RECENT SUCCESSES AND NEWS
Seiden Law Group LLP has been appointed as US counsel to Trustee Adv. Lior Dagan, the court-appointed Trustee in an Israeli insolvency proceeding against Michael Ben-Ari aka Michael David Greenfield ("Greenfield"). Mr. Dagan was appointed by the Israeli courts to lead the global efforts to recover the monies allegedly stolen by Greenfield. Greenfield, who has recently been dubbed by Israeli media as "the Israeli Madoff," is under criminal investigation by the Israeli Securities Authority following an alleged 15-year long Ponzi scheme in which Greenfield, through his investment vehicle EGFE Israel Ltd., ensnared hundreds of American and Israeli victims and caused losses that may exceed $150 million.
As counsel to Mr. Dagan, Seiden Law Group has filed a Chapter 15 case in US Bankruptcy Court in Manhattan, seeking recognition of the Israeli insolvency proceeding in the US. According to the Chapter 15 filing, Greenfield moved to Israel from the U.S. thirty years ago and began to solicit investment money in Israel from investors in a "guaranteed" return investment scheme. The Chapter 15 filing explains that after being released under house arrest in Israel, Greenfield immediately absconded, reportedly using a false passport, and has concealed his current whereabouts. The case has been referred to the FBI's New York office.
On August 6, 2021, Bankruptcy Judge Hon. Shelley Chapman granted a powerful court order granting broad powers to Mr. Dagan, to recover assets in the United States that are identified as fruits of the alleged criminal enterprise. Seiden Law Group now moves forward with Mr. Dagan to identify and recover stolen funds, using the full powers provided by the U.S. courts.
Seiden Law Group represents the Libra Group Inc., a U.S.-based conglomerate conducting international business in over 35 countries, worldwide. Seiden Law Group has been leading the Libra Group's efforts in seeking justice against a former employee that swindled half a billion dollars from the company. The massive scam has spanned Europe, Hong Kong and New York, being brought in multiple courts around the world. The case has been reported on by Business Insurance in the U.S. and Greek Reporter in Greece.
Millions of life-saving masks that were intended for Puget Sound Veterans Hospital during the peak of the COVID pandemic in late 2020, never arrived. A Middle Eastern citizen operating via a Canadian and Middle Eastern company settled a claim this week brough by Seiden Law Group LLP on behalf of Oklahoma-based Asset Group Inc. for the alleged theft of millions of dollars. The defendant had taken tens of millions of dollars from Asset Group and a publicly-traded company as part of a multi-jurisdictional PPE fraud. A search of the defendant’s home by law enforcement found a hidden safe with diamonds and hundreds of thousands in cash. The defendant was arrested at the airport as he was attempting to flee Israel in April and charged with fraud, tax offenses, and money laundering. Asset Group and other victims filed claims against the defendant and after months of continued pressure in court and via law enforcement the defendant agreed to settle the claims leading to Asset Group recovering nearly all the money that was stolen.
Hong Liu v. Faraday & Future Inc. et al.
U.S. District Court for the Central District of California
Case number 2:20-cv-08035
Seiden Law Group LLP is pleased to announce a successful outcome in its representation of Henry Liu after a hard-fought litigation. The positive result came within weeks of trial thanks to Seiden Law Group’s tenacious and creative lawyering.
Plaintiff Henry Liu had made claims of breach of contract, violation of the Securities Exchange Act of 1934, wrongful termination and intentional infliction of emotional distress against his former employer, Faraday & Future, an electric vehicle company set to go public via a SPAC merger later this month.
Access America Fund, LP et al. v. Oriental Dragon Corporation f/k/a Emerald Acquisition Corporation
The Supreme Court of the State of New York
Case No. 652110/2016
In August 2018, Robert Seiden was appointed as receiver over Oriental Dragon Corporation Inc. (“ODC”) in the Supreme Court of the State of New York to enforce a judgment against the company. Despite the distressed state of the company in China, Mr. Seiden obtained a $3 million settlement with the company, resulting in a significant recovery of funds for the client.
Pala Assets Holdings Ltd., et al. v. Rolta, LLC, et al.
The Supreme Court of the State of New York
Index No. 652798/2018
Robert Seiden as Receiver appointed by the Delaware Chancery Court in the matter of Trustify Inc. helped bring case to justice. Danny Boyce, the former CEO of Trustify was indicted for mail and securities fraud by the US Department of Justice and arrested by the FBI on July 24, 2020. Seiden Law Group gathered evidence and investigated Boyce and Trustify since the receivership commenced on April 18, 2019.
According to the Department of Justice, "Daniel Boice, 41, of Alexandria, Virginia, was charged with five counts of wire fraud, one count of securities fraud, and two counts of money laundering.
The indictment alleges that, beginning in 2015, Boice fraudulently solicited investments in Trustify, a privately-held technology start-up company that connected customers with private investigators. Boice allegedly raised approximately $18.5 million from over 90 investors by, among other things, falsely overstating Trustify’s financial performance. The indictment also alleges that Boice made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit."
Convergen Energy LLC et al v. Brooks et al
United States District Court, Southern District of New York
2020 WL 4038353
Case No. 1:20-cv-3746-LJL
On July 17, 2020, the Honorable Judge Lewis J. Liman ruled in favor of Seiden Law Group clients, Libra Group and Convergen Energy LLC, granting Plaintiffs' motion for alternative service on the international defendants named in the case.
The Hon. Judge Liman considered the exigent circumstances provided by the current global pandemic and recognized the plaintiff's efforts to effect service via the proper international channels and the significant delay in procedure that would result. After reviewing these facts, the Court ruled to "exercise its discretion to order service pursuant to Rule 4(f)(3)" and granted the Plaintiffs' motion for alternative service on the international defendants located in Spain.
Author Michael Rapaport writes article in Institutional Investor about Chinese Companies defrauding U.S. investors and how Seiden Law Group LLP's managing partner, Robert Seiden, has provided a way to recover investor funds by recovering company assets via the U.S. courts.
Working with a team hand selected by Seiden Law Group, we successfully achieved the removal of sanctions against General Israel Ziv, an Israeli war hero (and his companies). General Ziv worked for years building farms in South Sudan to feed a malnourished population. His removal in less than one year was a remarkable achievement and we thank the members of the legal team and the United States government for their efforts.
Details here: OFAC REMOVAL
- European Sanctions, OFAC Lifts Sanctions on Israeli General
- The Jerusalem Post, US Treasury Department Lifts Sanctions Against Former IDF General
We are thankful to General Ziv for his trust in us and appreciate his gracious letter below:
Convergen Energy WI LLC v. L'Anse Warden Electric Company LLC
United States District Court, Western District of Wisconsin
2020 WL 3833075
Case No. 3:20-cv-00543-wmc
On July 20, 2020, the Honorable Judge William M. Conley ruled in favor of Seiden Law Group client, Libra Group and L'Anse Warden Electric Company LLC, ruling to transfer the case to the Southern District of New York.
The Order states:
"Here, despite plaintiff’s assertions to the contrary, this case is inextricably tied to the pending New York action. . .
Of course, the Eastern District of Wisconsin action was filed hours before the New York suit, albeit originally in state court. Like this case, however, the Eastern District lawsuit does not include the entire range of issues before it, and plaintiff has now intentionally carved out any issue related to enforceability of the Supply Agreement. Moreover, in merely seeking a declaratory judgment as to the enforceability of the other acquisition documents, plaintiffs in that suit essentially acknowledge that they are not “the natural plaintiffs.” See Allendale Mut. Ins. Co. v. Bull Data Sys., Inc., 10 F.3d 425, 431 (7th Cir. 1993) (“[A] suit for declaratory judgment aimed solely at wresting the choice of forum from the ‘natural’ plaintiff will normally be dismissed and the case allowed to proceed in the usual way.”)."
Markbreiter v. China Valves Technology, Inc.
Supreme Court of Nevada, Eighth Judicial District Court
Case No. A-16-746645-B
China Valves Technology (“CVVT”) is a leading developer, manufacturer and provider of flow management products and services throughout China. As the 2nd largest valve company in China with a billion plus market capital, CVVT supplies valves, actuators, forging and castings, valve locks etc. According to their website and through source inquiries, they appear to have employed ~2,4000 people in China and have more than 50 distributors in over 30 countries.
After listing on the US markets and rasing capital from US investors, the company went dark. Robert Seiden was then appointed as receiver for CVVT to enforce a judgement of about $240 million against CVVT by way of a share buyback order.
Subsequently, the Chairman Siping Fang, illegally transferred out the subsidiaries, which blocked the receiver from exercising control over them. The court granted the receiver’s request for a civil contempt against Fang which was followed by an order of criminal contempt.
See the following for more detail:
Kresimir Penavic et al. v. Omar Khan et al.
New York State Supreme Court, Case No. 0655058/2019
Seiden Law Group was selected by a large group of successful Americans to investigate and bring charges against a global wine industry player who, evidence showed, orchestarted a massive scheme to defraud them of millions of dollars. Seiden Law Group brought the evidence forward and was able to bring charges in the New York State Supreme Court against the main target and his co-conspirators. The complaint alleges fraud, misrepresentation, unjust enrichment and multiple other counts.
The case received wide international publicity, including:
Robert Seiden, Managing Partner of Seiden Law Group, was appointed as Receiver over Link Motion, Inc. pursuant to an order dated February 4, 2020 by the Grand Court of the Cayman Islands. Link Motion, Inc. is a Cayman Islands company with operations in China. This was the first-ever U.S. Receiver to be appointed over a Cayman Islands company. The order from the Cayman Court in the matter of Link Motion, Inc. has enormous significance to international businesses that use offshore vehicles to shield from liability and legal exposure.
Armed with this court order, the Receiver, Robert Seiden, a former prosecutor in Manhattan and the Receiver over 30 public companies, and his team of lawyers, investigators and professionals in the United States, Hong Kong and China are in the process of securing the company from plunder by the company chairman and his cronies, as alleged in the court papers.
See the court ruling here: Robert Seiden v. Link Motion Inc.: Ruling
Gentry T. Beach et al. v. Touradji Capital Management, LP, et al.
New York Supreme Court, Case No. 603611/2008
Seiden Law Group entered the case a few months befopre jury selection was scheduled and represented the plaintiffs, Gentry Beach and Robert Vollero, in their fight against their former employer who refused to pay them bonuses earaned based on their performance. The award exceeded all expectations when the jury returned a $46M verdict (with statutory interest the award totaled over $90M).
Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC and Lincoln Partners Advisors LLC
United States District Court, Southern District of New York
In re Platinum-Beechwood Litigation
Case No. 18-cv-6658 and Case No. 19-cv-7137
Seiden Law Group was hired by a large Pennsylvania health insurance provider called known as “SHIP” after they were the victim of a masssive loss due to the wrongdoing of several investment vehicles. Seiden Law Group filed a massive claim against Lincoln International who were supposed to be the valuation firm protecting SHIP. The case was filed against Lincoln International in U.S. Federal District Court in Manhattan seeking massive losses related to the Platinum and Beechwood hedge fund Ponzi scheme. Seiden Law Group overcame the motion to dismiss brought by Lincoln and their lawyers Skadden Arps.
Pope Investments, LLC v. Shengtai Pharmaceutical, Inc.
Delaware Chancery Court, Case No. 9122-ML
On April 3, 2014, Robert Seiden was appointed Receiver over a Shengtai Pharmaceutical, Inc., a US publicly-listed company with Hong Kong and China operations. Seiden was able to structure a deal with the company chairman that bought out shares of US investors at $1.65/share even though it was trading at $.12/share. The settlement was approved by the court and all parties and shareholders received the money totaling approximately $4m.
Baliga v. Link Motion, Inc.
United States District Court, Southern District of New York
Case No. 1:18-cv-11642
In February 2019, Robert Seiden was appointed by the Honorable Victor Marrero of the U.S. District Court Southern District of New York as the temporary Receiver over Link Motion Inc. (“LKM”) and granted a preliminary injunction restraining Link Motion from transferring any assets out of the Company without the Receiver's approval.
The lawsuit underlying the Receivership stems from a series of alleged misconduct by Link Motion's Chairman, Dr. Vincent Shi. The lawsuit was brought by an LKM shareholder, after information of the alleged wrongdoing was brought to light by former U.S. employee Matt Mathison. LKMForward, a significant group of shareholders, hired Seiden Law Group (formerly The Seiden Group) as its counsel to represent its case and to assist all shareholders in the ultimate recovery of Company assets.
For more information, see here.
Southpaw Credit Opportunity Master Fund LP v. Advanced Battery Technologies, Inc.
Delaware Chancery Court, Case No. 9542-ML
Robert Seiden of Seiden Law Group, was appointed Receiver over Advanced Battery Technologies, Inc. (“ABAT”) by the Delaware Chancery Court on July 23, 2015. ABAT was delisted from the NASDAQ in 2012 after evidence surfaced of misstated financials and the chairman stopped filing with the SEC leaving the shareholders in the dark. Through his actions as Court-Appointed Receiver, Seiden, along with his global law firm, Seiden Law Group, and a forensic asset recovery investigations company, Confidential Global Investigations, worked with his team of global agents in China, Hong Kong and the US to hold the chairman accountable, despite the fact that the company was taken over by the Chinese government and Chinese banks due to overwhelming debt. The settlement, which included a cash payment of $2 million, was approved by the Delaware Chancery court in 2017.
See here for more information on ABAT.
For the first time in China-US capital market history, the Receiver of Link Motion Inc (Ticker: LKM) has successfully pierced a Variable Interest Entity (VIE) company’s shareholding after prevailing in a China arbitration before the largest China arbitration panel (China International Economic and Trade Arbitration Commission). Robert Seiden, as the United States court-appointed Receiver and his Seiden Law Group legal team successfully overcame the legal contradictions arising out of VIE structures, and managed to achieve success in obtaining legal control over a PRC operating entity. The Receiver was appointed a little over a year ago by federal Judge Victor Marrero of the Southern District of New York . This victory sets an important precedent for US shareholders who have taken risks by investing in China companies, including Alibaba, Tencent and Baidu, which are all VIE structured Chinese business listed on the NASDAQ. In total, almost $1.3 trillion in market capitalization is linked to Chinese VIE’s listed outside the Chinese mainland, according to U.S. credit-ratings provider Standard & Poor’s Financial Services LLC.