The Coalition for Lending Reform to Raise Awareness of Lending Fraud and Mortgage Securities Schemes
Attorneys allege investors in Parkcentral Global Hub were defrauded, misled as part of mortgage securities scheme. Fineberg Gresham and Coughlin Stoia have been appointed co-lead counsels on the case.
Dallas, TX (Advertiser Talk) 30-Jan-2010 — Homeowners are not the only victim of the sub-prime debacle. An increasing number of investors have seen their investments literally disappear as money fund managers took aggressive positions in mortgage backed securities. The value of the underlying mortgage backed securities plummeted as a result of the initial wave of defaults caused primarily by the abandoning of loan underwriting standards in 2005 and 2006 sub-prime mortgage financing. The initial damage was largely limited to the lowest and “mezzanine” credit levels in residential mortgage securities. By the summer of 2007, the damage to the residential mortgage markets was so great that even the highest rated residential mortgage securities were impaired. The Coalition for Lending Reform took note of the recent lawsuit against the Perot Family Trust as a core issue investors need to be aware of.
After losing 100% of its investment, Southern Avenue Partners, a Dallas-based investment partnership, filed a class action lawsuit (case 3:09-cv-00765-M) against the Perot Family Trust and other business entities owned and controlled by the family of Dallas billionaire, H. Ross Perot, on behalf of a group of investors in Parkcentral Global Hub, a hedge fund that was allegedly managed and controlled by the Perot Family Trust and other-related entities. The lawsuit was filed in the United States District Court for the Northern District of Texas, Dallas Division, and alleges that the investors lost $2.5 billion as the result of the defendants’ breach of fiduciary duties and cover-ups. The lawsuit alleges that if the defendants had not breached their fiduciary duty, prudently invested, accurately reported the risk, and had adequate liquid reserves, then the investors would not have lost 100% of their investment.
After the case was filed, the Court entered an order appointing securities and investment fraud attorneys Joel Fineberg and Dean Gresham, of Fineberg Gresham, and James Jaconette, of Coughlin Stoia, as co-lead class counsel. They will be responsible for prosecuting the case on behalf of the class of investors.