K&L Gates Secures Victory for Creditors in Bankruptcy Trial

Global law firm K&L Gates LLP represented the Official Committee of Unsecured Creditors through trial in a bankruptcy case brought against iCap, a real estate investment firm.

A judge who oversaw the trial in the US Bankruptcy Court for the Eastern District of Washington found that iCap operated as a Ponzi scheme, using investors’ money to repay other investors rather than relying on profits from the real estate development projects its leaders promised. This decision sets the stage for potential future lawsuits and could help investors seek a tax deduction for the money they invested.

The K&L Gates trial team was led by Seattle partner John T. Bender with support from Seattle associates Michael Meredith and Clara Virden.

“Judge Holt issued a monumentally important decision, based on overwhelming evidence that iCap operated as a Ponzi scheme. But our work on behalf of iCap’s victims is not finished. My team and I are devoted to identifying and recovering iCap’s stolen funds and returning every cent we can to their rightful owners,” said Bender.

With lawyers in Asia, Australia, Europe, the Middle East, North America, and South America, K&L Gates’ Litigation and Dispute Resolution practice is uniquely positioned to assist clients in resolving their disputes at the local, national, and international levels. The firm’s litigators are some of the foremost practitioners in their field, with many ranked nationally and internationally and including fellows of the American College of Trial Lawyers, the American Law Institute, and the International Academy of Trial Lawyers, among others.