DSI'S Role

Post-Confirmation Trustee and Financial Advisor to Trustee

Services Provided

  • Claims Analysis and Distribution
  • Forensic Accounting
  • Fraud Investigation
  • Litigation Support


Case Highlights

  • Conducted forensic analysis and fraud investigation
  • Provided support in litigation against former insiders and others

Case Narrative

DSI was retained as the Trustee of the Liquidating Trust for USA Commercial Mortgage and related companies. USACM was a Nevada mortgage broker and loan servicer that defrauded direct lenders, typically individuals, to the mortgages it serviced and had just under $1 billion in loans outstanding at the time of its bankruptcy. DSI assisted counsel investigating the extent of the fraud and transactions perpetrated by the company’s principals, one of whom has pled guilty to wire fraud and is now serving time in federal prison. The investigation encompassed more than six years of transactions in which direct lenders were assured receipt of monthly interest payments despite the default by many borrowers whose loans were originated and serviced by USACM and, in other instances, principal repayments were withheld by USACM and used for other purposes, including insider investments. The trust commenced litigation against, among others, accounting firms that audited USACM’s financial statements, other professional firms and recipients of fraudulent transfers. Recoveries to date total upwards of $50 million over the initial assets transferred to the trust.