Much Shelist $13M Settlement Paves Way for Receiver’s Suit Against Insurer
Chicago law firm Much Shelist Denenberg Ament & Rubenstein has authorized a receiver to pursue claims of up to $13 million against its malpractice insurers.
The law firm does not admit wrongdoing or liability in the proposed settlement with the receiver for WexTrust Capital, the Virginian-Pilot reports. The receiver had found that Much Shelist did not live up to its professional obligations when it advised WexTrust on securities requirements, the story says.
The receiver was appointed to safeguard assets after the Securities and Exchange Commission sued WexTrust Capital, claiming it was operating as a Ponzi scheme that targeted the Orthodox Jewish community.
Under the proposed agreement (PDF), Much Shelist agrees to pay $13 million to settle the receiver’s claims, provided that the receiver pursues the money through an assignment of rights to collect from the law firm’s insurers.
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