Trustee Files Complaint Against Three Large Banks Seeking Over $40 Million In Damages

FOR IMMEDIATE RELEASE
For Information Contact: Laise Lowachee
305-913-6678

TRUSTEE FILES COMPLAINT AGAINST THREE LARGE BANKS SEEKING OVER $40 MILLION IN DAMAGES

JANUARY 29, 2014 – On January 27, Robert F. Elgidely, of Genovese Joblove & Battista, P.A, filed suit on behalf of Angela Welch, the Chapter 7 Trustee of the bankruptcy estate of Frank M. Mongelluzzi, against Synovus Bank, Regions Bank, and Highlands Union Bank.

The suits allege that Mr. Mongelluzzi and others perpetrated a massive check kiting scheme in the period 2007 through 2010 and when the scheme collapsed in the Summer of 2010, the banks utilized their knowledge of Mr. Mongelluzzi’s insolvency and superior bargaining position to recover substantial funds while other less knowledgeable and favorably positioned creditors were left out in the cold.

According to Mr. Elgidely, “Ms. Welch is simply trying to recover funds which should have been available to all creditors at the time they were transferred to the defendants so that those funds can be equitably distributed to all creditors pursuant to the priority provisions of the Bankruptcy Code. Banks are not immune from these types of suits and, like individuals, should be held accountable for the receipt of transfers from debtors they know are in financial distress.”

The complaints have been filed in the United States District Court for the Middle District of Florida, Tampa Division, and collectively seek damages in excess of $40 million. Please see attached complaints for additional information.