DGDK Building

Attorney Details

Attorney Details

Kathy Bazoian Phelps A.P.C. – Partner

Ms. Phelps represents trustees and receivers, debtors, secured and unsecured creditors, and creditors' committees in bankruptcy cases and has extensive litigation experience representing both plaintiffs and defendants in a wide variety of bankruptcy litigation matters. She frequently represents operating and liquidating trustees and receivers in the United States District Court, the United States Bankruptcy Court and the Superior Court of the State of California. She is recognized by peers for her ability to trace and recover funds in large-scale complex cases and for her familiarity with all issues arising in Ponzi scheme cases. She has developed a specialty in representing bankruptcy trustees and receivers in litigation involving fraudulent activities and has been lead counsel in large-scale litigation involving recovery of assets in Ponzi scheme cases. She has just completed a new book entitled The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes (published by LexisNexis 2012), co-authored with Hon. Steven Rhodes, United States Bankruptcy Judge for the Eastern District of Michigan. Additionally, Ms. Phelps has lectured widely and written on bankruptcy and receivership matters.

Publications

Events

Sample Cases

  • Counsel for federal equity receiver in SEC action of Diversified Lending Group, Inc. and Applied Equities, Inc. Ms. Phelps is serving as lead counsel in this large Ponzi scheme, supervising the winding down of the business, the reconstruction of missing and incomplete records, the analysis and tracing of investor funds, the liquidation and recovery on various investments made by the debtor, and the prosecution of litigation to recovery funds for the benefit of the investors and creditors.
  • Counsel for state court appointed receiver of Unicorp Beef, Inc. Ms. Phelps is serving as lead counsel for the receiver in this litigation matter, reconstructing missing records and tracing over $9 million of funds removed by the defendant prior to the receivers appointment.
  • Counsel for Chapter 11 trustee, and thereafter successor chapter 7 trustee, in bankruptcy case of Persistence Capital, LLC. Ms. Phelps is serving as lead counsel in this Ponzi scheme case where the debtor sold a fictitious investment product related to pools of life insurance policies. She has assisted the trustee in sorting out the documentation, tracing the funds and pursuing litigation to recover funds in the case. The principals of this debtor, Curtis Somoza and Robert Coberly, Jr. were both indicted, and Mr. Somoza was recently sentenced to 25 years in prison while Mr. Coberly still awaits sentencing.
  • Counsel for Chapter 11 trustee and thereafter the successor chapter 7 trustee, in the bankruptcy case of Eonxchange, LLC. Ms. Phelps was lead counsel in this case and assisted the trustee in investigating the fraudulent Ponzi-like activity of the debtor related to an emission credit trading program through the SCAQMD. Substantial funds were recovered for the benefit of the creditors and the principal of the debtor, Anne Sholtz, was ultimately convicted.
  • Counsel for chapter 11 and chapter 7 trustees in a multitude of bankruptcy cases, handling both the operation and winding down of various businesses, the tracing of funds, selling of real estate, and prosecution of fraudulent conveyance and preference litigation, among countless administrative issues arising in those cases.
  • Counsel for post-confirmation liquidation trustees, most recently in Cello Studios, Inc., where she supervised post-confirmation litigation and settlement after confirmation of a plan of reorganization.