Taneja Bankruptcy Trustee Initiates 45 Lawsuits in Connection with Ponzi Scheme

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Jul 27, 2010, 05:10 ET

Fraudulent Transfer Suits Aim to Recover Millions from Culpable Parties

WASHINGTON, July 27 /PRNewswire-USNewswire/ -- Wiley Rein LLP partner H. Jason Gold, the Chapter 11 bankruptcy trustee appointed by the United States Bankruptcy Court for the Eastern District of Virginia in the case of Vijay Taneja, announced today that he has filed 45 lawsuits seeking to recover almost $614 million from companies and individuals that received money transferred out of bank accounts controlled by Mr. Taneja prior to Mr. Taneja's bankruptcy filing. Many of the transfers took place over a period of years.

The filings are the culmination of two years of investigation into what is arguably the largest and most complex Ponzi Scheme seen in the Washington, DC region over the past several decades. Trustee Gold is invoking provisions of the bankruptcy laws that permit recovery of sums transferred to people and entities prior to the bankruptcy filing, so that a fair distribution can be made to all those who have been swindled by or who are otherwise legitimate creditors of Mr. Taneja. Mr. Taneja is currently serving a 7-year prison sentence after pleading guilty to his fraudulent activities.

"We're taking these steps so that we can recover as much money as possible and return it to creditors," said Mr. Gold. "Many of the lawsuits are directed against financial institutions that benefited from Mr. Taneja's activities, ultimately to the detriment of many others."

Mr. Gold is the Chair of the Bankruptcy & Financial Restructuring Practice of the Washington, DC-based law firm Wiley Rein LLP. He is represented in these lawsuits by his court-approved Special Counsel, Whiteford Taylor & Preston, LLP and Campbell Flannery, PC.

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H. Jason Gold

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Contact: H. Jason Gold, ([email protected]; 202.719.4136)

SOURCE Wiley Rein LLP