DSI'S Role

Chapter 11 Trustee and Chapter 7 Trustee

Services Provided

  • Litigation Support
  • Fraud Investigation
  • Fraudulent Conveyance
  • Forensic Accounting
  • Preference Analysis


Case Highlights

  • Investigated allegations of fraud against debtor and insiders
  • Managed significant claims and litigation
  • Managed Chapter 11 and Chapter 7 estates

Case Narrative

National Gold Exchange, Inc., a wholesale seller of rare and foreign coins, filed for Chapter 11 bankruptcy protection after a dispute with its primary secured lender over the status of loan collateral, business practices and allegations of fraud and mismanagement.  DSI was appointed as Chapter 11 Trustee and attempted to negotiate a consensual plan of reorganization among the debtor, its primary secured lender and various creditor parties.  After these negotiations broke down, the Trustee recommended that the court convert the case to one under Chapter 7 and our service as Trustee continued. During the Chapter 7 case, the Trustee and DSI conducted a forensic investigation of the allegations of fraud against the debtor and its insiders, pursued causes of action to recover preference and avoidance claims, and brought litigation claims against various parties.