Prison Justice
Consumer accuses Willkie of conspiring to commit $735M fraud scheme
A Willkie Farr & Gallagher shopper has accused the legislation agency of aiding and abetting a $735 million fraud scheme associated to a take-private deal for one more one in every of its shoppers. (Photograph from Shutterstock)
A Willkie Farr & Gallagher shopper has accused the legislation agency of aiding and abetting a $735 million fraud scheme associated to a take-private deal for one more one in every of its shoppers.
In a complaint filed in New York state courtroom Tuesday, BRC Group Holdings mentioned Willkie allegedly helped former Franchise Group Inc. CEO Brian Kahn disguise federal investigations into earlier fraudulent conduct whereas helping with a take-private deal that concerned each shoppers.
In keeping with Law.com, BRC Group Holdings additionally alleged that Willkie and Kahn labored collectively to cover essential info and transfer the deal ahead, which brought about BRC Group Holdings to lose $735 million and Franchise Group to go bankrupt in 2024.
On the time of the deal, Kahn was underneath energetic investigation by the U.S. Division of Justice for committing fraud in opposition to one other now-defunct firm, Prophecy Asset Administration, and had substantial money owed associated to a settlement settlement, the criticism says.
Regulation.com reviews that Kahn pled responsible to conspiring to commit securities fraud in opposition to Prophecy Asset Administration in federal courtroom in December.
“Willkie’s misconduct is especially egregious,” in line with the criticism. “Whereas concurrently representing BRC as litigation counsel, Willkie ready transaction paperwork for Kahn containing representations Willkie knew to be false, didn’t disclose materials conflicts of curiosity, and actively assisted Kahn in acquiring consents from the Prophecy settlement belief—all whereas remaining silent about these info to its shopper BRC.”
In an e mail to Regulation.com, a Willkie consultant mentioned “the info will clarify that our agency acted appropriately and with integrity always, according to our values and all moral obligations.”
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