Gregory S. Schwegmann
Greg Schwegmann is a partner at Reid Collins & Tsai. Greg regularly appears in federal and state courts and arbitrations across the country representing clients in high-stakes, complex commercial litigations, in cases involving financial fraud, securities matters, professional/fiduciary liability, and cross-border financial litigation. His clients include bankruptcy trustees, foreign liquidators, federal receivers, distressed corporations, and investors, among others.
Greg led the team that won a landmark victory in the Seventh Circuit concerning the scope of section 546(e) of the Bankruptcy Code. The case is currently pending before the United States Supreme Court. Greg wrote an article (available here) on the Seventh Circuit’s decision that was published in the ABI Journal.
Greg received his J.D. from New York University School of Law and his B.A. in Mathematics and Philosophy from the University of Texas at Austin where he graduated with honors from the College of Liberal Arts and with special distinction in Philosophy. Between undergrad and law school, Greg served as a Peace Corps Volunteer for two years in Tanzania, East Africa.
Greg is also a member of the National Association of Federal Equity Receivers, the National Association of Bankruptcy Trustees, the American Bankruptcy Institute, and INSOL International.
- Lead counsel to the litigation trustee for a bankrupt racetrack and casino development company pursuing the recovery of tens of millions of dollars in fraudulent transfers to multiple entities. In pursuing these actions, Greg won a landmark victory in the Seventh Circuit Court of Appeals on the scope of the §546(e) safe harbor, which is currently on appeal to the Supreme Court of the United States.
- Representation of Bankruptcy Trustee and Trustee of a Private Actions Trust pursuing the claims of over 400 victims of a Ponzi scheme against a national life insurance company for securities fraud and the negligent employment of the agents that perpetrated the scheme for over a decade.
- Representation of the Official Committee of Unsecured Creditors of Fresh & Easy, a large grocery company, in pursuing claims against its former insiders—including billionaire Ronald Burkle—for breach of fiduciary duty and fraudulent transfer of certain assets. The claims were settled for a $21.5 million cash payment and the release of $104 million of insider claims against the estate, thereby doubling the projected distributions to creditors.
- Representation of the new management of a so-called “Chinese reverse merger company” that ceased operations in 2012 after fraud and theft by prior management were discovered. This public company asserted multi-million dollar legal malpractice claims against its former outside counsel, which represented the company from the time it began trading in the U.S. until a new board of directors took control of the company. The case resulted in a confidential settlement. Greg has also obtained several hundred million dollars in judgements against the Company’s former management and is continuing to pursue claims against a former director.
- Representation of the SEC Receiver appointed to recover assets in connection with the second-largest Ponzi scheme in Minnesota history in a $47.5 million fraudulent transfer claim against a futures commission merchant.
- Representation of the Chapter 7 Trustee of the Agape estate in fraudulent transfer litigation against six futures commission merchants. The former principal of Agape operated a Ponzi scheme in Long Island, where he raised money from investors for the ostensible purpose of making short-term real estate loans, but in reality, he used approximately $80 million of investor money to open futures trading accounts with various Chicago firms. Settlements to date total more than $17M.
- Representation of a Litigation Trustee pursuing fraudulent transfer and breach of fiduciary duty claims against the former officers and directors, and other professionals of a failed global marketing company. The representation has resulted in several confidential settlements.