The Fifth through Seventh Claims are for breach of fiduciary duty and are not the subject of these dismissal motions.
The first four are premised on actual and constructive fraud pursuant to New York Debtor and Creditor Law ("DCL") §§ 270-281 and §§ 544(b) and 550(a) of the Bankruptcy Code. The Complaint contains thirteen claims for relief. Central to the Trustee's theory are: 1) the "Stock Purchase" and "Non-Compete" Agreements (the "SP" and "NCP Agreements," respectively) and the payments made to Belfort pursuant thereto (the "SP" and "NCP Payments"), and 2) the payment of excessive salaries and bonuses *306 to Porush (the "S & B Payments"), all of which either rendered Stratton insolvent or occurred while Stratton was already insolvent. The gravamen of the Trustee's Complaint is a fraudulent scheme principally orchestrated by Belfort and Porush, with the help of their wives and Belfort's father, to strip Stratton and its creditors of whatever assets and income stream Stratton had to offer. The Trustee commenced an adversary proceeding on May 13, 1998, against Daniel Porush and his wife, Nancy (collectively the "Porushes") Jordan Belfort ("Belfort") and his wife, Nadine (collectively the "Belforts") Belfort's father, Maxwell Belfort ("Maxwell") JRB Group, Inc. In accordance with the statutory mandate, this SIPA proceeding is being conducted, to the extent not inconsistent with SIPA, as a liquidation proceeding under Chapters 1, 3, 5 and Subchapters I and II of Chapter 7 of the Bankruptcy Code. as the liquidation trustee (the "Trustee") pursuant to the Securities Investors Protection Act of 1970 ("SIPA") and removed the liquidation proceeding ("SIPA Proceeding") to this court. Upon application of the Securities Investor Protection Corporation ("SIPC"), the District Court for the Southern District of New York stayed the Chapter 11 proceedings, appointed Harvey R.
#Pierce the veil concert pictures 1280 x 720 code#
("Stratton") filed a petition for reorganization pursuant to Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code"). On January 24, 1998, (the "commencement date") Stratton Oakmont, Inc. The facts are drawn, as they must be on a motion of this sort, from the allegations of the complaint. 12(b)(6), both made applicable to this adversary proceeding by Federal Rule of Bankruptcy Procedure ("F.R.B.P.") 70, respectively. The defendants in this adversary proceeding move to dismiss certain of the claims asserted against them for failure to plead fraud with particularity pursuant to Federal Rule of Civil Procedure ("F.R.C.P.") 9(b) and failure to state a claim upon which relief can be granted pursuant to F.R.C.P. Weston, for Jordan Belfort and JRB Group, Inc.
Weston, Great Neck, New York, by Burton S. Porush.īodian & Eames, L.L.P., New York City, by Robert I. Phillips, Lytle, Hitchcock, Blaine & Huber, L.L.P., New York City, by Leon C. Kelleher III, for defendant Nadine Belfort. Murray & McCann, Rockville Centre, New York, by Joseph D. Ormsten, for defendant Maxwell Belfort.Īndrews & Kurth, L.L.P., New York City, by Lynne M. Ormsten & Evangelist, Jericho, New York, by Franklin D.
Miller, as Trustee for Stratton Oakmont, Inc. Miller, Esq., As Trustee For The Liquidation of Stratton Oakmont, Inc., Plaintiff,ĭaniel Porush, Nancy Porush, Jordan Belfort, Nadine Belfort a/k/a Caridi, JRB Group, Inc., RMS Network, Inc., and Maxwell Belfort, Defendants. 293(1999) SECURITIES INVESTOR PROTECTION CORPORATION, Plaintiff,
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