem their investments prior to his death. The firm and Klein’s estate have also been sued by his ex-wife over their daughters’ death in the plane crash. And the family of his daughter’s best friend—the only survivor of the crash—has also sued his estate.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…