Following a combat over handing again funds fraudulently obtained through MOBE, the Receiver has found new potential clawback claims in opposition to Synovus Financial institution and QualPay.
Discuss kicking an personal purpose…
As processors connected to MOBE, Synovus Financial institution and QualPay dealt with $6.3 million in fraudulently obtained funds.
Greed noticed each corporations refuse to return the cash as per the granted MOBE TRO.
This resulted in each events searching for exemptions from the TRO, which had been promptly denied.
Consequently Synovus Financial institution turned over the $6.3 million to the Receivership.
Shortly after that although, each events filed an attraction in opposition to the court docket’s earlier choice in an appellate court docket.
After the MOBE Receivership
demonstrated that the appellate court docket lacked jurisdiction over the matter, and Qualpay and Synovus voluntarily dismissed their appeals.
That ought to have been the top of it… besides that over the course of litigating whether or not Synovus Financial institution and QualPay must be allowed to maintain fraudulently obtained funds, the Receiver ‘turned conscious of (new) potential claims‘.
These potential claims are nonetheless being investigated, however that hasn’t stopped Synovus Financial institution from responding… properly, the way you’d count on a financial institution to reply.
The MOBE Receiver, Mark J. Bennet, is a training lawyer with Akerman LLP.
On December thirty first, 2018, Synovus Financial institution
merged with a smaller financial institution that on the time was represented by Akerman in unrelated actual property transactions.
For the reason that merger Akerman has continued to characterize Synovus Financial institution in the identical capability they represented the smaller financial institution.
Synovus Financial institution’s attorneys have knowledgeable the Receiver that his legislation agency representing them in unrelated actual property issues, one way or the other poses a battle of curiosity relating to his MOBE Receivership duties.
Synovus Financial institution subsequently demanded Akerman withdraw from representing the MOBE Receivership in clawback litigation.
In response, Akerman withdrew and the MOBE Receivership engaged the legislation agency Wiand Guerra King as a replacement.
That evidently wasn’t ok for Synovus Financial institution, who insisted the Receiver himself, as an Akerman lawyer, should withdraw.
The Receiver disagrees with Synovus and doesn’t imagine a authorized battle exists as a result of Akerman will not be dealing with authorized work in reference to the receivership property’s potential claims in opposition to Qualpay and Synovus.
If the Receiver pressed ahead with submitting any new claims in opposition to Synovus, the financial institution threatened to file a disqualification movement in opposition to the Receiver.
Keep in mind that is throughout potential clawback of extra funds Synovus Financial institution obtained, which is able to in the end be returned to victims of MOBE’s fraudulent enterprise operations.
What a swell bunch of dick attorneys Synovus Financial institution has working for them…
The MOBE Receiver contended arguing with Synovus Financial institution any additional, would solely lead to misplaced ‘time and sources that in any other case can be obtainable to customers‘.
On Could twenty second the Receiver filed a movement requesting Burton Wiand of Wiand Guerra King be appointed Particular Receiver to deal with Synovus Financial institution clawback litigation.
The movement was granted on Could twenty third.
Can’t wait to listen to how far more illegally obtained funds Synovus Financial institution must return. Keep tuned…
Replace 2nd June 2020 – QualPay’s marketing campaign has come to an finish following a suspended $46.7 million settlement with the FTC.